MULTIFAMILY
Apartment Sector is an Attractive Acquisition in Today’s Market
Mark Cosenza, senior vice president of Inland Real Estate Acquisitions In 2017, I believe we will continue to see rental increases slow down, but the apartment market will continue to be competitive even with the interest rate move. The Inland Real Estate Group of Companies, Inc., headquartered in Oak Brook, Illinois, started as one of the largest owners and managers of apartments in the country. Today, The Inland Real Estate Group of Companies, Inc. is getting back to its roots and currently owns and manages more than 10,000 apartments across 13 states. Multifamily real estate is an appealing asset class. Millennials are waiting longer to purchase homes and tend to be more transient and willing to move for work, which makes renting attractive. At the same time, Baby Boomers are downsizing. Last year, Inland facilitated the purchases of 15 apartment complexes, for nearly $640 million. We purchased more than one multifamily property per month.
Inland’s criteria for purchasing multifamily real estate is summed up by Vice Chairman of The Inland Real Estate Group, Inc., Joe Cosenza, “I wouldn’t purchase anything I wouldn’t want to live in.” One of Inland’s recent multifamily acquisitions was a property located in Naples, Florida, complete with balconies for every unit, crown molding, stainless steel appliances, granite countertops, a pool and a work-out facility. Proximity to public transportation is another desirable criteria when looking to acquire apartment complexes as is demonstrated with Inland’s acquisition of Westlink at Oak Station in Colorado. Being close to downtowns and retail village-style centers are great assets to a property. We buy a lot of apartments so when we look for deals, we keep in mind that renters want to be close to work, recreational activities and transportation.
“In 2017, I believe we will continue to see rental increases slow down, but the apartment market will continue to be competitive even with the interest rate move.” — REALTOR® Mark Cosenza
About the writer: REALTOR® Alex Ruggieri, CCIM, CIPS, CRE, SEC, MBA, is a senior investment advisor with SVN-Ramshaw Real Estate in Champaign. He is currently serving on the Illinois REALTORS ® Global Working Group and the Commercial/Industrial/Investment Committee. He is also a member of NAR’s Insurance Committee and is a past member of the Commercial Committee. Ruggieri has been named a member of the 2017 editorial board for Real Estate Issues, a journal produced by The Counselors of Real Estate (www.cre.org). Members of the editorial board contribute to the content of peer-reviewed journal by recommending topics, working with authors and writing and reviewing articles. He can be reached at alex.ruggieri@svn.com
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