Issuu

MARKETPLACE (pg 16):

ASSET/PROPERTY MANAGEMENT FIRMS CONSTRUCTION COMPANIES/GENERAL CONTRACTORS DEVELOPERS ECONOMIC DEVELOPMENT CORPORATIONS FINANCE & INVESTMENT FIRMS MULTIFAMILY FINANCE FIRMS REAL ESTATE LAW FIRMS

Navigating challenges amidst shifting tides: A national economic outlook for 2024 By Mia Goulart, Senior Staff Writer

Photo by Nik Shuliahin for unsplash

t’s no secret that commercial real estate has faced tumultuous times following the pandemic, witnessing a nationwide decline in values and soaring vacancy rates, particularly in office spaces. However, a yearend report by financial services giant PwC, via a recent article by Fortune, signals a more optimistic outlook for the industry in 2024, driven by shifting trends in interest rates and investor sentiments.

Firstly, PwC expresses optimism, asserting that the worst of inflation might be behind us, potentially prompting the Federal Reserve to pause or even reverse its interest rate hikes. Anticipating this, PwC foresees a surge in commercial mortgage-backed securities (CMBS) availability and heightened investor interest in acquiring new properties, particularly that of affordable housing and digital infrastructure, such as data centers, expected to inject vitality into a real estate debt market that has been frozen due to plummeting property values and rising default rates.

Tim Bodner, PwC’s global real estate deals leader, noted to Fortune a perceptible change in the real estate debt market’s behavior that will aid a more favorable interest rate outlook, and increased issuance of CMBS in recent months, following a prolonged decline, is an early indicator of this thawing.

FINANCE (continued on page 12)

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PUBLISHER Mark Menzies menzies@rejournals.com VICE PRESIDENT OF SALES & MW CONFERENCE SERIES MANAGER Ernie Abood eabood@rejournals.com SENIOR STAFF WRITER Mia Goulart mia.goulart@rejournals.com VICE PRESIDENT OF SALES Frank E. Biondo frank.biondo@rejournals.com CLASSIFIED DIRECTOR Susan Mickey smickey@rejournals.com

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CHALLENGES AMIDST 1 NAVIGATING SHIFTING TIDES: A NATIONAL ECONOMIC OUTLOOK FOR 2024 A year-end report by

financial services giant PwC, via a recent article by Fortune, signals a more optimistic outlook for the industry in 2024, driven by shifting trends in interest rates and investor sentiments.

U.S. REAL ESTATE MARKET OUTLOOK 2024: FALLING INTEREST RATES SHOULD BOOST INVESTMENT ACTIVITY, ACCORDING TO CBRE As the curtain rises

on 2024, the landscape of commercial real estate is poised for growth as slowly falling interest rates are expected to boost investment activity.

THE PIVOTAL ROLE OF DESIGN AND SENIOR LIVING, WITH BAKER BARRIOS ARCHITECTS From building types to care

8 A NATIONAL INDUSTRIAL REPORT

The rise of electric vehicles is spurring the need for industrial space across the country.

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published its Annual Rent Report for 2023 which draws on the past year of data, knowledge of economic trends. All of this intel offers a comprehensive view of the last year and a look at what’s to come in 2024.

16 CRE MARKETPLACE

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offerings, senior living presents a wide array of choices, reflecting its diverse landscape. .

CHRIS WOOD Cushman & Wakefield The Illinois Real Estate Journal is published bi-monthly by Real Estate Publishing corp.© 2023 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher. Phone: 312.933.8559

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U.S. real estate market outlook 2024: Falling interest rates should boost investment activity, according to CBRE By Mia Goulart, Senior Staff Writer Photo by Tech Daily for unsplash

s the curtain rises on 2024, the landscape of commercial real estate is poised for growth as slowly falling interest rates are expected to boost investment activity. A new report by CBRE presents a multifaceted perspective, foretelling a year marked by both challenges and investment prospects across various sectors.

With office vacancy rates expected to peak at 19.8% in 2024, an increase from 18.4% in Q3 2023, the sector still faces a formidable challenge. Leasing activity might see a revival but is anticipated to remain notably below pre-pandemic levels, based on the report. The slowdown in office construction, potentially leading to a scarcity of available Class A spaces in the latter part of the year, is another indicator of the sector’s dynamics.

net absorption. That said, the pace of annual rent growth is forecasted to moderate, while initial rises in vacancy rates might be followed by a decline in the latter part of the year due to reduced new construction. The projected increase in U.S. industrial production over the next five years serves as a positive indicator for this segment’s demand.

The forecast indicates that property pricing might hit its lowest point in the first half of the year, thereby potentially presenting lucrative buying opportunities. However, the anticipated decline in investment volumes—projected to decrease by 5%—reflects a cautious market sentiment. Moreover, the conservative stance of banks on lending throughout the year adds another layer of complexity to the investment landscape.

Retail

Office

The industrial and logistics sector is expected to maintain robust momentum in the coming year, mirroring 2023 levels of

Despite a significant wave of new supply—approximately 900,000 units under construction—the projected growth rate for rents remains below the historical average at 1.2%. Vacancy is expected to to surpass pre-pandemic levels, yet steady demand might uphold the average occupancy rate above 94%. Construction starts will decline in 2024 to 70% below the 2022 peak. Additionally, CBRE reported that multifamily continues to grapple with the ongoing debate between buying and renting, the former remaining notably more expensive.

Capital markets

A historical dearth of new retail construction is anticipated to contribute to a decline in availability rates. But despite this constraint, luxury retailers are eyeing expansion opportunities in markets like resort areas and underserved major metros like Dallas and Houston. Industrial

Multifamily

Hotels The projected economic slowdown could constrain the growth in Revenue per Available Room (RevPAR) to a modest 3% in 2024, but the performance across hotel categories is expected to be divergent, with urban and airport hotels predicted to fare better than resorts. As in previous slowdowns, upper-midscale hotels might benefit from travelers trading down from pricier options, based on the report. Data centers Continued demand outpacing supply might drive up pricing in the data center segment by 10 to 15% in 2024. Construction activity is in major markets will exceed 3,000 MW in 2024, compared to CBRE’s 2023 estimate of 2,500 MW. Markets like Austin, San Antonio, and Omaha are poised to attract significant growth due to factors like land availability, power infrastructure development, and tax incentives. Read the full report at CBRE.com.

I L L I N O I S R E A L E S TAT E J O U R NA L D E C E M B E R 2 0 2 3

The pivotal role of design and senior living, with Baker Barrios Architects By Mia Goulart, Senior Staff Writer

rom building types to care offerings, senior living presents a wide array of choices, reflecting its diverse landscape. Yet, among this diversity, a unified focus emerges: the importance of design. In a recent conversation with Johnny Dagher of Baker Barrios Architects, we emphasized the importance of design across all facets of the sector. Illinois Real Estate Journal: How does your firm prioritize architectural elements to meet the evolving needs of seniors in independent living, assisted living, and memory care within their housing designs? Johnny Dagher: Understanding the end user has a huge impact on the architectural design and the spaces we create for those residents. Recognizing that the needs of seniors will evolve over time, we incorporate adaptability and flexibility into our designs. All the kitchens and bathrooms we design have the same level of finishes one expects at a modern multi-family

erational gathering spaces -- such as cafes located in visiting areas. Biophilic design continues to be important to support the health and wellness of residents, along with more sensory-rich spaces and stimulating environments for memory care patients. Illinois Real Estate Journal: How does your firm approach the balance between functionality and aesthetics in the design or renovation of senior housing properties? Photo by Claudia Love-for unsplash apartment, while being easily converted to a full ADA compliant space. This ensures that the built environment remains functional throughout different stages of residents’ lives. Illinois Real Estate Journal: Can you highlight any specific innovative design

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solutions or architectural trends being integrated into new senior housing projects or renovations to enhance residents’ quality of life and well-being? Dagher: We’re seeing tech integration like never before (key fobs, Wi-Fi, personal iPads), along with much more inter-gen-

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Dagher: I’d like to think that we recognize that achieving harmony between functionality and aesthetics is crucial to creating environments that not only meet the practical needs of seniors but also enhance their overall quality of life. Our interior designers strive to provide an atmosphere that feels like home rather than an institution. This means creating spaces that are warm and inviting, and that promote a sense of belonging and familiarity.

SINCE 1973

D E C E M B E R 2 0 2 3 I L L I N O I S R E A L E S TAT E J O U R NA L Illinois Real Estate Journal: How does the architectural design of a senior housing facility impact the experience for residents and staff, and are there any specific strategies your firm uses to promote community and social engagement among residents? Dagher: Architecture and interior design can change and even dictate behaviors. For example, a simple seating layout can impact the level of conversation and interactions that take place within a space or a senior living community. Designing while constantly thinking about how the end user will experience a space is crucial to the success of the communities we design. As for the staff (nurses, caregivers and administrative personnel), they play a pivotal role in how successful a facility functions and operates. With the level of turnover that has been seen in this industry over the last few years, it is vital that the facilities we design have their best interest in mind. That’s why you’ll see many of the high-level finishes in residents’ kitchens and bathrooms extend to staff lounges and laundry rooms. Part of our design process includes meeting with the staff of recently completed facilities to get their take on how we can improve upon the current design.

“When assessing an existing building for adaptive reuse, the primary considerations are life safety, programming and volume.” Illinois Real Estate Journal: What steps does Baker Barrios take to integrate sustainability practices into the design or renovation of senior housing properties?

contractors being more open to greener local alternative finishes.

Dagher: While not every project we design is in pursuit of LEED certification, we strive to follow many of the same LEED principles when designing a new senior living community. Integrating natural lighting and focusing on indoor air quality have become “must-have” post-pandemic solutions. Specifying local products made from recyclable materials may have seemed once to be an unachievable choice, but supply and demand interruptions may have inadvertently resulted in clients and

“At Darwin PW, clients rely on our deep experience in the Commercial and Industrial real estate industry to accurately value their holdings, and much more.” For over 45 years, Darwin Realty has been a leader in industrial and commercial real estate. The company specializes in brokerage, property management, investment and development services primarily in the Midwest. Darwin’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our clients best.

Illinois Real Estate Journal: As the industry evolves, how do you foresee technology influencing the architectural design of senior housing, and are there any emerging tech-driven trends being incorporated into your design process? Dagher: Baker Barrios has been a leader in implementing virtual reality technologies in the design process for a few years. This allows clients to “walk through” their future building before it’s even built. We foresee more reliance on this technology, especially with the current advancements

Ed Wabick, SIOR Principal

in AI. I believe AI will also have a huge impact on the technologies available for seniors (fall detection and prevention, health monitoring, medication management, virtual companions, etc.). Illinois Real Estate Journal: When renovating existing senior housing properties, what are the primary architectural considerations to ensure the space meets modern standards while preserving its original character or functionality? Dagher: When assessing an existing building for adaptive reuse, the primary considerations are life safety, programming and volume (floor-to-ceiling clearance): 1. What will it take for the existing building to meet the current code requirements needed for the specific occupancy? Life safety is the most fundamental consideration when design any building. 2. Can we fit the program needed for by the client and operator to make sure the building will function as needed? 3. Openness is a fundamental concept of modern architecture. It allows for flexible solutions, high ceilings, natural lighting, etc. Finding architectural and structural solutions to create openness can have a huge impact on how successful a renovation is perceived.

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A national industrial report By Commercial Edge

The push for EV continues • The rise of electric vehicles is spurring the need for industrial space across the country. Millions of square feet of new industrial space will be needed not only for the manufacturing facilities where EVs are assembled but also for battery production and supplier networks. • Electric vehicle sales have grown rapidly in recent years, but 2023 has tempered expectations. Reporting indicates that car dealer inventories of EVs have swelled this year as affordability and consumer concerns about the availability of charging networks have led to slower-than-anticipated growth. Nonetheless, hybrid-electric vehicle sales were up more than 50% year-over-year in October and plugin vehicle sales were up 22%, according to data compiled by Argonne National Laboratory; more than 1.1 million electric vehicles have been sold in 2023 to date. • The ramp-up in EV production was caused by the Inflation Reduction Act,

which generated a rush of EV manufacturers building new facilities in the U.S. The IRA provides financial assistance to manufacturers as well as stipulating that tax credits may only be used on EVs manufactured in the United States. A so-called Battery Belt that extends from Michigan through the Carolinas and Georgia has

sprung up in response. Hyundai and LG announced a $4.3 billion plant earlier this year, and Toyota recently announced it would be increasing investment in its EV manufacturing facility in North Carolina by $8 billion. Yet as consumers have embraced EVs more slowly than previously expected, some projects are being scaled back. Ford, for instance, announced it will be delaying $12 billion in projects related to EVs, including reducing capacity of a planned battery plant in Michigan by 43%. • EV and battery manufacturing will also require extensive supplier networks that will likewise occupy millions of square feet of industrial space. In North Carolina, India-based Epsilon Advanced Materials announced a $650 million plant in Brunswick County that will produce synthetic graphite anodes, a key component in EV batteries. Cnano Technology USA, a manufacturer of EV components, announced a $95 million facility in the Kansas City market. The interactions between materials and parts providers with the manufacturers will also require additional logistics space. • We expect that while the near-term outlook may be a bit rocky, over the long term the production of EVs, their batteries and supplier networks will be a driver of industrial demand. The IRA provides both a carrot and a stick, and traditional automakers are investing billions to get a foothold in the EV market alongside Tesla and upstart EV-only firms.

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Rents and Occupancy: New Supply Moderates Dallas Rent Growth • National in-place rents for industrial space averaged $7.56 per square foot in October, an increase of five cents from September and up 7.6% year-over-year. • Dallas has been one of the most in-demand industrial markets for years now, due to high population growth, access to infrastructure and its links to Mexico,

“We expect that while the nearterm outlook may be a bit rocky, over the long term the production of EVs, their batteries and supplier networks will be a driver of industrial demand.” where manufacturing has been booming as a nearshoring push continues. Inplace rents in Dallas have increased 6.8% percent in the last 12 months, while the vacancy rate sits at 4.1%. The market has not seen rent growth hit double digits like

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other hot markets due to the impact of new supply. The industrial supply boom in Dallas predates the pandemic—the market has added an astounding 281 million square feet since 2014 (30.7% of stock). • The national vacancy rate in October was 4.6%, unchanged from the previous

month. Record levels of new supply have caused the national vacancy rate to tick up slowly this year from 3.9% in January, a 70-basis-point increase year-to-date. • The average rate for new leases signed in the last 12 months rose to $10.28 per

square foot, $2.72 more than the average for all leases. • Coastal markets continued to see the biggest spread between new leases and the average for all leases. Even as logistics demand normalized in 2023, tenants were still paying high premiums for new leases

in markets with access to a shipping port. In the Inland Empire, a new lease signed in the last 12 months cost $18.49 per square foot, $9.32 more per foot than the market average. Los Angeles ($6.99 more EV (continued on page 10)

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EV (continued from page 9)

starts, likely indicating a decline in land available for industrial development.

per foot), the Bay Area ($5.72), Miami ($5.19), Orange County ($4.93), Seattle ($4.91) and New Jersey ($3.95) all saw significant premiums.

Economic Indicators: Warehouse Employment Continues Slide

Supply: New Jersey Supply Boom Abates • Industrial supply under construction currently totals 512.5 million square feet, according to CommercialEdge. • Although new-supply levels remain historically high, much of the new stock being built is concentrated in a few markets. More than a quarter of the new supply currently under construction is located in just five markets, and half is in the top 18 markets. • Due to its proximity to ports, rail and highways, with access to many of the country’s largest population centers, New Jersey has been a hot industrial market in recent years, delivering 37.8 million square feet (6.7% of stock) since the start of 2020. However, a significant slowdown is on the horizon. The market currently has only 1.3% of stock under construction. After starting a combined 25 million square feet across 2021 and 2022, New Jersey has started just 4.1 million square feet in 2023. While this is partly due to factors like rising interest rates and tightening credit standards that have impacted the broader real estate market, New Jersey’s new-construction slowdown has been steeper than the nationwide drop-off for industrial

• Employment in the warehousing and storage sector fell by more than 10,000 jobs in the month of October, according to the Bureau of Labor Statistics. Year-overyear, the sector has shed 78,200 workers, a decrease of 4.0%. Employment in the sector has decreased for 12 straight months. • One reason behind the decline in warehouse jobs may be Amazon’s pullback, which reportedly began right around the time that employment started falling in the sector. Amazon is the largest employer, by far, in this sector. After expanding rapidly for nearly two years, the online retailer slowed hiring and put millions of square feet up for sublease last year. • Automation may be another factor behind falling levels of warehouse employment. As a tight labor market has made warehouse positions harder to fill for e-commerce retailers and logistics providers, many have looked to automating roles and processes to improve efficiencies. Transactions: Phoenix Slows but Remains Active • Industrial sales totaled $44.4 billion through the end of October, according to CommercialEdge data. • Even as interest rate hikes have caused investors to pull back across all real estate

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asset classes, the average price of an industrial sale has increased slightly this year. Properties have traded at an average of $131 per square foot in 2023, an increase of 6.8% over 2022. • Due to reshoring of manufacturing, population growth and overflow demand from tight markets in Southern California, Phoenix has become one of the most sought-after industrial markets in recent years. Yet in 2023, investment activity in Phoenix has finally cooled off. Following more than $10 billion in sales across 2021 and 2022 combined, only $1.9 billion of sales have occurred in 2023. The price per square foot has fallen 19% this year, to $158, as well. Despite this slowdown, Prologis has remained an active investor in the market this year. The firm has purchased 2.8 million square feet of Phoenix properties in 2023, with most of the buying focused on the western side of the market. Last month, it acquired Airpark Logistics Center, a 2.7 million-square-foot campus across 170 acres in Goodyear. Definitions CommercialEdge collects listing rate and occupancy data using proprietary methods.

• Average Rents—Provided by Yardi Market Insight, a cutting-edge service that uses anonymized and aggregated data from other Yardi platforms to provide the most accurate rental and expense information available. • Vacancy—The total square feet vacant in a market, including subleases, divided by the total square feet of office space in that market. Owner-occupied buildings are

not included in vacancy calculations. Also provided by Yardi Market Insight. Stage of the supply pipeline:

• Under Construction—Buildings for which construction and excavation has begun.

• Planned—Buildings that are currently in the process of acquiring zoning approval and permits but have not yet begun construction.

Sales volume and price-per-square-foot calculations for portfolio transactions or those with unpublished dollar values are estimated using sales comps based on similar sales in the market and submarket, use type, location and asset ratings, sale date and property size.

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12 FINANCE (continued from page 1)

Simply, or rather, not simply, the tide seems to be turning. Notably, PwC’s findings reveal a shift in investment expectations, with approximately 40% of surveyed industry leaders predicting investment returns to remain at current levels in 2024, while nearly 70% anticipate lower returns over the next five years due to the changing interest rate environment. Moreover, private investment in affordable housing projects is gaining traction, as investors, cognizant of the importance of housing supply, are increasingly engaging in affordable housing projects, seeking to boost new supply through new construction initiatives and investments in existing assets. However, debates persist about the impact of private investment strategies on housing affordability amidst rising concerns regarding rising rents and access to homes for those in need. Investing in affordable housing projects, including those involving tax credits, is not a new strategy and has been undertaken by global investors for some time. Yet, although PwC is “optimistic” about where commercial real estate is headed

Photo by Alexander Grey for unsplash

in 2024 and believes “the worst of inflation is behind us,” a recent article by U.S. News & Report expresses a more cautious sentiment, reporting a complete reevaluation and revitalization are essen-

tial to navigating successfully the complex realties ahead. As emphasized by the latter, rising interest rates, have significantly impacted

borrowing costs industry-wide, posing considerable challenges for investors, especially those reliant on frequent refinancing cycles. Banks, constrained by tightened lending standards due to fluc-

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DISCLAIMER This analysis included in this investment summary is based on estimates and assumptions of NAI Legacy and its affiliates NAI Legacy used as specific set of assumptions to create this analysis, but is not representing that any of the assumptions will materialize. There is certain degree of inherent risk associated with commercial real estate investing, and you as the buyer, are advised to seek advice from your accountant, attorney, and or other advisors, and to view this information hypothetical. Although this analysis can be useful in making decisions about this investment, any of the assumptions could change, which materially alter your conclusions. All the information furnished by NAI Legacy is from sources judged to be reliable, however, no warranty or representation is made to its accuracy or completeness. 1031 RISK DISCLOSURE There is no guarantee that any strategy will be successful or achieve investment objectives; Potential for property value loss - All real estate investments have the potential to lose value during the life of the investments; Change of tax status - The income steam and depreciation schedule for any investment property may affect the property owner's income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities; Potential for foreclosure - All financed real estate investments have potential for foreclosure; Illiquidity - Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. Reduction or Elimination of Monthly Cash Flow Distributions - Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions Impact of fees/expenses - Costs associated with the transaction may impact investors' returns and may outweigh the tax benefits. Offering Disclosure The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof ("Issuer"). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified. Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation. Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

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13 owners and developers. From building maintenance to tenant amenities, the expenses have surged considerably. Labor cost hikes add to the burden, particularly affecting construction and development firms that rely heavily on specialized labor. Moreover, inflation-induced consumer anxiety prompts spending cuts, impacting businesses’ expansion plans and, consequently, their real estate needs. In light of these challenges, U.S. News maintains that the CRE industry in 2024 faces a balancing act. While optimism surfaces with projections of lower interest rates and a thawing in the real estate debt market, the industry must reckon with the looming specter of a potential economic downturn and the ongoing impact of inflation on operational costs and consumer behavior.

Photo by Sean Pollock for unsplash

tuating bond values, are becoming more cautious, further limiting the availability of loans.

The looming possibility of a recession also adds to the industry’s uncertainties. Rapid and substantial rate hikes can inadvertently push the economy into a downtown, which could intensify vacancy

challenges for landlords and hinder their ability to adjust interest rates.

And so, to chart a resilient course, CRE stakeholders must adopt adaptive strategies. Diversification across property types, prudent financial management, and a keen eye on market trends will be pivotal for sustained growth and stability in all corners of the industry

Persistent inflation only exacerbates the situation, driving up operational costs for

Development Partners Wanted One of Chicagoland’s fastest-growing communities, the Village of Oswego continues to redevelop and redefine its historic downtown along the scenic Fox River. Over the last three years, tens of millions of dollars have been invested to catalyze new high-end, mixed-use developments which include several independent restaurants and retailers. The developments include a 176-unit luxury apartment building with first floor retail, and an upscale restaurant with leased office space in the three-story property. Take advantage of this prime investment opportunity with pad-ready sites owned by the Village.

16K

Vehicles per day

$114K

median household income

>270K people within 15 minutes

Prime investment opportunities are available now with pad-ready sites owned by the Village.

Contact Kevin Leighty, Economic Development Director kleighty@oswegoil.org, (630) 551-2334 or visit oswegoil.org/downtown.

Financial incentives may include: Tax revenue sharing

Grant funding

Low-interest loans

Permit fee waivers

I L L I N O I S R E A L E S TAT E J O U R NA L D E C E M B E R 2 0 2 3

Multifamily update? Zumper releases 2023 annual rent report, makes 2024 predictions By Mia Goulart, Senior Staff Writer

umper recently published its Annual Rent Report for 2023 which draws on the past year of data, knowledge of economic trends, Zumper surveys, internal data on renter search, and ongoing conversations with clients, experts, and others in the industry. All of this intel offers a comprehensive view of the last year and a look at what’s to come in 2024.

The national rent rate for a one-bedroom apartment is down year-overyear. At $1,496, the national one-bedroom median is down year-over-year by a tenth of a percent. This is a striking statistic, since year-over-year increases are typically a key barometer of healthy growth. The only other time we’ve seen negative year-over-year growth was during the pandemic.

Key Themes & Findings There’s been a seismic shift in attitudes towards renting versus buying a home. Thanks to sky-high interest rates, an uncertain economic climate, changing priorities and ongoing hybridand remote-work policies, consumer sentiment towards home ownership is at an all-time low. For the second year in a row, more than half of renters believe “the new American dream is being

Photo by Point3d Commercial Imaging Ltd for unsplash untethered to home ownership.” And, more than 69 percent of renters said rising interest rates have deterred them

from buying or looking into buying a home.

The rental market strikes a more balanced relationship between supply and demand. While migration numbers settle down following a flurry of pandemic-era relocations, there is also a record number of new multifamily buildings coming online in many markets, which will help absorb demand from people opting out of buying a home. Renters who move into a new home over the next six months will have more bargaining power. Property own-

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“While migration numbers settle down following a flurry of

concessions in an attempt to fill new buildings. Several cities in the Intermountain region are nearing oversupply. Denver, Las Vegas and Salt Lake City are also seeing record numbers of new supply come to market and we expect prices in these markets to fall more quickly than the national average. New developments in these cities also lean heavily

15 towards luxury, which means 2024 will be a good time for renters to snag a deal on an amenity-rich apartment that may have been previously out of reach.

watch. That metro has held steady as the number two city on our list throughout 2023 and is in the midst of an ongoing construction boom.

New York City will remain the most expensive and sought after rental market. The city’s ongoing popularity and low supply will continue to spill over into neighboring areas as well. Last year we predicted Jersey City would be a city to

Download the full report: https:// www.zumper.com/blog/annual-rent-report-2023/

pandemic-era

New Construction

relocations,

Facility Renovations

there is also a

Tenant Improvements

record number of

Additions / Expansions

new multifamily buildings coming

Thanks to Our Clients for Making 2023 a Success!

online in many markets, which will help absorb demand from people opting out of buying a home.” ers and managers are feeling the pressure, especially to lease up new builds. They’ll continue to offer concessions and move-in deals, which is reflected in our data as there has been a 17 percent increase in listings offering deals on our platform since this summer. Prices continue to decrease in many Sun Belt cities in a prolonged correction of drastic pandemic-era price hikes. This trend is most pronounced in some of the pandemic’s most popular Zoomtowns, including Miami, Phoenix, and Austin. Occupancy rates are declining in these areas, and prices will continue to fall as operators make

Please contact us for any upcoming project needs!

847.374.9200 · www.meridiandb.com

DECEMBER MARKETPLACE

AS SE T / P ROP E RT Y M A NAG E M E N T F I R M S

C ON ST RU C T ION C OM PA N I E S / G E N E R A L C ON T R AC TOR S

CENTERPOINT PROPERTIES

ALSTON CONSTRUCTION COMPANY

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Nate Rexroth, Executive Vice President, Asset Management; nrexroth@centerpoint.com; Danielle Radtke, Senior Vice President, Asset Management; dradtke@centerpoint.com Services Provided: CenterPoint Properties is an innovator in the investment, development, and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases, and sells state-of-the-art warehouse, distribution, and manufacturing facilities near major transportation nodes. Our experts focus on portproximate distribution infrastructure assets near America’s major population centers. Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics, and supply chain problems. With an agile team, substantial access to capital, and industry-leading expertise, we give customers a competitive edge to ensure their success — no matter how great the challenge.

FARBMAN GROUP OF CHICAGO

40 Skokie Boulevard Northbrook, IL 60062 P: 248.353.0500 Website: farbman.com Key Contacts: Andrew Farbman, CEO, afarbman@farbman.com; Andrew Gutman, President, gutman@farbman.com; Michael Kalil, COO and Director of Brokerage, kalil@farbman.com; Chris Chesney, CFO, chesney@farbman.com; Ryan Nelson, EVP, nelson@farbman.com Services Provided: Property Management, Leasing & Brokerage, Construction, Investment Sales, Asset Management, Site Selection Services, Acquisition & Disposition, Medical Real Estate Solutions, Move Management, Receivership Services, Facility Management, Net Lease Brokerage Services. Company Profile: Farbman Group of Chicago, a full-service commercial real estate company, is one of the largest and most respected names in Commercial Real Estate. Notable Properties Managed: 1535 Lake Cook Rd, Northbrook | 2250 Point Blvd, Elgin | 280 Shuman - The Atrium, Naperville | 390 Holbrook Dr, Wheeling | 25 NW Point Blvd, Elks Grove Village | 40 Skokie Blvd, Northbrook | 1120 Lake St, Oak Park | 100 N LaSalle Dr, Chicago | 401 S State St, Chicago | 600 W Jackson Blvd, Chicago

HIFFMAN NATIONAL

One Oakbrook Terrace, Suite 400 Oakbrook Terrace, IL 60181 P: 833.HIFFMAN Website: hiffman.com Key Contacts: Dave Petersen, CEO, dpetersen@hiffman.com; Bob Assoian, Executive Managing Director of Management Services, bassoian@hiffman.com Company Profile: Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America. For more information, visit hiffman.com

MID-AMERICA

One Parkview Plaza, 9th Floor Oakbrook Terrace, Illinois 60181 Key Contacts: Dan Hanson-Illinois, dhanson@midamericagrp.com Brad Lefkowitz-Michigan, blefkowitz@midamericagrp.com Brandon O’ Connell-Minnesota, boconnell@midamericagrp.com Jim Vaillancourt-Wisconsin, jvaillancourt@midamericagrp.com Services Provided: Mid-America provides strategic consulting services that maximize net operating income, net cash flow, and accelerate property appreciation. We provide property and construction management, leasing, due diligence, and market analysis. Additionally, we offer MA Building Services, a self-performing porter and maintenance company offering our clients cost savings and improved accountability for related services. Company Profile: Mid-America Real Estate is #1 in retail real estate services in the Midwest, with full service offices in Illinois, Michigan, Minnesota, and Wisconsin. Our exclusive focus on retail property, combined with cutting-edge technology and unsurpassed service, distinguishes Mid-America withinthe industry and provides clients with a competitive edge. The total consideration value of leasing and investment sales transactions facilitated in 2022 was $2.4 billion. Mid-America leases and manages more than 60 million square feet of retail space, and represents over 270 retailers and other tenants. For more information, visit www.midamericagrp. com

1901 Butterfield Road, Suite 1020 Downers Grove, IL 60515 P: 630.437.5810 Website: alstonco.com Key Contact: Robert Murray, SVP/ Regional Manager, RMurray@alstonco.com, 908.966.1306 Services Provided: Alston offers a diverse background of design-build experience, general contracting and construction management of industrial, commercial, healthcare, retail, and municipal projects. Company Profile: Alston Construction’s success begins and ends with our approach to planning, scheduling, and choosing the right team. We have been adhering to an open and collaborative approach since our founding more than 35 years ago. Notable/Recent Projects: Project Heartland 1.5 Million SF build to suit distribution facility for Proctor & Gamble in Morris, IL. Lakeshore Manor 210 unit senior living facility in Northwest Indiana. Dynamic Foods 3PL 500,000 SF build to suit distribution and packaging facility in Wilmington, IL. Brown Deer Distribution Center 420,000SF two building speculative distribution center in Milwaukee, WI. 106,000 SF meat packaging facility in Northwest Indiana.

MCSHANE CONSTRUCTION COMPANY

9500 West Bryn Mawr Avenue Ste. 200 Rosemont, IL 60018 P: 847.292.4300 | F: 847.292.4310 Website: www.mcshaneconstruction.com Key Contacts: Mat Dougherty, PE, President, mdougherty@mcshane.com Services Provided: McShane Construction Company offers more than 35 years of experience providing design-build, design-assist and general construction services on a national basis The firm’s diverse expertise includes build-to-suit and speculative warehouse, distribution and manufacturing facilities, as well as multifamily, commercial and institutional developments. Company Profile: Headquartered in Rosemont, Illinois with regional offices in Auburn, Alabama, Irvine, California, Phoenix, Arizona, Madison, Wisconsin and Nashville, Tennessee, McShane Construction Company provides comprehensive construction services on a local, regional and national basis for a wide variety of market segments. The firm is recognized as one of the Chicago area’s most diversified and active contracting organizations with a reputation built on honesty, integrity and dependability. Recent/Notable Project: Industry Center at Melrose Park – the construction of three speculative industrial buildings in Melrose Park, Illinois. The new development incorporates a total of 651,617 square feet.

MERIDIAN DESIGN BUILD

9550 W. Higgins Road, Suite 400 Rosemont, IL 60018 P: 847.374.9200 | F: 847.374.9222 Website: meridiandb.com Key Contacts: Paul Chuma, President; Howard Green, Executive Vice President Services Provided: Meridian Design Build provides construction and design/ build construction services on a national basis with a primary focus on industrial, office, medical office, retail and food and beverage work. Company Profile: With a team of in-house professional project managers, Meridian has extensive experience coordinating the design and construction of new buildings, tenant improvements, and additions/ renovations from 15,000 square feet to 1,000,000+ square feet. Meridian Design Build has been a Member of the U.S. Green Building Council since 2007. Notable/Recent Projects: Clarius Park Joliet Building #2, Joliet, IL - 906,517 sf speculative industrial facility for Clarius Partners. Commerce Park Chicago Building B, Chicago, IL 602,545 sf speculative multi-tenant industrial facility for NorthPoint Development. Halsted Delivery Station, Chicago, IL - 112.000 sf package delivery station on a 17-acre redevelopment site for Prologis.

PRINCIPLE CONSTRUCTION CORP.

9450 West Bryn Mawr Ave., Suite 120 Rosemont, IL 60018 P: 847.615.1515 | F: 847.615.1598 Website: pccdb.com Key Contacts: Mark L Augustyn, COO, maugustyn@pccdb.com, James A.. Brucato, President, jbrucato@pccdb.com Services Provided: Principle specializes in commercial and industrial property and is committed to providing clients with the highest level of design/build construction services with an absolute dedication to each project. Company Profile: Design/Build General Contractor established in 1999 specializing in the design and construction of Build-to-Suit, Speculative, Retail, Food Processing, Expansions/ Additions, Tenant Improvements, & Specialty Facilities. Principle also has extensive experience in interior improvements, site evaluation, due diligence, and value engineering. Recently Completed Projects include: • 282,588 SF dry-cleaning facility for Tailored Brands, at 2000 Deerpath Rd. in Aurora, IL. • 31,200 SF facility for Alvil Trucking, at 2570 Millenium Dr. in Elk Grove Village, IL • 6,200 SF Warehouse for Superfast Trucking, at 1001 Raddant Rd. in Batavia, IL

DECEMBER MARKETPLACE SUMMIT DESIGN + BUILD, LLC

1036 W. Fulton Market, Suite 500 Chicago, IL 60607 P: 312.229.4630 Website: summitdb.com Key Contacts: Adam Miller, President, amiller@summitdb.com; Deanna Pegoraro, Vice President, dpegoraro@summitdb.com; Jon Silvers, Business Development, jsilvers@summitdb.com Services Provided: Summit Design + Build, LLC is a provider of full service general contracting, construction management and design/ build construction services for the commercial, industrial, multifamily residential, office/tenant interiors, hospitality and institutional markets. Company Profile: Located in Chicago’s Fulton Market and with regional offices in Tampa, FL, Austin, TX and North Carolina, Summit Design + Build has been involved in the design and construction of over 400 buildings and spaces totaling more than 10 million square feet over the firm’s 18 year history. Notable/Recently Completed Projects: Eli’s Cheesecake (Industrial), 2217 Loomis (Industrial), 1436 W Randolph (Adaptive Reuse Hotel), 718 Main (Multifamily), Prenuvo (Medical TI), 5691 N Ridge Ave (Multifamily).

VICTOR CONSTRUCTION

2000 Center Dr., Suite East C219 Hoffman Estates, IL 60192 P: 847.392.6900 Website: victorconstruction.com Key Contact: Zak Schuttler, President, ZakS@victorconstruction.com Services Provided: Victor Construction Co., Inc. manages projects from ground-up site developments to interior buildouts, specializing in retail, industrial, and commercial markets. Company Profile: Victor Construction Co., Inc. remains a family-owned and operated General Contractor. Having been in business since 1954, our firm has extensive experience managing every aspect of interior construction for the corporate, manufacturing, industrial, and retail sectors. Notable/Recent Projects: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.

DE V E L OP E R S

CENTERPOINT PROPERTIES

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Michael Murphy, Chief Development Officer, mmurphy@centerpoint.com; Brian McKiernan, Senior Vice President, bmckiernan@centerpoint.com Services Provided: CenterPoint Properties is an innovator in the investment, development, and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases, and sells state-of-the-art warehouse, distribution, and manufacturing facilities near major transportation nodes. Our experts focus on portproximate distribution infrastructure assets near America’s major population centers. Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics, and supply chain problems. With an agile team, substantial access to capital, and industry-leading expertise, we give customers a competitive edge to ensure their success — no matter how great the challenge.

CONOR COMMERCIAL REAL ESTATE

9500 W. Bryn Mawr Avenue, Suite 200 Rosemont, IL 60018 P: 847.692.8700 | F: 847.292.4313 Website: conor.com Key Contacts: David J. Friedman, President, dfriedman@conor.com; Brian Quigley, Executive Vice President, bquigley@conor.com Services Provided: Conor Commercial identifies and implements the most suitable commercial real estate strategy to yield increased returns for each real estate opportunity. With offices and seasoned real estate professionals strategically located throughout the country, the firm provides the experience and resources needed to develop and stabilize real estate developments that maximize positive returns to investors and partners. Company Profile: Conor Commercial Real Estate is the integrated real estate development firm of The McShane Companies headquartered in suburban Chicago, Illinois with regional offices located in Dallas, Houston, Irvine and Phoenix. The firm is active on a local, regional and national basis in the development of master-planned industrial and office parks, multifamily properties, medical office developments and built-to-suit projects for lease or purchase.

E C ONOM IC DE V E L OP M E N T C OR P OR AT I ON S VILLAGE OF HOMER GLEN ECONOMIC DEVELOPMENT

14240 W. 151st Street Homer Glen, IL 60491 P: 708.301.0632 Website: HomerGlenIL.org Key Contact: Janie Patch, Economic Development Director, jpatch@homerglenil.org Services: Resource center for brokers, developers, site selectors and businesses providing space and property inventory, trade area demographics, site selection assistance, custom tours, coordination through entitlement process, business opening process guidance and retention services. Demographic Info: Strategic Will County location 25 miles southwest of Chicago with two I-355 interchanges between I-55 and I-80. Average household income of $137,577. Trade area population of 83,000. Prime commercial corridors include Bell Road, 143rd Street and 159th Street (State Route 7). 159th Street is improved with 4 lanes and access to Lake Michigan water and sanitary sewer. Recent CRE Activity: The Square at Goodings Grove (106 townhomes) completed. Phase 2 for The Villas of Old Oak (46 ranch duplexes) under construction. New businesses include Jersey Mike’s, Runnings, Luis Cabinet Depot and Whitmore ACE Hardware. Restaurant with drivethru position available at Homer Glen Bell Plaza with Pet Supplies Plus, Dollar Tree and Taco Bell, SWC 143rd/Bell.

VILLAGE OF HUNTLEY

10987 Main Street Huntley, IL 60142 P: 847-515-5268 Website: huntleyfirst.com, huntley.il.us Key Contact: Melissa Stocker, Marketing & Recruitment Specialist, mstocker@huntley.il.us Services/Demographic Info: Huntley, a northwest suburban Illinois community of greater than 28,000 residents, is conveniently located at the crossroads of Interstate 90 and IL Route 47. Proximity to the interstate and to international and cargo airports in Chicago and Rockford make Huntley an ideal location for businesses looking to escape the congestion of more populated areas while reaping the benefits of a Chicago market location. Village of Huntley staff provides comprehensive services including site selection assistance and demographic resources, visit huntleyfirst.com to start the search for your new home for business. Residential construction continues with three subdivisions actively building. Huntley is home for your business, and home to the right employees for your business. Population In Primary Trade Area: 97,283 Incentives: TIF District, Fast Track permitting and development approval process CRE Activity: Huntley is home to leaders in business. Join Weber, Northwestern Medicine, Amazon and many others that chose Huntley as their home for business. Hampton Inn recently opened in Huntley. A second Amazon facility is currently under construction. E-Logistics firm headquarters are underway. Speculative development is underway near the tollway. Multiple retail strip centers are in the planning phases. With land available for custom-tailored facilities, businesses seeking sites recognize Huntley as a prime location for operations.

ECONOMIC DEVELOPMENT CORPORATIONS MICHIGAN CITY

Two Cadence Park Plaza Michigan City, IN 46360 P: 219.873.1211 Website: edcmc.com Key Contacts: Clarence Hulse, Executive Director Economic Development Corporation Michigan City, chulse@edcmc.com; Karaline Cartegna Edwards, Economic Development Manager, kcedwards@edcmc.com Services/Demographic Info: Up-to-date inventory of commercial buildings, site selection and orientation tours. Incentives: Tax-Increment Financing, Facade Improvement Grants, Property Tax Abatements, Enterprise Zones, Revolving Loans, Job Training Programs. Recent CRE Activity: Double Track Project: $649 Million Downtown Development reducing train travel to Chicago to 60 minutes; Michigan City Central Station: $100 Million Development with Residential & Retail Space; “You Are Beautiful:” $240 Million Mixed-Use Multifamily Development with 235-room Boutique Hotel & 150 Luxury Condos; TRG: $35 Million Downtown Workforce Housing Project; Burn ‘Em Brewing: $1.6 million expansion project with 30 new jobs.

F I NA NC E & I N V E ST M E N T F I R M S CENTERPOINT PROPERTIES

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Bob Chapman, Chief Executive Officer, bchapman@centerpoint.com; Jim Clewlow, Chief Investments Officer, jclewlow@centerpoint.com Services Provided: CenterPoint Properties is an innovator in the investment, development and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases and sells state-of-the-art warehouse, distribution and manufacturing facilities near major transportation nodes. Our experts focus on rail and portproximate distribution infrastructure assets. Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics and supply chain problems. With an agile team, substantial access to capital and industry-leading expertise, we provide our customers with a competitive edge and ensure their success — no matter how great the challenge.

DECEMBER MARKETPLACE

MARQUETTE BANK

10000 W. 151st Street Orland Park, IL 60462 P: 708.364.9131 Website: emarquettebank.com Key Contact: Gene Malfeo, Senior Vice President, gmalfeo@emarquettebank.com Services Provided: Full line of Commercial, Business and Real Estate loans customized to your individual needs including: commercial and residential construction loans, commercial mortgages, equipment loans and working capital lines of credit. Company Profile: Marquette Bank started in Chicagoland in 1945 and is still locally-owned/ operated. Expect quick decisions, competitive rates, easy application and personal service. Personal/business banking and lending, home mortgages, land trust services, estate planning, insurance services, wealth management and multifamily lending.

M U LT I FA M I LY F I NA NC E F I R M S

R E A L E STAT E L AW F I R M S GOULD & RATNER

222 N. LaSalle St., Ste. 300 Chicago, IL 60601 P: 312.236.3003 | F: 312.236.3241 Website: gouldratner.com Key Contact: Joe Marzo, Chair, Real Estate Practice, jmarzo@gouldratner.com Services Provided: Counsel on nearly all real estate transactions, including purchase, sale and financing of office, industrial, hotel/hospitality and residential/multifamily development, as well as commercial and retail leasing, multiparcel assemblage, tax-deferred exchanges, management agreements, construction financing, litigation and environmental issues. Company Profile: Gould & Ratner lawyers translate legal knowledge and business acumen into practical solutions that work for our clients, who include entrepreneurs, family businesses, and middle-market and Fortune 500 companies in real estate and many other industries in Chicago and nationwide.

MELTZER, PURTILL & STELLE LLC COLLIERS MORTGAGE

(Colliers Mortgage is the brand used by Colliers Mortgage LLC and Colliers Funding LLC.) 90 South Seventh Street, Suite 4300 Minneapolis, MN 55402 P: 612.317.2100 Website: colliers.com (find us under services) Key Contacts: Key Contacts: Matt Rocco, President, matt.rocco@colliers.com; Hal Collet, COO, hal.collett@colliers.com; John Randall, Head of National Production, john.randall@colliers.com; Tim Larkin, Senior EVP Agency Financing, tim.larkin@colliers.com; Gregory Bolin, SVP Commercial Financing, greg.bolin@colliers.com Services Provided: Colliers Mortgage offers a comprehensive and wide range of products and services designed to meet our clients’ financing, funding and capitalization needs. Our experts are available to help clients’ access federal agency loan programs, structure competitive financing packages for borrowers and lenders, or identify capital sources for capitalization requirements. Company Profile: Colliers Mortgage is a full-service nationwide mortgage banking firm. We connect multifamily owners and developers with the appropriate financing and funding options to execute their project plans. We are one of the industry’s top providers of multifamily financing and are currently servicing in excess of $10 billion of loans. Service Territory: Nationwide.

MARQUETTE BANK

1628 W. Irving Park Road, Unit 1D Chicago, IL 60613 P: 708.873.8639 Website: emarquettebank.com Key Contacts: Bill Hinsberger, Executive Vice President, bhinsberger@emarquettebank.com; Patrick Tuohy, Senior Vice President, ptuohy@emarquettebank.com Services Provided: Multifamily/apartment building lending for all Chicagoland. Fast, local decision making. Dedicated local servicing staff. Simple, no-hassle paperwork. Quick close. Flexible terms. All clients enjoy ZRent – an automated, hassle-free, no-cost way to collect monthly payments from tenants. Company Profile: Marquette Bank has 20 branches, 2 loan offices and $2 billion in assets. Independently owned/operated since 1945. Offering clients full-service, banking, financing, insurance, trust and wealth management services.

MAVERICK COMMERCIAL MORTGAGE

853 N. Elston Avenue Chicago, IL 60642 P: 312.268.6000 | C: 312.953.4344 Website: mavcm.com Key Contacts: Ben Kadish, President, ben.kadish@mavcm.com; Services Provided: Maverick finances all commercial real estate properties for builders, developers, investors and owner-occupied properties. For apartment loans, Maverick has access to every multifamily program available for property owners as we are a correspondent for Fannie Mae and Freddie Mac execution along with Freddie Mac small loan program. CMBS fixed and floating rate non-recourse loans available. Bank, portfolio, and debt fund non-recourse construction and permanent financing available on a national basis. Company Profile: Maverick Commercial Mortgage, Inc. is a boutique firm focused on middle market borrowers for properties in Chicago and surrounding areas, with a focus on Illinois, Indiana, Wisconsin, Iowa, Missouri, Michigan, and Kentucky. We are a niche lending source for Manufactured Housing Community mortgages and portfolio loans across the country with fundings in excess of $80,000,000 for MHC product on an annual basis. Significant financings in 2023 include a multifamily construction loan for $12,125,000, an industrial building loan for $7,500,000, a hotel to multifamily conversion bridge loan for $5,400,000 and a multifamily term loan for $13,000,000. Service Territory: Midwest for general mortgage loans, and national for MHC financin

1515 Woodfield Road, Ste. 250 Schaumburg, IL 60173 P: 847.330.2400 | F: 847.330.1231 125 S. Wacker Drive, Suite 2900 Chicago, Illinois 60606 P: 312.987.9900 | F: 312.987.9854 Website: mpslaw.com Key Contact: William J. Mitchell, Managing Partner, wmitchell@mpslaw.com. Firm Profile: Meltzer, Purtill & Stelle LLC is a business-to-business law firm with exceptionally strong capabilities in all areas of real estate law. The firm provides a full range of transaction and litigation services to real estate developers, financial institutions, and businesses engaged in corporate, industrial, and retail development as well as financing, leasing, andinvestment. Services Provided: The firm provides an exceptionally wide range of real estate-related services, including commercial real estate and leasing; land use, zoning, and entitlement; construction and finance-including TIF and other development incentives and commercial litigation.

SARNOFF & BACCASH

100 N. LaSalle St., Ste. 1000 Chicago, IL 60602 P: 312.782.8310 | F: 312.782.8635 Website: sarnoffbaccash.com Key Contacts: James Sarnoff, jsarnoff@sarnoffbaccash.com; Robert Sarnoff, rsarnoff@sarnoffbaccash.com Services Provided: Sarnoff & Baccash is a leading and recognized law firm concentrating solely in the field of property taxation. We help client’s secure favorable taxes in Illinois through property tax appeals, incentives and consulting. Company Profile: Sarnoff & Baccash’s clients include Owners, Developers, Managers, REIT’s, Fortune 500 Companies, Private Equity Firms, etc., in connection with commercial property, high-rise and low-rise apartment buildings, condominium associations and single-family home portfolios.

WORSEK & VIHON, LLP

180 North LaSalle Street, Suite 3010 Chicago, IL 60601 P: 312.917.2307 P: 312.917.2312 | F: 312.596.6412 Website: wvproptax.com Key Contacts: Francis W. O’Malley, Managing Partner fomalley@wvproptax.com; Jessica L. MacLean, Partner jmaclean@wvproptax.com Services Provided: Worsek & Vihon, LLP represents tax payers in Illinois by limiting their property tax liabilities through ad valorem appeals. We have over 35 years of experience and can handle basic to the most complex assessment issues while offering the dependable, personalized attention our clients deserve. We have experience representing owners of all property types. In addition to filing thousands of appeals with the Cook County Assessor, we have been involved in numerous proceedings before various Boards of Review, the Illinois Property Tax Appeal Board, and the Circuit Court of Illinois, and have appeared before the Illinois Appellate and Supreme Courts. Company Profile: Worsek & Vihon LLP, is a team of experienced attorneys singularly focused on real estate tax law. The firm is dedicated to minimizing property tax liabilities through strategic tax portfolio management, well-researched, creative appeal preparation and aggressive advocacy.

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