High investor demand for multi-family real estate will likely continue for three to five years, only after interest rates gradually increase and the construction of new apartments slows down, according to Sue Blumberg, senior vice president and managing director of the Chicago office of NorthMarq Capital.
She told Midwest Real Estate News that investors consider multi-family the most desirable of commercial sectors.
“For investors looking for financing, it is an absolute feeding frenzy,” she told the magazine. “It is so competitive right now. Multi-family just couldn't be more attractive to investors.”
In fact, here in St. Louis, Developer Brian Hayden plans to turn the 31-story Laclede Gas building at 720 Olive St. downtown into 111 luxury apartments.
On Sept. 11, Hayden purchased the building for $5 million from Hertz Investment Group. Andy Scott from Realty Exchange represented Hayden in the deal.
The Laclede Gas project will be Hayden's fourth project renovating an old building in downtown St. Louis into apartments, according to the St. Louis Post-Dispatch.