Construction has wrapped up at 840–42 N Wolcott, and the results speak for themselves.

The building achieved full stabilization before work was completed — a testament to our leasing team and the marketing strategy they executed throughout the process. We originally underwrote 18 months of construction; we finished in just under 9. That compressed timeline means we're cash flowing at a higher level than anticipated through the remaining interest-only period, and we're on track to return a meaningful portion of capital to our investors well ahead of schedule.

The property is now generating $331,380 in annual gross income, running 9.5% above our proforma rents.

No two units in the building were exactly alike, which made for a genuinely interesting — and at times demanding — rehab. That variety pushed our team creatively and operationally, and we think it shows in the finished product.

We're excited to announce the acquisition of 2255–59 S California Ave in the Marshall Square/Little Village neighborhood.

This one was sourced off-market through a longtime friend and broker before it ever hit the open market — which allowed us to secure the property at $435,000, or $54,375/unit. The building also falls in an Opportunity Zone, something we haven't come across before. This tax incentive program allows for 0% capital gains at the point of sale after a 10-year hold. Thanks to our network of tax professionals, we were able to get everything in order prior to closing to take advantage of the program.

The building has been in the same family for over 30 years and needs some serious work. We'll be taking it through a full gut rehab along with extensive exterior work to bring it up to current rental standards — more updates to come as construction gets underway.

Brandon Carlson

Leasing season is in full swing across the city, and like prior years, the story is the same: limited inventory and demand continuing to push rents higher. The lack of meaningful development over the past several years has put sustained pressure on the existing housing stock, and there's no real relief in sight. With the development pipeline still running well below historical norms — the West Loop/Fulton Market corridor being the notable exception — I'd expect this dynamic to persist for the foreseeable future.

Rent growth remains strong on both new leases and renewals. For July 1st renewals, we've sent out increases averaging 3.9% on a blended basis, while pushing as high as 11% on new leases.

On the sales side, multifamily transaction volume has been steady and consistent through the first half of the year. Stabilized assets continue to trade around a 6.5% cap rate — and sometimes tighter for Grade A locations or institutional-quality product. Even Giannis Antetokounmpo, player for the Milwaukee Bucks, has gotten in on the action, with his family office picking up 948 W Sunnyside Ave, a 59-unit mixed-use property, for $21,000,000.

One theme that keeps coming up in broker conversations: a lot of investors are largely still on the sidelines, dismissing Chicago despite the strong fundamentals playing out in the rental market. The city's media reputation continues to do real damage. But if you spent last Saturday walking around — shops packed, restaurants overbooked, patios full of people — you'd have a hard time squaring that narrative with what you actually see.

3043 W 21st Place: Plans being finalized

2131 S Albany: Plans Being Finalized

2255-59 S California: Layouts and Unit Mix being confirmed.