Multifamily Real Estate Has Its Best Days Ahead: Citipoint Chief

October 08 02:42 2021
Rising rent prices and record low interest rates have created a surge in apartment building transactions all across the country.

The resurgence of multifamily real estate is only just beginning; that’s the view of CEO Marcin Chojnacki, whose Roselle, Illinois based firm, Citipoint, has seen its record year in multifamily transactions and believes that the trend is only going upward. “With skyrocketing housing prices and the wholesale shift out of concentrated downtown areas, renting has become the more affordable choice in the post-pandemic era and we’re seeing huge value in the multifamily market which is getting stronger and stronger by the month.”

Indeed with record low interest rates and ever-rising rents, multifamily properties across the US have seen a resurgence unlike anything seen in modern times. Multifamily properties listed on the market have been gobbled up by hungry investors looking to place capital outside of the heavily inflated equities markets. “What we’ve seen in the past 18 months is reasonably priced properties being listed on Monday and receiving 15 offers before the end of the week with bids going as high as 45% over list price. It’s crazy.” Chojnacki adds. His firm, Citipoint, acts as a brokerage, garnering off-market deals from motivated owners looking to quickly offload their properties. “Unfortunately these days if you want to get a good deal, you have to look beyond what’s listed on the market; otherwise you’re competing with the big dogs who have seemingly limitless funds at their disposal and are willing to pay ridiculous prices just to park their capital.”

With government intervention such as rent control and eviction moratoriums playing havoc in major states such as New York, New Jersey and California, investors have been converging into more sustainable and profitable markets such as the Midwest. An owner of a 30-unit apartment building in Hammond, Indiana who declined to be named for this interview, said he has been contacted by investors from across the globe looking to purchase his property. “At first I was fielding calls from investors in Illinois and California; and then I started getting calls from guys in Canada, Asia and even New Zealand looking to buy my building.”

With increasing rents and all-time low interest rates, investors who are able to buy into a good deal now are seemingly destined to see large appreciation and many have seen the value of their apartment properties double over the past five years. With the record high cost of construction across the country, partly due to material shortages caused by the pandemic, supply to the rental market is simply not able to be met. “According to our analysis, we have at least 18-24 months where we are trying to get our hand on every below market property and still create a ton of value for our investors.” Chojnacki says. “Buyers who are able to get into the multifamily market now are going to see returns beyond anything any of us have seen in our lifetimes.”

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Company Name: Citipoint Properties
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