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n a recent transaction, Oak Residential, a Deerfield-based firm led by Rick Wise, purchased a suburban Chicago property for $53 million. This acquisition marks the second time FPA Multifamily, a prominent buyer of apartments across the nation, has sold a property in the area. The purchased property, The Mark in Glendale Heights, consists of 296 units and was bought using a mortgage loan of $38.3 million from Walker & Dunlop. This transaction highlights the growing interest in suburban multifamily properties, as evidenced by the increasing property values and rents in the area despite recent interest rate hikes.

    Oak Residential's acquisition of The Mark follows their purchase of the adjacent 336-unit Monroe Apartments property at 1400 Oakmont in Glendale Heights for nearly $63 million. Both properties were completed in the late 1980s. The company plans to upgrade both properties' unit interiors and common areas, including installing stainless steel appliances, quartz countertops, plank flooring, and new energy-efficient lighting packages. They also plan to expand the property's fitness center and create new outdoor spaces.

    The Chicago multifamily market is expected to continue its growth trajectory, with year-over-year rent increases of 4 percent across suburban Chicago's approximately 110,000-unit inventory so far this year. The annual average addition of 2,500 new units of supply in the suburbs since 2015 may push the current 95 percent occupancy rate even higher. However, developers remain cautious, and the development pipeline shrinks, which could lead to historic lows in vacancy rates in the Chicago multifamily market in 2025.

    In summary, Oak Residential's acquisition of The Mark in Glendale Heights demonstrates the growing interest in suburban multifamily properties in the Chicago area. The company's plans to upgrade both properties' interiors and common areas align with the current market trends, which indicate continued growth in the Chicago multifamily market.