Riverside Investment Lists Suburban Chicago Apartment Building

Riverside Investment & Development is testing Chicagoland’s solid multifamily investment market by listing a property it developed in 2016.

The Chicago-based real estate firm, headed by CEO John O’Donnell, is seeking to sell The Main, a 112-unit property at 847 Chicago Avenue in downtown Evanston, a suburb known for its robust rental market and proximity to Northwestern University, Crain’s reported.

Riverside Investment, which carries no debt on The Main, has not disclosed the asking price for the nine-story building. It is being marketed by CBRE’s John Jaeger, Justin Puppi, and Jason Zyck.

The property boasts an average occupancy rate of 97 percent and an average rent of $2,877 per month, or about $3.21 per square foot.

The property’s high occupancy rate and strong rental income highlight its appeal in the vibrant Evanston market, which has seen significant interest from investors due to rent growth and steady demand.

The Chicago area is leading the nation in rent growth. The median rent in the North Shore submarket has increased by 2.6 percent since last year to $2.93 per square foot, the outlet reported.

The listing comes amid a broader trend in the commercial real estate sector where elevated interest rates have slowed transactions. Even so, the apartment market has seen increased activity, with national deal volume for apartment buildings rising 20 percent year-over-year in the second quarter. However, prices have dipped by 7.5 percent over the same period, according to MSCI Real Assets.

“The fundamentals are outstanding for apartments in Chicago,” Colliers’ Tyler Hague told The Real Deal recently.

Riverside, known for high-profile office buildings, such as the 51-story 320 South Canal and the 57-story 110 North Wacker Drive, is also constructing a 198-unit apartment building at 566 West Van Buren Street.

— Andrew Terrell