Key Take Aways from Chicago’s March Mastermind Group Meeting!
- Erin Aleman with Chicago Metropolitan Agency for Planning provided a look at their service to 7 counties, 284 municipalities and 8.5 million residents.
- Current planning focus is on mobility recovery and confidence in the transportation system after the pandemic.
- Suburban commuter lines are down close to 90% since pre-covid.
- Travel increase during covid recovery could result in more than $1.2 billion in productivity costs to the region as more people take to the road.
- There was an increase in micro-mobility options (walking, biking) prior to the pandemic and this is expected to grow during the recovery.
- Aspects of the Federal Aid bill will get local transit agencies to roughly 75% of the budget, which has aided in these agencies ability to focus on capital improvements.
- Matthew Berry with the John Buck Company said there is little interest in the market for equity for a project, not gaining traction. He is seeing interest in core plus opportunities. The good news is that multi-family assets are improving. Where they were giving concessions three months ago, they no longer need to do so. Occupancy has returned to 90% range.
- Wesley Prato of CohnReznick said ground-up deals in Chicago are struggling to secure funding. Budget and tax issues at the state level are having an impact. Some clients are still investing in other markets throughout the sun belt.
- Todd McCollister of AKT Peerless is working with a filling station/convenience station developer moving into Northern Illinois.
- Hart Passman of Elrod Friedman referenced the recent news of iconic and well-known properties, such as Arlington National Race Track, going up for sale and being hit with foreclosure suits. If there is interest in these types of properties, he suggests reaching out to the municipality first to collaborate early in the process.
- Stewart Weiss of Elrod Friedman is seeing a new trend in facility management and cybersecurity. There is a need to establish safeguards for integrated facility systems such as air handling systems.
- Mike Spirovski with Alpha Capital is seeing a lot of Chicago construction financing being pushed to the side. An alternative is the preferred equity. He is seeing more activity on the debt side. Multi-family and industrial have the most traction. He feels optimistic about a return to office in the summer months.
- Rashid Massod with CONDOR Partners shared that current projects that are going well include a senior living facility which started right at the onset of the pandemic. They are struggling with the hotel market. Secured zoning in Old Town for project, but funding is not there.
- Peter Ulrich with Phoenix Development Partners recommends running defense to protect the investment you have – in his case hospitality – while focusing on developments moving forward in Florida and Texas.
- Ben Marks and Robert Person of Strategic Partners of North America focuses on distressed opportunities including conversion of office/retail to residential. They are burning off concessions on properties – a sign that the market is turning.
- Gina Fridberg with Wintrust Commercial Real Estate is seeing a lot of activity in commercial refinance. Equity is hard to find for the ground-up developments in Chicago but expects it to return.
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