07.07.20
Kiser Group’s Birk and Sklar: Chicago’s South Side seemingly immune to effects of COVID-19
So far in 2020, Kiser Group’s partner, Noah Birk, and senior director, Aaron Sklar, have brokered 472 units and 18 multifamily properties throughout Chicago’s South Side neighborhoods totaling $31,700,000.
“Compared to last year at this time, multifamily inventory levels and sales volume have slowed in most of the city, yet the South Side of Chicago has remained stable,” said Birk. “Most of our clients are collecting rents in the high 90 percent range and investor interest in these neighborhoods remains strong.”
As a comparison, in the first and second quarters of 2019, the team had brokered 358 units and 19 buildings in the same geographic area.
“Neighborhoods such as South Shore, Chatham, Woodlawn, Englewood and Auburn Gresham continue to see rapid appreciation and investment interest from across the country,” said Sklar. “Investors that are priced out of other markets are continuing to move their capital into these neighborhoods because of attractive cash-on-cash returns and appreciating property values.”
Notable transactions to date include an $18.4 million, 208-unit Jackson Park portfolio sale, on which Birk and Sklar represented the buyer and seller. The duo also brokered the $2,025,000 sale of 7420 S. Colfax Avenue, a 27-unit South Shore apartment building; 7251 S. Phillips Avenue, a three-unit South Shore apartment building that sold for $1,740,000 and 544 E. Oakwood, a 19-unit apartment building in Bronzeville that sold for $2,350,000.
Since 2018, Birk and Sklar have sold 90 apartment buildings on the South Side of Chicago, which is more than twice as many closings as any other brokerage in the same market area. They both believe that even the pandemic cannot stand in the way of the momentum for Chicago’s South Side multifamily sector.
“Following an incredibly strong first half of the year, our third and fourth quarter forecast sees no sign of a slowdown. Despite the pandemic, vacancies have been low while collections have remained consistent,” said Sklar. “While our current supply of multifamily inventory throughout Chicago’s South Side remains healthy, it is being outpaced by an increased demand from both local and out-of-state investors.”
With a leading market presence throughout the southside of Chicago, Birk and Sklar and have recently expanded into the west side with broker Jack Petrando. After working as an analyst for the team, Petrando launched as a broker in May of this year.
“We are eager to expand our footprint on the West Side of the city,” said Birk. “Jack has been incredibly active and is currently marketing five apartment buildings for sale. We are looking forward to closing them.”
