The new property includes 288 units and 4,000 square feet of retail space in the city’s downtown
Multifamily transaction volume in the Midwest has slowed this year, with $4.5 billion in sales closing through October. This marks a 38.7 percent decrease compared to the same period last year, similar to the decline in activity nationwide. While fewer deals and lower price points may be unsurprising given ongoing economic volatility, investment—particularly in well-located, stabilized Renter-by-Necessity communities—still pushes on.
The table below highlights the five Midwestern markets with the highest overall transaction volume year-to-date through October, based on Yardi Matrix data. These metros account for just shy of two-thirds of the region’s investment activity, though notably, only one market reported an increase in volume this year compared to last.
|Rank||Market||Transaction Volume (MM)||Units Sold||Average Price Per Unit|
The Minneapolis-St. Paul metro recorded just shy of $470 million in deals through October, essentially half the investment volume of the first 10 months of 2019, when more than $1 billion in deals closed. While transaction volume was split relatively evenly between suburban and urban zones, a clear distinction emerges in terms of asset quality: Class B and C assets made up the vast majority of acquisitions, accounting for more than 75 percent of total volume.
Transactions slowed later in the year, but large deals continued to close. DRA Advisors’ $71.6 million acquisition of the 402-unit Valley Creek in September marked the metro’s largest transaction of the third quarter. Seller Marquette Cos. had paid $54 million for the Class B asset, located at 1707 Century Circle in the eastern suburb of Woodbury.
Coach House. Image courtesy of Berkadia
Although more than 8,000 units changed hands through October in Kansas City—the highest among Midwest markets—lower pricing places the metro third on our list, with $470.9 million in closed deals. Kansas City’s multifamily sector has proved resilient amid wider volatility, with rent growth outpacing the national rate.
Landmark Realty’s $81.5 million acquisition of the 807-unit Coach House was the largest multifamily transaction in Kansas City this year. Landmark assumed a $56.4 million CMBS loan from the seller, Harbor Group International. The suburban property traded just half a year after the previous deal purchasing the community from Aragon Holdings as part of a nationwide, $1.8 billion deal.
The largest metro in the Midwest takes the top spot on our list, with $1 billion in multifamily transactions through October. Despite Chicago’s position, investment has fallen considerably compared to the $2 billion in deals closed in the first 10 months of 2019. Transactions in the metro’s urban areas added up to more than two-thirds of total volume, a sharp contrast to the period in the previous year when suburban investment totaled close to 60 percent of overall volume.
ICONIQ Capital paid $190 million for the 479-unit Essex on the Park in the metro’s largest transaction of the year. Oxford Capital Group was the seller in the deal for the 56-story award-winning trophy asset, located at 808 S. Michigan Ave. in the Loop. The high-rise delivered in early 2019 and is Chicago’s first WELL Certified community.
Yardi Matrix covers all multifamily properties of 50+ units in size across 133 markets in the United States. This ranking reflects transactions for properties within that sample group.