Multifamily

The following is a Q&A with Jay Madary, president and CEO of Oak Brook, Ill.-based JVM Realty, regarding the state of the multifamily market in the Midwest. JVM owns and operates Class A and B apartment communities in Midwest markets such as Cleveland, Indianapolis, Kansas City and suburban Chicago. Madary was also quoted in the March issue of Heartland Real Estate Business in an article discussing apartment amenities and property management trends. Heartland Real Estate Business: What is your assessment of the health of secondary and tertiary multifamily markets in the Midwest? Jay Madary: They’re healthy. Supply and demand are in balance, and rents are affordable for residents. When you combine those rents with the strong income levels in the region, you can see there’s room for steady rent growth, unlike some of the primary coastal markets such as San Francisco and New York. From an investment perspective, the lower acquisition costs for apartment communities in the Midwest allow for higher returns than you’ll find in gateway markets. Residents of the Midwest are commonly described as steady and reliable, and that describes the multifamily market in the region as well. It may not have a lot of sizzle in the form of enormous rent …