Q: What challenges are unique to working in the Midwest?
A: We have to sell our projects. Everyone wants a deal in California and Boston. In the Midwest, you have to sell a little harder and get [financial] people out here. Sure there are some cities that grade poorly, but there are a lot of strong, vibrant economies. Year-over-year, Chicago’s average annual rent growth is 4.1 percent. If I compare that to some California properties that we are invested in, it’s not terribly different. The difference is in the spikes.
Q: What would you be doing if you were not in the multifamily industry?
A: I am a vice president of U.S.A. Hockey, the national governing body for 6-year-old skaters all the way up to the Olympic team. I currently run the World Champion and Olympic teams, and I am on the board of the International Ice Hockey Federation. If I wasn’t doing this, I’d probably take my money and work on buying a hockey team.
About the Company
What: Multifamily owner, operator, and fee manager
Founded: 1973
Headquarters: Chicago Employees: 200
2007 revenue: Declined to state
Units owned: 14,177
Units in development: 404 under construction; 700 in planning
Geographic coverage: Chicago and Minneapolis
About the Project
Project: Regency Place
Location: Oak Brook, Ill.
Units: 112 one-, two- and three-bedroom apartments
Rent: $1,490 to $3,635
Notable: Three-year entitlement process; luxury, mixed-use development; pushing downtown rents in a high-end suburban community