MACK Companies would like to congratulate our partners at American Residential Properties (ARPI) on raising $287.7 million in an initial public offering. ARP sold 13.7 million shares at $21 each and told Bloomberg that the proceeds from the offering will be used to grow its business in the single-family home rental market.
The Chicago Tribune ran a story this morning which spoke about how many Americans are now forgoing homeownership in favor of renting. The demographic of Americans driving this demand for rentals is wide and varied. Obviously MACK Companies in a unique position to benefit from such a trend but we also feel very grateful that we can provide the housing stock necessary for such a demand. “The demand exceeds the supply among single-family-house rentals,” said Eric Workman, our Vice President of Sales.
“It’s hard to look at the rock-bottom prices for foreclosures and short sales in the Chicago area and not feel you could get a great deal.” We could not agree more. Of course buying such properties can be a very frustrating and time-consuming process, filled with potential risks. However, MACK has develop a AAA+ investment strategy which makes it easier for you to invest in such real estate properties by redeveloping the home, renting it to great tenants and managing the property for you.
The Chicago Tribune just recently reported on how locals and out-of-towners alike are in a rush to snap up homes for rehab, resale or, increasingly, to convert them into rental properties. The article points out that the housing analytics firm CoreLogic recently cast a national spotlight on the Chicago area, identifying it as one of the more attractive markets for a foreclosure-to-rental investment strategy. One of our investors, Sergey Bitelman was interviewed and he spoke about why he partnered with MACK to “capture below-market prices.”
Recently The Chicago Tribune ran the article “Filling empty homes – A promising idea to get renters into foreclosed housing”. In it the author gives his opinion on the news that has been percolating lately that the government is going to sell bulk REO’s to the private sector and encourage investors to make them long term rentals. (Sounds like a company we know!)
The Chicago Tribune’s Money and Real Estate section interviewed the founder of MACK Companies James McClelland on the business of investment properties and community development.