Our CEO and President James McClelland believes that at the heart of every successful real estate investment is a great tenant. So when Forbes recently wrote an article about finding great tenants they came to MACK Companies for answers.
Bloomberg reported today that home repossessions in the U.S. jumped by 11% in May after declining for the previous five months as rising prices and limited inventory for sale across the country spurred banks to complete foreclosures. Banks are more more willing to move to the final stage of foreclosure because there is sufficient demand and prices are improving.
Eric Workman, Vice President of Sales and Marketing for MACK Companies was recently published in the current issue of Northern Illinois Real Estate Magazine. In an article titled “Bringing Value Back To Chicago’s South Suburbs,” Eric discusses the growing demand for Single-Family Rentals. MACK currently operates more than 700 single-family rental homes in Chicago’s south suburbs and have a waiting list of more than three months.
Both The Chicago Tribune and The SouthTown Star recently reported that MACK Companies bought the Fay’s Point Housing development project in Blue Island, Illinois. The development was purchased for $1.5 million and 27-acre site is situated comfortably between the Little Calumet River and the Calumet Sag Channel. MACK will start work in the third quarter on eight of forty-four additional lots. The deal also includes developable land that could accommodate up to 236 housing units.
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.
MACK Companies’ VP of Sales and Marketing, Eric Workman, was interviewed on Fox Business News yesterday regarding single-family rentals in the Chicago-land area. This report by Fox comes in the light of increased interest in MACK’s business model as well as MACK Companies. Mr. Workman also spoke about the area’s economic diversity and a more fragmented housing supply that differs in many ways across the landscape.
Chicago Real Estate Daily just released an article today which speaks about how Chicago may not be the most profitable place to buy and rent single-family homes but it is nothing to sneeze at. In fact the Chicago-land area fares well against most other large metropolitan areas. On the average a cash buyer of a three-bedroom home in the Chicago area receives a 7.2 percent initial yield according to RealtyTrac Inc. While the price increases have begun here just as they did in California and elsewhere, the yields haven’t dropped as much.