The number of multifamily sales and the total dollar volume of these transactions soared in the Chicago suburbs during the first quarter of this year, according to the latest research from Interra Realty.
Interra Realty, a Chicago-based commercial real estate investment services firm, recently released its first quarter 2025 Suburban Chicago Multifamily Sales report. Among other findings, the firm reported a 69% year-over-year increase in the total dollar volume of multifamily transactions in the suburban Chicago market during the first three months of the year. Interra also reported a 65% year-over-year increase in the number of deals closed.
Data was collected by Interra’s suburban multifamily investment team of Managing Partner Patrick Kennelly, Managing Partner Paul Waterloo, Associate Nathan Zito and Associate Andrew Stassi. Covering the 12-month period ending in March 2025, the report tracked all multifamily sales in Chicago’s suburbs between $1 million and $50 million.
Interra recorded 53 apartment building sales over the course of the year, compared with 32 deals one year prior, a 65% increase. Total sales volume also increased 69% during that time, with $228.26 million from March 2024 through March 2025 versus $134.55 million a year earlier.
Cook County represented the majority of sales with 31; there were eight transactions in DuPage County and fewer than five deals each in Kane, Kendall, Lake, McHenry and Will counties.
Across all sales tracked by Interra, the average price per unit grew by 18% year over year, rising to $142,935 from $120,349. Investors were drawn to a spectrum of property types, including well-maintained and stabilized buildings, value-add assets and, when available, newly built developments.
“These numbers reflect mounting investor demand for apartment buildings in Chicago’s suburbs, where strong rent growth and lower entry costs compared to the city are boosting returns,” said Waterloo. “In many cases, they are able to secure more attractive cap rates than what is available at urban core properties.”
The Chicago suburbs saw renewed interest from out-of-state capital. There were 10 transactions involving a non-local buyer in the most recent 12 months, compared to only three the prior year.
Interra’s data also showed momentum for large-scale deals. There were seven transactions in the $10 million to $50 million range during the first quarter of 2025 alone, compared to just 13 such deals in all of 2024.
“There is very little new product coming online in the suburbs, which helps push rents and increase competition among buyers,” said Waterloo. “Investors also like the stability of suburban assets, viewing them as more resistant to market fluctuations.”
Interra closed a number of suburban transactions in the past 12 months. These include the $8.4 million sale of Liberty Square Flats, an 18-unit community in Wheaton; the $7.77 million sale of Sunset Village, an 84-unit multifamily property in Waukegan; the $6.95 million sale of Lorraine Court Apartments, a 44-unit property in Wheaton; and the $4.29 million sale of a five-building, 30-unit multifamily portfolio in Mount Prospect.
