Monday Market Moves | Week of 21 April 2025
Welcome to Monday Market Moves, the weekly series from Essex Capital Markets briefing you on Chicago commercial real estate capital markets. We cover key trends in CRE debt, refinancing, and capital structures to help investors, borrowers, and lenders navigate today’s evolving environment.
This Week: 2025 Market Trends & the Commercial Real Estate Capital Stack
This week’s update brings a mix of national macro trends and local insights that are shaping investor strategies in 2025—and influencing how we approach debt and equity at Essex Capital Markets.
Macro Outlook:
• Inflation cooled to 2.4% in March, fueling speculation that the Fed could begin easing rates later this year.
• That said, borrowing costs remain elevated and capital remains selective, with lenders underwriting to cash flow, not just leverage.
Multifamily Fundamentals:
• National occupancy rates have stabilized in the mid-90s, and rent growth—though modest—is back in positive territory.
• We’re seeing increased investor focus on value-add deals, especially in the Midwest where limited new supply is pushing rents higher.
Chicago Spotlight:
• Chicago logged its largest multifamily deal since 2023 with the $170M Fulbrix Apartments trade in Fulton Market.
• Meanwhile, a $322M affordable housing loan pool was announced by CIC and 37 banks—demonstrating a strong public-private push to keep capital flowing into housing.
What We’re Seeing:
Investors are preparing now—raising capital, repositioning portfolios, and getting creative with capital stacks—in anticipation of a more favorable rate environment ahead. Well-sponsored deals are still getting done, and multifamily remains the sector of choice in a crowded capital markets conversation.
At Essex Capital Markets, we’re helping clients navigate this environment by structuring smart, strategic capital solutions that align with both current realities and long-term goals—across acquisitions, refinances, and recapitalizations.
To speak with our Capital Markets team about structuring a competitive Commercial Real Estate Capital Stack, please fill out the form below.