Chicago’s Evolving Distressed Real Estate Landscape

Chicago Distressed Real Estate pic
Chicago Distressed Real Estate

Patrick Borchard is a longtime Chicago executive who guides Pangea Properties, a privately held real estate investment trust (REIT), as chief financial officer. Patrick Borchard coordinates with agencies such as Freddie Mac and Fannie Mae in undertaking financing transactions, with an emphasis on repositioned residential rental properties. In his leadership role, he stays informed of the latest trends in the real estate and private equity markets.

Over the past several years, Chicago’s real estate landscape has improved significantly, with sales and prices up and the number of distressed property sales in sharp decline. That said, a Chicago Now article from November 2015 pointed to the nonuniform nature of the recovery.

Neighborhoods on the north side and near downtown no longer offer many distressed properties, while the south and west sides of Chicago are still struggling to overcome the aftermath of the 2008 housing bust. Only Hyde Park and Kenwood are exceptions on the south side, which has seen frequent short sales and foreclosures. This is not to say that a sea change is not underway: even in zip codes with high numbers of distressed sales, recent data suggest that they peaked in 2013 and have since declined significantly.


The Cayman Islands – Replenishing Stop on Sea Voyages

The Cayman Islands pic
The Cayman Islands

Patrick Borchard is the chief financial officer and a principal of Pangea Properties in Chicago, which invests in multifamily commercial properties with exceptional upside potential. An avid traveler, Patrick Borchard has explored much of the Caribbean with his wife and enjoys locales such as Aruba, St. Maarten, and the Turks and Caicos. One of his favorite destinations is Grand Cayman Island.

The Cayman Islands were discovered by Christopher Columbus in 1503, during his fourth and final New World expedition, and became known by the Spanish as the “Caimanas,” a word taken from the native Carib word for crocodile. Sir Francis Drake commented on the presence of these “great serpents” on the islands during a voyage in 1585-1586, and the diminutive islands became a popular stopping point for ships because of their abundance of sea turtles. Unfortunately, overhunting rapidly depleted the local stock and fisherman soon had to broaden their range to Cuba to find more sea turtles to hunt.

The Cayman Islands’ first settlers, Mr. Bodden and Mr. Watler, were eventually joined by a mix of shipwrecked sailors, pirates, and slaves from Africa. Today, the islands are home to a multicultural community whose diverse ethnic roots reflect the islands’ varied history.