Chicago’s Evolving Distressed Real Estate Landscape

Chicago Distressed Real Estate pic
Chicago Distressed Real Estate
Image: kcmblog.com

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.