$13B in Cook Co. rental units at risk of default

$13B in Cook Co. rental units at risk of default
Copyright © 2010, Chicago Tribune
Published on April 7, 2010 7:15 AM
http://www.chicagobreakingbusiness.com/2010/04/96000-cook-county-rental-properties-underwater.html


By Mary Ellen Podmolik | Falling property values in Cook County have put about $13 billion of multi-family mortgage debt in danger of default and owners of two-to-six unit rental buildings are particularly at risk, new data shows.

A study by DePaul University's Institute for Housing Studies, released Wednesday, also found that $3 billion of multi-family building mortgages already are in foreclosure, affecting more than 32,000 rental units in Cook County. That compares with approximately 38,000 single-family homes in foreclosure in Cook County.
The DePaul study also found that rental revenues are at or below operating costs for 74,000 apartments in the city.

Since the second quarter of 2007 when prices peaked, property values on small rental buildings in Cook County have fallen 46 percent. As a result, there are 96,000 properties, representing 42 percent of two-to-six-unit buildings, where the owners owe more on the mortgages than the buildings are worth.