While the promise of Chicago real estate has been the feature for international publications, Joe Light recently wrote in The Wall Street Journal about, "Can You Trust Private-Equity Returns?"   Unlike those buying Chicago real estate, many investing in private equity funds have been disappointed.  The assets were not worth as much as believed, Light details in his Journal piece.

Recently, Chicago has been the topic of the cover story of Time magazine, the cover story of New York Times magazine, and featured in an article in The Financial Times.

 As detailed in another article on this site, Chicago was ranked as one of the ten most promising cities in the world by The Economist Intelligence Unit, the global research arm of The Economist magazine.  Unlike how private equity was portrayed in Light's Journal piece, the reviews were Chicago in the other publications were very positive.

As to be expected, that is showing up in the Chicago real estate market.

Prices and sales are soaring for Chicago housing.  Real estate agents in the area are reporting multiple offers when a property finally goes up for sale.  The great concern for Chicago real estate agents is that there are not enough properties to sell to meet the market demand.

It is often times the exact opposite for those investing in private equity funds.   Rather than a strong market demand for the asset being sold which results in a high price, there is little interest among buyers.  That results in a collapsing price.  When that happens, it only becomes tougher to seller as other potential buyers will pull back on weakness, waiting for the asset to fall further in price.

Due to its size and layout, there are tremendous opportunities in Chicago well into the future.  

Jerry Cohen, President and Founder of EquityBuild, a real estate investment firm, has committed his company to Chicago due to the potential in the market.  Having been a principal in more than 1000 transactions since 1984, Cohen is a very experienced investor.  He has also been very successful in high yield real estate investing or he would not be in this very competitive business almost three decades later.

That someone like Cohen is focusing on Chicago real estate along with the prominent articles contrasts the what the differences will probably be like for its investors as opposed to those sending capital to private equity groups.  Cohen's properties are now on the market for an average of only 14 days.  That the real estate is selling so quickly is testament to accurate the pricing is for the sale.  It also evinces that the seller are getting the price desired.  According to Light in his Wall Street Journal article, that has clearly not been the case with private equity investors.