NorthLoop Multifamily Portfolio — 6 Assets · 179 Units · 2 States
Portfolio alerts & flags
1 high · 4 medium · 5 positiveSix-asset comparison
IL: Sept 3 · SC: Jul 15| Asset | Market · State | Units | Occ. | Rent/mo | Avg/unit | Deposits | Profile |
|---|---|---|---|---|---|---|---|
| 2002-2004 Rainbow | Bloomington · IL | 24 | 95.8% | $21,860 | $950 | $18,455 | Anchor |
| 716 Arcadia | Bloomington · IL | 20 | 90% | $16,590 | $922 | $14,220 | Recovering ▲ |
| Pekin Place | Pekin · IL | 36 | 97.2% | $24,245 | $693 | $9,900 | Improving |
| Peoria Place‡ | Peoria · IL | 44 | 95.5% | $33,525 | $798 | $12,400 | Turnaround ▲▲ |
| Flats of Orangeburg† | Orangeburg · SC | 37 | 89.2% | $34,725 | $1,052 | $24,975 | Cash |
| Villas of Orangeburg† | Orangeburg · SC | 18 | 94.4% | $17,832 | $1,049 | $10,625 | Cash |
| Portfolio | 4 markets · 2 states | 179 | 93.9% | $148,777 | $831 | $90,575 |
†SC carried from Jul 15 (not re-exported). ‡Peoria rent includes the C20 anomaly (~$1,900); normalized in-place ≈ $32,575/mo, portfolio ≈ $147,827/mo.
Financials by asset group
Trailing 12-mo| Group | Income | NOI | Margin | Notes |
|---|---|---|---|---|
| IL — Bloomington + Pekin (3 assets) | $661,403 | $286,444 | 43% ▲ | property tax eased to $57K; DSCR ~1.6× |
| IL — Peoria Place | $336,181 | $54,514 | 16% ▲▲ | up from 12%; DSCR ~0.36×; cash −$20.5K |
| SC — Orangeburg (Flats + Villas)† | $586,166 | $360,004 | 61% | net income $318K (Jul 15) |
| Portfolio (as reported)* | $1,583,750 | ~$700,962 | 44% | mixed periods |
*Periods differ: IL-3 and SC are full trailing-12-month (SC as of Jul 15); Peoria reflects ~11 months of ownership. Consolidated NOI is directional, not a like-for-like sum.
NOI = operating income − operating expenses. Peoria’s in-place rent (~$32.6K/mo normalized) still runs ahead of trailing income (~$28K/mo), so trailing NOI should keep rising for several cycles as the ramp seasons — provided the C20 anomaly is corrected and holdovers keep resetting.
2002-2004 Rainbow — Bloomington, IL 61704
Anchor · Grade A-Rent distribution (occupied units)
Lease ladder & collections
| Window | Q3 ’26 | Q4 ’26 | Q1 ’27 | Q2 ’27 | Q3 ’27 |
|---|---|---|---|---|---|
| Units | 1 | 5 | 3 | 9 | 5 |
Delinquency: AR $9,696 (10 units) is the Sept-3 month-start snapshot; $0 aged 30+.
- 1Confirm move-ins for 2002 #03 and 2004 #12 to restore 100% occupancy.
- 2Renewal push on the five sub-$900 units toward the $950 median.
716 Arcadia — Bloomington, IL 61704
Recovering · Grade B-Rent distribution (occupied units)
Vacancy detail & collections
| Item | Units | Detail |
|---|---|---|
| Vacant-unrented | 2 | #08, #09 (former evictions) — lease these |
| Re-leased this cycle | 2 | #02, #18 — occupancy 80% → 90% |
| Delinquency | $3,771 | 5 units, month-start; $0 aged 30+ |
- 1Lease #08 and #09 — the last two vacants ≈ ~$1,850/mo to recover full occupancy.
- 2Hold the recovered units with clean lease terms under IL rules.
Pekin Place — 2207-2253 Brookdale Lane, Pekin, IL 61554
Improving · Grade B+Rent distribution (occupied units)
Lease ladder & collections
| Window | Holdover | Q3 ’26 | Q4 ’26 | Q1 ’27 | Q2 ’27 | Q3 ’27 |
|---|---|---|---|---|---|---|
| Units | 7 | 2 | 4 | 4 | 16 | 2 |
Delinquency: AR $9,384 (14 units) month-start; $531 aged 30+. One vacant (2223) to fill.
- 1Reset the seven holdovers to market — no-capital NOI and the fastest lever here.
- 2Deposit rebuild continues on the 21 zero-deposit units.
- 3Fill 2223; keep nudging rents off the $693 base.
Peoria Place — 7217 N University St, Peoria, IL 61614
Turnaround ▲▲ · Grade B-Rent distribution (occupied units, excl. C20 anomaly)
The $850–950 tier grew to 15 units as resets and conversions land — the ramp is visibly shifting the roll upward. C20 excluded pending verification.
Financial snapshot (T12 ending Aug 2026, ~11 months owned)
| Line | Amount | Note |
|---|---|---|
| Total operating income | $336,181 | rent $307.7K + misc |
| Operating expense | ($281,667) | R&M ~$90K · insurance $32K |
| NOI | $54,514 | 16% margin ▲▲ (was 12%) |
| Debt service (mortgage) | ($151,439) | DSCR ~0.36×; annualizing up |
| Owner contributions (T12) | $86,952 | funding the shortfall |
| Ending cash position | ($20,547) | improved from −$47K |
Lease ladder & collections
| Window | Holdover | Q4 ’26 | Q1 ’27 | Q2 ’27 | Q3 ’27 |
|---|---|---|---|---|---|
| Units | 9 | 4 | 6 | 10 | 10 |
Delinquency: AR $19,858 (27 units) is the Sept-3 month-start snapshot; $1,968 aged 30+. 27 of 42 occupied units still carry $0 deposit — the key remaining exposure.
Growth & management action points
- 1Verify/correct C20 ($1,900 vs. likely ~$950) so next cycle’s income isn’t overstated.
- 2Lock the dated stabilization plan — remaining rent targets and a hard DSCR-to-1.0× date while momentum is high.
- 3Reset the remaining 9 holdovers, load the B15/E3 Oct-1 increases, and lease A2/D32.
- 4Deposit remediation across the 27 zero-deposit units; confirm the $151K debt terms and reserve runway.
The Flats of Orangeburg — 624 Wilson, Orangeburg, SC 29115
Cash · Grade BRent distribution (occupied units)
15 units at $1,100–1,300 (above market); the 7 legacy units at $715–899 are the reset targets.
Financial context & lease ladder
| Metric | Value | Note |
|---|---|---|
| SC portfolio NOI margin (Flats+Villas) | 61% | $586K income → $360K NOI (net income $318K) |
| Property tax (SC group #1 cost) | $92,691 | appeal candidate |
| Indicative NOI contribution (Flats)† | ~$238K | ~66% of SC rent |
| Backfill pipeline (4 vacant + 3 notice) | 6–7 units | 656/737/767 Webster; 736/766/769 out 8/31 |
†Allocated by SC rent share; planning figure. Lease ladder: holdover 8 · Q3’26 8 · Q4’26 4 · Q2’27 8, plus 2 M2M.
Delinquency
| Item | Value | Note |
|---|---|---|
| Amount receivable (13 units) | $15,182 | current-cycle |
| Aged 30+ | $2,208 | portfolio’s main aged balance |
SWOT & actions
Strengths
- At-market rents; ~61%-margin SC book; SC State & Claflin.
- Fast SC eviction regime.
Weaknesses
- Occupancy dip; 8 holdovers; one real aged balance.
Opportunities
- Reset legacy $715–1,000 units toward the $1,100+ band.
- Ferrara/Project Panther job growth supports medium-term demand.
Threats
- Small-market ceiling; Section 8 rents track HUD FMR.
- 1Backfill: turn 656/737/767 Webster and pre-lease the 3 notice units before 8/31 to recover occupancy.
- 2Chase the $2,208 aged balance now; use SC’s 5-day process if it doesn’t clear.
- 3Reset the 8 holdovers to market; standardize deposits on the 5 zero-deposit units.
The Villas of Orangeburg — 120 Harbison Dr., Orangeburg, SC 29118
Cash · Grade B+Rent distribution (occupied units)
Half the roll sits in the legacy $850–999 band (2021 leases); the $1,200–1,250 units show the achievable ceiling.
Financial context & lease ladder
| Metric | Value | Note |
|---|---|---|
| Indicative NOI contribution (Villas)† | ~$122K | ~34% of SC rent |
| Holdover / M2M leases | 4 | 124, 134, 145 + M2M 141 |
| Near-term supply | 2 units | 126 (out 7/31) · 132 vacant |
†Allocated by SC rent share. Lease ladder: holdover 3 · M2M 1 · Q3’26 5 · Q4’26 1 · Q1’27 3 · Q2’27 3 · Q3’27 1. Delinquency: AR $4,858 (5 units), $0 aged 30+.
SWOT & actions
Strengths
- Highest-tier occupancy (94.4%); clean aging.
- At-market rents; ~61%-margin SC book.
Weaknesses
- Half the roll in legacy $850–999 leases; small scale.
Opportunities
- Reset legacy band toward $1,200; convert M2M 141 to a term.
Threats
- Thin unit count magnifies single-unit vacancy.
- 1Reset the legacy band ($850–999) and holdovers toward the $1,200 ceiling at renewal.
- 2Convert M2M 141 to a fixed term; pre-lease 126 and fill 132.
Local markets & rent comps
Aug 2026Rent comparables
| Market | Studio | 1 BR | 2 BR | Median | YoY |
|---|---|---|---|---|---|
| Bloomington · IL (Rainbow, Arcadia) | ~$790 | ~$969–1,000 | ~$1,141–1,200 | ~$1,137–1,200 | +2.7% |
| Pekin · IL (Pekin Place) | — | ~$709 | ~$861 | ~$850–874 | +14% |
| Peoria · IL 61614 (Peoria Place) | ~$880 | ~$880–927 | ~$1,050–1,181 | ~$970–1,034 | ~flat |
| Orangeburg · SC (Flats, Villas) | ~$491 | ~$740 | ~$1,028 | ~$1,050 | +5% |
| Illinois (statewide median) | — | — | — | ~$1,750 | ~flat |
Sources: Apartments.com, Zillow, Zumper, RentCafe, HUD FMR, Affordable Housing Online — 2026. Read-through: Orangeburg in-place (~$1,050) is at market; Peoria in-place (~$723) is well below a $970–1,181 market — the value-add gap.
Bloomington-Normal (61704)
Pekin / Greater Peoria (61554)
Peoria — North / Bradley (61614)
Orangeburg (29115 / 29118)
Market rent proxies the achievable ceiling. Loss-to-lease = (units × market rent) − in-place rent. Peoria carries the portfolio’s largest gap (~$723 in-place vs. ~$970–1,181 market); Orangeburg is largely at-market with a legacy-lease tail to reset. All figures are planning estimates pending a unit-level, bed/bath rent survey.
News & Insights — what’s moving these markets
As of Sept 3, 2026National — capital markets & multifamily fundamentals
Fed held again July 29 (9–3) — the bias has shifted toward hikes
At its July 29 meeting the Fed held at 3.50–3.75% for a fifth straight time, but on a tight 9–3 vote — three regional presidents dissented in favor of a hike as inflation stays above target (Iran-war oil, AI bottlenecks). Markets now price roughly two 25bp hikes in 2026 with the next decision at the Sept 16–17 FOMC; the 30-year Treasury sits near ~5.2% and mortgages remain near 6.5%+.
The apartment supply wave has crested — Midwest is the place to be
After the largest delivery wave since the 1980s, national vacancy sits elevated (~8.5%) and new starts are down 40%+. The pain is concentrated in the oversupplied Sun Belt; supply-constrained Midwest markets (Chicago, Detroit, downstate IL) are outperforming, and stabilized Class B is holding occupancy better than new Class A.
Renewals — not new leases — are driving rent growth
Renewals are ~57% of leasing activity nationally, and blended (renewal + new) rent growth is running well ahead of new-lease asking rents. New-lease headline growth is muted (~0.5–1%), expected to accelerate in H2 2026 as supply thins.
100% bonus depreciation is back (2025 federal tax law)
The 2025 federal tax package permanently restored 100% bonus depreciation for qualifying property improvements, made the 20% QBI deduction permanent, and lifted the SALT cap to $40,000.
State — Illinois & South Carolina
Rent-control ban holds; new fee-transparency law live July 1, 2026
The 1997 Rent Control Preemption Act still stands — statewide rent control again failed to advance in the 2026 session. But HB 3564 (eff. July 1, 2026) requires every non-optional fee to be listed on the lease’s first page or it’s unenforceable, on top of the $50 application-fee cap, Safer Homes Act summary, security-deposit interest (25+ units), and HB 3566 (no minors named in eviction filings).
Landlord-friendly regime; watch the property-tax assessment
SC has no rent control and a fast eviction path (5-day notice → magistrate → 2–4 weeks). The catch shows in the numbers: property tax is the SC group’s #1 expense at $92,691, reflecting the 6% non-owner-occupied assessment ratio plus school operating millage that owner-occupied homes are exempt from.
Local — city & metro job news (demand drivers)
Rivian R2 line fully operational; hiring accelerating
Rivian rolled out its first R2 in Normal in April 2026 and is now scaling toward up to 155,000 vehicles/year, with the 1.2M-sq-ft supplier park operational (OPmobility and others moving in) and aggressive hiring at ~$51K starting salaries. Housing supply remains tight (~2.5 years to deliver rezoned units).
Caterpillar operations & hiring persist; OSF and Bradley anchor
Despite Caterpillar’s HQ relocation years ago, its Peoria-area operations remain a major employer (100+ open roles mid-2026, ~$28/hr), alongside Komatsu and CNH. OSF HealthCare is the region’s largest employer and Bradley University anchors the 61614 submarket where Peoria Place sits.
Major job wins: Ferrara Candy (1,000) and “Project Panther” (400)
Orangeburg County landed Ferrara Candy’s $675M plant (1,000 jobs, production ~2029) and a proposed food-and-beverage plant, “Project Panther” ($400M+, 400+ jobs), on top of anchors Husqvarna, Koyo, and Food Lion Distribution, plus SC State and Claflin universities. The county’s “least-developed” designation brings strong tax incentives.
The macro backdrop is neutral-to-favorable for this specific book: expensive debt argues for operating discipline over financial engineering, but the supply-constrained Midwest + stable SC university town footprint sidesteps the oversupply hurting Sun Belt owners. The clearest edges this cycle are (1) a renewal engine to capture the national blended-rent trend, (2) cost-segregation / bonus depreciation on the value-add assets, and (3) property-tax appeals in both states where tax is the #1 line item.
Policy & regulation — two-state view
2025–2026Illinois (Rainbow, Arcadia, Pekin, Peoria)
| 2026 update | What it means for NorthLoop | Action |
|---|---|---|
| HB 3564 — fee transparency (eff. July 1, 2026) | Every non-optional fee must be on the lease’s first page or it’s unenforceable | Update all IL leases now |
| Application-fee cap ($50 unless 3rd-party check costs more) | Limits screening-fee recovery on all four IL assets | Update fee schedule |
| Safer Homes Act rights summary (eff. Jan 1, 2026) | DV rights summary must accompany leases | Update lease packet |
| Security-deposit interest (25+ unit owners, held >6 mo) | Applies to Pekin (36) and Peoria (44) | Confirm compliance |
| HB 3566 — no minors named in eviction filings | Willful violation = $1,000 penalty + fees; affects Arcadia (#08, #09) | Brief attorney / PM |
| SB 1563 — criminal trespass / law enforcement | Clarifies police authority alongside the Eviction Act | In effect |
South Carolina (Flats & Villas of Orangeburg)
| Topic | South Carolina rule | Implication |
|---|---|---|
| Eviction (nonpayment) | 5-day notice → magistrate court; 2–4 weeks total; no cure-after-notice | Fast action on nonpayers |
| Rent control | None; no just-cause requirement | Reset legacy leases freely |
| Security deposit | No dollar cap; no interest; 30-day return with up to 3× penalty | Rebuild deposits; disciplined move-outs |
| Property tax | Non-owner-occupied assessed at 6% ratio + school operating millage | Appeal candidate — SC #1 cost |
| Entry | 24-hour notice; self-help eviction illegal | Standard practice |
For Ira — stay updated, alert & efficient
Biweekly decision brief · Sept 3Watch every cycle (the biweekly scorecard)
- 1Occupancy by asset — Pekin 97.2%, Peoria 95.5% ▲, Rainbow 95.8% (pre-leased), Arcadia 90% ▲ (2 vacants left). All trending the right way.
- 2Peoria ramp — NOI margin 16% ▲, DSCR 0.36×, cash −$20.5K (improving), last zero-rent unit converted. On track toward coverage.
- 3Data quality — the C20 $1,900 anomaly is this cycle’s must-fix; catching it now keeps the trailing numbers honest.
- 430+ delinquency — $2.5K IL (clean); the $42.7K current AR is the Sept-3 month-start snapshot and should clear by mid-month.
Decisions to resolve
- AVerify Peoria C20. Confirm whether it’s $1,900 or (far more likely) ~$950, and correct it — the single data integrity item this cycle.
- BPeoria: formalize the finish line. With NOI doubling since July, lock remaining rent targets and a hard DSCR-to-1.0× date. Don’t rely on a refinance — the Fed’s Sept 16–17 meeting is more likely to hold-or-hike than cut.
- CClose the SC data gap. Orangeburg has been carried since Jul 15; get it into the next export so the whole portfolio refreshes together and the Flats’ aged balance is re-checked.
- DProperty-tax appeals & cost-seg. IL-3 tax eased to $57K this window; still worth appealing SC’s $92.7K. Commission cost-seg on Peoria/Pekin to use 100% bonus depreciation before year-end.
- EOne deposit policy — ~48 zero-deposit units remain in Peoria + Pekin.
Property-manager questions this cycle
Peoria (turnaround ▲▲)
- Is C20 really $1,900, or should it be ~$950? Correct in AppFolio.
- Reset plan for the remaining 9 holdovers; B15/E3 Oct-1 increases loaded?
- Lease-up plan for A2 and D32?
- Deposit collection on the 27 zero-deposit units?
Arcadia (recovering)
- Make-ready + lease dates for the last two vacants (#08, #09)?
- Turn cost recovered on #02/#18 re-leases?
Pekin & Rainbow
- Pekin: reset the 7 holdovers; deposit build on 21 zero-dep units; fill 2223.
- Rainbow: confirm 2002 #03 / 2004 #12 move-ins to restore 100%.
Portfolio
- Is SC (Orangeburg) in the next export?
- All IL leases updated for HB 3564 (fees on page one)?
- Cost-seg engaged for Peoria/Pekin?
Momentum is real this cycle — Peoria is proving out, Arcadia is climbing back, and NOI crossed $700K. Keep the trend clean: fix the C20 data point, put a dated finish line on Peoria, get South Carolina back into the export, and keep pressing renewals, deposits, and tax strategy. The plan is working; the job now is discipline and follow-through.