The new Trump Tower in River North will be home to 92 floors of regular and hotel condos, making it the largest residential building in North America. The tower marks a new era in Chicago housing development - the Condominium Hotel, which aims to convert suburbanites, vacationers, and business travelers into part-time Chicagoans by offering condominiums for rent. In the past, these types of developments have been very lucrative for real estate investors, but it is unclear whether or not the Chicago market can sustain many of these condotels. “The luxury hotel market is clearly hot…it is unclear how much space Chicago, which is already overbuilt in the luxury condo market, can absorb,” says Diane Swonk of Chicago-based Mesirow Financial Holdings Inc. Donald Trump Jr., who is heading development of the Trump Tower, is likewise skeptical: “I don’t think that Chicago can sustain seven, eight or 10″ condo-hotels.

The Hotel Blake in Printers Row, as well as the Aldens Hotel on State Street, didn’t make it, and reversed decisions to rent condominiums in Chicago. But despite this and the glut of condominiums in Chicago, buyers are embracing the hotel-condo idea, and buying these types of condos. According to experts, brand recognition figures prominently for buyers looking for pre-construction deals. Popular, recognized names like Trump will most likely help these developments, but it is unclear whether foreign companies who are staking out a claim in the condotel market can weather such a market.

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Officials from the landmarks division of Chicago’s Department of Planning and Development are giving support to the proposed dismantling of the historic Farwell Building at 664 N. Michigan Avenue.

The Farwell, designed by architect Philip Maher, is a legally protected city landmark ornamented in a mixture of French revival and art deco styles.
It formerly housed the Terra Museum of American Art.

The proposal, submitted by Chicago-based Prism Development Company, calls for the building to be “peeled like a grape,” according to Chicago architecture writer Lynn Becker. Prism plans to remove the Farwell’s limestone façade, tear down the 11-story building, and reapply the facade to the new structure it hopes to build—a luxury condo development named The Ritz-Carlton Residences.

The Ritz-Carlton Residences will be managed by Ritz-Carlton Hotel Co. It plans to offer 86 luxury condos, as well as office and retail space and parking.

Some preservationists maintain that if Prism is allowed to proceed, it effective signals the end of landmark protection in Chicago. The fact that six stories of the Farwell would be used for parking has only made them angrier.

“We fear that bowing to what is convenient for a developer will set a dangerous precedent that will be repeated again and again with other historic buildings,” said Jonathan Fine, president of the advocacy group Preservation Chicago.

“Each commissioner voting on the Farwell proposal needs to be aware that they are not just voting on the fate of one building, but setting a precedent that will turn the clock backward and handcuff the city’s power to protect its landmarks,” added Becker.

Although the McGraw-Hill Building at 520 N. Michigan Ave. was similarly stripped and reassembled in 1998, preservationists point out that in that case only the facade had landmark status. The Farwell Building would be the first such landmark to be radically changed, they said.

Jon Rodgers, principal at Prism, along with city planning officials, said that the proposed renovation will save the elderly landmark.

“We had two independent engineers, and they both concluded that the building is falling apart,” Rodgers said. “The exterior facade is being held together by a system of metal pins, because the original structure system has eroded away completely. The mansard roof is being held together by chicken wire.”

Rodgers maintained that the project, expected to finish by the summer of 2009, will “breathe new economic life” into the Farwell Building.

Officials were originally skeptical of the Farwell plan, said Brian Goeken, deputy commissioner of the Planning Department’s landmarks division. But once engineers hired by both the city and Prism had outlined the building’s deterioration, it was obvious that this was the best way to proceed, he said.

“I did not foresee bringing these recommendations,” said Goeken. “It’s a preservation matter of last resort.”

The landmarks division will lend its support to Prism’s plan at the Commission on Chicago Landmarks’ Thursday meeting, where commission members are expected to vote on it.

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Mark Nash, the Chicago-based author of five books on real estate, also publishes an e-zine called “Agent to Agent.” This e-zine recently compiled results from a survey of 923 real estate agents, brokers, and executives from all 50 states and Canada, which asked what’s “in” and what’s “out” among home buyers as we move into 2007.
Here are some highlights of what they had to say:
Home-buyers want . . .
Upscale garages: It’s not just where you park the car and stash your junk anymore. Buyers want to see attractive storage systems, a mini-fridge, heating / AC with good insulation, and tough but residential-looking flooring.
Personal spaces: What Ward Cleaver called a “den” is now a “man (or mom) cave”—and buyers want them. These are dedicated personal spaces where one person can work or relax undisturbed.
Two home offices: The number of families where two people work at home is rising. Each office space should be at least 10-by-10 feet. It’s also easier to use this feature as a selling point if the home is convenient to a site offering hourly rentals of meeting spaces that provide technology and privacy.
Rejuvenation rooms: Spaces for exercise, meditation and yoga are in demand—along with exotic, pricey saunas and showers (with features like waterfall fixtures and programmable temperature).
Heated patios, walkways and driveways: These cut down on winter maintenance like shoveling, and also allow homeowners to squeeze extra weeks of use out of the patio in the spring and autumn.
Sustainable design: This includes energy-efficiency, indoor air quality, and effective use of resources—if they’re available, the use of natural energy sources like wind, solar and geo-thermal, is maximized.
Structured wiring: Buyers with a high-tech orientation want coaxial TV cable (RG-6), Category 5E voice and data lines, distributed radio and remote camera security all wired into multi-outlet boxes called “home network centers.”
Different finishes: The new trend is to have stained-wood base cabinets and painted-wood upper cabinets.
Glass tiles: Compared to ceramic tiles, glass tiles reflect light and add a brightness and shine to kitchens and bathrooms, at virtually the same price.
Drawer-style refrigerators/freezers and dishwashers.
Engineered-stone compound countertops: With a lower price-tag than granite, and with a variety of colors and finishes available, these synthetics will be the next new thing in 2007 kitchens.
Exotic and reclaimed woods.
Bolder, deeper colors for shutters, doors and window frames.
A master-bedroom laundry. These backup laundry spaces began to appear in 2006 and will definitely catch on in 2007.
A wrought-iron fence.
Homebuyers will avoid . . .
“As is” homes. It’s a Buyer’s Market, and buyers expect you to spend some effort to court them.
Buyer incentives: These are confusing gimmicks that don’t sell houses. Just subtract the cost of your incentive offer from your asking price and come in lower than your competition.
Nonstop open houses: Buyers know you’re desperate if your home is open every Sunday—they’re watching. Try to have a public open house about every three weeks.
Glass-front upper cabinet doors in the kitchen: Buyers have discovered that these expose disorganized cabinets, and require a lot of maintenance to keep clean.
Vessel sinks: Bowl-shaped, above-counter bathroom sinks have also proven to need too much attention to keep them looking attractive.
Shiny metal finishes: Antiqued and polished brass are out. Brushed nickel and pewter is in.
Stainless-steel refrigerators and dishwashers: Buyers’ tastes are moving toward warmer colors and a less “industrial” look.
Spiral staircases: These stairs are just unfriendly to aging baby-boomers, as well as their pets and grandchildren.

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