Chicago-based developers Capri Capital Partners LLC and Judson Investment Co. plan to erect a new 1 million square-foot mixed-use condo/retail building in Bronzeville, which is slated to begin construction in early 2008. The building, called The Metropolis, will feature over 320,000 sq. ft. of retail space along with 102 luxury condominiums, 20 of which are reserved for lower-income buyers and priced very reasonably at around $160,000. A similar condo nearby would probably go for around $350,000. Other condominiums in the complex are planned to sell between $250,000 and $400,000.

[tags]Chicago Condos, The Metropolis, Bronzeville Condos[/tags]

Condo sales in Chicago fell in 2006 compared with 2005, but proved to be one of strongest markets nationwide, compared to the many regions that saw far more extreme drops.

On January 16, The New York Times reported that:

Since the middle of 2006, the frenzied condominium market [in New York] and in several other big cities like Las Vegas, Miami and Boston has collapsed. Once roaring sales have slowed to a trickle, sparse inventory has mushroomed into a glut and soaring prices have flattened out and started falling.

Preliminary year-end figures from the Illinois Association of Realtors show that 2006 condo sales in metropolitan Chicago fell 8.2 percent—50,488 units sold, compared with 54,989 units in 2005. Meanwhile, across the nation, condo sales for 2006 fell 10.4 percent to 803,000 units, after 10 straight years of gains.

Chicago area brokers and real estate developers say that it has become harder to sell condo units, but still characterize the market as “normal”—despite the glut of new condo inventory.

“I think buyers are still cautious,” said Michael Maier, vice president of sales and marketing at Chicago-based MCL Companies, a developer. What was once a three to four-week conversion period on a condo or townhouse takes close to 17 weeks now, he added.

“There are still buyers; there just aren’t so many investors,” said Maier. “We don’t have investors … making the prices go up.”

A bright spot in the outlook for Chicago condos was that their median price actually went up 0.8 percent year over year—from $245,000 to $247,000. This was less than the increase seen nationally, which was 1.1 percent—from $219,600 to $222,000.

However, these price increases came nowhere near to matching the overall national inflation rate for last year, which was 3.4%.

The majority of sales reported by the Illinois Association of Realtors represent existing condos. The figures released recently are expected to be revised upward.

Dr. Lawrence Yun, senior economist at the National Association of Realtors, said at a January 19 conference of Realtors in Chicago that there was nothing for Illinois to worry about, according to the Illinois Association of Realtors.

“Those [other] markets that took off faster than others are struggling now more than others,” said Yun. “The Midwest is stable and mortgage debt ratio is healthy.”

Many local real estate brokers predict that sales are going to pick up after the glacially slow pace set in the last months of 2006. “I think the indication on the street is that the activity has increased. I had more activity in the first 30 days of the year than I did in the previous two months combined,” said Alex Chaparro, president of the Chicago Association of Realtors.

Chaparro said that sellers must be keenly aware of what customers want in order to attract qualified buyers.

“Where is the person going to eat? Where are they going to sit on the couch?” he said. “If there are properties that have sold out, someone has sat down and thought of these things.”

Park Place Tower Condos

There’s a lot of talk about perhaps the Chicago market picking up, But so far, there’s no sign of it. Now, I’m looking at actual closing numbers here in Chicago as reported by the Chicago Association of Realtors.

Week of March 7 – March 13th

103 Chicago Single family home closings – down 38% from the same week a year ago when 165 homes closed.

231 Condos and townhomes closed, down 23% from the same week in 2006.

I’ve been keeping close track of the closing numbers since last April and there have only been two weeks where the numbers weren’t down.

The average time homes are sitting on the market has increased from 84 days in March 2006 to an average of 131 days now.

Today there area about 15,175 active listings for homes for sale in Chicago…up from about 12,000 in March 2006.

There are 7,100 active condo and townhome listings for sale…up from just about 5,000 last year.

Looks like we have a pretty big supply-demand imbalance here. What do you think?

Prices haven’t tanked… but there are signs that sellers are going to have to start slashing prices to sell.

The Sunday papers are filled with Condo Developers and home builders offering incentives… “Six months free mortgage payments,” “free upgrades,” “plasma TV,” in an effort to spur sales.

The big news in the past couple of weeks has been the sub prime mortgage meltdown. In a nutshell, this means that a lot of potential buyers will now be squeezed out of the market. People who could have bought a home last year cannot today because of stricter mortgage financing terms. Some estimates are that this could knock 20% of the buyers out of the pool.

Now, Chicago is still booming. This is not a gloom and doom situation whatsoever, just as long as you’re not looking to buy a condo for investment purposes. Downtown Chicago luxury condos are being built as never before…later this week, probably Thursday, I’ll have my special report on pre construction Chicago condos ready…watch for it.

Last Thursday, March 15th, the CEO of Toll Brothers, Inc, the nation’s largest builder of luxury homes summed up the Spring 2007 season as “pretty much a bust.” He can’t see any signs of a housing recovery. “When will the market rebound? Who knows…I have no idea. I would have thought it would’ve rebounded by now and I’ve been dead wrong.”

Toll said that the prime selling season for new homes and condos starts the weekend after the Superbowl and then continues fairly strong through the Passover and Easter holidays. It doesn’t pick up again until July. The Chicago Condo market generally follows this pattern also.

On this gloomy note…the company recently announced it’s entry into the Chicago luxury housing market, with projects in the suburbs of Long Grove and Barrington. The luxury home builder has started developing The Preserve at Long Grove, a community of 52 single-family homes with prices starting in the mid-$500,000s, and The Estates at Lake Barrington, a community of 50 single-family homes priced from the low $500,000s. This is the second Midwestern market for Toll, which started building in Columbus, Ohio in 1997. The company is active in 17 states. Robert Toll is the Chairman and Chief Executive.

Currently there some problems surrounding the company as there is a record percentage of cancellations among potential buyers – 30 percent compared to the builder’s historical average of about 7 percent. People have different reasons for canceling, some couldn’t sell their old homes, while others stated medical or other reasons. Experts though expect the cancellation rate to drop, since many investors who flip homes for a quick profit likely already canceled their contracts.

The strongest markets for Toll Brothers are Hoboken and Jersey City, N.J., as well as Manhattan and Brooklyn, N.Y., while Detroit, Minneapolis, Chicago, Reno, Nevada and parts of Florida have not yet have stabilized. There is one fact that seems to suggest a bright future for the company – America‘s population growth is outpacing the rate at which homes are being built. Hence, there is a shortage of home builders and there will be a lot of demand on the housing market.

The Pennsylvania-based builder has an average home price of about $710,000. It takes up to a year to build and sell a Toll house, double the industry average. Toll Brothers are using sales incentives such as free televisions to lure buyers. Toll advertised no payments for up to six months on some houses in a community outside of Chicago in the Chicago Tribune.

Toll Brothers is the only publicly traded home builder to have won all three of the industry’s highest honors: America’s Best Builder, the National Housing Quality Award and Builder of the Year. The Company has won many awards for its home designs, its management and financial performance and for its innovative environmental recycling program.

What makes this builder different then the rest is that, unlike them, TOL is focused on quality and profitability, while the others concentrate on the quantity – building as much units as possible. They company has its own in-house engineering, architecture, mortgage, telecommunications, title insurance, insurance brokerage, landscape, component assembly, and manufacturing operations.

For more information visit www.tollbrothers.com.

[tags]chicago condos, chicago real estate, chicago home builders, chicago homes[/tags]

Lakewood Homes is a company that builds new houses in attractive neighborhoods, where residents can live in a nice environment, with good schools and plenty of activities available. But probably the best thing about Lakewood Homes is the pricing. Their price tags make the dream of owning a home, a reality. Simply put, with them, buying is a pleasant experience.

Buz Hoffman is the founder and president of Lakewood Homes and his idea is to build quality-built starter homes for the entry-level market. So far, he has build 3,300 new homes in Lakewood Falls, which is one of Chicago’s most successful communities ever.

The thing about LH is that they not only build homes, but they also offer special interest rate programs to qualified first time homebuyers. Financing is provided through its affiliate LHI Mortgage. The special program offers a fixed interest rate of 6.05% for 30-years, with no points and a three-percent down payment. Considering the forecasted increase of the interest rates in the future, this is a really good deal, because if the rates rise, you will not be affected, since your interest rate remains locked at 6.05%.

Lakewood Homes offers a variety of prices and home styles, from affordable town homes to elegant estate homes. But no matter the style, size or price, there is one thing that Lakewood home includes in every unit – value.

Lakewood Homes are priced from $150s and according to experts, now is the perfect time to buy, because interest rates are low and stable and there are some attractive financing packages. Due to the fact that this is a private company, it is able to react much more quickly to changes in market conditions than the national builders. This gives LH the ability to offer a lot of interesting incentives like for example the free 42″ plasma screen television at the Lakewood Springs community.

First time buyers are in a really good position here, because they have to worry about selling existing property and can move into a new home very quickly. And the quicker you move, the quicker they can start building equity in your own home. LH offers some ideal smaller plans in Plano, Hampshire and Joliet.

The current communities (available for buyers) developed by Lakewood Homes are: Lakewood Crossing, Lakewood Prairie, Saddle Ridge, Easton Park, Lakewood Springs. All homes represent a combination of high quality finishes with attention to every detail and low as possible pricing, beautiful locations and plenty of amenities. Lakewood communities offer all this, plus a wide selection of home styles and prices to suit every family.

[tags]chicago homes, chicago real estate, chicago home builders, chicago home construction [/tags]

Walton on the Park is a two-tower development from The Enterprise Companies and Mesirow Financial Real Estate. This condominium is currently under construction and will feature 450 condos starting in the $470s. The sales center is located on-site at One West Walton Street.

Pre-construction pricing offers one bedrooms from $475,000, two bedrooms from $660,000, three bedrooms from $1,200,000, and single family homes from $3,500,000.

The Enterprise Companies and Mesirow Financial Real Estate already have R+D659 in their portfolio and have partnered, once again on this project. The building was designed by Pappageorge / Haymes Ltd. According to the site plan, there will be north and south towers, respectivey 37 and 32 stories tall, separated by an outdoor plaza that includes a swimming pool, sundeck, kitchen, bar, fireplace, whirlpool and meditation area.

The amenities at Walton on the Park are second to none. No detail has been overlooked here, both inside and out. First you will be impressed by the gracious entryways. All condo units feature floor-to-ceiling windows, there is plenty of space. The sun deck has a swimming pool, fireplace, outdoor cooking station, and meditation garden. There is also a fitness center where residents can stay/get in shape, using state-of-the art bodybuilding equipment and spa.

A very interesting option for the buyers is the available customization. Every buyer can personalize his or her home with a wide variety of finishes of the highest quality, including selections from imported marbles and furniture-quality cabinetry as well as designer fixtures and custom millwork.

The building is perfectly positioned in a very strategic place. Right across the street, you enter the historical Washington Square Park, which is Chicago’s oldest park dating back from 1842. Standing in the very center of the Gold Coast neighborhood, Walton on the Park is just steps away from world-class hotels, multi-million dollar residences, plenty of dining and shopping opportunities and entertainment. This is more than just a building, it’s a way of life full of luxury, convenience and enjoyment like you have never experienced before. Nearby you have the one of the most famous streets in America – Chicago’s Magnificent Mile, occupied by world-class stores and specialty boutiques. Just a simple walk there will give you an idea of the latest fashion trends. If you are looking for designer jewelry go to 900 North Michigan. Apart from all the boutiques, you will find a lot of national banks, gourmet grocery and pharmacies.

[tags]chicago condos, chicago real estate, luxury chicago condos, pre-construction condos[/tags]

Chicago’s real estate market is heating up. For the most part, it is a buyer’s market as there are a lot of opportunities, a lot of properties for sale and new ones are being built all the time. This makes the situation more difficult for sellers. Selling your home is an involved process that affects your family and your future. Before you begin this process, you’ll want to ensure that you have the most up-to-date information. When you’re armed with the right information, and an experienced real estate professional, you’ll be closer to reaching your goal – selling your home fast, and for the best price. In today’s real estate market, you may find that you can choose between a wide variety of options for representation. If you want to sell a home, you can work with a “seller’s agent”.

Of course, as with all fields of the business, there are good and bad professionals. Take your time and be diligent in your search process so you find professionals that you trust and are able to establish a productive working relationship.  A lot of money is involved in real estate transactions, and most importantly, it is your money that is at stake, so be your own advocate and vigilant in your selection process. The person that you choose must be licensed to practice in Illinois. The Illinois Department of Financial and Professional Regulation’s Division of Professional Regulation (DFPR) governs the licensing requirements and discipline process for the majority of space-related professions. For more information, visit DFPR’s website. It is best interest to find professionals who understand your.

When dealing with all professional help, it’s a good idea to start your search with referrals from colleagues, family and friends that have had a good experience working with the individual. Get the names of two or three agents other people have used and like and then call them. Tell them you’re getting ready to list your home for sale and ask if they’re interested in researching the market for you. Be sure that the agents you choose to interview work in the area of Chicago where you want the property to be. It is almost always a mistake to hire a realtor to list your home for sale if his or her office is outside of your immediate area. If they have to drive an hour to get there, you can be sure that they won’t be there often and they won’t bring buyers if they can find suitable homes closer to the office.

Chicago’s seller agents have a lot of duties. First, they must do everything possible to gain an advantage for the seller, by obeying all lawful instruction. Must be loyal to the seller by taking no action that is adverse or detrimental to the seller’s interest in a transaction. Must not reveal any items that might make the property less desirable to buyers such as traffic problems, poor school system, declining property values. Must tell the seller everything they know about the buyer, including his financial situation.

The seller’s agent has access to a computer database of properties in his area. Your property will be listed on this database giving many more people the opportunity to be aware of its availability. Then the agent would screens calls about your property and shows it to potential buyers, saving you time, energy, and the inconvenience of scheduling your life around calls and showings. He will work with the potential buyer or his agent in negotiating the best possible price for you. He provides the benefits of his expertise from determining the sale price to closing.

[tags]Chicago condos, Chicago real estate agent, Chicago real estate sales[/tags]

Christopher Carley, the Chicago developer who proved unable to build the nation’s tallest building in the city, The Chicago Spire is seeking to try his luck with another downtown site.

After hiring “star-chitect” Santiago Calatrava to design the 2,000-foot-tall, spire-shaped tower once billed as the “Fordham Spire,” Carley could not secure financing for the project. It has since been taken over by Shelbourne Development Ltd. of Dublin.

A dispute with Shelbourne’s executive chairman, Garrett Kelleher, cost Mr. Carley any direct role in the development.

Carley, chief executive of Fordham Co., along with his partner Michael Reschke, ousted chairman of Prime Group Realty Trust, arranged in January to purchase a roughly two-acre parcel at Illinois Street and Columbus Drive from HBE Corp. of St. Louis for $60 million. They plan to close on the property, now a parking lot, in June.

The new site, with convenient access to North Michigan Avenue and the lake as well as the Chicago River, could support as much as 2 million square feet of buildings.

In addition to luxury condos, the duo is considering adding a swank hotel like the Hotel de Crillon, which Carley had planned to bring to his twisting tower, now renamed the Chicago Spire.

If Carley and Reschke get approval for their plans, the nearly three-year construction effort would likely start in mid- to late 2008. The structure could be ready for occupancy in 2011, and by then, in Carley’s opinion, “despite concerns about overbuilding, by the time my project is complete there wouldn’t be a lot of unsold product left.”

Although the near-term condition of the downtown property markets looks fairly grim, Carley stays optimistic by keeping a long-term perspective.

In 1987, as a partner for the real estate firm Trammell Crow, Carley said he tried to buy a 40-acre parcel that included his new site for $50 million. But the owner decided not to take him up on the offer.

“Now, just two acres has sold for $60 million,” Carley said.

The price appreciation is entirely warranted, he said. In addition to a small number of new offices, a flood of housing is changing the character of Chicago’s downtown.

“The transformation of downtown into a residential location is just beginning,” he said. “The giant Baby Boomer generation is coming downtown in a trickle now, but that will turn into a flood.

“Just wait five years. The number of housing units in development will triple or quadruple.”

Mr. Carley’s predictions have not always been as accurate as he might have hoped. Carley has been dogged by questions about the profitability of his recent condo projects, 65 E. Goethe St., the Fordham at 25 E. Superior St. and the Pinnacle at 21 E. Huron St.

[tags]Fordham Spire, Christopher Carley, Chicago luxury condos[/tags]