If you’re planning on selling your home in Chicago, you may want to get ready for a long wait. According to an April 15 report published at Forbes.com, the housing market in the city of Chicago was ranked the seventh worst of major cities around the United States, based on data from ZipRealty.

According to the report, the inventory of unsold homes doubled in Chicago between 2005 to 2008. The city also saw a drop in the median sales price during the fourth quarter of 2.6 percent.  The first quarter didn’t bring any relief to the Chicago real estate market.  According to data from the Chicago Association of Realtors, the decline in prices appears to be accelerating in many parts of the city.

The average sales price of homes sold during the first quarter fell to a three-year low in the city. The average sales price fell to $336,375, down from $409,557 during the same period in 2007. Sales also suffered during the first quarter. A total of 1,175 homes were sold across the city, the lowest total sales seen during the first quarter since 1992.

Homeowners also faced one of the slowest markets in recent memory during the first quarter. The average turnover time for units sold during the first quarter rose nearly 50 percent to 161 days, the longest it has taken to find a buyer in more than 16 years.

The market for Chicago Condos didn’t fare much better during the first quarter. According to the Chicago Association of Realtors, the average sales price fell to $184,010 during the first quarter, a 13 percent decline from the previous year. Sales of condos in the city fell fell to a six-year low, with just 3,161 units sold during the quarter.
[tags] Chicago Real Estate, Chicago Condos For Sale, Chicago Market Conditions [/tags]

April 19, 2008 – In what has been called a rare occurrence in the Chicago real estate market, a group of 293 residential units is set to be offered up at auction early this summer. The units are located in what is now called Grays Pointe, but was once known as County Faire Village in Grayslake. Although the complex is situated in a suburb well north of downtown Chicago, it still mirrors what some better known developments are experiencing, namely a slump in Chicago condo sales.

The units had been a part of project that had been what Crain’s called a reversion conversion. Capital Acquisitions and Development Incorporated bought into the development back in 2005 for around $38 million with the intention of taking the apartment units, quickly converting them into condos and reselling. The entire complex contains about 396 units, but the auction is for roughly 75 percent of the total. The other 25 percent generates about $1.9 million per year rental income.

The article also quoted Frank J. Diliberto, president of Inland Real Estate Auctions which is handling the sale. When asked how much the units might go for, he said, “There is no scientific formula to these.” But he also went on to say that they could fetch as much as $20 million. The development was originally built in the late 1980s and the current owner has managed to sell roughly one hundred condos converted from apartments, with the price running from $107,000 to $157,000 each. Amenities at the complex include a pool, tennis courts, clubhouse, playgrounds, a nature walk and picnic areas, according to the article.

As the housing market slump continues, there most likely will be more Cheap Chicago Condos as developers look to reduce inventory.

[tags]Grays Pointe, Chicago Condos, Chicago Real Estate[/tags]

April 18, 2008 – With so much recent talk about the hotel condo trend and the current Chicago real estate market, some news about the proposed Waldorf-Astoria has surfaced. Although the project isn’t anywhere near the point of groundbreaking, it seems to be hanging on in hopes of a market turn around. It also isn’t being deluged by protesting neighborhood groups who might oppose a 100 story high-rise, and according to the Sun Times it is expected to be approved by the City Planning Commission this summer.

Speculation given as to why nobody seems to be opposed to this tower ranges from the fact that the location is southerly enough that the tall structure won’t interfere with views from existing buildings to apathy born of the belief that the high-rise won’t be built anyway. And finally, some say the DeStefano and Partners design incorporates a few of the flattering Chicago Spire architectural elements. In any case, this project even has the support of the Streeterville Organization of Active Residents.

The Waldorf-Astoria is being developed in a partnership by Michael Reschke, who controls the Waldorf Hotel aspect of the project, and Christopher Carley, who controls the main stake in the development. In the Sun Times article, Reschke commented that he’d be willing to alter the development and switch to two shorter towers so that the hotel could go up first if the condos didn’t sell well. This was news to partner Carley, who then stated that those changes hadn’t been talked about, the site is too small for two buildings and he has the final say in the project anyway. So this is another wait and see proposal for Chicago Condos in Streeterville.

[tags]Waldorf-Astoria, Chicago Condos, Chicago Real Estate[/tags]

April 17, 2008 – Yesterday we told you about Waterview Tower and Shangri-La Hotel landing a construction loan from the Export Bank of China through Beijing Construction Engineering Group. Today Crain’s ran an article with a few more details about the transaction, which should be finalized sometime in June.

The total amount of the loan is about $340 million, which is higher than first reported. Teng and Associates, Waterview’s developer, is putting up all of the equity for this unfinished Chicago real estate project. That sum comes to around $130 million. The article also stated that construction on the high-rise has reached the 26th floor, and all 90 stories of the tower are expected to be up by the middle of 2010.

Sean McMahon, who is the project manager for Teng, confirmed that around 40 percent of the building’s 200 hotel units and 66 percent of the 233 residential condos have been sold at this point. When asked if the developer would consider dropping the Chicago condo element of the project and switching to a traditional hotel, McMahon replied, “At this point, it’s still a condo hotel, but we haven’t ruled anything out.” So evidentially the final plan for the development depends on how it fares against All Condos for Sale in Chicago during the next few months.

Another development that may be in more serious trouble is Burnham Pointe. The Sun Times reports that the $106 million deal Terrapin Properties had been working on with Equity Residential to sell the development has fallen through. Without a buyer for the uncompleted project, it could potentially be seized due to the fact that Terrapin’s two principals are being sued over another loan they personally guaranteed and may have to declare bankruptcy.

[tags]Burnham Pointe, Chicago Condo, Chicago Real Estate[/tags]

April 16, 2008 – It looks as though the Waterview Tower is going stay afloat after being thrown a financial lifeline. The Chicago Tribune reported today that the project, which is already under construction, is now being funded by the Beijing Construction Engineering Group Co. With $300 in new financing, the Tower won’t have to halt construction as was speculated this past week.

The Beijing Group’s U.S. main office is located in Dallas and CEO Joe Schuelke stated that the Export Bank of China was the lender for the construction loan. He didn’t say whether the loan was secured by a stake in the development or not, but that is most likely the case. Waterview Tower developer Teng and Associates manager Ivan Dvorak was quoted in the article as saying that, “BCEG is a huge company that has a strategic plan to enter the U.S. market and they want to be part of this iconic project. They will be part of our team involved in construction.”

The Shangri-La Hotel that is set to anchor the Waterview Tower will be the first of its kind on American soil. The project was conceived and designed at the same time as several other luxury condo hotel developments, but up until now hasn’t been able to resonate with buyers, judging from sluggish sales. The high-rise will stand 90 stories tall when it is completed in 2010 and contain 223 condo hotel suites as well as 243 residential Chicago condos.

We’ll have to wait and see if the recent financial scare has an effect on future sales of these Chicago Luxury Condos or if once the tower starts to climb, interest in purchasing a unit at this Chicago real estate development will be renewed.

[tags]Waterview Tower, Chicago Condos, Chicago Real Estate[/tags]

April 15, 2008 – The Chicago Spire launched its Asian city marketing tour last month, and according to the Singapore Property News Blog, the primary event held at Singapore’s Four Seasons Hotel drew about 800 potential buyers for the planned 150 story Chicago real estate project. International sales are being handled by Savills, and manager Michael Ng was quoted as saying the “large turnout and sales were above what they had expected.” No official statement was made, but inside sources claimed 30 condos were sold at the event.

Most of those were one or two bedroom units priced at $1 million. It was apparently perfect timing, because the Singapore dollar was then at an all time high and investors apparently weren’t deterred by the slowing American economy. Even though the units cost roughly $1,000 per square foot, that’s still 60 percent below The Sail at Marina Bay in Singapore, a high-end development there. Sales agents say typically only 5 percent of those who attend a launch actually make a purchase, so if 30 contracts were signed out of 800 attending, the Spire weighed in just a little below average.

More recently, the Spire had its sales launch in Kuala Lumpur on April 2nd, with an impressive list of dignitaries and royal family members attending. The Star Online reported that five sales were made. “We’re confident of having five buyers, possibly more soon. This number is quite big to be sold in KL for such a high-end property,” said Savills Rahim & Co chairman Datuk Abdul Rahim Rahman.

Now if we could only get some concrete sales numbers for U.S. buyers or total sales figures, it would be interesting to compare this development to All Condos for Sale in Chicago.

[tags]Chicago Spire, Chicago Condo, Chicago Real Estate[/tags]

April 14, 2008 – With the future of several high profile Chicago real estate developments either in jeopardy or completely abandoned, it’s only natural to wonder about the status of a few others. The Parc Huron and Canyon Ranch have both been cancelled, and the Peshtigo and Mandarin Oriental are facing an uphill battle to get off the ground. Another project that has yet to break ground is X/O Condominiums, and while there certainly hasn’t been any negative word about the fate of this project, it does seem to be experiencing some difficulties.

The Lucien Lagrange designed dancing towers have had their share of storms and weathered them. From Kargill Development’s legal battles with Alderman Fioretti over the proposed height of the towers to a stretch of predictable lackluster winter sales, X/O continues to hover around the 40 percent sales mark. The most recent announcement is that they hope to start construction in late summer this year. The planned development includes such amenities as the exclusive Spa X/O, a botanic park to the south and Lifestyle Center on the north. Residents of the 486 condos were buying into a health lifestyle as much as a building, with prices on the units ranging anywhere from the mid $200,000s to $2.5 million.

When a new Chicago condo development has very slow or stalled sales it could just mean that the market isn’t right for that property at the time. The high tide that the real estate market rode for so long spawned record numbers of new projects, many of them high-end luxury condos or healthy-living developments that also come with high costs. It may just take some Pre Construction Condos in Chicago a bit longer to get built.

[tags]X/O Condominiums, Chicago Condo, Chicago Real Estate[/tags]

Demand for Chicago Condos in the Loop soared during the first quarter, despite a drop in sales of condos across the city.  According to data from the Chicago Association of Realtors, it was the best first quarter for the Loop in more than 16 years.

A total of 304 condominiums and lofts were sold around the Loop during the quarter, an impressive 89 percent increase in sales from the same period in 2007.  However, the news wasn’t so good for the overall Chicago market.

First quarter sales in the city totaled just 3,161 units, a 24 percent decline in sales from the same period in 2007 and the lowest total for the quarter since 2002.

Another neighborhood that saw a strong increase in sales during the first quarter was the Near South Side.  Sales were up by 13 percent from the same period in 2007, welcome news for developers and condo owners in the area.

Some neighborhoods, however, saw a large drop in demand during the first quarter.  West Ridge and Hyde Park both saw sales fall by 52 percent in a year, while demand was off by 52 percent in Rogers Park.  Even the always popular Lincoln Park market experienced a drop of 43 percent in sales during the quarter.

[tags] Chicago Condos, Chicago Real Estate, Chicago Loop Condos For Sale [/tags]

April 12, 2008 – Belgravia Group seems to have scored another sales winner with 600 North Lake Shore Drive. The developer recently confirmed that the 41 story north tower is basically sold out, and just about a dozen units are all that are left of the building’s 154 Chicago condos. Those remaining units that are not under contract are a combination of floor plans, with the bulk being one bedroom condos and a couple of two and three bedroom units. The price for these condos begins in the low to mid $400,000 range.

The south tower, which is slightly taller at 47 stories, is about 70 percent under contract right now. The most popular units there seem to have been the two and three bedroom condos, of which certain floor plans are already sold out according to the sales agents. The two towers combined in this Chicago real estate development have 400 units total, and construction should be complete in the first quarter of 2009.

600 North Lake Shore Drive billed itself as one of the last addresses on the lake. Its prime location next to Ohio Street Beach, a Starbucks, dry cleaners, Subway, Flamingo Bar and Grill as well as Navy Pier had to certainly make these condos more attractive to buyers. The interior finishes are top notch, too, with GE Profile stainless steel appliances, Kohler Mariposa soaking tub in the master bath, Wood-Mode cabinetry, building roof top sun deck and sculpture garden, fitness center and 24 hour doorman.

Belgravia Group has earned a well-deserved reputation for developing some of the best Chicago Luxury Condos, and both their sales figures and buildings show it.

[tags]600 North Lake Shore Drive, Chicago Condos, Chicago Real Estate[/tags]

April 11, 2008 – It’s been a while since we checked in on the progress at Trump Tower. Construction on the last set back of the building is underway and the tower is easily visible now even without all of its 92 stories complete. Because of the unique design of the building, you get a somewhat different view from each side. The high-rise is scheduled to top out sometime in the first quarter of 2009.

A press release made recently by Trump stated that they had closed the contract on number 125 of the hotel condo units. With that assertion, the sales team is boasting that 75 percent of the units in the tower are now sold. If that is an accurate figure, then they’ve had a jump in contracts signed since the last numbers were released. A significant portion of sales of Chicago condos in new developments has slowed, so Trump must be bucking the trend in Chicago real estate.

The restaurant Sixteen has been open for some time now. Reviews have been complimentary, and diners are treated to a view of the Chicago River and Wrigley clock tower. Outdoor dining will be available next year on the deck that wraps around the restaurant. Rebar, the name given to the club/bar that is on tap to open towards the end of April or early May, is being billed as Chicago’s newest and trendiest hot spot. Unconfirmed inside sources say that a bottle of water at one of the establishments will set you back $25.00, which is pretty much in line with the menu prices as well.

There are several large developments with high-quality Chicago Condos that are close to completion, but the name Trump is probably the most recognizable.

[tags]Trump Tower, Chicago Condos, Chicago Real Estate[/tags]