May 20, 2008 – M&R Development, the company lobbying for a fairly large mixed-use project near Wrigley Field, is working overtime trying to win public approval before presenting their proposal to the City Council and Plan Commission. When the planned development was first announced a few months ago there was immediate opposition from local residents and loyal baseball fans. To win public approval and keep information flowing, M&R has even put up a website for their proposed Addison Park on Clark.

According to the website, the tower height was knocked down from 245 feet to 105 feet to keep from dramatically overpowering the ballpark and neighborhood buildings. The new height keeps the structure below the level of the lights at Wrigley. The main anchor of this Chicago real estate project, A Hayatt Place Hotel with 135 rooms, is still on tap. But the residential portion of the project has been greatly reduced from 220 to 150 apartments. Some 500 parking spaces can be used by local retail shoppers and not just the building residents and guests. Also, Addison Park on Clark will file for LEED certification and take the green route in construction with eco-friendly materials and details.

There are several business already located on the proposed site and M&R is offering to let them relocate back there after the construction is finished. They are also planning on adding more retail, including a grocery store and possibly a fitness center, depending on public input.

M&R has a long process ahead of themselves to win approval from local residents and the alderman before they can move forward with this project. If that happens, Addison Park on Clark could add a significant number of Chicago Apartments to Lakeview. Developers are still shying away from building more Chicago condos and are branching out in other areas of the real estate market.

[tags]Addison Park on Clark, Chicago Condos, Chicago Real Estate[/tags]

May 19, 2008 – With the recent grand opening of the Solstice on the Park sales model, Jeanne Gang’s love it or hate it 27 story Hyde Park high-rise is once again in the spotlight. The unique slanted windows, strategically placed balconies for optimum shade and geometric shape of the design all combine to make this tower one of a kind in this neighborhood and perhaps even the city.

The model open to the public is a three bedroom layout temporarily located on the building lot. To give prospective buyers a good idea of the view they’ll be getting at Solstice, computer animated views are available on site. This building is certainly taller than most in the neighborhood, and the nearby Museum of Science and Industry campus provides an interesting landscape on one side.

There are no one bedroom Chicago condo units at Solstice. Floor plans range from two to four bedrooms. The two bedroom units range from 1,550 to 2,300 square feet, the three bedroom condos from 2,300 to 2,800 square feet and the spacious four bedroom suites have from 3,400 to 4,200 square feet. Prices start at $480,000 and run up to more than $2.5 million.

Building amenities in this development include a half acre landscaped garden with seating and a BBQ area on the fifth floor, along with the fitness center and hospitality center located there. An outdoor swimming pool and sun deck are also on tap. The two story lobby will flow into a sun-filled library plus conference room for residents.

The units at Solstice are a bit tilted towards a more upscale buyer or family looking to move to Hyde Park and we’ll have to keep an eye on this new Chicago real estate development to see how well it sells compared to other Chicago Luxury Condos.

[tags]Solstice on the Park, Chicago Condos, Chicago Real Estate[/tags]

May 18, 2008 – Buyers could continue to see lower prices as the supply of new and re-sale single-family homes rises at a record rate in Chicago. According to a May 8 report from ZipRealty, a California-based real estate research firm, Chicago saw a 5.9 percent increase in the supply of new and re-sale single-family homes on the market from March to April.

The city saw the highest monthly increase in single-family homes on the market of all 29 major metropolitan areas covered in the study. Boston and Seattle followed close behind with increases of 5.6 percent each in April, while the national average stood at 1.3 percent. A total of 9,307 new and re-sale single-family homes are currently on the market in the city of Chicago.

Meanwhile, sales of single-family homes in April were off 23 percent from the same month last year, while prices around the city fell by 24 percent during the month. At current sales rates, there is a staggering 17 months of market supply of single-family homes in the city. Anything over six months is considered a buyer’s market.

The condo market in Chicago is also seeing an increase in the number of new construction condominiums. The market will feel the effects of the 5,984 new construction condos in downtown Chicago alone in 2008, according to Appraisal Research Counselors in a report published earlier this year. This is a record for the downtown condominium market. Sales plunged 31 percent in April, while prices rose 21 percent on increased demand for million dollar condos downtown.

It will be a competitive market this year for Chicago Real Estate as developers scramble to attract buyers.

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

May 17, 2008 – In contrast to so many announcements for proposed condo hotel projects, it seems as though The Alter Group’s plans for a large mixed-use development near McCormick Place may have fallen through. Back in January the developer confirmed that an agreement had been made with the owner of the site to purchase it for about $70 million. Alter planned to construct a huge hotel with possibly 1,500 rooms, including an undetermined number of Chicago condos and retail space. A casino was even being considered and Lucien Lagrange was on board to design the development. But Crain’s reports that Alter failed to produce the earnest money to keep the contract for the 3.7 acre site alive this spring.

The parcel of land is owned by a couple from Maine and is said to be back up for sale. The site is in a prime location on Prairie Avenue and Cermak Road near McCormick Place. But Alter ran into some unexpected complications with the site, and most likely any other Chicago real estate developer who decides to build there will as well. The American Book Company, an existing brick building that dates back nearly a century, is about to receive landmark status from the city. Once that happens, the building would have to be preserved and worked into any design for the site and that would have a big impact on the overall cost of construction.

Representatives of the Alter Group were quoted in the article as saying they are still trying to move forward and salvage the deal. If this development had been built, it would have earned the title of 4th largest hotel in Chicago. It’s too early to tell if the condo hotel market has peaked, what with several recent announcements of new projects and the apparent success of Trump Tower.
[tags]Alter Group, Chicago Condos, Chicago Real Estate[/tags]

May 16, 2008 – Another mixed-use development may get a green light from the Chicago Plan Commission this week. Monaco Development LLC has put together a new proposal for their planned high-rise on 150 East Ontario. The original design that Monaco envisioned was completely residential, but the new plan is for the 43 story tower to contain a mix of 323 hotel units and 32 Chicago condos. This development change joins a growing number of recent projects that are revising designs to lower the number of condos included.

An architect and partner in the deal, Enrico Plati, confirmed in the Sun Times that Monaco has secured a deal with Marriott International for the hotel portion of the project. Marriott has been actively perusing sites to launch their new chain of boutique hotels that are dubbed Edition. This tower will be the Chicago premier of that brand.

The main issue that Monaco had to work around was local residents being concerned about an increase in traffic from the construction and later customers of the hotel. To resolve this, Monaco has agreed to cover the cost of two traffic controllers to be positioned at the two most congested intersections at the peak traffic hours.

Interestingly, the upscale restaurant Bice is one of the businesses being displaced by the impending demolition of the four buildings that are currently on the building site. Bice is scheduled to take up residence in the ground floor of 10 E Delaware.

Monaco hopes to have financing in place in time to begin construction on the development sometime late this year. More and more, Condo Developers in Chicago have been locking in funding from foreign banks and investors. Chicago real estate is still appreciating at a fairly steady rate, and foreign banks seem willing to spend both the time and money on developments that local banks are more reluctant to fund.

[tags]Edition Hotel, Chicago Condos, Chicago Real Estate[/tags]

May 15, 2008 – It looks as though River North will be seeing more construction soon as work on the proposed Flair Tower project begins this summer. The building site, which at the moment is a parking lot on Franklin and Erie, was at first slated for new Chicago condo construction. But with the deflating market and inflating rents, plans were revamped to a luxury apartment tower instead.

Chicago real estate developer Dan McCaffery has secured funding from RREEF, a division of German-based Deutsch Bank. This is the second project that the two groups have developed, according to a recent Crain’s article. About three years ago they produced another rental tower, the 25 story Bernardin on N. Wabash Avenue, and then sold the tower for the second highest amount recorded for an apartment building in the city. With this past success, their collaboration on Flair Tower should also prove a winner.

At 21 stories, Flair Tower will contain 201 units and be designed by Joseph Antunovich. The $80 million project gets its name from the historic neighboring Flair House. Along with the 201 luxury rental units, the building will have roughly 9,000 square feet of lower level retail space and parking for 185.

With slowing condo sales and some developers scrapping projects in favor of rental towers, there may be more Rent to own condos in Chicago hitting the market soon. Those who bought into pre-construction developments with the intention of flipping the units soon after closing may experience a longer than expected wait time to actually make that sale.

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

May 14, 2008 – The future landscape of South Michigan Avenue may contain two fewer high-rises. Chicago real estate developer Warren Barr of Renaissant Development Group LLC is facing an $18.7 million foreclosure lawsuit filed on May 2nd by First American Bank against the site for the Park 1000 on 1000 S. Michigan. Koenig and Strey GMAC has also filed a lien for roughly $125,000. The loan was due to be paid back by March 31st.

Barr was optimistic though about the situation. “We are in the process of remedying it (the default) and in the next couple weeks it will be taken care of,” he was quoted as saying in Crain’s. He hinted at the possibility of financing from foreign banks, which is something several other large developments have turned to recently. The U.S. real estate market is much more attractive right now to overseas investors.

The planned 40 story tower for 1000 S. Michigan is said to have about 170 units already under contract, which is close to 50% of the building’s total 346 Chicago condos.

Barr’s other planned project, the Park Michigan on 830 S. Michigan, never reached the marketing phase. It was in the process of applying to the City Council for approval but that site was also hit with a foreclosure suit for $4.25 million by Hermes Capital. The 80 story tower would have garnered the title of tallest high-rise in the South Loop and 9th tallest in Chicago.

When buyers sign contracts on Pre Construction Condos in Chicago, having the project stalled by a foreclosure suit is probably not something they ever think of happening. But with the market conditions still not on solid ground, it can’t hurt to assess the developer’s track record before signing.

[tags]Park 1000, Chicago Condos, Chicago Real Estate[/tags]

May 13, 2008 – Better late than never may be the new motto of a lot of Chicago real estate developers this year. Many projects are experiencing slow sales which can be troubling after construction starts and sometimes even crippling before pre-construction goals are met or financing secured. But for 1349 South Wabash that elusive ground breaking finally occurred.

Chicago condo developer See Wong marketed this project as a sort of affordable, no extra frills option to buyers. With this tower, as with the large Grand Imperial Hotel project in Chinatown, Wong is banking on interest from immigrants for sales of the units. 1349 South Wabash will stand at 15 stories and contain 78 condos that range from one to two bedrooms. Prices for these units range from the low $200,000s to mid $300,00s. The building is expected to be complete sometime late next year. With fewer building amenities buyers not only get lower unit prices but also lower assessments. That could entice some potential condo buyers who are hesitating because of the current market conditions.

Wong had been offering buyers $5,000 in upgrades for purchases of the two bedroom condos. That incentive package had supposedly been only in effect until last spring. But the developer confirms that the offer is in fact still good for anyone who buys a two bedroom by this spring. Apparently it is more open-ended than most of us realized. Even with lower prices, it may take anything a developer can through into the mix to sell out a project. The lure of Cheap Chicago Condos may not be enough, even if the condos are decent quality construction.

[tags]1349 South Wabash, Chicago Condo, Chicago Real Estate[/tags]

May 12, 2008 – Bucktown is the site of a new loft development that will be located in the building that was once the Baer Fireproof Warehouse. The Baer Lofts, as the project has been named, is set to be a traditional loft design with 16 units. The lofts will have from one to two bedrooms and baths and buyers will have four floor plans from which to chose. The former warehouse on 1927 North Milwaukee Avenue is regarded as being one of Bucktown’s last remaining historic buildings, giving this Chicago real estate development an even more traditional feel.

Funke Architects designed this project and have combined true loft details with plenty of modern finishes. Standard features include open floor plans, 11 to 13 foot ceilings, floor to ceiling windows, 42 inch Hanak European cabinets, Grohe, Toto and Kohler fixtures, wide board solid oak flooring, stone counter tops and slate and marble tile plus stainless steel kitchen appliances. The lofts also feature either a balcony or patio, depending on the unit.

The one bedroom, one bath units contain between 820 and 835 square feet of living space while the two bedroom, two bath lofts range from 1,125 to 1,135 square feet. Prices run from $274,900 to $559,900 for these Chicago condo lofts.

There has been a resurgence of interest in loft developments, and Baerlofts could be exactly what you’re looking for if you prefer a smaller building in a neighborhood with slightly less traffic. If you’re more interested in bigger loft developments, there are several great new construction buildings as well as renovations if you browse the Chicago Lofts index.

[tags]The Baer Lofts, Chicago Condo, Chicago Real Estate[/tags]

May 11, 2008 – The average sales price for new and re-sale condominiums in Chicago rose by an impressive 21 percent in April.  However, this doesn’t necessarily mean that values for individual condos are increasing at the same rate.

According to data from the MLS for April, buyers are focusing on more expensive units, which is driving up the average sales price for the entire market.  For example, on the high end of the market in the Loop, buyers bought an impressive 18 units priced between $1 million and $2 million during April of this year.  Only one unit was bought in that price range in the Loop during the same month last year.

On the lower end of the market, buyers picked up just 14 units priced under $250,000 around the Loop in April, down from 28 units sold during the same month last year.

The real estate market on the Near North Side showed similar results in April.  A total of 18 units were sold for more than $1 million in 2007, with the highest priced condominium selling for $2.65 million.  In April of this year, 18 units were also sold over $1 million, but the highest price paid during the month reached over $4.3 million.

29 units were sold for less than $250,000 in April on the Near North Side, down from 39 condos sold in that price range during the same month last year.

While at first glance it looks as if prices are on the rise for all units, if one looks more closely at the statistics, only the high end of the market for Chicago Condos is enjoying an increase.