May 10, 2008 – The West Loop has seen a 15 year dry spell when it comes to apartment high-rise construction. But that changed as of this past week. Ground was officially broken on Tuesday for what is being dubbed Chicago’s first green construction apartment tower. The sleek 50 story building is going up on 215 West Washington and being developed by Jupiter Realty.

Mayor Richard Daley was enthusiastic in his response to the high-rise. “This project will not only stand in the history of Chicago, but I believe in this country and in the world,” Daley was quoted as saying in Medill News, Northwestern University. Right now Chicago takes the second spot in the nation for number of LEED certified and/or registered buildings. The Mayor has been actively encouraging more Chicago real estate to go green.

The planned apartment tower is already LEED registered with the U.S. Green Building Council but won’t receive certification until construction is complete. Jupiter Realty expects for the first units to be ready for occupation sometime in the spring of 2010. Eco-friendly features include a green roof top, energy efficient heating and cooling systems and windows which will all combine to reduce energy consumption and lower utility bills for residents.

Jupiter expects to attract a lot of interest from corporations who are increasingly trying to bolster their image by going green themselves or endorsing green projects by renting in LEED buildings. The location of this apartment tower would be well suited for anyone who works in the West Loop and prefers to walk to work.

With so many potential Chicago condo buyers now waiting to make a purchase, rental units have become more attractive. Vacancy rates for the first quarter stood at 4.7 percent, according to Hendricks & Partners. The national rate was identical to that number, and as high as 7 percent is widely considered average. All of these factors have influenced a growing number of developers to invest in building more Chicago Apartments.

[tags]215 West Washington, Chicago Condo, Chicago Real Estate[/tags]

May 9, 2008 – The Chandler, a 35 story Lakeshore East high rise by Magellan Development Group LLC still has some units available, including the ultra-luxurious model unit that the developer recently put on the market. This Chicago condo was profiled in the Tribune and if you’re looking for a nice unit with great views of Lake Michigan, the Chicago River and the green expanse of Grant Park, then this condo may be for you.

The model unit is located on floor 23 and listed as having 1,900 square feet of living space. It is a coveted corner unit with three bedrooms and two and a half baths, so there is ample room. The asking price is $779,000. Some of the other condos still available at the Chandler are a few one bedroom units that start in the $500,000 range, some two bedroom units that run from the $600,000s to the $700,000s and the remaining penthouse and three bedroom condos that are listed between $1.2 and $1.45 million.

Two other well known developments have recently started closing contracts and delivering. The Emerald, that eco-friendly West Loop tower has its first residents moving in right now. And ParkView in River East is also closing first contracts, although a fair amount of sales may have been to optimistic investors hoping to resell, judging from the amount of listings that have recently appeared in the Chicago real estate classified sections. With the amount of new condos still coming on line this year, it may be more difficult to Sell your Chicago Condo or at least take longer than you might like.

[tags]The Chandler, Chicago Condo, Chicago Real Estate[/tags]

May 7, 2008 – Back at the end of March we told you about the Russland Capital Group being the first Chicago real estate developer to actually close on about six acres of the long-empty Franklin Point parcel of land. Russland purchased the lot from Florida based CSX Railroad Corporation for around $40 million. Now the remaining two acres of Franklin Point that is currently owned by D2 Realty have been bought by Irish developer Chieftain Group.

The parcel sold for almost $20 million, as stated in Crain’s. That particular part of the site is zoned for as many as 500 residential units, so there is plenty of leeway for a fairly large Chicago condo development. The now defunct Rokas International had plans for a mega development there at one point last year but couldn’t obtain financing. Assuming that Chieftain Group will follow through on the deal, they and Russland will be the first to actually do something with the site in more than 37 years. Like any other new potential development, the planning, stages of required city approval and marketing phase usually spans several months before any ground is broken and construction started. So even though the future of Franklin Point looks much more promising than it has in decades, it will most likely still remain empty for some time yet.

The Chieftain Group is probably best known for their Lexington Park condo tower on South Indiana. That project is the first one here for the developer and at last count had sold moderately well with a little over half of the condos under contract. Condo Developers in Chicago are still moving forward with projects, though not at the same break neck speed as before. But a prime building site like Franklin Point was probably too good to pass up.

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

May 6, 2008 – In time to catch the Indy 500 in the comfort of their new condos, buyers are now moving into Motor Row Lofts. First deliveries of units on the lower floors are in progress, according to a post on Yo Chicago. The other lofts will close on an ongoing basis, as soon as work is completed.

As probably everyone knows by now, these lofts are the product of the conversion of classic buildings that are part of the Motor Row Historic District on 2301-2315 South Michigan Avenue. The biggest of the three renovated buildings once housed a Cadillac showroom, so these Chicago condos may be of particular interest to car enthusiasts.

With 52 lofts and 36 floor plans, there is a lot of variety in this Chicago real estate development. The units come with one to three bedrooms, one to 2.5 baths, airy 13 to 21 foot high ceilings, expansive 12 foot windows, traditional exposed brick and timber details plus a choice of maple, oak or bamboo flooring.

One of the best perks of purchasing a condo is the eight year property tax freeze that buyers will receive since the buildings qualify for the Illinois Property Tax Assessment Freeze Program. After those initial eight years, residents may also receive another three to four years of partial tax reductions.

The YC post stated that slightly more than half of the lofts are still unsold and current prices vary from around the $270,000 to the mid $600,000 range. So with those prices, the luxury finishes, tax breaks and number of available units still left, you might want to take a closer look if you’re shopping for new Chicago Lofts.

[tags]Motor Row Lofts, Chicago Condos, Chicago Real Estate[/tags]

May 5, 2008 – The Near North Side will be the site of a new mixed-income development that should break ground this autumn. Chicago real estate developer Related Midwest is partnering with the Chicago Metropolitan Housing Development Corporation to build a residential tower that would house 80 units close to the corner of North Larabee Street and North Clybourn Avenue. The CMHDC has ownership of the parcel of land and the two groups have formed Clybourn Larabee LLC to build Clybourn Condos.

The publication Inside Lincoln Park stated that the nine story glass low-rise was designed by Brininstool and Lynch. The building will have a primary entrance on Larabee Street as well as a landscaped green area. The condos will have layouts with from one to three bedrooms and contain from 711 to 1,782 square feet of living space. Whenever a developer partners with the Chicago Housing Authority or one of its entities, 10 percent of the project’s units are designated as affordable housing. Of the Clybourn Condos, 9 units will be priced from $120,000 to $192,000 while the remaining 71 will go for market rates of between $220,000 to $616,000 each.

The project got a green light from the Chicago Plan Commission back in February and the building site has had the zoning changed from commercial to mixed-use. The condos should get tax Increment Financing sometime this month. Actual construction is expected to gear up in the fall, probably either in September or October. Clybourn Condos isn’t the first project that Related Midwest and the CMHDC have worked together to build. A 38 unit building called the Mark in Uptown was their first joint development.

With construction financing for new Chicago condos getting tighter, partnering with the CHA can be an attractive option for developers. It is a beneficial deal for both the developer and for buyers looking for Cheap Chicago Condos.

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

Sales were up on the Near South Side during the first quarter.   According to data from the Chicago Association of Realtors, the neighborhood enjoyed an increase of 13 percent on 214 units sold during the first quarter.

However, the neighborhood is plagued by a long average market time, which is putting pressure on prices.  According to data collected from the MLS on May 4, the average market time for units currently for sale on the Near South Side is 395 days, one of the longest in the entire city.  Units in the $1 million to $2 million range have been sitting on the market for an average of 783 days.

By taking into account sales since May 4, 2007, the Near South Side has a market supply of 10.57 months.  A market supply over 6 months is considered a buyer’s market.  If you’re looking to buy a condo in the area, negotiate a price that reflects current market conditions, particularly for larger condominiums in the neighborhood.

Prices are already starting to come down in the area.  According to the C.A.R. report for the first quarter, prices for condos sold during the quarter were down 1 percent from the same period last year.  Buyers can expect to see even lower prices for Chicago Condos in the short term on the Near South Side.

[tags] Near South Side Condos, Chicago Condos For Sale, Chicago Real Estate [/tags]

May 3, 2008 – Back in January Prism Development announced that they had secured financing for the Ritz-Carlton. It took several weeks, but the promised $137.5 million loan from German based Helba Bank came through along with another $40 million from Kuwait Finance House, according to Crain’s. The building site at 664 North Michigan Avenue has basically been inactive for some time, mirroring the frozen sales which have stood at around 40 percent for months. However, construction should finally begin on this project in the very near future.

Michael Schramm of Prism Development was very optimistic that sales of the remaining 88 Chicago condo units in the project would pick up now. “We’ve got a nice backlog of folks sitting on the fence who have been waiting to have us close,” Schramm was quoted in Crain’s. “We’re expecting a nice rush of sales over the next few months.” He said that prices for these luxury units start at $1.5 million and increase to almost $10 million.

The one to three bedroom condos come with all the perks and services that the hotel will offer guests. That includes everything from housekeeping, catering, personal trainer, valet and also other custom services on a per service charge. The 40 story high-rise will feature a billiards room, spa with salon, club room and wine cellar.

Details of this Chicago real estate transaction between Prism Development and former site owner Terra Foundation for American Art include Terra receiving ownership of 20,000 square feet of retail space and 12,000 square feet of office space on the first two floors. The Farwell Building, a historic structure that currently is located on the site, will be torn down but the facade preserved.

With funding for large developments here in the States in short supply, there has been an increase in foreign investors and banks stepping up to fund more Pre Construction Condos in Chicago.

[tags]Ritz-Carlton, Chicago Condos, Chicago Real Estate[/tags]

May 2, 2008 – One casualty of financially strapped developer Kimball Hill is Centro 18, a large project that was planned for 18th Street in Pilson. Since the announcement this week that Kimball Hill is opting for Chapter 11 bankruptcy, the company is trying to find either a buyer for the land or possibly even a new partner for the project. “With a particular development of this size, the numbers didn’t work. We were just waiting for market conditions to improve,” Doug Guthrie, president of Kimball Hill’s urban centers division, was quoted as saying in the Chicago Journal. “We weren’t out very long until the market turned bad.”

The development had been given a green light more than a couple of years ago, and would have included 387 Chicago condos, 21 percent of which were supposed to be affordable units. This condition was vital to the approval of the project, and despite that it still had local residents who opposed it. Alderman Danny Solis has stated that the 21 percent designated affordable units is non-negotiable no matter who takes over this Chicago real estate project.

In other news, One Museum Park has started closings. The 65 story high-rise can hold the title of tallest purely residential tower in town for now. The last public numbers put the 289 units at about 70 percent sold. Luxury condos in this South Loop tower range in price from the mid $600,000s to more than $2 million and have from one to three bedrooms and baths. With roughly 30 percent of the units still left at One Museum Park, that’s a few more to add to the inventory of Chicago New Construction Condos still on the market.

[tags]One Museum Park, Chicago Condos, Chicago Real Estate[/tags]