November 30, 2008 – Sales of condos and lofts plunged by nearly 40 percent in October in Lakeview. It was the second straight year that sales fell in October after reaching a peak in 2006. Condo prices also fell for the second straight year in the neighborhood.

According to data from the Chicago MLS, a total of just 84 new and resale condos and lofts were sold in Lakeview in October, down 39.5 percent from a year ago, when 139 units were sold in the neighborhood during the month. In October 2006, a total of 154 units were sold in the area. Demand on both the high and low ends of the market was down. A total of just 13 units were sold for more than $1 million in October, down more than 40 percent from the same period a year ago. Sales of units priced at less than $250,000 fell by just 20 percent, with 28 units sold in that price range during the month.

The sales price fell to a three-year low in Lakeview. The average sales price hit $346,437, down more than 6 percent from a year ago, and nearly 10 percent below the peak of $382,317 seen in October 2006. However, condo owners who did sell their units during the month waited more than a week less than a year ago. The average market time fell to 87 days in October, down from 98 days a year ago.

Buyers could continue to see falling prices for Chicago Condos in Lakeview as well as in many other popular neighborhoods around the city.

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

November 29, 2008 – The Deutsche Bank Trust Company has filed a $40 million lawsuit against Donald Trump over the loan that came due on November 7th. This suit is hot on the heels of Trump filing his own suit against the bank because they refused to extend the loan. In that suit Trump claims that the bank has made it more difficult to sell the remaining units in the 92 story Trump Tower by not allowing Trump to market the Chicago condos for a lower price and that the global financial meltdown is an extenuating circumstance that should allow a payback extension, according to Crain’s.

The original amount of the 2005 loan was $640 million, of which some $334.2 million came due. Trump had personally guaranteed $40 million of that himself. Other construction funds came in the form of Trump putting up $64 million in equity and also $12.8 million more as work progressed. Another lender, Fortress Credit from New York also financed $130 million for the project.

Sales are still at around 75%, and Trump has offered to purchase the remaining units himself but Deutsche won’t agree on a price. Total sales of the condos and hotel units amount to around $200 million and Trump says another $353.1 million is under contract. Competition from buyers who are selling their investment units in the Chicago real estate project for as much as 30% below developer prices have slowed sales for Trump.

Deutsche is also trying to have Trump’s lawsuit thrown out, reasoning that Trump’s continuing construction projects are evidence that he is able to repay the personal guarantee. Trump was quoted in a Scottish newspaper as saying that, “we are doing very well as a company and we are in a very, very strong cash position.” The comment was made in reference to a large golf course with time shares he is building there. Trump’s attorney, Mr. Schlesinger, said in reference to the Deutsche suit that, “we’ll have a knock-down, drag-out for the next six months over this.”

The outcome of this legal battle could really influence other disputes between lenders and developers of Chicago Luxury Condos.

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

November 28, 2008 – If you’re shopping for a town home or single-family home and willing to branch out a little into some Chicago area developments from Ryland Homes, then you can wrap up a pretty good deal during their Red Bow Event from now until December 31st. The home builder is offering buyers the option of taking 50% off the cost of upgrades or as much as $100,000 off the list price of a residence, according to a press release in the Tribune.

There are A total of 12 Ryland developments that have move-in ready homes that qualify for this offer. Both Tuscan Woods and Shadow Hill/Cedar Grove in Elgin are eligible for the incentive. Tuscan Woods has 2,436 to 3,415 square foot single-family homes that run from $299,990 to $356,990. Shadow Hill/Cedar Grove has 2,420 to 4,336 square foot single-family homes from $289,990 to $404,990 and town homes that are 1,764 to 2,185 square feet and are priced from $209,990 to $257,990.

More town homes can be found at Emerald Bay in Round Lake. They run from 1,314 to 1,673 square feet and list for $154,990 to $172,990. Lakewood Springs in Plano has a selection of town homes that size up at 1,314 to 1,673 square feet also and cost from $129,990 to $155,990.

Other Ryland Chicago real estate developments with single-family homes include Beacon Point in Hoffman Estates at 2,624 to 3,122 SF and from $399,990 to $488,990. Blackberry Crossing West located in Montgomery homes run from 1,748 to 3,686 SF and $229,990 to $352,900. Then there is Bryn Mawr in Crystal Lake. Those homes range from 2,807 to 4,238 SF and cost from $333,990 to $419,990.

You may want to visit some of these developments before the end of the year to take advantage of the offer, or you can find other great Townhouses in Chicago that may interest you as well.

[tags]Ryland Homes, Chicago Townhomes, Chicago Real Estate[/tags]

Emerald on Green Street is an exciting new development located at 123 S Green in the West Loop. The twin 12-story towers offer a total of 212 units. Built by Harlem Irving Companies, Senco Properties, and New Frontier Properties, Emerald on Green Street features eco-friendly living with a long list of amenities. The first deliveries began earlier this year, and one and two-bedroom condominiums are still available from the developer. One resale unit and three rentals are also listed on the MLS.

Developer Pricing and Incentives

Condos at Emerald on Green Street come in five different floor plans on each floor. Incentives currently include a free parking space, a $35,000 value. Residents can also receive an additional $5,000 in upgrades if they refer a buyer.

Unit    Floor Plan        Square Feet    Price Range           Avg Assessment
9, 10  1 BR/ 1 BA        794 sq ft    $290,000 – $323,000    $225
2, 7    1 BR/ 1 BA        765 sq ft    $306,000 – $339,000    $225
4, 5    1 BR+Den/1BA  900 sq ft    $340,000 – $377,000    $265
1, 8    2 BR/ 2 BA       1,250 sq ft  $394,000 – $460,000    $345
3, 6    2 BR/ 2 BA       1,297 sq ft  $484,000 – $526,000    $345

Resale Units

One flip is listed on the market at Emerald on Green Street. However, don’t expect a great deal from this unit, which is priced above the developer’s current price range for a two-bedroom and two-bath condo with 1,250 square feet. Another resale unit that closed in recent weeks was priced below the developer listing price. Unit 710, a one-bedroom and one-bath condo, was flipped for just $278,000 in September, making it the lowest priced unit to close in the development.

Unit 801B
Listing Price: $489,900
Original Listing Price: $494,900
Days on Market: 49
Assessments: $355
Listing Agent: John Robinson at Century 21 Sussex & Reilly
Comparable: The developer lists prices for similar floor plans from $394,000 to $460,000, with one free parking space currently offered.

Rental Market

There are currently three condos for rent at Emerald on Green Street.

Unit     Floor Plan   Price      Recent Market Activity
304B   1BR/1BA    $1,950   Unit 505A rented for $1,800 in May
1108   2BR/2BA    $2,400   Unit 408A rented for $2,550 in May
801A   2BR/2BA    $2,450   Same floor plan as Unit 1108

Development Amenities

Standard amenities at Emerald on Green Street include bamboo hardwood floors in the main living areas, a master bathroom with separate shower and marble finishings, a gourmet kitchen with stainless steel appliances, a breakfast bar, and granite countertops. Floor-to-ceiling windows and a large balcony open out to city views. Residents also enjoy a modern fitness center, 24-hour doorman, and indoor heated parking.

[tags] Chicago Real Estate, Chicago Condos For Sale, Chicago Condos For Rent, Emerald On Green Street [/tags]

November 26, 2008 – Magellan Development is moving forward with finding another buyer for the hotel space in Aqua since Strategic Hotels and Resorts decided to opt of their contract to purchase the space. The developer is marketing the ground floor plus floors four through eighteen and the 17,700 square foot space that was designated as a ballroom to other prospective hotel chains.

According to Crain’s, Magellan is willing to sell the space for about 33% less than the original asking price of $84 million because Strategic forfeited the $28 million letter of credit the company put up to hold the rights to purchase the space. That means a new investor could pay as little as $56 million and put in as many as 300 hotel rooms in the Jeanne Gang designed high-rise.

Interestingly though, Magellan isn’t ruling out using the space themselves if they don’t find a buyer by the end of the year. The Chicago real estate developer could fit in up to 200 more apartments on those floors, and with the building already close to a sell-out it probably wouldn’t be difficult to fill them. Aqua already has 474 apartments and 264 Chicago condo units.

And for those of you who are green building fans, Winthrop Club in Evanston looks as though it will achieve LEED Gold certification for the project. To win that level of certification, a building has to meet 46 standards set by the U.S. Green Building Council. One of the unique and environmentally responsible aspects of Winthrop is that at least 75% of the construction materials left over will be reused and not dumped in a landfill. The 15 story building will incorporate 10% recycled materials into the construction and 20% of the materials used are being bought locally. Winthrop Club will also consume 20% less electricity than a non-green building would. You can check out a furnished model at the sales center if you’re interested.

With few new developments on the horizon for the next year, it’s interesting and in a way educational to go back and look at the Pre Construction Condos in Chicago that have managed to make it in before the market slowed.

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

November 25, 2008 – It looks as though an empty, overgrown River North lot will stay that way for the time being. LG Development Group has decided to scrap plans for the 28 story Hartshorne Plunkard designed high-rise they had intended to build on 111 West Chestnut. The project had been met with mixed reactions from local residents and the alderman. LG decided to withdraw their application for consideration from the Plan Commission, according to the Chicago Journal.

The main complaints that opponents had were the shadow that the building would have cast over Washington Square Park and add to the density of the neighborhood where there are already several large scale developments in progress. Alderman Reilly stated in the article that he would prefer a more open development or town homes as opposed to another high-rise. LG stated that withdrawing the proposal wasn’t due to the mixed reviews the tower plan received, but rather a contract dispute with the current owner of the property, The Lubavitch Chabad who is now offering the parcel to other interested Chicago real estate developers.

The fate of another Chicago condo development is still somewhat of a mystery. Glas Haus, Piedmont Group’s planned 27 story, 260 unit tower has been in the marketing phase for some time now and sales have been hovering just below the 40% mark for a while. The expected delivery date has been amended and pushed back before, and now is set for sometime in 2010. There are plenty of one and two bedroom units left for sale at around the mid $200,000s to mid $700,000s.

With lenders tightening up on financing, Glas Haus will probably have to do much better than their current sales stats before they can break ground and meet that delivery date. Loans for Pre Construction Condos in Chicago need to backed by strong sales figures these days.

[tags]111 West Chestnut, Chicago Condos, Chicago Real Estate[/tags]

November 24, 2008 – The list of Chicago real estate developers pushing to sell out any unsold units in their buildings keeps getting longer. The latest one to come across the radar is Smithfield Properties, who have lowered the price on the few empty Chicago condos left in MoMo, or rather The Residences at the Joffery Tower as it’s now known. There are about twenty units left for sale from the developer, and they appear to have been cut by about $10,000 to $20,000 in price.

The building has inspired a lot of debate about everything from the frosted glass that was installed on the lower portions of the windows to the lack of undermount sinks in the bathrooms. The structural void, which looks a bit like an H or pair of legs, raised the lower level condos enough to give a view above a nearby building and is another love-it-or-hate-it feature of the high-rise. On the plus side, the open layouts of the units have gotten a lot of praise and the lake views are certainly welcome. It’s probably worth taking another look if you’re interested in this tower.

SoNo, Smithfield’s other two syllable project on Blackhawk Street has been rumored to have a change in plans for the second phase of the development. The first phase, a 28 story high-rise, still has close to seventy units ranging in price from the upper $200,000s to upper $500,000s not under contract. The second phase of the project was to be a twin of the first tower, but now is most likely going to be rental apartments instead of condo units for sale.

With developers cutting back drastically on planned condo towers for at least the next year, the amount of Chicago Apartments in the works keeps rising and will probably continue to do so.

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

November 23, 2008 – Sales of new and resale condos and lofts have plummeted on the Near West Side in the past two years.  Sales in October were off by nearly 38 percent from a year ago, and more than two-thirds below totals seen in October 2006.

According to data from the Chicago MLS, a total of just 54 condos and lofts were sold on the Near West Side in October, down from 87 units sold during the same period just a year ago.  The drop in demand was even more pronounced from two years ago, when sales in the market reached a frenetic pace in the neighborhood.  A total of 167 condos were sold in the area in October 2006, led by strong demand for units priced under $250,000. A total of just 8 units were sold in that price range in October of this year, down from 36 units sold in October 2006. 

Prices for condos and lofts are returning to levels seen in 2006 after spiking last year in the area.  The average sales price on the Near West Side fell more than 6 percent in October to $339,304, down from the high of $362,132 seen a year ago.  The average sales price in October 2006 was $338,858.  As prices come down in the area, buyers could start to flock back to this popular neighborhood that offers some of the best New Construction Chicago Condos and lofts in the city.   

November 22, 2008 – For those of you who didn’t know, a bit of interesting and money saving information about Chicago real estate developer Mesirow Financial Real Estate’s R+D659 is that some units in the development are eligible for as much as $30,000 in assistance from the Chicago Partnership for Affordable Neighborhoods. There are of course certain limitations and qualifications applied to this program, but it is definitely worth checking into.

The Chicago condo studio units in R+D659 qualify for the program and are priced at about $140,750. The program is for first time buyers or someone who hasn’t owned a home or condo in the past three years or more. The amount of assistance is also dependent upon your income level and the number of persons in your household. CPAN’s goal is to promote the development of affordable condos in neighborhoods that show promise of growing and maintaining value.

To qualify, you have to go through a sort of tutorial or counseling session about the basic responsibilities of owning a condo or house and also pointers about credit and loans. You also have to be approved for a loan or mortgage before you will receive the up to $30,000 grant from CPAN. It might sound like a lot of work, but for the amount of money you could receive it would be worth it.

R+D659 on Randolph Street in the Near West Side is a fantastic location in terms of attractions, restaurants and shops, and this is one of the more popular Chicago Neighborhoods for many buyers. The 15 story building should be ready for first deliveries sometime in mid December.

[tags]R+D659, Chicago Condos, Chicago Real Estate[/tags]

November 21, 2008 – The latest Chicago real estate development to jump on the price reduction bandwagon is 550 N St. Clair in Streeterville. Sutherland Pearsall is now offering the remaining units in a “developer closeout” at some pretty significant price cuts. 550 N St Clair has a total of 112 Chicago condos and there are around 30 of those still being sold by the developer. The building website headlines state that the units are available for immediate delivery, one bedroom condos plus parking listed for under $400,000 and also the availability of some three and four bedroom units.

550 N St Clair began closing back in February of this year and like several other projects in Chicago, the developer is having some difficulty moving the last units into the sold column. According to some listings, there are studios that had been priced in the high $200,000s that are now going for the very low $200,000s. One bedroom condos that were priced in the low $400,000s have been dropped to the low $300,000s. You can catch a two bedroom, two bath unit that had previously ran in the $580,000s for as low as the $430,000s now. And some three bedroom, two bath condos are down to the mid $600,000s from a previous high of the mid $800,000s.

Amenities at 550 N St. Clair include thermal pane glass on the windows, private balconies, in-unit washer and dryer, custom cabinetry in the kitchens, Sub Zero and Bosch appliances and Brazilian cherry or maple hardwood flooring. There is a 24 hour doorman, fitness center, dog run and Sky Lobby on floor 11 with a party room that can be booked for occasions.

With price reductions like these at 550 N St. Clair, potential buyers may just have a much easier time trying to decide between Chicago Condos in Streeterville.

[tags]550 N St. Clair, Chicago Condos, Chicago Real Estate[/tags]