Update November 20, 2008 -

As we move into the Holiday season, it looks as if buyers are seeing some significant price reductions from previous listing prices at 1720 S Michigan, a new construction development by CMK Companies located in the heart of the South Loop. This 33-story building is home to a total of 498 units, with one, two, and three-bedroom floor plans available. As of today, it appears that the building is nearly 95 percent sold, with just 27 developer-owned and resale units on the market.

If you’re looking for one-bedroom condos at 1720 S Michigan, prices are currently ranging from $199,900 to $257,700 for one-bedroom floor plans with up to 770 square feet of living space. Here’s the most affordable unit in the building, which has been on the market for just over 8 months. This unit is owned by the developer-

Unit 2317

Listing Price: $199,900
Original Listing Price: $203,900
Days on Market: 255
Assessments: $241
Listing Agent: Scott Hoskins at CMK Realty
Comparable: A similar floor plan on the 25th floor closed in March for $226,800 after just one month on the market.

There are also some significant price reductions for two-bedroom condos at 1720 S Michigan. The least expensive two-bedroom condo is a short sale on the 11th floor. This unit offers 953 square feet of total living space and has been discounted more than 25 percent since it was originally listed just four months ago. This one’s a resale unit, and is priced well below similar floor plans for sale by the developer. Prices for two-bedroom and one-bath floor plans currently range from $259,900 to $309,900.

Unit 1103

Listing Price: $259,900
Original Listing Price: $349,900
Days on Market: 122
Assessments: $349
Listing Agent: Maria Urbanek at Keller Williams Realty
Comparable: Unit 1703 offers the same floor plan. This developer-owned unit closed in September for $324,300.

If you’re looking for a larger condominium, there is currently just one three-bedroom and two-bath condo on the market. This developer-owned unit offers a floor plan with 1,328 square feet of living space. This condo on the 14th floor was put on the market just a week ago.

Unit 1401

Listing Price: $389,900
Original Listing Price: $389,900
Days on Market : 7
Assessments : $454
Listing Agent : Scott Hoskins at CMK Realty
Comparable: Unit 1001 was also a developer-owned unit. This condo offers the same floor plan, and closed for $422,800 in February 2007.

Rental Market

There are 12 condos for rent at 1720 S Michigan. Prices range from $1,250 for a one-bedroom and one-bath condo on the 11th floor to as much as $2,300 for a three-bedroom and two-bath unit on the 22nd floor.

Rent/Buy Comparison

Three condos at 1720 S Michigan are listed both for rent and for sale.

Unit     Floor Plan     Sales Price     Assessments    Rental Price
1205   1 BR/1 BA    $239,900      $299                $1,300
1503   2 BR/1 BA    $309,900      $350                $2,000
1418   2 BR/2 BA    $369,900      $391                $1,950
2201   3 BR/2 BA                                                $2,300

Development Amenities

Standard amenities at 1720 S Michigan include hardwood floors in the main living areas, carpeted bedrooms, and 10-foot ceilings. Floor-to-ceiling windows open out to sweeping lake and city views. The gourmet kitchen features stainless steel appliances, granite countertops, and a breakfast bar. Parking is available in the underground heated garage from $30,000.

[tags] Chicago Condos, Chicago Real Estate, 1720 S Michigan, New Construction Condos [/tags]

November 20, 2008 – Another well-known Chicago real estate developer is scrambling to find a solution to growing financial problems. Thrush Companies, founded by George Thrush, is being sued by New Century Bank for a $6.6 million loan taken out to fund a 164 unit development at the intersection of Racine Avenue and Madison Streets in the West Loop, according to an article in Crain’s.

The loan is in default since coming due this summer on June 3rd. Thrush had been in negotiations to sell the building site to AvalonBay Communities, who are best known for their apartment ventures, but that company decided to not go through with the deal.

Another lender, the Fifth Third Bank of Cincinnati, has filed suit against Thrush for a $1.5 million balance on a revolving line of credit that is owed.

A few posts ago we told you about the auction being held in December by Rick Levin to sell 22 units in Thrush’s Jazz on the Boulevard that the developer has been unable to sell. The Crain’s article notes that there are also 20 of the 132 units still unsold in Thrush’s 740 West Fulton development and that the $38.5 million loan from Coal Taylor Bank used to construct the building came due on November 1st of this year.

As more construction loans come due and developers are faced with unsold inventory, buyers should be on the lookout for price reductions and even more auctions of Chicago Condos.

[tags]Jazz on the Boulevard, Chicago Condos, Chicago Real Estate[/tags]

November 19, 2008 – Another Chicago real estate developer has been forced to drop plans for one south loop high-rise and possibly another. Warren Barr had intended to build an 80 story, 376 Chicago condo tower on 830 South Michigan Avenue, but due to heavy pressure from lenders, foreclosure suits and four liens, sold the parcel last week for $17.55 million, according to an article in Crain’s.

No word yet on who bought the building site, but the selling price still fell about $1 million short of covering expenses. Barr was quoted in the article as saying he “took care of the difference” between the sale price and the $18.6 million he owed. The planned high-rise would have scooped the title of tallest tower in the South Loop.

Barr’s other planned development that may have to be scrapped would have been located on 1000 South Michigan. That project was to be a 40 story tower, and it has also been hit with an $18.7 million foreclosure suit by First American Bank, who claims the loan came due on March 31, 2008 and hasn’t been paid. Barr was also quoted as saying that although he is “still trying to figure out what makes the best sense for that property,” he is starting to return some of the deposits buyers had put down for units in the building. Optimism can be good, but it usually isn’t the best sign when a developer returns deposits.

It probably won’t be long until we can confirm whether or not 1000 South Michigan is officially off the table or not. Until the market turns around, there may be a lot fewer developers willing to start new Downtown Chicago Condos.

[tags]1000 South Michigan, Chicago condos, Chicago real estate[/tags]

November 18, 2008 – Checking in on the last few Chicago real estate developments that wrapped up construction in late 2008 brings us to Belgravia Group’s 600 North Lake Shore Drive. The two tower project was a good seller for the developer. At last count, there were about five Chicago condos still for sale in the building on the north side and sales figures for the south building had hit the 80 percent mark. The project was designed by Pappageorge and Haymes and the sleek lines and contemporary look, along with the great location near the Lake and Navy Pier, have made this a stand-out development.

There are a combined 400 units at 600 North Lake Shore Drive, with units having one to three bedrooms and varying in price anywhere from the $400,000s to over $1.7 million. Generally Belgravia doesn’t completely finish out a condo until it is sold so that the new home owner can customize the unit.

The Tribune recently provided an interesting look into Belgravia’s origins. Founders Alan Lev and Buzz Ruttenberg named the company after an elite neighborhood in London and have been in business for more than 20 years. The company has diversified and now includes Belgravia Mortgage, Belgravia Homes Resale which sells company homes for buyers so they can purchase a new one and Belgravia Plus which is a kind of home repair service that can be hired for any condo or house, not just a Belgravia built one.

The company has been building from two to six developments per year, although the current lack luster market will probably slow that number down for a bit. But no matter the number, you can count on Belgravia to be one of the most respected Condo Developers in Chicago.

[tags]600 North Lake Shore Drive, Chicago condos, Chicago real estate[/tags]

November 17, 2008 – For those of you who indulge in holiday treats a bit too much and consider putting a personal trainer at the top of your wish list, CA23 and its developer The Brixton Group may be able to grant that wish. Their previous incentive of a $30,000 grant for furnishings and the services of designer Matt Lorenz for buyers who purchased a unit by the end of January 2009 was first advertised in the Tribune and now we have an update on the offer. It has been expanded rather creatively, and the $30,000 can now also be used towards the services of a personal trainer at John Hall Studios, which is located not far from CA23.

It seems to be an either or deal. Either you dole out the money between paying fees to Matt Lorenz, who was the 2007 winner of the Bravo channel’s Top Design show, and the rest to buy furniture or upgrades or invest it in some serious fitness for yourself. It may be a hard decision for anyone who was considering purchasing one of the remaining dozen or so Chicago condos left in the development.

The units in Phase I of CA23 range in layouts from two to four bedroom condos and have from about 1,900 to 2,000 square feet of space. The development will consist of two mid-rise buildings when complete and have 48 units. The Brixton Group is hoping to start moving residents in sometime in early to mid January and if all goes well, break ground on the second phase a month or so later. A new model is also expected to open sometime next month. Prices are holding fairly steady from the mid $600,000s to as high as $1.5 million.

With so many developers looking to thin out inventory on their Chicago real estate projects before the end of the year, buyers should be on the lookout for even more creative incentives on Chicago Condos.

[tags]CA23, Chicago condos, Chicago real estate[/tags]

November 16, 2008 – While sales of condos in the city of Chicago were down by more than 35 percent in October, the Near South Side continued to show signs of strength.  The luxury market picked up in the area, leading to higher sales and a strong increase in the average sales price during the month.

According to data from the Chicago MLS, a total of 78 units were sold during October on the Near South Side, up from 68 units sold during the same period a year ago.  It was great news for condo owners and developers in the area, after sales plunged from a high of 139 units sold in 2006.  Demand for condos priced at more than $1 million skyrocketed during the month, with 11 units sold.  Last year, just 1 condo was sold for more than $1 million in October.

The strong demand for the most expensive units led to a marked increase in the average sales price for condos sold on the Near South Side.  The average sales price soared to $567,145, a 68 percent jump in prices from the same period a year ago.

However, the jump in sales isn’t speeding up the market time for units for sale on the Near South Side.  It took an average of 196 days to find a buyer in October, up from 116 days just a year ago.  This could mean opportunities for buyers on the market for Affordable Chicago Condos in the neighborhood in the short term, particularly as demand on the low end of the market suffers.  Just nine units were sold for less than $250,000 in October, down from 18 units a year ago.

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

November 15, 2008 – With the end of 2008 fast approaching, it also means the end of some incentives and promotions offered at several Chicago real estate developments. A few, like free parking with the purchase of east facing units at Emerald are good until Thanksgiving. Others, like the offer to delay closing and live for free all summer at the Marquee and then later changed to live for free until 2009 have been changed yet again. Now buyers can take advantage of a 3 percent discount on the Chicago condos that are still available in this 25 story high-rise.

The Marquee is in a great location on 1464 South Michigan Avenue. The tower has 208 condos, ranging in size from one to three bedrooms. The developer, Sedgwick Properties, has over two dozen units left for sale, and there are condos available in every one of the nine different floor plans. The one bedroom and one bath units start in the $240,000s while the two bedroom, two bath condos run from the low to high $300,000s. The bigger three bedroom, two bath condos start in the $490,000s.

According to Appraisal Research Counselor’s latest report, there is another addition to the list of condo projects that have been scrapped. Park 1000, Renaissant Development’s planned South Michigan Avenue 40 story, 350 unit high-rise is no longer in the works. The surprise isn’t necessarily that another project has been canceled, but that more haven’t. ARC reports that sales of condos and townhomes in Chicago are down 82% from this time last year. With contracts for less than 1,000 condo and townhome units signed in 2008, it makes ’08 the worst sales year since ARC began keeping records in 1997. The list of active Pre Construction Condos in Chicago could see very few additions for some time.

[tags]Marquee Michigan Avenue, Chicago condos, Chicago real estate[/tags]

November 14, 2008 – If One Place Condominiums was on your short list of developments where you’d consider buying, then you might want to bump it up a little. The 96 unit building is nearly completed and there is a fully decorated two bedroom, two bath model ready to tour. According to a press release in the Tribune, there are just over a dozen Chicago condos left for sale at this development.

The model unit is almost 900 square feet and that particular floor plan can be found on the 3rd through 10th floors. One of the design elements that is noticeable at One Place is that there is minimal hallway space. The hallways were eliminated to increase usable living space for residents. According to the article description, the foyer in the model opens into the great room with the kitchen adjoining that and a balcony entrance also. The bedrooms open directly off of either side of the living area.

Residents began moving into One this fall around the end of September. The units that are still available for purchase are also just about ready for immediate delivery. The one bedroom units at this new Chicago real estate development begin at $225,000. Add a den to the one bedroom and the price starts around $345,000. The two bedroom, two bath condos begin in the $290,000s. There are also several terrace units on the upper floor as well as a few two bedroom penthouse units that range in price from the $360,000s to $450,000s. A parking space will cost you another $37,500. The retail space at One will be anchored by an XSPORT Fitness club.

The South Loop where One Place Condominiums is located is always one of the more popular Chicago Neighborhoods, and this building is positioned to offer residents a great place to live.

[tags]One Place Condominiums, Chicago condos, Chicago real estate[/tags]

November 13, 2008 – Someone made a profit off the Trump Tower, although it wasn’t Donald in this particular case. For some time there have been investors looking to sell their Chicago condo units in the high-rise for as much as 30 percent below the developer prices, and Crain’s reports that Sun-Times Editor Michael Cooke and his wife Barbara have become the first to sell a residential unit. With pressure from loan deadlines, stiff competition from flippers and a declining market, this sale can’t be a cause of celebration for Trump.

The Cooke couple purchased the 42nd floor, one bedroom condo for $543,000 on September 18th of this year, which was at a 10% discount in Trump’s “friends and family” promotion according to the article. On October 10th they resold it for $790,000, which is a healthy profit. That sales price is about 19% below the developer’s price of $978,800 for a similar unit in the building.

Appraisal Research Counselors puts the number of unsold units at 121 out of the 486 total. There are at least 34 listed on the market right now from investors and flippers at much lower prices. Trump also admitted in the article that he is having problems selling the remaining hotel suites for the same reasons, but he is still upbeat about it. He was quoted as saying that investors “will be competition but hopefully everybody will be happy in the end.”

The 92 story luxury high-rise has attracted some celebrity residents, including Patrick Kane of the Chicago Blackhawks and Rex Grossman of the Chicago Bears. People Magazine also reported that Trump is letting Jennifer Hudson and her family stay for free during their tragic loss.

No matter what problems Trump faces with final sales or loan extensions, his tower will still probably set the standard for other Chicago Luxury Condos.

[tags]Trump Tower, Chicago condos, Chicago real estate[/tags]

November 12, 2008 – For those of you who have considered buying a unit at Emerald, there is a new model open and ready for you to tour. The model is a two bedroom, two bath Chicago condo that measures out at 1,297 square feet. According to a press release in the Tribune, the condo has a large balcony off the main bedroom and another smaller one that opens off the kitchen. Finishes include a stainless steel kitchen appliance package, custom cabinetry, granite counter tops and eco-friendly bamboo on the floors. The price listed for the model is $526,000.

Right now free parking worth $35,000 is still being offered until Thanksgiving with the purchase of units that face east. A 5% down payment for first time buyers is still in effect, along with $5,000 in upgrades if you refer a buyer and $1,000 off closing costs if you use their preferred lender.

Emerald is one of the more well-known environmentally friendly Chicago real estate developments and was featured in Chicago Home and Garden Magazine. The project consists of two 12 story high-rises that house 212 condos in all. There are 6 different floor plans that vary in size from about 765 to 794 square feet. Prices run from the upper $200,000s to low to mid $500,000s.

A few of the green finishes offered at Emerald are the bamboo flooring, energy efficient floor-to-ceiling windows, low VOC paint, furniture fabrics made from recycled fiber and recycled glass tiles and surface materials, according to the builder. The lobby is an 8,000 square foot space with a green room, flat screen television and joining conference room with fireplace, meeting table and Internet connection. The building also has Club Emerald, which can serve as a lounge or party area complete with working kitchen and sound system for entertaining.

You can check out other eco-friendly Chicago Condos like Emerald and see what green features they have to offer.

[tags]Emerald, Chicago condos, Chicago real estate[/tags]