February 17, 2009 – Chicago real estate developer Thomas Roszak disclosed some of his thoughts about the upcoming 40 condo auction of Vetro units. In his personal blog, Roszak cited the “uncertain economic climate and the troubling state of the real estate market” as primary reasons for stagnant condo sales. He also stated that setting realistic pricing was also an issue and that, “by having an auction, we are providing a transparent sales process that enables the buyer to determine the market value for the homes.”

Moving all of the units not under contract into the sold column is something else that Roszak deems important and hopes to accomplish by the auction and sales generated after the event. “We want Vetro to be a fully sold and stable building for our homeowners and see this auction as an opportunity to achieve that goal.” At last count there were about 100 of the 232 Chicago condos in this tower still for sale. Roszak writes that he and his lender are prepared to accept whatever the winning bids are on the 40 condos March 7th, but the reserve or minimum bids will give them a small amount of insurance on the sales. Buyers should remember that the condos will be available for viewing every day through March 6th and a parking space will be included with each one.

In apartment news, AvalonBay, one of the largest rental companies in the market, has coined a new phrase in a recent Crain’s article. The competition from condo rentals has created a “shadow market” that is putting a bit of pressure on the apartment rental business. Right now it isn’t a big threat, but large enough that apartment investors are starting to feel the waves in terms of pricing and demand.

The shadow market may be darkening the investor’s skies, but it’s a boon for anyone shopping for Chicago Apartments.

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

February 16, 2009 – There has been a lot of speculation about what will fill the hotel space at Aqua since Strategic opted out of their deal with Magellan. According to their building blog, the developer is in negotiations with as many as three different vendors to fill the space. Now whether that will actually be another hotel brand or something else remains to be seen. There has even been guesses that Roundy’s, who is currently shopping for a new location, might locate there. But Magellan hints that a new grocer will replace Treasure Island at the Village Market and occupy a 50,000 square foot area.

CVS Pharmacy, which is the largest pharmacy chain in the U.S., was the first major retailer to sign on at Aqua. It will set up shop in 12,000 of the 37,000 square foot first floor retail section of the 82 story Aqua.

As for the 476 apartments on floors 19 through 52 at Aqua, those are scheduled to be pre-leased starting in March with first occupancies beginning in May. The 264 Chicago condos on floors 53 through 81 will follow a few months later. The high-rise is nearly sold out, but the sales team says there are a handful of units still for sale. Plans call for the public elevator, Grand Staircase and Pedway to be open to the public by mid summer 2009.

As for the Park Homes, those 25 residences are expected to wrap up construction sometime in July of this year. Deliveries will then begin later this summer. According to Magellan, this Chicago real estate project has been redesigned a bit due to buyers who wanted bigger homes. This has resulted in the creation of a few smaller homes now that are available for purchase as well as single level units and some duplex homes.

Remember, there is a good selection of other Townhouses in Chicago if the Park Homes aren’t what you’re looking for right now.

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

February 14, 2009 – Another Chicago real estate development that is inching towards completing its first phase is CA23 on 23 North Aberdeen Street in the West Loop. The Brixton Group recently threw a grand opening party and has been heavily marketing the development as phase one winds up and before phase two begins.

The project consists of two 5 story buildings with 48 units. According to the sales staff, CA23 is around 50% sold and first deliveries should start sometime in March. The Chicago condos in this development have from two to four bedrooms and 1,900 to 4,000 square feet of living space. The developer is touting them as a sort of horizontal town home, meaning that the condos have as much room as a town home, just spread out and not stacked up.

Interior finishes at CA23 include hardwood flooring in the common areas, carpeted bedrooms, natural stone tile in the baths, stainless steel kitchen appliances by Fisher & Paykel, Toto and Grohe faucets and fixtures, flat panel kitchen and bath cabinets with natural stone counter tops and 11′ to 18′ high ceilings, depending on the unit. Prices for these condos run from the mid $600,000s to about $1.6 million.

CA23 has some loft-style features, such as the high ceilings and large floor plans, but if you are a true loft fan you can find some traditional Chicago Lofts that may satisfy your tastes in design.

[tags]CA23, Chicago Condos, Chicago Real Estate[/tags]

February 13, 2009 – It’s been a long conversion process, but it looks as though first deliveries will finally begin at the Park Monroe either the end of this month or early in March. Glenstar Properties is the company behind the project, and the 49 story high-rise on 55 East Monroe Street has been a source of a fair amount of love-it-or-hate-it design debate.

There was some concern that the renovation of the office tower’s facade wouldn’t do much to improve the somewhat imposing, boxy building that has stood for nearly 40 years. But the addition of new windows and balconies does at the very least provide some fantastic views for future residents of these Chicago condos. The top floors of the tower are where the 156 units are located, and initial sales for these condos were pretty strong. About 80% of the units at this Chicago real estate project are under contract, but like so many other developments, that number has been stagnant for a while now.

The bulk of the one bedroom condos at Park Monroe are sold, with the remaining 20% of inventory left being mostly two and some three bedroom units. Those are currently priced anywhere from the mid $800,000s to about $1.7 million. The building sports a penthouse level Park Monroe Club for residents that houses a fitness center, swimming pool, spa, sun deck, movie room, party room with kitchen and rooftop garden.

So far there have been no major price reductions in this building, but with deliveries set to happen soon, we’ll wait and see how eager the developer is to close the books on the remaining 20% of unsold units. We’ve seen some price restructuring in other projects with more expensive Chicago Luxury Condos but there are also some developers who plan on waiting out the market and not lowering list prices.

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

February 12, 2009 – The upcoming Vetro condo auction has generated a lot of interest already and also sparked speculation about the motivation behind the auction. Chicago real estate developer Thomas Roszak/ADC revealed some of the reasoning that prompted him to put 40 of the remaining Chicago condos up for bid on March 7th. And according to an article and interview in the Tribune, both Roszak and his lender hope the auction sparks enough interest in the 31 story tower that the rest of the 100 unsold units will go for market rate.

“Maybe I’ll make up some of the money on the other 60,” Roszak speculated hopefully. He stated that although he will lose money at the auction, his lender is in agreement with the move. “It’s something we have to do, want to do,” he said, and explained that one major point of holding the auction is to gage just how much the unsold units left at Vetro are realistically worth in today’s market. Auctions have now become the scale which developers can use to set pricing and potential buyers can determine whether or not those prices are fair.

But when developers auction off portions of a building, residents who bought condos at higher pre-sale prices are generally not happy. Not only did they obviously not get the best deal, but they now may owe more than what their unit would now appraise for. Roszak intends to meet with Vetro’s residents before the auction and explain the situation, but that doesn’t take the sting out of the price cuts.

“The reality is, today, whether we have an auction or not, their unit is worth less,” he told the Tribune.

Unfortunately, some other buyers who purchased Pre Construction Condos in Chicago in the past couple of years may find themselves in a similar situation.

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

February 11, 2009 – Another Chicago real estate developer has jumped on the auction bandwagon even though it was reported several weeks ago that he had gotten a year’s extension on his construction loan. On March 7th Thomas Roszak/ADC is auctioning off 40 condos at Vetro, located on 611 S Wells. At last count there were at least 100 of the 232 Chicago condo units still left for sale at Vetro, so what the developer plans to do with the other 60 units remains to be seen. Whether Roszak will hang onto them in hopes of future sales or will offer them up at even deeper discounts remains to be seen.

The auction is being held at the W Chicago Hotel-City Center on 172 West Adams Street. Accelerated Marketing Partners will be conducting the event. Bidders will be checked in at noon, and the actual auction will start at exactly 1 p.m. You need to be pre-registered to bid, and applications must be received no later than March 3rd.

You must come prepared with a $5,000 Cashiers check, money order or certified check as well as a personal check with enough money in your bank account to cover the remaining 5% of the winning bid price if you win.

There are a couple of ways to get a little money back in the process. If you can close in 15 days you will knock $2,500 off closing costs or can apply that amount to pre-pay some association fees. And if you opt to finance though their preferred lender, who of course will be at the auction taking applications, you’ll get another $1,000 off closing costs. In the end, you must close no later than April 6th, 2009.

The 40 units to be auctioned are listed below, and be sure to check the Chicago condo auctions page regularly for updates.

6 Studios
523 to 643 square feet.
Formerly Priced at $190,900 to $244,900.
Now Minimum Bids of $115,00 to $140,000.
Discount of 37% to 45% ($218 to $220 per sf)

10 – 1 Bedroom, 1 Bath Condos
684 to 619 square feet.
Formerly Priced at $221,900 to $269,900.
Now Minimum Bids of $150,000 to $160,000.
Discount of 32% to 41% ($219 to $223 per sf)

3 – 1 Bedroom, 1 Bath Plus Den Units
1,002 square feet each.
Formerly Priced at $357,900 – $358,900 and $360,900.
Now Minimum Bid of $210,000.
Discount of 41% to 42% ($210 per sf)

14 – 2 Bedroom, 2 Bath Condos
1,133 to 1,248 square feet.
Formerly Priced at $379,900 to $459,900.
Now Minimum Bids of $245,000 to $290,000.
Discount of 29% to 41% ($216 per sf)

5 – 2 Bedroom, 2.5 Bath Plus Den Units
1,667 square feet.
Formerly Priced at $551,900 to $567,900.
Now Minimum Bid of $360,000.
Discount of 35% to 37% ($216 per sf)

1 Penthouse With 2 Bedrooms, 2 Baths
1,869 square feet.
Formerly Priced at $799,000.
Now Minimum Bid of $400,000.
Discount of 50% ($214 per sf)

1 Penthouse With 2 Bedrooms, 2.5 Baths
1,924 square feet.
Formerly Priced at $899,900.
Now Minimum Bid of $415,000.
Discount of 54% ($216 per sf)

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

February 10, 2009 – Chicago real estate developers are becoming even more creative in their attempts to generate sales and bring in potential buyers. One case in point is the recent Whirlwind in Bucktown: Loft Living event held at the EcoLogic Lofts sales center. The fashion show features models sporting t-shirts that tied into the eco-friendly building’s themes of “Wind Power” and “Clean Air Systems,” according to a Tribune report on the event. Both the fashion show title and the material messages were a nod to the LEED design aspects of the project.

About 800 people were invited to the show, which took place on January 23rd. The plan was to make a few Chicago condo sales to the crowds who came to see the trendy spring clothing from local boutiques Apartment Number 9, Robin Richman and Hejfina. Chocolate, Champaign and pizza along with gift bags for the first 100 guests rounded out the evening, although there were probably liberal doses of building sales material available as well. No word yet on whether any actual sales were made though.

The 7 story, 94 one and two bedroom unit project will have wind turbines mounted on the green roofs to generate clean electricity for the building. To show off the eco-friendly unit details, the fashion show was held in a model condo loft that was decked out in unique features like toss pillows made from fabric recycled from Versace suits, living room area rugs woven from recycled bicycle inner tubes and bathroom wall paper that was made from recycled magazines, according to the article.

Developer Senco expects first deliveries on the condos to take place sometime in 2010. Prices on the units run from the $210,000s to the $400,000s. There are several other Chicago Condo Lofts for sale right now, so you may want to compare them to EcoLogic before you make a decision.

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

February 9, 2009 – We’ve posted a few times about the $10,000 grant offered by the Chicago Housing Authority to 100 first time buyers in certain developments. The total number of takers on the grant ended up being only 49, which is a bit of a blow to the Partnership for New Communities plan. Crain’s reports that the CHA has now decided to put their energy into rental units as opposed to the for sale units in these mixed-use, mixed-income developments.

This is in contrast to their original plan to draw more middle income residents into some of these neighborhoods. But with financing becoming more difficult to obtain, even the city is turning to renting, like many Chicago real estate developer have recently. The city had planned on redeveloping some 25,000 residential units, a third of the new or renovated units selling at market rate and a third as affordable or below market rate. But with slumping condo sales, the only short term alternative is to offer the units for rent. The one good aspect for former residents who had to move due to tear down of the old public housing on the sites is that new homes will be available to them sooner as rentals.

The article went on to highlight a couple of Chicago condo developments that are part of the CHA project and are reportedly having trouble selling units. Park Boulevard has trimmed down their planned 311 condo units to only 159. Jazz on the Boulevard developer Thrush Cos. was forced to auction off units at big reductions this past December due to lagging sales and looming construction loan pay back dates. And Crain’s claims that the 245 unit second phase of Roosevelt Square is stuck with only 50 units under contract so far. The CHA states that they believe the second phase will now go up in smaller phases, but there is no official word from the developer, Related Midwest.

Condo Developers in Chicago had been in line to build around 800 units in partnership with the CHA this year, but unless they can make pre-sales and get financing, that isn’t going to happen.

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

February 7, 2009 – A new River West high-rise that will be making first deliveries this spring is the Mondial. The 15 story tower, located on 900 West Huron Street, should welcome residents in early April, according to the sales staff. They also plan to host a grand opening sometime before the end of this month as well. In connection with that event, furnished models are expected to be ready for viewing in about a week or so and an open house will be held the first weekend after that.

There are 142 Chicago condo units in this tower from CITTA Development, and those range in size from 655 to 3,099 square feet. The layouts vary from lofts to three bedrooms with a couple of four bedroom units thrown in. Pricing for the one to three bedroom condos runs from the $230,000s to the $600,000s. The largest four bedroom units in this Chicago real estate development are tagged at close to $1 million. A few of the finishes include Italian oak wood cabinets and vanities, granite counter tops and double bowl stainless steel sink in the kitchen, Grohe faucets and fixtures plus stainless steel Kitchen Aid appliances. All units also come with a balcony.

According to the development website, the basic plans at the Mondial break down into these floor plans:
24 Lofts with one bathroom at 676 to 687 SF.
26 One bedroom, one bath at 655 to 906 SF.
14 One bedroom, one bath and den at 917 to 1,019 SF.
66 Two bedrooms, two bath at 988 to 1,468 SF.
9 Three bedrooms, two bath at 1,637 to 1,874 SF.
2 Four bedrooms, 3.5 baths at 3,099 SF.

Be sure to check back with us for more development news and pricing on Chicago New Construction Condos like the Mondial.

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

February 6, 2009 – One Chicago real estate developer that is adapting to the changing housing market and landscape by diversifying its services and branching out into areas such as home repair services and consulting is now launching a new program for residents of one of their developments. For those who purchased two bedroom Chicago condos at 600 Lake Shore Drive and now wish they had more room, Belgravia is offering to buy back those two bedroom units so that resident can then purchase a three bedroom unit in the development.

The press release that Belgravia sent out to homeowners states that the program was initiated because of an increasing group of two bedroom owners stating that in retrospect they wish they had bought a bigger unit. This could be advantageous to both buyers and the developer because it would open up some two bedroom condos to potential buyers while selling out the larger three bedroom condos to buyers who have demonstrated that they can get financing and make their payments.

According to Belgravia, sales stats in the two tower Streeterville complex are impressive. Of the 400 units in both buildings, about 300 have already closed. The north high-rise is around 98 percent sold with a limited number of one and two bedroom condos left. The south building has more availability since it is around 75 percent sold. There is a selection of one to three bedroom condos still for sales there. The prices on those units range from the low $400,000s to about $1.8 million.

You can also find other great Chicago Condos in Streeterville, so be sure to check out the building profiles listed.

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