April 18, 2009 – Despite the downturn in the housing market, record numbers of foreclosures and more strict qualifications for mortgages, more retired couples, empty nest couples and Baby Boomers are opting for larger Chicago condos. Even when a couple decides it’s time to downsize, the growing trend is to move from a larger family home to a maintenance free condo with fewer bedrooms, but not necessarily smaller ones. According to a recent profile in the Tribune, downsizers want to have enough room for aging parents, visiting children and super sized furniture.

The National Association of Home Builders data shows that the size of an average condo increased 16% from 1999 to 2007 while the average size for a single-family house increased by a smaller 12%, then started a decline in size. Buyers began a trend towards condos with house-like perks, including fireplaces, large baths and larger rooms.

Some of the suburban and downtown Chicago real estate developments that are seeing buyers combine units or purchase the largest condos first are Amberly Woods in Lake Forest, Optima Old Orchard Woods in Skokie, Winthrop Club in Evanston and 10 East Delaware.

In the article, senior VP Tod Desmarais of Optima Inc. stated that, “Thirty years ago, condos were primarily starter homes for first-time buyers. Now the Baby Boomers are buying them, too. Now, they combine two or three 1,000- or 1,500-square-foot units.”

At Amberly Woods, the biggest of the 1,365 to 2,650 square feet condos were the hot sellers that went under contract first with prices that started around $450,000. For Winthrop Club condos, the most popular units have been the 2,600 square foot and up models, which start at around $1.2 million. And at 10 East Delaware, the luxury condos have floor plans with the bedrooms distinctly separate from living areas to increase privacy for guests and home owners. These condos have a minimum of 2,900 square feet and a starting price of $1.5 million.

There are still plenty of first time buyers who opt for smaller or average sized units, but many of those in a financial position to buy right now are shopping for larger Chicago Condos.

[tags]10 East Delaware, Chicago Condos, Chicago Real Estate[/tags]

April 17, 2009 – New West Realty, the developer behind 1555 Wabash and Ivy Hall is starting a new rent-to-own program with it’s Eastgate Village. The 300 unit Eastgate Village is located on 26th and King Drive, and prospective buyers can sign a dual lease and purchase agreement that will put 75% of their rent into an escrow account for a down payment to buy within a year. The Sun Times reports that the goal is to make it easier for first time buyers to purchase a townhome or Chicago condo, especially now when credit is tight and larger down payments are often required by banks before a mortgage can be secured.

Phase I of Eastgate has two bedroom, one bath condos with 840 square feet that are priced in the $270,000s with monthly rent for $1,650. Two bedroom, two bath condos with 1,299 square feet are priced from the $340,000s and rent for $2,300 per month. An average price for a two bedroom, two bath townhome with 2,046 square feet here starts in the $460,000s with monthly rent in the range of $2,888.

The walk-up condos in phase II of this Chicago real estate development include the Adler I model, which is a two bedroom, one bath unit with 823 square feet. Condo models Adler II and III have two bedrooms and two baths with 1,288 square feet. The townhomes at Phase II of Eastgate Village have two to three bedrooms and two to 3.5 baths with from 1,998 to 2,567 square feet. The condos run from the $270,000s to $340,000s and the townhomes from the $360,000s to $500,000s.

Standard finishes include 9′ drywall ceilings, wall-to-wall carpeting in the bedrooms, den, hallways and on the stairs, hardwood floors in the kitchen, living room and dining room, washer and dryer hook-up, linen closet, carbon and smoke detectors, pre-wired for Internet, cable and phone plus central air conditioning and gas furnace.

Remember that there are other Rent to own condos in Chicago if Eastgate Village doesn’t appeal to you.

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

April 16, 2009 – JMB Realty Corp. senior vice president Pat Meara isn’t losing any sleep over the fact that he hasn’t sold even one of the remaining 10 Chicago condos left in his 47 unit, 66 story 900 North Michigan tower so far this year. In fact, he has no intention of lowering the prices on the luxury condos in this tower. The pricing starts in the $800 per square foot range, and that’s where it will stay for now, according to a recent write up about the high-rise in Crain’s.

The advantage that JMB has with 900 N Michigan is that unlike the bulk of Chicago real estate developers that have pretty large construction loans that either are already due or have a payback date fast approaching, JMB has no debt left on this tower. They paid back their $75 million loan last year, and owe nothing on the conversion project that transformed office space into luxury condos. This allows JMB the time to wait out the market and hold prices steady. “We can afford to be patient, and we will,” Pat Meara was quoted as saying.

Only four condos at 900 N Michigan sold in 2008, but JMB is hopeful that with several big name high-rise projects facing foreclosure, there will be customers with cancelled contracts who are going to give this building another look. The tower began selling units in October 2005 and had 34 of the 47 under contract two years later, while deliveries began in October of August 2007, according to the article. The prime location of the high-rise, as well as the luxury finishes should make it a strong contender with the other Downtown Chicago Condos that are for sale right now.

[tags]900 N Michigan, Chicago Condos, Chicago Real Estate[/tags]

April 15, 2009 – It looks as though X/O Condominiums may be dealt a knock-out blow if a loan extension can’t be worked out between Chicago real estate developer Keith Giles of Kargil Development LLC and National City bank. Giles has defaulted on the $19.1 million construction loan that came due in June of ’07, but had provisions in the contract that allowed for two extensions of up to six months each, according to an article in Crain’s.

Neither party gave a direct comment on the status of the loan default, but Giles did make an optimistic statement in the article. “We have a great relationship with our bank and are diligently trying to work through our issues.” A Dr. Khorsand, an investor in X/O had a more pessimistic outlook though. Khorsand claimed that Giles let him know two months ago that there was a problem with the development. Khorsand quoted Giles as saying that, “`We’ve got bad news: X/O has basically failed.’”

Besides the bank loan that is in default, there is also a $505,368 lien against the development that was placed by architect Lucien Lagrange.

X/O has faced several set backs since it began marketing. The two tower, 479 Chicago condo project on 1712 South Prairie Avenue was stalled for weeks after Alderman Fioretti attempted to change the zoning to shorten the towers. That dispute was resolved after Giles filed a lawsuit to stop the zoning change. But the controversy and delays hampered sales, and the project has hovered at around 44% (210 of the condos) sold for months, according to data from Appraisal Research Counselors.

Sadly, X/O may soon join the list of projects that are scrapped this year and it may be several years more before we see developers launching large projects like these Pre Construction Condos in Chicago.

[tags]X/O Condominiums, Chicago Condos, Chicago Real Estate[/tags]

April 14, 2009 – The Chieftain Group, probably best known for their Chicago real estate project Lexington Park Condominiums, has decided to abandon their plans for a large scale development on the Franklin Point site. Crain’s reports that Chieftain has backed out of a purchase agreement with D2 Realty, who owns the two acre building site located on the corner of Wells and Harrison Streets.

David Crawford of D2 said of Chieftain in the article that, “They just couldn’t hold on anymore, so that’s it. We’re putting (the property) back on the market.” Chieftain had agreed to pay $20 million for the parcel, and no one has commented on whether or not they will forfeit earnest money on the dropped deal. The developer had planned to construct a $150 million mixed-use complex at Franklin Point that called for a pair of 25 story high-rise towers to house 250 Chicago condos, 200 apartments and around 200 hotel rooms.

A big factor in Chieftain’s decision to cut their losses with this deal may be their lack of sales at current project, Lexington Park. According to numbers from Appraisal Research Counselors, only about half of the 333 condos in the 35 story high-rise on 2138 South Indiana Street are sold, and deliveries are on track to start soon.

Developers are still scaling back on new projects as they try to move units in current projects into the sold category. Recent data has shown that sales of Chicago Luxury Condos are still declining while foreclosure and short sales are on the rise.

[tags]Lexington Park Condominiums, Chicago Condos, Chicago Real Estate[/tags]

April 13, 2009 – The latest Chicago real estate development to face foreclosure is Odyssey Lofts in Greektown. A $17.4 million suit was recently filed by Midwest Bank and Trust against the 775 West Jackson Boulevard building, according to Crain’s. The project seems to be yet another victim of bad timing, as sales have mostly likely been hampered by the deluge of new condos hitting the market as well as the faltering economy and credit crunch.

David Wallach of W Developments LLC personally guaranteed the construction loans and has admitted that he is in default. But in the article he also states that he is continuing talks to renegotiate the loans and is optimistic that something can be worked out with the bank. “We are not looking at this as a failed project. We’re continuing to stand in there and negotiate and work through this deal until the end.” He also expressed confidence in the quality of the development, stating that, “The problem isn’t the product. We are all subject to market conditions.”

Odyssey Lofts is a renovated six story building that has two new floors added on top. Of the 62 loft units, only 15 have gone under contract since last July, which is also when residents first began moving into the building. The development started sales in 2005 and construction is almost complete. Only a small amount of work on the upper two floors remains. The unsold lofts are still up for sale, with the one to three bedroom units ranging in price from about the $240,000s to the $620,000s.

New construction traditional timber lofts are a bit harder to find these days, but you can check out these Chicago Condo Lofts and see if they appeal to your tastes.

[tags]Odyssey Lofts, Chicago Condo Lofts, Chicago Real Estate[/tags]

April 11, 2009 – The Legacy reached two milestones last week. The stately 72 story high-rise was topped off and sales are just about at the 90% mark. This Chicago real estate project broke ground in 2005 and according to an article in GlobeSt., the tower should be totally complete sometime in mid 2010. The first deliveries on the 356 Chicago condos at The Legacy are expected to start this fall in September, so residents will be able to move in and enjoy some of the spectacular autumn views at Millennium Park this year.

Mesa Development and Walsh Investors were quoted in the recent GlobeSt. article as saying that, “The purpose for the building was to create a residential tower that would provide the best views in the city.” And with the close proximity of the park, Lake Michigan and Buckingham Fountain that will no doubt be the result with this $300 million tower.

The Legacy condos run anywhere from 875 to 10,000 square feet in size, with the prices running at about $700 per square foot. With luxury condos in Chicago generally defined as being priced at around $1,000 or more per square foot, these units come in a bit below the radar but don’t sacrifice any quality. Although the developers of this tower concede that the faltering housing market has slowed sales at this project, they still firmly believe it will be sold out by the time it is completed next year.

Besides its fantastic views and luxury finishes and design, The Legacy also has a unique feature in the skybridge located on the 13th floor. It connects the tower to the University Club where residents can take advantage of the services there, including the hotel portion, catering and food services as well as the squash courts.

Even at 90% sold you still have time to purchase a unit in The Legacy, or you can shop around for a luxury condo in one of the other Downtown Chicago Condos that are available right now.

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

April 9, 2009 – For those of you who haven’t noticed, Museum Park Place South is topped out and current plans are for first deliveries on the units to begin either sometime later this summer or in early autumn. This 29 story high-rise, although very similar in design to its fraternal twin to the north, stands 6 stories taller and has a cluster of 8 four story townhomes at its base. The new tower will have a total of 276 Chicago condos with from one to three bedrooms and be priced more affordably than the first Museum Park Place tower, according to a recent press release.

The townhomes were placed in a successful effort to seat the high-rise and integrate the tower with the rest of the neighborhood’s homes. The townhomes range in price from the mid $860,000s and up. The condos are priced anywhere from the high $200,000s to $600,000s, with a parking space in the heated garage adding another $35,000.

Sales staff have indicated in the press release that buyers have been most drawn to the two bedroom plus den units that have an eastern view. Those units run between the high $400,000s to mid $500,000s. Interestingly, condos with a western view in this tower are priced significantly less, sometimes by as much as $100,000.

You can expect to find the usual luxury details and finishes including marble baths, granite and stainless steel kitchens and hardwood flooring. Building amenities include a rooftop sundeck, pool, fitness room and party room.

Museum Park Place South turned out to be a very complimentary addition to the complex, and sports some great Chicago New Construction Condos.

[tags]Museum Park Place South, Chicago Condos, Chicago Real Estate[/tags]

April 8, 2009 – April 15th is a day people associate with paying taxes, not getting a break. But starting that day and continuing for 15 days after you can score as much as $15,000 in grants from the Partnership for New Communities. The program had been offering $10,000 grants towards condo purchases at participating Chicago real estate developments, but has now decided to increase the grant amount at five of those developments according to a recent press release from the city.

Unlike some other previous grants, there is no limit on your income. The only stipulation is that the grant must be used to buy a condo or townhome that ranges in price from $150,000 to $450,000 each at one of the five developments. You can also lock in $1,500 towards closing costs on a purchase if you chose to go with preferred lender Harris Bank with a 30 year mortgage with a 3% down payment.

The participating Chicago condo developments that are included in the higher grant program are Roosevelt Square, Parkside of Old Town, Oakwood Shores, Lake Park Crescent and Park Boulevard.

At Roosevelt Square you can get a one to three bedroom condo from the mid $250,00s. At Parkside of Old Town a one to two bedroom condo will run from the mid $200,000s to $400,000s. For Oakwood Shores two and three bedroom condos start in the high $200,000s. Lake Park Crescent has one to three bedroom condos that run from the $190,000s to upper $400,000s. And Park Boulevard has even lower prices on their one to two bedroom condos that range from the $160,000s to $400,000s.

There are also some good deals at other Chicago New Construction Condos even if they aren’t part of the grant program, so be sure to check them out as well.

[tags]Partnership For New Communities Grant, Chicago Condos, Chicago Real Estate[/tags]

April 7, 2009 – It seems that more developers are becoming optimistic about a housing market recovery. Dubin Residential has plans for two new Chicago real estate developments on the South Side and has already applied for zoning approval, according to a press release in the Sun Times. One site on 3600 South Western in McKinley Park that would be a combination of Chicago condos and townhomes. The other would be located on 1012 West 35th Street in Bridgeport, according to Crain’s.

The McKinley Park plan would have about 370 condos and townhomes eventually built on the 5.7 acre site. This Chicago real estate development would go up in phases, with phase one tentatively scheduled to begin sometime in 2010 and be made up of about 110 rental units. The rest of the development, namely the number of condos and time frame, would be built according to how well the housing market recovers.

Dubin Residential intends to make the apartments “work force housing,” meaning that rents would be set to make it possible for those earning 80% or less of the median average Chicago income to afford them. Dubin was quoted as saying that, “It’s a good place to help people out. McKinley Park will be one of the most affordable city neighborhoods when things come back.”

In Bridgeport, the old Spiegel factory will be renovated into around 190 residential units along with spaces for artists to create their work. The development will also include parking for around 220 cars and some retail, although those details aren’t set in stone yet.

And if Bridgeport or McKinley Park aren’t in your future plans, there are many new condo developments in other Chicago Neighborhoods that are available for immediate occupancy.

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