January 16, 2010 – According to data gathered in 2009 by the American Institute of Architects (AIA), smaller Chicago condos are gaining in popularity. This is partly due to recent economic factors and buyers who are willing to give up some space in exchange for other perks, according to an article in the Tribune. Smaller condos in Chicago real estate developments that offer a lot of amenities or are in a prime location are also becoming more popular with first time buyers and empty nesters.

Kermit Baker, who is the AIA chief economist, was quoted in the article as saying that, “While smaller homes may be a short-term response to economic conditions, there are signs that we may be at the beginning of a longer cycle where house sizes stabilize or even decline.”

One example of a project with smaller condos is Canal Crossing from developer See Wong of Wabash Properties. There are 60 units in this seven story tower and each has a private balcony but not a lot of luxury finishes.

Canal Crossing sits on 2318 South Canal Street in Chinatown as the name implies and has been about 80% sold for over a year. Prices on the remaining two to three bedroom condos there are running from the low $200,000 to low $300,000 range. The two bedroom units measure in the low 900s in square feet and some of the larger three bedroom condos have 1,200 square feet. Parking in the heated garage is included in the purchase price.

There are other smaller Chicago homes for sale besides the condos at Canal Crossing, so you should have plenty of options if you’re looking to downsize.

[tags]Canal Crossing, Chicago Homes For Sale, Chicago Real Estate[/tags]

January 15, 2010 – As promised, here is a little more information about the new price reductions that go into effect this Saturday at 565 Quincy. Yesterday we told you that prices will be lowered between 15% and 30% at this Chicago real estate development and gave you prices that were published in the Sun Times. Now we have a list of other prices that are more reflective of what the overall range will be plus a look at what the old list prices were and square foot measurements.

The junior one bedroom condos with from 547 to 700 square feet that were listed between the $190,000s and $290,000s will now be listed between the $150,000s and $240,000s.

One bedroom units that measure from 746 to 817 square feet had been priced between the $270,000s and $340,000s will be marketed for between the $210,000s and $280,000s.

Two bedroom condos that have from 963 to 1,227 square feet that were priced from the $370,000s to the $470,000s will now be listed between the $300,000s and $360,000s.

The one bedroom lofts that measure from 809 to 1,216 square feet that were marketed between the $280,000s and $420,000s are now going to be sold between the $220,000s and $340,000s.

The two bedroom loft units that size up between 1,094 and 1,180 square feet had been priced from the $480,000s to $370,000s will now be listed in the $380,000s.

565 Quincy held firm for a long time before lowering prices, but like so many other new Chicago Condos, making sales these days means staying competitive in pricing.

[tags]565 Quincy, Chicago Condos, Chicago Real Estate[/tags]

January 14, 2010 – Information on the new lower prices for 565 Quincy have trickled out via various sources before Chicago real estate developer Belgravia Group’s advertised released date of the 16th. So we’ll post what information we’ve gathered and you’ll have a jump start on things before the weekend even though the reductions aren’t effective until then.

According to the Sun Times, prices on the one to three bedroom Chicago condo lofts have been lowered from 15% to 30%. Around 120 of the 241 condos at 565 Quincy are under contract, although not all of them have closed yet. And a parking space is being thrown in free with the purchase of every unit except the junior one bedroom condos. Another plus is that the building is FHA approved.

The junior one bedroom units in this 18 story building had been priced at $201,000 and are now being marketed for $164,000. The one bedroom, one bath condos that were previously listed for $312,900 are now being offered for $219,000. The larger two bedroom, two bath condos that had been priced at $441,900 have been reduced to $331,000.

Building amenities in the Q Room at 565 Quincy include a theater, swimming pool, bowling alley, putting green, fitness center and resident lounge.

Tomorrow we’ll post more detailed information on some of the available condos at this development, so those of you shopping for Chicago lofts may want to pencil in a visit to the 565 Quincy sales center this Saturday.

[tags]565 Quincy, Chicago Lofts, Chicago Real Estate[/tags]

January 13, 2010 -Yesterday we told you about the city of Chicago providing a sort of financial bailout for Parkside of Old Town. That Chicago real estate development wasn’t the only one to receive some help. Lake Park Crescent, another Chicago Housing Authority project, also got monetary help from the city last month, according to a Crain’s article.

Draper and Kramer is the developer for this $29 million project and they were supposed to repay around $4.9 million in TIF money after 75% of the 35 market rate units were purchased by buyers. But so far just 11 of those units have been sold, so the deal was restructured. Now $3.3 million will be repaid when 50% of those 35 market rate units are sold and the other $1.3 million will be due when all are under contract.

A Department of Community Development spokeswoman was quoted in the article as saying that, “We recognize that the financial markets have changed dramatically over the last year, and our amendments reflect our commitment to keeping the Plan for Transformation financially healthy.”

Garry Benson of marketing firm Garrison Partners was also quoted on his opinion about the slow sales on these mixed-income projects near Cabrini-Green. He stated that buyers who usually purchase in those developments want a 25% discount. He said, “If you start off having to offer below-market value, when the market drops, you can’t drop your prices
below your costs.”

So it pays to keep an eye on the Chicago real estate listings and see just how much of a deal you are or aren’t getting at these developments compared to similar projects where prices On Chicago condos have been reduced.

[tags]Lake Park Crescent, Chicago Real Estate Listings, Chicago Condos[/tags]

January 12, 2010 – Despite a loan default and slow sales, Parkside of Old Town will get another chance as part of a Cabrini-Green bailout from the city of Chicago. The mixed-use Chicago real estate development has a total of 263 condos and townhomes. Crain’s reports that Mayor Daley is willing to pay the agreed upon $3.4 million subsidy early. Originally 85% of Parkside’s 194 market rate Chicago condos had to be sold before it would receive the subsidy. Now the city is willing to drop that number to 43% of 177 market rate units. That would decrease the roughly $9 million tax increment financing by around $300,000. According to the article, there were still 85% of the market rate condos unsold as of December 2009.

As part of Mayor Daley’s 10 year Plan for Transformation that involved Cabrini-Green, Parkside would dedicate 72 of its units to Chicago Housing Authority residents and 14 would be sold at affordable rates, not market value.

Peter Holsten led the group of developers on the project and a $32 million construction loan from New York based J.P. Morgan Chase and Co. went into default last year. But as part of a new agreement, the loan will be extended and the Community Reinvestment Fund will add around $3.6 million to the mix. Crain’s quoted a J. P. Morgan spokesman who said that the lender is working with the developer, “to reach a solution that gives the project time to succeed.”

There are quite a few other Chicago Townhomes besides Parkside who have competitive prices right now, so it would definitely pay to compare several developments before making a decision.

[tags]Parkside of Old Town, Chicago Townhomes, Chicago Real Estate[/tags]

January 11, 2010 – Michigan Avenue Tower II is still promoting a close out sale for the final unsold Chicago condos in the 28 story South Loop high-rise. According to a recent profile in the Tribune, Keith Giles from marketing firm Frankel & Giles said that, “We expect to be sold out at Michigan Avenue Tower II in the next six months following a very successful auction and follow-up sales campaign that generated more than $15 million in revenue off the sale of 57 condominiums, 28 parking spaces and 25 storage lockers.”

The article stated that there are still around 40 of the 257 condos still unsold. Those units range from one to three bedrooms and prices have been lowered to auction levels of between $180,000 and $550,000. That is anywhere from $70,000 to $120,000 less than they were originally marketed.

There is a one bedroom, one bath with 692 square feet that has gone down in price from the $250,000s to $180,000s.

A one bedroom, one bath plus den with 751 square feet is now listed in the $190,000s, down from the $260,000s.

And a two bedroom, two bath with 1,259 square feet is now priced in the $370,000s, down from the previous price in the $490,000s.

So if you’re interested in a unit at Michigan Avenue Tower II, you might want to compare these prices with those of other Chicago New Construction Condos and see how they rate.

[tags]Michigan Avenue Tower II, Chicago Condos, Chicago Real Estate[/tags]

January 9, 2010 – According to data gathered by Chicago real estate expert Tracy Cross and published in a recent Tribune article, fewer than 5,000 residential units will be constructed in the Chicago area this year. That number is 33,000 units below what was built in 2005 but it is also a 4,000 unit increase from last year (2009). And while developers are unsure whether this year will bring any more buyers to the table, they are forging ahead with several projects.

West Point Builders president Patrick Curran was quoted in the article as saying that, “After the job market improves, the pent-up demand should increase housing sales. But it boils down to pricing. Construction unions will have to bend on the cost of labor.”

He also stated that many developers are concerned that the tougher FHA loan requirements will prevent some buyers from purchasing Chicago condos. He estimates that the FHA changes that will make it harder to get a loan, “Could result in a 20 percent sales drop.”

But Mr. Curran’s company is betting on buyers returning to the market. West Point Builders is currently planning on constructing 84 detached townhomes at West Point Gardens in Elgin that would be a bit smaller than the typical Chicago townhome. These residences will sit on 26 foot wide lots, have between 1,000 and 1,600 square feet, have a full basement and two car garage. The price would range from about $170,000 to the low $200,000s.

With far fewer large Chicago real estate projects on the horizon, be sure to check out the suburbs and surrounding area for new developments that might interest you.

[tags]West Point Gardens, Chicago Condos, Chicago Real Estate[/tags]

January 8, 2009 – It hasn’t been that long ago that we reminded you of Chicago real estate developer Belgravia Group’s installment purchase plan that they launched for 565 Quincy. This developer has held steady with prices at several projects and even had a guarantee that would adjust your purchase price if a similar unit was reduced before you closed.

Now we are seeing ads in the Tribune and on 565 Quincy’s site stating that new lower prices are going to be announced on January 16th. The current prices list the junior one bedroom Chicago condos at this development from the $210,000 to $260,000 range. One bedroom condo lofts have been priced from the $260,000s to $290,000s. If you want a one bedroom plus den, those have been listed from the $250,000s to $360,000s. And the two bedroom condos have been priced between the $340,000s and $450,000s. So we’ll have to wait and see just how much of a reduction there will be a week from now.

There are 35 floor plans at 565 Quincy and all of the units come with a balcony, European kitchen with GE appliances, 42″ cabinets, granite counter tops, hardwood flooring and pre-wiring for cable television, phones and high speed Internet.

So if you are thinking of purchasing a Chicago loft you may want to wait and see what new prices are rolled out for 565 Quincy.

[tags]565 Quincy, Chicago Lofts, Chicago Real Estate[/tags]

January 7, 2010 – If you’re in the market for a townhome in Morton Grove, then you might want to consider checking out Traflagar Woods. This development from Chicago real estate developer Lennar Homes consists of 115 townhomes and sits on Waukeegan Avenue. Residents get to be close to nature with the nearby forest preserve plus have easy access to plenty of local shopping, eating and entertainment choices.

According to a recent profile in the Daily Herald, Doug Bober of Lennar was quoted as saying that, “Our maintenance-free townhouses with more than 1,700 square feet of living space is an ideal size for first-time home buyers, young professionals and downsizers who know the value of living in Morton Grove.”

There are a total of 115 townhomes at Traflagar Woods. Floor plans include a couple of different three story layouts that have either two or three bedrooms, 2.5 baths, finished basements and attached two car garage. The article pointed out that Lennar has a Everything You Want, Everything You Need policy that means all of the town homes are upgraded and come with a professionally landscaped yard.

Interior finishes include GE appliances and 9′ ceilings. The Camden model has three bedrooms, 2.5 baths, 1,721 square feet, media center and walk-in closet in the master bedroom. The base price is $319,900.

The Atwood is based priced at $319,900 as well and has two bedrooms, 2.5 baths, 1,721 square feet also. Both town home models have a monthly assessment of $183.

You can find other Townhouses in Chicago by following the link.

[tags]Traflagar Woods, Townhouses In Chicago, Chicago Real Estate[/tags]

January 5, 2010 – Cityfront Place in Streeterville was recently bought by Cresent Heights Inc., a Miami developer. We told you about it being the so-called biggest downtown real estate deal of the year in a Crain’s article back in November. The purchase price for the 40 story, 480 unit high-rise located on 400 North McClurg Court was $82 million and about 69% of that or $56.5 million was supplied by the German American Capital Corporation. The bank is based in New York and is a subsidiary of the Deutsche Bank, which financed the Trump Tower.

The loan matures this June, according to a Crain’s report, and that is an unusually short term for a transaction of that kind. The 69% purchase price loan also indicates that lenders aren’t willing to finance as large of an amount as they once were, according to the article.

Joel Simmons, VP of Grubb & Ellis Co. was quoted as saying that, “In times of more liquidity, you could easily get a loan for 80%. Everything is more conservative today.”

The $82 million price tag for Cityfront Place equals out to about $171,000 per unit. Cresent Heights has previously said that they aren’t considering turning the rental tower into market rate condos any time soon, but who knows what may happen in a year or two. Eventually the market will absorb the excess inventory of Chicago homes for sale and be ready for new condos.

[tags]EnV, Chicago Homes For Sale, Chicago Real Estate[/tags]