February 28, 2010 – The latest information out from the Illinois Association of Realtors is that January 2010 followed the previos trend of an increase in sales of Chicago condos and single-family homes. January was the seventh month in a row that sales have posted gains, although prices have continued to fall, due to foreclosure sales, auctions and short sales, according to a recent Crain’s article.

There were 3,922 condos and single-family homes sold in the nine counties of the Chicago region in January 2010, which is a 29.2% increase over January 2009. For in-town Chicago, sales of condos and single-family homes totaled 1,202 units in January 2010, which was a 31.1% jump from January 2009 when 917 units were sold.

Mike Onorato, president and owner of Onorato Real Estate was quoted in the article as saying that, “We are seeing an accelerated spring market despite the snow and cold in Illinois with the homebuyer tax credit the driving factor for rising home sales.”

The median home price for the nine county Chicago area didn’t fare as well as sales though, and showed another drop. The average price for January 2010 was $175,000 which was 5.4% lower than the median area price the same time a year ago. For in-town Chicago, the median home price for January 2010 was $195,000 which was down 4.9% from January of 2009.

Interestingly though, the median statewide price of condos and homes in all of Illinois climbed a bit to $145,300 in January 2010. The median statewide price had been $145,000 in January 2009.

An explaination for this trend in Chicago real estate was given by Dr. Geoffrey J.D. Hewings of the U of I. He told Crain’s that, “Foreclosed properties continue to exert downward pressure on median prices in Chicago but much less so in Illinois. There is evidence that median price increases will moderate in the state over the next three months (February, March and April), remaining about the same as those a year earlier; for Chicago, the median prices will be about six percent below comparable prices.”

This year may be full of ups and downs, both in pricing and inventory. But if any buyers are still looking for a deal, there are quite a few Chicago short sales and foreclosures with significantly reduced prices.

[tags]Chicago Short Sales, Chicago Condos, Chicago Real Estate[/tags]

February 26, 2010 – The latest Chicago Spire news is unfortunately about another lawsuit filed against Shelbourne Development. According to a recent article in Crain’s, Bank of America has filed a suit against the Spire developer for $110,076 they claim is owed on credit cards. B of A states that the Visa credit cards were issued back in ’06 and ’07 and that they cancelled them in August ’09 because payments weren’t being made and requested that the account balances be paid back in full by the end of September ’09.

The article states that B of A was a lender to the Spire project and that they had notified Shelbourne Development sometime prior to June of last year that the cards were being cancelled. According to the lawsuit filed by B of A and reported in the article, Shelbourne intended to use the credit cards to pay for an estimated yearly travel and entertainment expense of $750,000 and other additional purchases totaling $1.2 million.

This credit card lawsuit is in addition to another lawsuit filed by Bank of America last August over a $4.9 million debt owed by Shelbourne. The money from those two loans was used to cover early expenses for the Spire project.

With so many leins and lawsuits against the Spire, it’s looking less and less like we’ll see this mega Chicago condo project get off the ground. While we have had some good news this week about some projects securing financing, it will still probably be some time before large scale Chicago real estate developments like the Spire can find willing lenders and buyers.

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

February 25, 2010 – Anymore there seems to be at least one fairly well-known Chicago real estate project in financial trouble every month, if not more often. The most recent this week is the Lofts At Lakeview Collection. This development from Centrum properties has been hit with a foreclosure suit filed by Wachovia Bank N.A., according to a Crain’s report.

The lender is seeking reimbursement for the $18.2 million it is owed from a 2005 loan to Centrum with the company used to buy the building site. Centrum had obtained at least a couple of extensions on the loan, which they defaulted on in April ’09 and then failed to pay back in full when it came due in January ’10.

Centrum’s Sol Barket told Crain’s that they are trying to work something out with the lender or else find another source of funding. Wachovia is now part of Wells Fargo, the article stated, and no spokesperson was available to comment on the lawsuit or efforts to restructure the loan.

The Lofts At Lakeview Collection started out as being a 130 Chicago condo project with an estimated construction price tag of about $100 million. It was then changed to an apartment development plan before the foreclosure suit was filed. If Centrum can find a way out of this foreclosure, they intend to drop the residential portion completely and just focus on the development being a retail one with around 100,000 square feet of commercial space.

Mr. Barket stated that, “We think it’s much more financeable,” to make it a retail only project.

The article reports that a lease has already been signed by CVS for about 13,000 square feet of space and Bank of America has signed on for 7,500 square feet as well.

Remember that there are still plenty of Chicago lofts for sale even without the Lofts at Lakeview Collection.

[tags]The Lofts At Lakeview Collection, Chicago Lofts, Chicago Real Estate[/tags]

February 24, 2010 – There is some very good news for Catalyst developer Gary Rosenberg and anyone who purchased one of the pre-construction Chicago condos in that project. A $100 million construction loan was recently secured, according to a Crain’s report.

Although Mr. Rosenberg didn’t divluge who the lender is, he says a single source is providing the funding. He also stated that teh deal should be complete in two weeks, ground broken before this summer and the 21 story West Loop high-rise finished by fall 2011.

“Construction costs are well under control at this point, and by the time we finish the project I think we’ll have a good market,” he was quoted in the article as saying.

The Catalyst is currently facing a 2008 foreclosure suit from Kennedy Funding, the New Jersey lender that provided $8.7 million to purchase the building site. But Mr. Rosenberg plans to pay off that debt with part of the new loan.

About 75 of the 220 Chicago condos in the Catalyst are currently under contract. Mr. Rosenberg isn’t ready to talk about any price changes that might be in the future of the development.

“We’re prepared to go rental if sales don’t go as well,” he told Crain’s.

But he may not have to switch to rental. Unless other developers can secure funding for new towers, by the time the Catalyst is ready for delivery, it may not have nearly the competition it would normally have had. The glut of condos could thin out by then.

So any of you who may be looking for a deal on a West Loop condo may want to keep an eye on the Catalyst. Or you may want to check out deals on Chicago foreclosures for yourself.

[tags]The Catalyst, Chicago Foreclosures, Chicago Real Estate[/tags]

February 23, 2010 – A few posts ago we told you about Antheus Captial’s plans to turn the Shoreland Hotel into a rental tower with architect Jeanne Gang doing the interior design. Now Aqua, her best-known tower design to date, has received another award. Emporis, the world-wide Internet-based building database has named Aqua the best skyscraper of 2009, according to a recent Tribune report.

The award, officially called the Emporis Skyscraper Award, started in 2000 and is passed out once a year. Buildings are judged on both functional and aesthetic design qualities, according to the article. The building has to have been completed within the award year and be at least 100 meters high. There are 67 countries represented by Emporis editors, so the voting is global.

An Emporis spokesperson was quoted in the article as saying that, “Members of the jury praised Aqua for its fascinating shape, whose appearance changes dramatically depending on the perspective. It was also cited as a brilliant technical achievement for the precision of its construction, and lauded as an application of green design innovations to an extremely large building project.”

Aqua landed 86 points in the judging, which was 25 points ahead of the second place winner. Trump Tower actually received 36 points and made it to number five. Aqua is the first Chicago real estate development that has received this award.

At this point Aqua may very well have received more awards than any other of the Chicago New Construction Condos that have been completed recently.

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

February 22, 2010 – This past December there was a “phase II developer closeout” auction of 18 suburban Chicago condos at Seven Bridges Condominiums in Woodridge. Prior to that there was an auction in July of ’09 for 40 units. Now Sheldon Good, who handeled the both auctions, is advertising that only 5 units are left at Seven Bridges. Interestingly though, those units are being offered to the buying public with minimum bids, not a set sale price.

There are three units, numbers 401, 408 and 501 that are two bedroom, two bath plus den layouts with 1,759 square feet of living space. Those condos are for sale with a minimum bid of $230,000.

Units 901 and 1001 are also two bedroom, two bath plus den condos with 1,759 square feet of living space. But the minimum bid on these units is set at $250,000.

There is also a 5% buyer’s premium added to each sale.

You can view these condos on Saturdays or Sundays from 11AM to 2PM each weekend.

Seven Bridges is located on 6420 Double Eagle Drive in Woodridge. The tower has 12 stories and 140 condos. In the last auction, some of the condos were unfinished and winning bidders could pick out their preferences. But the current ad for the final 5 doesn’t state whether or not these units are already completed. The units that were finished had stainless steel appliances, maple wood cabinets, granite counter tops and soaking tub in the master bath. Building amenities include a 24 hour doorman, bike storage room, party room, pool and sun deck. The development is also next to a golf course.

More developers of suburban and Chicago real estate are holding after-auction sales to liquidate inventory one way or another. You can also find some good deals on Chicago short sales right now as well.

[tags]Seven Bridges Condominiums, Chicago Short Sales, Chicago Real Estate[/tags]

February 21, 2010 – We already told you that only 571 new construction Chicago condos and townhomes went under contract last year. Only time will tell if those buyers will actually close on all of those units. According to the latest news from Appraisal Research Counselors, the percentage of buyers who walk away from contracts is running somewhere between 25% and 50%. The inability to secure a mortgage or a pre-construction price that has since been devalued by the market is sometimes enough to convince a buyer to forget his or her deposit. And even though there were 1,900 units that did close in 2009, most of those contracts were signed before 2009. Prior to 2008, an average of 3,000 units went under contract each year.

According to a recent Tribune article, six Chicago real estate developments with 1,200 units will start delivering this year (2010), which is much less than the 3,600 that were completed in 2009. For 2011, only the Ritz-carlton Residences with 86 units and Lincoln Park 2520 with 198 units will be completed. The article went on to say that after that, currently there are no planned developments in the pipeline. ARC stated that the average number of new Chicago condos and townhomes added to the market has been about 2,400 units per year for the past 19 years.

Unit prices also took a hit, with 40 Chicago area condo high-rises appreciating only 5% or less and many experiencing double digit drops in value.

Gail Lissner of ARC was quoted as saying that, “New construction takes so long from the time you decide to do a project, three to four years. It’s easier to raise the equity and get the deals financed. You can go in, put a rental building under contract today and start the conversion. It’s immediate, and because we’ve had so much delivered, you’ve got a lot of possibilities.

“Back in the ’90s, we saw the conversion market come back first. The same type of thing can happen here. It could be any of the buildings in the market.”

In any case, it will be very interesting to see what the next two years brings for Chicago real estate.

[tags]Ritz-Carlton Residences, Chicago Condos, Chicago Real Estate[/tags]

February 19, 2010 – The rental tower plans just keep coming when it comes to Chicago real estate. The latest news is that the Shoreland Hotel, located on 5454 South Shore Drive in Hyde Park, may be converted to apartments, according to an article in the Sun Times. Antheus Capital is the development company interested in tackling this conversion project and intends to preserve both the facade of the historic building as well as two ballrooms, according to the article.

There would be a total of 350 apartments in the Shoreland once renovation was complete. The one-time 1,000 room hotel tower was built in the 1920s according to the article, and has been used as student housing by the University of Chicago for the past 30 years. Just last year the university sold the site.

Eli Unger of Antheus stated in the article that the $75 million restoration project could begin as soon as they receive zoning approval. He believes that the rentals will be needed in that area for some time. “We have seen strong demand for our buildings in Hyde Park, and we expect that to continue. The university and its medical center are growing,” he was quoted as saying.

The zoning approval they are seeking is for elevator installation and car lifts. The lifts would allow for parking as many as 266 cars. In any case, the zoning approval may take weeks or even months before any work can begin.

Architect Jeanne Gang, best known for her design of Aqua, is in charge of the interior design of the Shoreland.

And if any of you are considering some remodeling of your own, there are plenty of Chicago remodeling contractors who can help you get the job done.

[tags]Shoreland Hotel, Chicago Remodeling Contractors, Chicago Real Estate[/tags]

February 18, 2010 – We’ve been telling you about the low sales numbers for Chicago condos and townhomes during the last part of 2009 as well as the high number of new rental units expected to hit the market this year. Now we have some statistics on the number of condos that have been leased.

According to the latest report from Appraisal Research Counselors, a record amount of condos were rented during 2009. There has been a steady increase in the Chicago real estate market when it comes to leasing condos. For the years 2005 to 2006 there were around 300 to 600 condos advertised for rent in each quarter of the year. That number went up to more than 700 condos listed for rent in 2007. By 2008 the market was forcing more investors and developers to offer leasing options ARC also reports that now there are more than 1,700 condos listed for rent, which is 43% more than in the last quarter of 2008.

ARC did state that while there was a dramatic increase of more than 1,000 Chicago condos listed for rent in mid 2008, that number decreased from the fourth quarter of ’08 though the first quarter of ’09. But then by the second quarter of 2009 there was a record number of 1,375 downtown units listed for rent. However, the third quarter of 2009 set another record with 1,507 downtown units rented. The fourth quarter of ’09 settled at 900 downtown units leased.

According to ARC, there was a total of 4,483 downtown units leased during the past twelve months. That was up significantly from the 3,449 downtown units leased in the twelve months before that.

With so many condos and townhomes being put up for rent by investors, individual sellers and developers, it is putting some serious pressure on the Chicago apartments for rent. So if you’re looking to rent any Downtown Chicago Condos, now may be the time to do it.

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

February 17, 2010 – Just in case you’ve had your eye on a Chicago condo at 565 Quincy, you may want to think about purchasing now because Chicago real estate developer Belgravia Group has lowered prices on the units. In an email announcement the sales team is refreshing potential buyers about the savings to be had at this project.

The junior one bedroom condos that had been priced in the $200,000s are now being offered from $156,000.

The one bedroom units that had been listed in the $300,0000s have been reduced and now start at $245,000. A free indoor parking space is included with the purchase of one of these condos.

And the larger two bedroom, two bath condos at 565 Quincy that had been marketed from $381,000 have now been lowered and start at $315, 000. Buyers will also get a free indoor parking space with the purchase of one of these units.

565 Quincy has a mix of lofts and condos, with traditional lofts on the upper three floors of a renovated seven story structure and condos in the eleven new construction floors that were added on top of that. Perks include the 11,000 square foot Q Room in the lower level with its fitness room, lounge, movie theater, putting green, bowling alley and game tables.

As far as other Chicago lofts go, 565 Quincy is certainly unique in the amenities it offers and now is probably pretty competitive in pricing as well.

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