May 31, 2011 – The majority of Chicago real estate developers are still bullish on building apartment towers right now. Demand is high, rents are high and lenders are more willing to finance apartments than Chicago condos. One of the biggest new rental projects is about to get underway in Lakeshore East after locking in financing. Magellan Development expects to break ground on a 45 story, 499 unit high-rise to be located on 345 East Wacker Drive, according to a Crain’s report.

Northwestern Mutual Life Insurance Company has loaned $99.5 million towards construction of the rental tower and Magellan, along with JP Morgan Asset Management, is investing $50 million of their own funds as well. The tower has been high-rise designed by Brininstool Kerwin & Lynch, according to the article.

This new Lakeshore East apartment tower is expected to be ready for move-in by February of 2013. It will hit the market along with about 2,200 other new planned apartments that year, according to ARC. The high-rise hasn’t been named yet, but will probably be along the same sea-faring lines as Aqua, the Tides and the Shoreham. And you can find plenty of other Chicago apartments available for rent and occupancy right now if you don’t want to wait until 2013.

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

May 30, 2011 – EnV is one of the newest rental Chicago real estate developments in River North and also the latest rental tower to be put on the market. Accoridng to Crain’s, EnV’s developer, the Lynd Company of San Antonio has decided to sell the 29 story, 249 unit high-rise which is located on 161 West Kinzie Street. CB Richard Ellis is handling marketing for the tower.

Although EnV isn’t full yet by any means (it’s 65.9% leased according to Appraisal Research Counselors), the article claims that sources predict it could bring a high price tag. As much as $500,000 per unit or $125 million total is possible and even expected. If that does happen, EnV would jump up to join some of the most expensive downtown apartment tower sales in Chicago’s history. It’s already the fifth most expensive rental tower downtown. The report goes on to say that the Lynd Company took out a $72.5 million loan from MB Financial Bank to build the tower and current average monthly rents are about $2,420.

So could EnV really bring $125 million from an investor? We’ll have to wait and see but it’s likely. Senior VP Mark Stern of Waterton Associates, the company who purchased 124 Mondial condos and is renting them, was quoted in the article as saying that, “There’s not a lot of core for sale right now, so you’re going to get a lot of interest.”

With rents for Downtown Chicago Apartments on the rise, more developers are looking to make a profit and more investors are looking to make a deal.

[tags]EnV, Downtown Chicago Apartments, Chicago Real Estate[/tags]

May 27, 2011 – Unless there is a big rush of Chicago condo sales, 2011 will be the third year in a row that Chicago real estate developers have sold fewer than 600 Downtown Chicago condos. A recent Appraisal Research Counselors report that was highlighted in a Crain’s article stated that just 174 downtown Chicago condos were sold in the first quarter of this year. There were 256 downtown units that sold in the first quarter of last year (2010). But even with the low number of sales for Q1 of 2011, the report points out that it’s better than the last quarter of last year (2010) because developers had a net loss of 19 sales then due to walk-away buyers.

The ARC report gave a few obvious reasons for the dismal sales. “Not knowing whether the bottom has been reached in prices, concerned about the continued weakness in the economy and job market, and finding it difficult to sell existing residences and finance new acquisitions, many people are opting for the easier decision — to rent,” ARC explained.

But the article also went on to state that the excess inventory of downtown Chicago condos is slowly decreasing despite dismal sales. That is largely due to developers putting new projects on hold, scrapping plans completely and converting condos to rental units. At the end of the first quarter of last year (2010) there were 4,182 unsold downtown Chicago condos. At the end of the first quarter of this year (2011) that number went down to 2,031 unsold downtown Chicago condos. Back in 2008 there were 8,222 unsold downtown Chicago condos at the end of the first quarter. ARC started recording sales data in 1997 and said in the article that right now the inventory of unsold downtown Chicago condos is pretty close to what it was in ’97.

Buyers opting to walk-away from sales contracts has forced ARC to change the way they track sales. The firm has always counted a signed contract as a sale, but just recently started only counting closed contracts. With that in mind, there were 189 downtown Chicago condos that sold and closed in the first quarter of this year. In the last quarter of last year there were 251 sales contracts that closed on downtown Chicago condos and 451 that closed in the first quarter of last year (2010).

Most housing experts agree that we still may be a year or even two away from a real recovery in terms of Chicago condo prices and sales.

[tags]Chicago Condo Sales, Downtown Chicago Condos, Chicago Real Estate[/tags]

May 26, 2011 – Another large-scale Chicago real estate development that has been advertising price cuts for quite a while is Lake Park Crescent in North Kenwood. This development contains a mix of affordable and market rate Chicago condos and apartments in a wide range of prices. The development is also FHA approved.

The spring closeout pricing on one to four bedroom homes at Lake Park Crescent now starts at $159,800. The single-family row homes are now priced from $429,000. The city of Chicago is also offering a number of grants, including the Find Your Place in Chicago promotion, with up to $10,000 available towards the purchase of a new home.

If you aren’t quite ready to buy a condo or row home, you can also lease a unit at Lake Park Crescent. Monthly rent on the affordable 464 square foot one bedroom apartments in the six-flats runs anywhere from $464 to $746 per month. The amount is based on where your income falls in the average median income for the area. Market rate rent on these apartments is $950 per month.

The two bedroom, 553 square foot apartments in the six-flats have affordable rents ranging from $553 to $891 per month. Market rate rent on these apartments is $1,159 per month.

The three bedroom, 636 square foot apartments in the six-flats have affordable monthly rents from $636 to $1,027. Market rate rent on these apartments is $1,300 per month.

The one bedroom, 539 square foot apartments in the mid-rise have affordable monthly rents of 539 to $821. Market rate rent on these apartments is $950 per month.

Affordable monthly rents on the two bedroom, 648 square foot mid-rise apartments ranges from $648 to $986. Market rate rent is $1,326 per month.

And the 745 square foot, three bedroom mid-rise apartments have affordable rents of $745 to $1,136 per month. Market rate rent on these apartments is $1,600 per month.

So if you’re looking for affordable Chicago homes for sale, Lake Park Crescent may be a good fit for you.

[tags]Lake Park Crescent, Chicago Homes For Sale, Chicago Real Estate[/tags]

May 25, 2011 – There are still quite a few Chicago condos left for sale from the developer at Aqua but there are only a handful of apartments still available for rent. Of the
262 Chicago condos in Aqua, only around 62 of those are still left for sale, according to a recent profile in Chicago Magazine. The 82 story high-rise also has 474 Chicago apartments that take up floors 19 through 53 and of those, just about ten are still available for rent. Prices on the remaining unsold condos at Aqua run anywhere from the $300,000s on up to $1.9 million.

If you want a condo on floor 81, there is a two bedroom unit with 1,800 square feet for sale from Chicago real estate developer Magellan Development for $1.2 million. This unit had been under contract but didn’t close, according to the article. It has hardwood floors with maple finish plus some kitchen upgrades like Snaidero cabinets and upgraded appliances.

Or you can buy the neighboring condo for $1.9 million. It’s an unfinished three bedroom with 2,880 square feet and a 91 foot long balcony, according to the article.

If you go down a few levels to floor 17 there is an 1,800 square foot condo with three bedrooms that is priced at $929,000.

So if you are interested in any of the Chicago condos or apartments still available at Aqua, you might want to visit the sales center at Lakeshore East sometime soon.

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

May 24, 2011 – Just a few posts ago we told you about the incentives offered to the next 10 buyers who purchase FHA approved condos and use the preferred lender at 235 Van Buren. Chicago real estate developer CMK Development Company is offering one year of free assessments, $5,000 in closing cost credits and a$700 gift card for an Apple iPad2 3G. But while CMK is busy trying to sell Chicago condos in the 46 story, 714 unit tower, they are also busy suing buyers who have already signed a sales contract but won’t or can’t close on the condos. Crain’s is reporting that CMK president Colin Kihnke is in litigation with 27 buyers right now in an effort to collect their deposits.

The article explains that CMK allowed buyers to pay only a third of their deposits and the developer covered the other two-thirds in a sort of promissory note-short term loan with 18% annual interest. The report states that this practice enables developers to get more buyers to sign and to lock in a construction loan quicker.

But now CMK wants the loans paid back and is taking buyers to court. The 27 buyers who won’t or can’t close owe CMK about $36,000 each. According to the article, CMK issued a statement to those buyers that said, “The note payments represent the balance of the earnest money which was due and payable when the respective purchasers opted not to close in spite of their contractual commitments. Many of the units have now closed with new purchasers.”

According to Appreisal Research Counselors, only 357 condos have closed in this 714 unit high-rise. Around 123 more condos are currently under contract. They also state that 235 Van Buren is the biggest downtown Chicago condo high-rise tower built since the 1970s.

We will keep an eye on 235 Van Buren and update you with any further developments. A building with this many unsold Chicago condos could be a prime candidate for a bulk sale and switch to rental or an auction since the prices are already low, starting from $189,000.

[tags]235 Van Buren, Chicago Condos, Chicago Real Estate[/tags]

May 23, 2011 – For those of you who might be looking for affordable Chicago condos in Old Town, Parkside of Old Town is still advertising reduced pricing and free parking. The Find Your Place in Chicago grant program is also still giving qualified buyers $10,000 towards the purchase of a condo, so that’s another good reason to check out what Parkside of Old Town has to offer. And Parkside is FHA approved, so a very low down payment could also make these condos even more attractive.

The one bedroom condos had been priced at $259,900 but are still reduced and now priced at $175,000. The two bedroom condos are now priced at $280,000 which is quite a bit lower than the old price of $379,900. If you need more space, the townehomes that were listed for $759,900 are now priced from $342,000 and include an attached one to two car garage.

Finishes include stainless steel appliances, granite counter tops, oak or maple cabinets, designer baths and hardwood floors. Condo residents also have a fitness center to use, which is always a nice perk.

Parkside of Old Town is a mixed-use Chicago real estate development and besides the 207 Chicago condos and 72 townhomes, the new Oak rental tower is under construction and should be completed by late this year or early 2012. The seven story Oak tower is phase II of the Parkside of Old Town development and it will have 112 apartments, 20 of which will be rented at market rate, 53 leased at affordable rates and 39 Chicago Housing Authority units. Actual rates haven’t been determined yet for any of the apartments.

You can find more information about Parkside of Old Town and other Old Town Chicago condos in our development pages.

[tags]Parkside Of Old Town, Old Town Chicago Condos, Chicago Real Estate[/tags]

May 20, 2011 – We’ve been talking about how the Chicago real estate development that was known as VB1224 is now branded as Van Buren Lofts and has a new owner and new lower prices. More information about the transition keeps surfacing and now Crain’s is reporting that investor Foxforcity City LLC paid $5.2 million for 52 of the unsold Chicago condos in the 8 story, 182 unit building as well as 46 indoor parking spaces. The deal closed in February of this year, according to the article, and Foxford president Peter Brennan believes he can sell the condos, which is something the original developer was having difficulty doing.

Buying condos in bulk at a discount usually allows investors to offer them for resale at lower prices than the original developer can. Van Buren Lofts wasn’t in financial trouble and developer James Engle had received extensions on construction loans that matured in early 2008. The sale paid off the loan balances. He was quoted in the article as saying that, “We just thought it was better to cut bait, and the bank thought that was a good idea.”

Old prices on the one bedroom units at Van Buren Lofts started at $239,900 but Foxford is listing them from $189,900. The two bedrooms were previously marketed from $299,900 and are now starting at $229,900. The building is FHA approved, so qualified buyers can score a 3% down payment.

Mr. Brennan of Foxford also said in the article that he has pumped some money into the building reserves and is paying the assessments on the empty units. That makes the assessments for residents already living there go down by around 25%. He also finished out the interiors of the 52 condos he purchased.

Mr. Brennan is confident that he can find buyers for the lofts. “We’ve sold three already and we’re really excited about the opportunity.”

So if you’re shopping for Chicago lofts you may want to check out Van Buren Lofts and see if the prices and finishes work for you.

[tags]Van Buren Lofts, Chicago Condos, Chicago Real Estate[/tags]

May 19, 2011 – A few days ago we talked about Van Buren Lofts and how we haven’t heard much about the Chicago real estate development in quite a while. We have a bit more news about Van Buren as a press release came our way recently.
The lofts are now owned by Foxford City LLC from Hinsdale and Garrison Partners is handling the marketing. The project was known as VB1224 and prices on the lofts have been dropped along with the 1224 in the name. In fact, as much as $95,000 has been chopped off the original price of some of the units.

The one bedroom plus den lofts have from 900 to 1,106 square feet and are now priced from $189,900. The two bedroom lofts size up from 1,043 to 1,360 squre feet and are now listed from $229,900. The building is also FHA approved.

The new owners are in the process of wrapping up construction at Van Buren Lofts and there are a few units ready for immediate occupancy.

The lofts have 10 to 12 foot high concrete ceilings, plenty of exposed concrete columns and ductwork plus 4 inch wide wood plank floor boards in the common areas. Other features and finishes include Quartz countertops, Bosch stainless steel appliances, a washer and dryer, private balconies, 42 inch kitchen cabinets and stone baths.

The building will have a 24 hour doorman and garage parking available.

You can find out more about Van Buren Lofts and other Chicago lofts by following the link to the development pages.

[tags]Van Buren Lofts, Chicago Lofts, Chicago Real Estate[/tags]

May 18, 2011 – A couple of weeks ago we told you about the new leasing program at Optima Old Orchard Woods in Skokie. Just to refresh your memory, The one bedroom suburban Chicago condos, of which there are few if any left, are renting from $1,500 to $1,800 per month and the two bedroom condos from $1,800 to $4,125 per month. The thre bedroom and penthouse units are leasing between $3,125 to $4,725 per month.

There is also a new promotion in progress at this suburban Chicago real estate development. Buyers who sign a purchase agreement by May 31st can get 20% off some select units at Optima. Some of the units that are available are listed below.

Unit #2-1609 / 2BR/2Bath / 1,169 sq ft / was $344,000 now $275,200 / $362 Assessments
Unit #2-1706 / 2BR/2Bath / 1,250 sq ft / was $431,100 now $344,800 / $426 Assessments
Unit #2-1803 / 2BR/2Bath / 1,269 sq ft / was $419,500 now $335,600 / $425 Assessments
Unit #2-709 / 2BR/Bath / 1,442 sq ft / was $428,500 now $342,800 / $409 Assessments
Unit #1-616 / 2BR/2Bath / 1,514 sq ft / was $479,00 now $383,200 / $498 Assessments
Unit #2-911 / 3BR/2Bath / 1,654 sq ft / was $511,550 now $379,900 / $473 Assessments
Unit #2-1511 / 3BR/2Bath / 1,654 sq ft / was $543,800 now $435,040 / $495 Assessments

The condos come with marble baths, granite counter tops, hardwood floors, stainless steel appliances, floor-to-ceiling windows, custom cabinetry, a terrace or balcony, washer and dryer and a fireplace can be installed. Building amenities for all of the three towers include a fitness center, indoor heated parking, indoor pool, spa and party room.

Be sure to check back with us for updates on rental options and price discounts on Chicago condos.

[tags]Optima Old Orchard Woods, Chicago Condos, Chicago Real Estate[/tags]