If we look back to a Crain’s article that ran almost one year ago (in January 2011), we’ll see Mesirow Financial had discovered an interesting way to sell out a bunch of Chicago condos that were for sale at the time in the West Loop. Here’s what happened…

The developers of the 237-unit project known as R+D659 (located at 659 W. Randolph Street) wanted to sell 19 unsold condos to a local non-profit that aids with treatment of mental illness and addictions so the organization could rent the units out to their clients. Thresholds (the Chicago-based non-profit) had planned on purchasing the Chicago condos for mental-health patients to live in while making the transition to living independently from needing assistance. However, before the deal could go through, the condo association of the building had to review the proposal—not to mention it also required city approval.

In order to gain the needed zoning approval from the City of Chicago for the R+D659 project, Mesirow had to keep 10% of the building (24 condos) set aside to be used as affordable housing. Of course, because of the recession and the housing market funk, Mesirow only sold five of the Chicago condos it had reserved for lower-income buyers.

The agreement with the City of Chicago ensured that the 19 remaining units remained affordable, however, it also allowed Mesirow to find an inventive way to sell the lower-priced units despite the Chicago condo market’s dismal state. The deal with Thresholds to purchase so many units at once was a rarity for the times. Still, the proposed solution for Mesirow was sure to create some issues with other tenants of R+D659. While some residents may not wish to live in the same building as recovering mental health patients or addicts, others may fret that the value of the condos would decrease due to the scenario.

At present, Chicago does not allow for non-profits to make these types of sales. Thresholds was planning to pay $125,750 per condo and not a penny more for the Chicago real estate, due to an ordinance proposed by Mayor Richard Daley in December 2010. Thresholds also was interested in buying one of the affordable units that Mesirow sold previously and was planning on assigning a staff member to each client for counseling, training and educational aid.

However, the plan was scrapped only a week after its announcement in January 2011. The condo board and condo owners were very adamant about not wanting it to move forward and Alderman Walter Burnet decided to block the required ordinance through City Council unless they retrieved approval from all of the building’s owners. As a result, Mesirow and Thresholds did not go through with the deal and the units did not sell after all.

At the beginning of 2010, local developers began to lower prices and hold auctions on newly developed Chicago condos, resulting in a small amount of the Chicago condo market to prosper. According to an article from Chicagomag.com, those buying were primarily wealthy; purchasing unique and high-priced Chicago real estate, like luxurious downtown Chicago condos in state-of-the-art high-rises. From the beginning of 2010 to mid-May 2010, forty downtown condos were sold for $2 million and up—most of them in developments that have only just opened their doors in the past few years.

A couple of these buildings include the Elysian at 11 E. Walton Street, which had an $8.182 million dollar sale (the highest price paid for a Chicago condo since 2006); and the Aqua, an award-winning skyscraper at 225 N. Columbus Drive where a 3-bedroom Chicago condo sold for $2.24 million.

Behind these sales is good timing. Many buyers made decisions to purchase units in these developments long before the buildings were ever erected, and long before the recession. Following several years of planning, marketing and construction, building owners were finally starting to deliver in 2010. And buyers were finally able to close on their new homes and move in.

The well-known Bloomingdale’s high-rise, a 21-year-old skyscraper located at 900 N. Michigan Avenue, saw a new block of Chicago condos open up last year that were previously occupied by the advertising agency J. Walter Thompson. Three of the units were sold for upwards of $2 million and one was purchased for $4.75 million in February 2010.

At least 16 purchasers of the Elysian downtown Chicago condos closed at $2 million or higher since January 1, 2010. Around that same time, the Legacy at 60 E. Monroe Street sold three units for upwards of $2 million, which were some of the first closings for the new property. A sum of $2.3 million was paid in May 2010 for a previously owned condo located on the 51st floor of the Trump International Hotel & Tower and yet another buyer spent $3.45 million in April 2010 for a Chicago condo located on the 54th floor of 55 E. Erie.

The buyers of these luxury condos almost always purchase in cash and know that when the market fully recovers, they will own some very valuable pieces of Chicago real estate.

This cross-section of buyer activity does not mean, however, that Chicago’s luxury real estate market was never influenced by the recession. The high-end development at 50 E. Chestnut in the Gold Coast is a prime example. These Chicago condos were priced starting at $2 million. In 2007 and 2008 there were 17 sales, but only two sales between 2008 and 2010—one in 2009 and another at the beginning of 2010. The decline in sales could also be completely related to timing as this building was finished right when the market caved. The condo that sold in 2010 did sell for over $3.335 million. However, another condo of the same size on the same floor sold for $3.964 in 2008—a significant difference, and perhaps a very clear sign of the times.

If you’re keeping tabs on Chicago’s celebrity home and high-end real estate sales you may be interested in a couple of transactions reported on by the Chicago Tribune’s Luxury Real Estate section this week.

Vintage Chicago Condo

Mark Saxenmeyer, a former WFLD-Channel 32 special projects reporter recently listed his two-bedroom Chicago condo for $339,000. Saxenmeyer left the television station in December 2010 after working there for 17 years. He now lives in St. Paul, Minnesota and has decided to sell his designer piece of Chicago real estate.

The 45-year-old, current KSTP-TV reporter listed his Chicago condo on November 1^st for $359,000 – $20,000 less than what he purchased it for in 2005. He originally bought the three-level, six-room residence after he “fell in love” with the classic flatiron-style architecture and unique, non-cookie-cutter feel.

The Chicago home is located in the city’s North Side Lincoln Park neighborhood and was built in 1883. The 1,200-square-foot property contains a 12-foot-tall tin ceiling, a lofted den, three large picture windows that overlook a park, original wood floors, refurbished doors with solid oak finishes, a rooftop deck, a storage room and an attached one-car garage.

Lincoln Park Mega-Mansion

A four-story mansion is being developed across three city lots in Lincoln Park. The Chicago home is a contemporary mansion with marble and slate exterior, built by Joseph Sacchetti, in partnership with Wolverine Trading.

Sacchetti is one of many Chicagoans who has used multiple lots to create on big property in Lincoln Park, demolishing existing homes to construct a mansion. In recent years, others who have done the same include Richard Parrillo, John Bucksbaum, Penny Pritzker, Sara Crown Star and Donald R. Wilson Jr.

Sacchetti spent $2.6 million for two of the lots in 2007. In June 2010, he paid an additional $1.4 million for the third lot.  He has since demolished two buildings on the lots to prepare for the new Chicago home’s development.

In 2008, Sacchetti applied for a building permit to begin construction of the Chicago home, at an estimated construction cost of $4.3 million. After purchasing the third lot in 2010, Sacchetti won approval to expand the garage, which will now be spacious enough to hold four cars in all.

October 14, 2011 – Sales of luxury Chicago condos continue to make news, and one Michigan Avenue high-rise inked three high-dollar contracts recently. According to an article in Crain’s, in the past 30 days the Park Tower on 800 North Michigan Avenue had buyers purchase three condos that were priced over $3 million each.

Those condos were a 4,200 square foot unit on floor 53 that was sold for $3.18 million, a 4,200 square foot condo on floor 48 that sold for $4.05 million and a 3,200 square foot condo on floor 47 that sold for $3.25 million.

But the article goes on to state that overall sales of Chicago luxury condos have slowed down somewhat. Midwest Real Estate Data says that there were 232 Chicago condos priced over $1 million that sold from October 1, 2010 and September 30, 2011. There were 291 Chicago condos priced over $1 million that sold during the same period a year earlier.

It will be interesting to see how sales pan out for the Ritz-Carlton Residences and Lincoln Park 2520 when they start making deliveries next year. Appraisal Research Counselors states that condos at the Ritz are priced at about $1,200 per square foot and at around $871 per square foot at Lincoln Park 2520.

[tags]Park Tower, Luxury Chicago Condos, Chicago Real Estate[/tags]

October 13, 2011 – Addison Park On Clark, the controversial proposed Wrigleyville development, hit another foul this week. A foreclosure suite was filed by Bank of America against Chicago real estate developer Steven Schultz, who has been working to get the project off the ground since 2007. According to a Crain’s report, the bank is suing for $8.9 million is claims the developers owes. A previous foreclosure suit was filed in March of 2009 but was settled when the bank restructured the loan. This new suit claims loan came due on August 5th of this year and wasn’t paid.

The suit involves the some of the parcels of land located on Clark Street where the development is supposed to be built. The Addison park on Clark plan include a hotel, 150 Chicago apartments, 145,000 square feet of commercial space and an underground parking garage that would have 499 spaces. Wrigley fans and local residents opposed the development because they claimed that it would detract from and overshadow the ballpark. But Mr. Schultz revised the design and as of right now plans to have the height at eight stories, which would keep it lower than the top of Wrigley Field.

The developer doesn’t seem defeated by this latest problem, though. Mr. Schultz claims that he is close to getting a different loan from PrivateBank & Trust Co. “What’s really important is this development, not this one little blip that’s occurring for a very short amount of time,” he was quoted as saying.

But Mr. Schultz’s partern Tony Rossi of M&R Development also said in the article that they don’t have a hotel brand interested yet and also no prospects for a construction loan.

It’s still tough for Chicago real estate developers to get financing for anything other than rental towers, and with so many of those being built right now, that money may become harder to find as well.

[tags]Addison Park On Clark, Chicago Condos, Chicago Real Estate[/tags]

October 12, 2011 – Prices have been lowered and a new incentive put in place for the remaining unsold condos at The 21 Condos on Kristin Drive in Shaumburg. One bedroom, one bath condos at this Chicago real estate development were priced from $150,000 and now are from $119,900. These units start on the 7th floor. The two bedroom, one bath condos start on the first floor and were priced from $170,000 but now start at $99,900. Two bedroom, two bath condos are priced from $130,900. The three bedroom units are all sold out now.

Right now buyers can also get 50% off a platinum upgrade package on all remaining two bedroom units. The upgrade package is valued between $25,000 and $30,000. An upgrade for a two bedroom, one bath normally costs $17,000 but is now cut to $8,500. For a two bedroom, two bath condo upgrade package it would usually cost $19,500 but you can get it right now for $10,000.

Some platinum upgrade features include oak hardwood flooring, new bedroom carpet, new paint, Moen showers, white steel bathtub, marble bath sink, 36 inch maple bath cabinets, new mirror, lighting and fan. Kitchen upgrades include maple cabinets, new stainless steel sink and Moen faucet, 1.25 inch granite counter tops, stainless steel appliances and track lighting.

A few of the available units are listed below.

Unit #101 / 2BR / 1 Bath / $99,900
Unit #714 / 1BR / 1 Bath / $109,900
Unit #330 / 2BR / 2 Bath / $130,900

Building features include a fitness center with yoga room, a game room, business center, library, theater room, guest suite, outdoor swimming pool, tennis court, sand volley ball court, putting green and playground.

If you don’t find anything you like at The 21 Condos, there are quite a few other suburban Chicago condos for sale at reduced prices.

[tags]The 21 Condos, Suburban Chicago Condos, Chicago Real Estate[/tags]

October 11, 2011 – The price cuts that have been in place for nearly a year at 200 North Dearborn have paid off in sales. Appraisal Research Counselors lists the high-rise as one of the developments with the most sales in the first half of this year. Granted, sales of Chicago condos are still extremely low, but any sales are a big deal in this market.

There are still a few units left for sale at 200 North Dearborn. The current promotion is a 5% price discount if you use American Invsco’s preferred lender and a 10% discount for cash purchases made by October 14th.

The one bedroom Chicago condos in this high-rise are priced from $239,677 to $338,265. The two bedroom units range from $312,104 to $470,137. The three bedroom condos run from $570,893 to $646,378.

Unit #803 is a one bedroom, one bath with 860 square feet. The price is $239,677. Monthly assessments run $385 and yearly taxes are about $2,631.

Unit #3304 is a one bedroom, one bath with 870 square feet. The price is $338,265. Monthly assessments run $428 and yearly taxes are about $2,922.

Unit #906 is a two bedroom, two bath with 1,180 square feet. The price is $312,104. Monthly assessments run $529 and yearly taxes are about $3,614.

Unit #4002 is also a two bedroom, two bath condo. It has 1,165 square feet. The price is $470,137. Monthly assessments run $610 and yearly taxes are about $4,165.

Units #1105 and #1106 each have three bedrooms, three baths and 2,015 square feet. The price for each is $570,893. Monthly assessments run $903 and yearly taxes are about $6,170.

Units #3201 and #3202 also have three bedrooms, three baths and 1,755 square feet. The price for each is $646,378. Monthly assessments run $911 and yearly taxes are about $6,228.

As this year inches to a close, we may see some last minute price reductions at some Chicago real estate developments. We’ll keep you posted, so check back often.

[tags]200 North Dearborn, Chicago Condos, Chicago Real Estate[/tags]

October 10, 2011 – The latest news about 757 Orleans is that Chicago real estate developer Gammonley Group sold the retail space in the high-rise to Finesa Real Estate Group out of Maryland. The 13,738 square feet of commercial space is already occupied by Bank of America, Walgreens and Verizon, according to a Crain’s article. The developer got $10.8 million for the space, so that had to help their bottom line.

Appraisal Research Counselors reports that as of the end of June this year, 120 of the 198 Chicago condos in this River North high-rise were sold. If you do the math, there are still quite a few units available, and price cuts have been advertised for some time. Free parking was being offered for the next 20 buyers, but is now offered with all purchases of one bedroom or larger units. Buyers will also still get a 2 point rate buy down if they get a mortgage from Wells Fargo. The $5,000 in closing cost credit is also still on the table.

Prices on studios have dropped a little bit more and now start from $172,000. The one bedroom condos are still priced from $261,000 and the two bedrooms start from $354,000. You can expect to pay from $541,000 for a penthouse unit. All of the units have a balcony or a terrace.

The condos come with standard finishes like stainless steel appliances, granite counter tops, stainless steel double kitchen sinks, oak or maple cabinets, hardwood floors, washer/dryer hook-up and designer lighting. The baths have marble counter tops, ceramic tile and a large soaking tub.

More price cuts are being offered on Downtown Chicago condos as well as condos in River North, so be sure to shop around for the best deal on prices.

[tags]757 Orleans, Downtown Chicago Condos, Chicago Real Estate[/tags]

October 8, 2011 – If you’re looking for condos outside the Downtown Chicago real estate area, a couple of developments are offering price cuts and incentives for buyers. At Courthouse Square in Wheaton, Focus Development is having a closeout sale that starts October 22nd at 9am for the last three available condos.

According to a press release in the Tribune, all three condos are ready for occupancy and one is even furnished. If you’re interested, the condos are open for viewing from 10am to 4pm on two Saturdays, October 8th and 15th. The price cuts will be awarded to the first buyers who sign a contract, but you have to be pre-approved for a mortgage.

The Clocktower condo has three bedrooms, 3.5 baths, balcony, office and 4,683 square feet. The discounted price is $944,930.

The Chambers condo has three bedrooms, three baths, patio and 3,900 square feet. The reduced price for this condo is $692,930.

The Courtroom condo has three bedrooms, 3.5 baths a loft bedroom and 3,600 square feet. With a discount, you can expect to pay $769,930 for this condo.

All three condos come with two indoor parking spaces and a fireplace.

At River’s Edge in Vernon Hills, Weiss Development is offering as much as $20,000 to be applied to your mortgage, taxes and assessments for up to six months, according to a profile in the Tribune. There are four two bedroom condos that have 1,660 to 2,325 square feet left for sale. Prices start from $329,900.

These condos come with wood flooring, 42 inch kitchen cabinets, granite counter tops, granite vanity tops and baths with separate showers and tubs.

Be sure to check back with us for all the latest information about price cuts and incentives at Chicago real estate developments.

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

October 7, 2011 – We’ve been hearing about how many Chicago real estate developers are either in the planning or building stage of apartment tower projects. Now the Sun Times is reporting that AMALI Residential will break ground on their new 50 story rental high-rise in River North this month. It will go up on the corner of Clark and Hubbard, according to the article. The site has been used as a parking lot for some time.

When completed in the summer of 2013, the tower will have 409 Chicago apartments. Building perks will include having the tower connected to a neighboring parking garage where the developer will turn the rooftop into a terrace for the apartment residents. Plans are to have a pool, BBQ area and cabanas.

Even though there are several other apartment towers going up at the same time as the AMALI one, the article states that AMALI VP Stephen Ross hopes that younger renters will pick this building because of the wide selection of restaurants and bars in the neighborhood.

The apartments will have high-end finishes, so expect the rents to be at the upper end of the scale. It will also be a non-smoking building, both in common areas and individual units. The article states that residents who violate the policy will be fined $250, which will then be sent as a donation to the American Lung Association.

Even though developers are focusing on apartments, there are still plenty of new construction Chicago condos for sale. Many are offering price cuts, and we’ll keep you posted on those.

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