31 March 2010 ? There is no doubt about it, Chicago is a condo kind of town. With an estimated 260,000 condo units in approximately 12,000 buildings, Chicago ranks as the nation?s 3rd largest condo market.
2009 saw 10,070 condo units sold, which is a 20% decrease compared to the 12,596 units sold in 2008.

Over the last two weeks, the following neighborhoods were featured: Lincoln Park, Lakeview, Gold Coast, Lincoln Square, North Center, Logan Square. This week, we look at a few more for comparison:

Edgewater: 528 condos sold in 2009 with an average median sale price of $205,500 ( a 9% decrease compared to the 2008 median sale price)

The Loop: 632 condos sold with a median sale price of $345k (a 13% decrease compared to 2008)

South Loop / Bronzeville: 312 condos sold with a median sale price of $311,288 ( this represents a 6% decrease compared to 2008)

Next week we?ll compare the YTD number of sales, market times, and total sales volume for the first quarter of 2009 to 2010.

24 March 2010 ? Last year, prices for condominiums ranged from $4,000 for 1,200 sq ft in South Chicago to $5 million for a 5,000 square foot penthouse in the Gold Coast. The 2009 median sale price of a condo citywide was $270,000 which represents a 13% decline compared to 2008 prices.

Last week, I wrote about Lincoln Park, Lakeview & The Gold Coast. This week I’ll add a few more neighborhoods for comparison:

Lincoln Square: 258 condos sold with a median sale price of $255,375, (a 14% decline compared to 2008)

North Center: 235 condos sold with a median sale price of $367,000, ( a 3% decline compared to 2008)

Logan Square: 286 condos sold with a median sale price of $266,000 (a 14% decline compared to 2008)

17 March 2010 ? Did you know that at any given time, there are approximately 10,000 condos actively for sale in Chicago? Annually, between 10,000 ? 20,000 condo units are sold in the Windy City. That represents about 2% of the 900,000 condos & co-ops bought and sold across the entire country.

In 2009 the median sale price of a condo citywide was $270,000, which takes into account all 77 official community areas. Since real estate is local, and Chicago is a patchwork of neighborhoods, here are more specific median sale prices based on closed sales from the Multiple Listing Service for 2009:

Lincoln Park: 593 condos sold with a median sale price of $359,000 ( an 8% decrease compared to 2008)

Lakeview: 1,092 condos sold with a median sale price of $309,500 (a 9% decrease compared to 2008)

Near North Side (which includes the Gold Coast, River North, Old Town, Streeterville, Cabrini Green, Goode Island) 1,737 condos sold with a median sale price of $360,000. (a 13% decrease compared to 2008)

The upside is that so far this year, total sales volume and number of closed transactions for condos are on the upswing, which is promising news.

10 March 2010 ? Many people are wondering how the condo market is doing so far in 2010. In short, not bad! Here we are, only two months into the new year, and according to figures generated by MRED, our regional Multiple Listing Service, condo sales are off to a strong start compared to 2009.

Here is a quick snapshot of year-to-date sales of Chicago condos for the first two months of the new decade:

  • 30% increase in total dollar volume, to $356 million
  • 41% increase in units closed, to 1,097
  • 12% decrease in median sales price, to $255,000
  • Average market time decreased 8%, to 143 days

What does it all mean? Condo inventory is getting absorbed which is great news, they are selling in less time but on average, are 12% lower in price compared to January- February of 2009. Considering the severe depreciation in other parts of the nation, 12% is relatively benign.

3 March 2010
Campaigning for more Wal-mart stores continues as store closings & job losses rise. This time, with the Lord on their side. The Chicago alliance of just over 200 ministers representing a congregation of over 100,000 plan to put the pressure on Mayor Daley to grant approval for construction to start on a new Wal-Mart at the Chatham Market shopping center. Their hope is that it will save the project from falling into foreclosure. Also part of the plan is to pressure aldermen to approve this store and other stores needed in retail starved neighborhoods like Englewood and Pullman. If this approach fails, the ministers & their mobile congregations plan to mount a campaign against alderman who oppose the Wal-mart expansion and in turn support those candidates who are in favor through political advertising and strongly urging a vote against dissenters. Alderman need votes and churches offer lots of congregants so the ministers feel they have a powerful weapon. For their sake, I hope so. Because even if they get the thumbs up from the aldermen, it?s still possible to hit a road block with the city council and the department of zoning.

17 February 2010 ? For nearly 100 years, the prime piece of real estate that was once home to Edith Rockefeller McCormick, located at the intersection of Michigan Ave, Oak Street and Lake Shore Drive has been known as 1000 Lake Shore. However, much to the aggravation of the residents, the U.S. Postal Service sent a letter on February 1st that included the following: “Your official street address as established by the City of Chicago is 130 E. Oak Street. No one is exactly sure why this was brought to the attention of the Department of Transportation now, perhaps there was confusion for emergency vehicles responding to the wrong building. While many of the residents are outraged the  general public may think there are way more important things to worry about! Rest assured residents of 130 E Oak, your catalogs, mail and packages will still be delivered to you.

3 February ? For those who enjoy rotisserie chicken grilled over a charcoal fire, there will soon be a new hot spot to enjoy in River North as of March 2010.

In Edgebrook, similar to that of a Brazilian steak house, George Elbekai, (who was the first General Manager of Bob Chinn?s Crabhouse before it closed in 2005) opened Al Primo Canto in 2007 on the Northwest Side, and is planning to open a second location at 749 N. Clark St., formerly Le Lan, a popular upscale French-Vietnamese restaurant that closed last year.

Even though price per square foot is higher in River North, Mr. Elbekai says he does not plan to raise prices. He anticipates that increased liquor sales and heavier traffic will offset the higher operating expenses of the new trendy location. That is…the price of doing business. In real estate the general rule of thumb is location, location, location.

Although River North is home to solid competition, including three Brazilian steak places, Al Primo Canto will offer a broader menu including lamb, steak and pasta dishes and a better value to consumers with its family style, $29.95 per person “all you can eat.” A more cost effective dining option for those cutting back their restaurant spending in this turbulent economy.

According to public notice, Mr. Elbekai plans on assuming the lease of the restaurant and has an agreement to pay more than $112,000 for restaurant fixtures and other Le Lan assets from Midwest Bank & Trust Co., a lender to Le Lan. If all goes as planned, the deal is scheduled to close Monday, and Mr. Elbekai can get busy transforming 749 N. Clark, the newest addition to his family of restaurants.

13 January 2010 ? City bail out:: The fledging 263 unit mixed-income condo development, Parkside at Old Town, is getting a little help from the Daley administration. Unable to pay off its construction loan this past December, developer Peter Holsten was able to sidestep a potential $32 million loan default with Chase Bank by securing a well needed $3.4 million public subsidy that will be paid earlier than originally planned. This infusion of cash lowers the sales target needed to receive the money. In addition, the bank has agreed to extend the loan and new investors are injecting more cash into the project. Originally, 194 of the units were to be sold at market rates, 72 were earmarked for CHA residents, and 14 were to be sold at ?affordable? prices. Parkside was to receive $9 million in tax-increment financing with the final $3.4 million paid when 85% of the market rate units were sold. But, the city agreed to lower that figure to 43% and cut the market rate units available to 177. This tweaking of the agreement reduced the overall TIF by $300k. The developer and city hope that this will attract more middle income buyers, a key ingredient for in this type of mixed-income real estate formula.

30 December 2009 ? William Senne, a prominent Chicago condo developer, recently made a splash by criticizing rival developers who slashed their prices. Now, Senne is pursuing a similar tactic. His proposed ?green building? named EcoLogic and containing 94 condominium units near the intersections of Damen, Fullerton & Elston was to feature a rooftop garden, recycling stations and power-producing wind turbines. Facing two foreclosure suits totaling $6.8 million, Senne has auctioned units and sacrificed amenities to lure more buyers in this down market. It is not clear how many units were sold at the 2339-59 block of N. Seeley Ave. development. Senne, CEO of Senco Properties Inc., had yet to obtain even construction financing and his project never broke ground. His lender, Wheatland Bank of Naperville, says Senne defaulted on two loans related to EcoLogic. Mr. Senne stopped making payments in March on a $5.1-million loan and he now owes more than $5.4 million on that mortgage. He stopped making payments on a second loan, valued at $1.4 million, in July. Most important, Wheatland Bank claims Senne has personally guaranteed both loans.

17 December 2009 ? There looks to be new life for Lincoln Park Hospital. North Side developers Richard Zisook & Michael Supera recently took title to the five-building complex located at 550 W. Webster (at the intersection of Geneva Terrace, Lincoln Avenue, and Webster Street). This action ended a $31 million foreclosure case against the former developer, Mark Hunt. According to Mr. Zisook, the new plans call for the comprehensive redevelopment of the three-acre site that will eventually include senior housing, high-end condominiums, and retail. In a bizarre twist, the original lender is the lender again. Fifth Third Bank agreed to issue a $25-million loan to the Supera-Zisook venture. Even more strange, Mr. Hunt had originally handed the property back to the bank after defaulting on his loan. Mortgage records show he will retain a minor interest in the property. Typically, defaulting on a loan extinguishes any equity interest of the borrower. Mr. Hunt is expected to consult with the new developers on the retail aspect of the project.