TRUMP TOWER IN CHICAGO -Now that Trump is President-Elect…

There have been many questions regarding Trump Tower in Chicago from the start of the 2016 presidential campaign and even more now that Donald Trump is the President-Elect. Since our group does a great deal of business in Trump International Hotel & Tower in Chicago I thought I would take the time to answer the real estate questions many people have asked in recent months.

Does Trump actually own Trump Tower (401 N Wabash Ave) in Chicago? 

Not completely. The building is broken up into two portions. The hotel portion, which Trump does own (although some hotel rooms are owned by individual investors) ends at the 28th floor.

The residential portion are individually owned condos and Trump no longer has any interest in the residential condos. These units start at 29 and run up to 89.

In short, Trump currently owns the majority of hotel rooms, the management company / brand that manages the hotel as well as all the convention and retail space in the building.

Will the name of Trump Tower in Chicago ever change?

Probably not. Trump has naming rights to the building and I don’t see him changing the name on his building.

Has the Trump election and presidency affected the pricing of condos in Trump?

It is too early to tell. The one thing we have seen is traffic drastically slow down on condos listed for sale in Trump. Most selling in the building at the current time do not NEED to sell (at least financially) so we haven’t seen any major price drops. Showing traffic before the election was very very slow. I think many buyers were concerned about values in the building so potential buyers wanted to wait on the sidelines to see what would happen to values.

Since the election traffic has picked up slightly for condos listed for sale in the building, but traffic is still slow overall.

Rentals are sitting on the market longer than usual, especially 1 Bedroom rentals which we’ve seen drop in price in the past 6 months. 1 Bedrooms would typically rent for at least $3,400 or higher (many in the $3,700 to $4,000 range). We’ve seen one unit rent for only $3,000 and another drop the price to $3,150 and still sit on the market.

Overall prices have not declined drastically, but there is apprehension among buyers regarding the future value of units in the building. On the rental end I think there are some people who simply do not want to be in the building because of the name (this is also true for some owners too). But, this is not the sole reason for 1 bedrooms having a difficult time renting. New construction rental buildings are giving Trump Tower a run for their money with excellent amenities and even hotel amenities such as my building, North Water Apartments, which is connected to the Loews Hotel.

Has hotel business declined?

I can’t speak for the hotel as a whole, but the hotel-condos that we represent are seeing the same or slightly better occupancy and room rates year over year (from 2015 to 2016). I do not know the numbers for November of this year yet, but November is historically a slower month for conventional style hotels.

Is there increased security at Trump Tower?

Yes. The increased security is nothing like you’ll see at Trump Tower in New York, but increased protests has caused the hotel and residential tower in Chicago to increase security and even close the garage to the public that is connected to the building. I haven’t had any major issues accessing the building with clients in recent weeks. However one of my clients actually got locked in the garage by accident due to the increased security measures.

 

 

Paul Blackburn is a licensed Real Estate Broker and Realtor with @properties in Chicago. Paul has been selling real estate since 2007 and is part of the Skowron Group which has sold in excess of $100 million in 2016 alone. For further information or questions please feel free to contact Paul directly at Paul@pblackburn.com

678 Kingsbury to become Luxury Lofts in River North

Finally, the project at 678 N. Kingsbury, also known as The Ronsley, is getting underway and what a project it will be. According to Crain’s Chicago Business, the 5 story building will include six newly built penthouses as well. The building will be altered greatly to include a glass facade and the penthouse units will be built on top of the existing structure. In addition to the new penthouse units, a new structure will be built onto the back of the building (where a parking lot currently exists. Think of it as adding an addition onto the back of a single family house).

What will the pricing be for 678 N. Kingsbury (The Ronsley)? According to the list agent, prices will range from $889,900 to $5.4 million. This will equate to roughly $650 to $900 a foot which is definitely on the high end for this area and on the high end for Chicago as a whole. The list agent described the building when he gave the following quote “It’s an ultra-luxury building and of the first Soho New York style lofts in Chicago.” The building will have a total of 41 units which is in line with other luxury buildings currently being constructed in Chicago (think of 400 W. Huron, 100 W. Huron and 4 E. Elm).

My thoughts on 678 Kingsbury

It will be interesting to see how the market responds to pricing. I do believe there is a need for luxury lofts in Chicago. Many of the loft buildings have not been constructed on a luxury level. Instead, most loft buildings and units are very middle market. I like the way the listing agent described the building as a “SoHo New York Style” loft project.

The location of the project is in River North, but it is quite far west in River North. Most buyers in this area looking to spend millions would prefer to purchase a single family home as opposed to a condo or loft so it will be interesting to see how this project is received, but as I said before I do believe there is a need for luxury lofts in Chicago right now.

The project is expected to break ground in February of this year (2015).

 

Paul Blackburn is an Illinois licensed Realtor and Broker with @properties. He can be reached anytime via e-mail at Paul@PKBlackburn.com

NEW GOLD COAST CONDO BUILDING AT WALTON & STATE. No. 9 Walton

A new luxury condo project is planned for the vacant space at State & Walton, adjacent to Walton on the Park. The most recent new construction developments in the near north side have mostly been made up of 3 Bedroom and larger units. The new development at Walton and State will offer 1 Bedrooms with 1,500 square feet all the way up to the penthouse unit which will have a total of 11,000 square feet.

Information on the new development at Walton and State is now being released. One Bedroom homes are starting around $1.4 million. Two Bedrooms will start around $1.85 million and Three Bedrooms will start at $2.5 million. However, please keep in mind this pricing is for the smaller floor plans of the respective bedroom count. Pricing will range roughly from $900 to $1,200 per square foot.

Each unit will have generous outdoor space. One of the best aesthetic features of the facade of the building is the fact that the balconies, for the most part, are recessed into the building and not overhanging. There is a wide array of layouts to choose from with varying square footages.

What Amenities will No. 9 Walton have?

The 4th Floor will house an indoor pool and spa, complete with a hot tub, steam room and sauna. The 5th floor will feature an open air atrium looking down onto the pool as well as a fitness center and small lounge. The 6th floor will feature a dog run, pilates studio and yoga studio. The 7th floor will feature a private dining / party space, outdoor terrace, full bar and kitchen along with a wine room.

Completion is expected in early of 2017.  This development is one of several new developments recently approved and started such as 4 E. Elm, 400 W. Huron and 100 W. Huron.

 

For more information on this development please do not hesitate to contact me.

 

Paul Blackburn is an Illinois licensed Realtor and Broker with @properties in Chicago’s Gold Coast office. He can be reached at anytime at Paul@PKBlackburn.com

400 W. HURON – River North’s Newest Luxury Condo Development

400 W. Huron, located in the heart of Chicago’s River North neighborhood is being developed by Smithfield Partners, the same developers as SoNo and 30 W. Oak. 400 W. Huron is slated to rise 16 stories into the air. Luxury residential units will start on the 5th floor and rise up to the 15th floor. The 16th is comprised of private roof deck for 15th floor units.

The condominiums at 400 Huron start at 2,144sf and go up to 4,931sf for the largest unit. The smallest unit is a Three Bedroom, Two and Half bath home, while the largest is a Four Bedroom plus Den, Library and Family with Four Full baths and Two half baths.

The amenities at this new luxury building in River North include everything from a state of the art fitness center to a heated garage and 24hr door staff. The finishes of the actual units will be top notch. They’ll include Valcucine Kitchens and Baths, Miele appliances, custom closet built ins, 10ft ceilings throughout, Floor to Ceiling Windows, Toto plumbing fixtures and upgraded Grohe faucets.  Pricing is set to range from roughly $1,250,000 (3 Bedroom condos) up to $4,000,000 (4 Bedroom + Condos).

New construction developments have been rare in recent years. While 400 West Huron is not a large development at only 26 units, it does help satisfy a much needed demand for new construction in River North. Floor Plans have not been released on other websites as of yet, but I have had a chance to review them. The architect has done an incredible job at maximizing the square footage and use of space per unit. All kitchens open up to large great rooms and bedrooms are situated properly away from the main living areas. Outdoor space is a key feature in this building with many units having balconies (terraces might be a better word to use) that run the length of the unit. Penthouse units even have access to private roof space.

For more information about this building, to get detailed information and a private presentation of floor plans, renditions, etc. please contact: Paul Blackburn with @properties. He can be reached via e-mail at Paul@PKBlackburn.com or via his cell at 773.771.7502

400 West Huron

400 West Huron

Trump Tower and Other Developments Almost Sold Out!

Trump Tower at 401 N. Wabash once had hundreds of units on the market….but now they’re close to sell out with roughly 18 units left in their inventory. According to Crain’s Chicago Business 159 new construction condos sold in the 3rd quarter in 2013 which is up from the 2nd quarter and up slightly from the 3rd quarter of 2012. But why haven’t more new construction condos sold? After all the real estate market has been on fire all year! The answer is in the inventory numbers; there is simply very little new construction to choose from! As a matter of fact we are the lowest levels of new construction inventory since 1997. This is a big change from 5 years ago.

235 W. Van Buren led the way with sales in the third quarter according to Crain’s with 41 units sold. I’m not sure how many units are left in this building but I hope they’ve put a nice dent in their inventory. In total the building has 714 units most comprised of 1 and 2 bedrooms.

1201 S. Prairie Museum Park Related Midwest has been selling at two towers in Museum Park and have been doing extremely well. Between the two buildings they sold 64 units this past quarter. 1201 S. Prairie is their highest end (flagship) building in the development. Related, at least in my own humble opinion, has done a phenomenal job at revamping not only sales but the units themselves. Of course their absolute impeccable timing of this project didn’t hurt!

401 N. Wabash – Trump Tower As I said Trump Tower only has 18 units left to sell according to Appraisal Research…I’ll see if I can verify these numbers and post an update. Inventory in Trump, even in the resale market, has decreased dramatically. Those who purchased in this building in 2010 and 2011 already have equity in their units. It’s a beautiful thing!

2550 Lincoln Park Tower Chicago’s newest luxury building has been doing exceptionally well. They closed 30 sales in the third quarter and did so with an average square foot price of $840 per foot! The developer brought on Terri Proctor to head up sales at this development and she has and continues to do an excellent job.

225 N. Columbus – The Aqua Well there is not much to say here except it is sold out!

 

What’s Next? Since new construction inventory is so low why don’t they just building more?!

New units are currently on the way! Financing is still difficult for larger buildings and even though the condo market has seen a resurgence, selling out a 400 unit building would still be a very very difficult task.

CMK Development, the same developers who built 235 W. Van Buren are planning a building at 1345 S. Wabash which will contain 144 units. Soon we will also see plans announced for a luxury condo building in the gold coast (small and boutique) and another developer is trying to building 60 units in the West Loop.

 

Paul Blackburn is an Illinois Licensed Realtor & Broker with @ Properties in Chicago. He can always be reached via e-mail at Paul@PKBlackburn.com

TRUMP TOWER CHICAGO RENTALS AND SALES UPDATE – 401 N. WABASH

Trump Tower Chicago at 401 N. Wabash always has a handful for rentals available. Below is a list of what is currently on the market for rent at Trump Tower Chicago along with a list of Condos Recently Sold at Trump Tower Residences in Chicago.

Studios for Rent in Trump Tower Chicago:

#33F    $2,700/mo

One Bedrooms for Rent in Trump Tower Chicago:

48D    $3,400/mo

55B      $3,450/mo

64C     $3,500/mo

34E      $3,500/mo

32E     $3,600/mo

66B      $3,800/mo

32I        $4,000/mo

Two Bedrooms for Rent at Trump Tower Chicago:

76B      $7,500/mo

60F     $7,850/mo

Three Bedrooms for Rent at Trump Tower Chicago:

74BC    $9,000/mo

77A      $13,500/mo

86D      $14,000/mo

Prices on all units vary depending on owner, view and square footage.

RECENT SALES IN TRUMP TOWER CHICAGO  401 N. WABASH

60B closed from the sales center at $535,000/mo. 60B is a One Bedroom with 923 square feet. Parking was not included in the sale.

82B closed at $1,180,000 which is a high floor 2 Bedroom unit with 1,839sf. The B unit on this floor faces North West.

36H closed for $1,700,000 which is a large 2 Bed / 3 Bath unit with 2,742sf. This unit faces south, east and west. Living room views are great. Master Bedroom views, however, are blocked by the IBM building.

Paul Blackburn is a licensed Illinois Realtor and Associate Broker with @ Properties in Chicago. He can always be reached with questions or to schedule showings via e-mail at Paul@PKBlackburn.com 

 

BUYING A CONDO IN LAKE SHORE EAST “NEW EAST SIDE”

Condos in Lake Shore East can be broken down into two categories: The new and the old. The new buildings are easy to spot in person; they are The Lancaster (201 N. Westshore), The Regatta (420 E. Waterside), The Chandler (450 E. Waterside), 340 On the Park (340 E Randolph) and of course The Aqua (225 N Columbus). The first building and the only condo building actually located directly on Lake Shore East Park is the Lancaster. It also, however, the only building NOT to have an indoor pool.

The other buildings of Lake Shore East are the older buildings such as: Harbor Point (155 N. Harbor), Park Shore (195 N. Harbor), 400 E. Randolph and The Buckingham (360 E. Randolph). My favorite of the older buildings is The Buckingham due to its views, updated yet intimate lobby and updated common area space.

So if you are looking in Lake Shore East what should you know when you first start looking?

Special Tax: For starters you should know that the newer buildings have an additional tax similar to an SSA. This is a special tax which came about to pay for the initial improvement of the land. This tax is minimal and will vary depending on the unit but it is something to keep in mind when shopping in the newer buildings.

Understand your view: Understanding your view is very important, but most important for those looking at East Facing units in the Lancaster. If you are in an East Facing unit in the Lancaster and you look down you will see a vacant piece of land. Originally this was going to house roughly 4 buildings. Since the real estate crash however these plans have been scrapped and no new plans have come to fruition. It is highly doubtful that any development will start on this land for at least 5 years, but you should know that it eventually will.

Also note that there are two very prized views in Lake Shore East. The MOST expensive is the view of Millennium Park which can be had from 340 E. Randolph, 360 E. Randolph, 400 E. Randolph, and 155 N. Harbor. The views of the park are not only of the park but also capture the lake as well as the city view along Michigan avenue.

The next award winning view are the views of the River which, while they can be had from The Aqua are most popular in The Chandler and The Regatta.

Possible Rental Restrictions: Due to the timing of the new buildings in Lake Shore East some buildings have rental restrictions in place such as The Regatta and 340 On the Park. The Chandler is also in the process of implementing limitations on rentals which will require you to live in your unit for a couple of years before renting out. These are not necessarily negatives but are simply things to keep in mind when looking at the units.

WHAT ABOUT PRICING?

Newer Buildings: In your newer buildings One Bedrooms will typically start in the low $300’s with the exception of The Aqua and 340 On the Park which will be higher. Two Bedrooms will typically start in the high $400’s and Three Bedrooms from the mid to high $600’s. Of course prices will always vary depending on availability, building, view and square footage as well as upgrades.

Older Buildings: One Bedrooms can start as low $200k with Two Bedrooms in the high $300’s to low $400’s and Three Bedrooms, while much more rare in the older buildings, can be found in the 700 to 800 price range.

Paul Blackburn is an Illinois Licensed Realtor and Broker with @ Properties. He can always be reached via e-mail at Paul@PKBlackburn.com For more information about buying condos in Chicago and what you should know about the Chicago market visit www.BuyingInChicago.com

RELATED MIDWEST TAKES OVER MUSEUM PARK! 1201 Prairie, 1600 Museum Park, 1901 Calumet

One Museum Park West, located at 1201 S. Prairie, is one of those buildings in the South Loop that has mostly black windows at night and it is obvious that the majority of the units remain unsold. There was great concern over the past year, especially for those who bought into Museum Park West that the remaining units may become rentals. Crain’s Chicago has announced that Related Midwest (currently responsible for building apartments across Chicago) has teamed up with lenders to take over 238 units in 1201 S. Prairie (Museum Park West) as well as 98 condos in 1600 S. Prairie (1600 Museum Park) and 157 condos in Museum Park Place South located at 1901 S. Calumet.

The Good News? Related plans to sell the units! Related does not plan to turn these units into rentals. The first question that comes to mind is: “Will these units be fire sold?” The answer is actually no. While Related has yet to release pricing they do not plan to “drastically” reduce prices according to Crain’s. Instead, they plan to upgrade units with higher quality finishes and appliances along with adding new and more expanded amenities to each building.

A price reduction will be needed to move these units, however, a minor reduction in conjunction with upgrades and new amenities can definitely be enough to spur sales. While the South Loop has very high inventory levels at the current time, there is a shortage of quality inventory. Specifically 1201 Prairie will probably see the most interest due to its location and quality of amenities. The two bedroom plans I believe will be the most desirable as they are small than other 2 beds in 1211 S. Prairie, Museum Parks most prestigious building. The lower price point of these two beds due to smaller square footage will definitely attract buyers especially if finishes are upgraded well to compliment its sister building 1211 Prairie.

This type of acquisition is definitely a positive sign that the market is rebounding. This doesn’t mean prices are increasing but it means that stability is returning to the market place. Stability is key is pushing those on the fence to the buy side. It will be interesting to see what the pricing strategy is for Related on their new purchase!!!

First Time Home (Condo) Buyers in Chicago!

It is great to see so many renters turn into buyers in this market. Right now many tenants are deciding to become home owners in Chicago for the first time due to the increase in rent prices. Buying in Chicago is very different than buying in any other market as not only the product is different but the laws and even the weather is different than many other cities. With all this being said I have put together a website to help everyone from first time buyers to those buying their second and third homes understand some of the very basics in today’s market.

BUYING IN CHICAGO

www.BuyingInChicago.com

Lake Shore East – What has recently Sold in the Chandler, Regatta, Lancaster & 340 On the Park

Amidst all the rentals hitting the market and quickly getting snapped up in Lake Shore East are some great sales that have happened over the past couple of months. For those of you who are not familiar with Lake Shore East or the “New East Side” as some call it; it is the area on the south side of the river where the river meets Lake Shore Drive. The new buildings are comprised of 225 N Columbus, The Aqua; 340 E. Randolph, 340 On the Park; 420 E. Waterside, The Regatta; 450 E. Waterside, The Chandler; and 201 N. Westshore, The Lancaster.

In the past 2 months 14 condos have sold in these buildings. Here are some of the most notable:

The Chandler: Unit 2101 sold in the Chandler for $405,000. This included the parking space. The 01′ tier at this level in the building faces North which is the preferred view from this building as you see Navy Pier, the River and the city. 2101 is a 1 Bed / 1.1 Bath and is considered a “Jumbo” One Bedroom for the building at 961 square feet. According to my research the previous owner paid $497,000 in 2007.

The Lancaster: Unit 2102 sold for $546,000 including a parking space. It is a 3 Bedroom / 2 Bathroom unit however the 3rd bedroom is more “den like” given its location off the living room and its size. The unit faces South East which gives it great lake views at the current time. However, there is currently an empty lot between the Lancaster and LSD which will eventually be built on. Some have asked if it will be built on soon given the building craze of rental buildings. I don’t believe so. This is prime Lake Shore Drive property and the developer would rather use it for condos than a rental building. At least that is my opinion.

340 On the Park: 340 saw a couple notable sales the other month. Unit 2101 sold for $1,600,000 including parking of course. The unit is 2368sf and the 01′ tier at this level has both North East and South East views.

Another notable in 340 On the Park is penthouse unit 5702 which sold for $2,600,000 which appears to have included 3 parking spaces. Total square footage on this unit is 2748 and it is a Three Bed, Three and a Half bath. This unit faces South East and has extra tall ceilings because it is on a “penthouse” floor.

Paul Blackburn is a Licensed Illinois Realtor and Broker with @ Properties in Chicago. He can always be reached via e-mail at Paul@PKBlackburn.com