New Construction in Chicago

New Construction condos and single family homes are still in high demand throughout Chicago but some developers are coming to the rescue with smaller projects throughout the city. The biggest problem, however, is that many home buyers are unaware of new projects until they’re mostly sold out. The question is, why?

Many real estate brokers and developers are marketing their new construction to their own clients first and only later listing the property for sale in the public market. While many may scream this is unethical, it actually makes perfect sense. It allows developers to gauge interest from the market and set proper pricing for future units and it allows agents to do right by their buyer clients by bringing them something exclusive.

Many small new projects are popping up around the city but many are not in the staple neighborhoods that you might think such as Lakeview and Lincoln Park. Instead, Ukrainian Village, Logan Square, Bucktown, Wicker Park and even Uptown / Andersonville are seeing new developments from condos to townhomes.

What sort of budget should you have?

If you are looking for a new construction 2 Bed / 2 Bath condo your budget should be up to $500,000 to be able to choose from an array of options in the above mentioned neighborhoods. If you’re looking for a new construction town home, you may find a few under $500,000 but $600,000 to $700,000 would definitely be a better bet.

If you’re looking downtown, well you are pretty much out of luck. There is very limited new construction in areas such as River North, Gold Coast, etc. 4 E. Elm is a new project marketed by our company and the units are starting at $2.1 Million.

Be able to buy off of plans

Many new buildings, even smaller ones are starting to sell primarily based on floor plans or during construction when framing may be the only thing you can check out. Be prepared to make decisions based on floor plans, artistic renditions, etc.

If the developer is established in Chicago they may have models of other projects they’ve completed that  you can tour in order to get a feel for their craftsmanship and an idea of the types of finishes they plan to use.

 

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

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