New-Construction Update: 7/27/09

Lincoln Park 2520

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

2520 N. Lakeview, Lincoln Park 2520
50 of 192 available, 1-5 BR, $1M+, Delivery late 2011
Developed and Marketed by Ricker-Murphy Development

2242 W. Chicago, 2242 W. Chicago
7 of 8 available, 2-3 BR, $380K-$590K, Delivery September
Developed by DenMax, Marketed by North Clybourn Group

925 N. Larrabee, Sky Life
6 of 6 available, 1-3 BR, $640K-$740K, Delivery now
Developed by NA, Marketed by North Clybourn Group

4913-4929 S. King, Logan Square
8 of 8 available, 2-3 BR, $180K-$290K, Delivery now
Developed by Boldun & Gurevich, Marketed by Coldwell Banker

1215 W. Granville, Granville Gardens
9 of 40 available, 1-2 BR, $120K-$150K, Delivery now
Developed by Lee Street, Marketed by Coldwell Banker

Previous New-Construction Updates

Local Agent Sets Forbes Straight

On her blog, Live and Play in Chicago, top-producing agent Jennifer Ames, takes aim at Forbes' coverage of Chicago's real-estate market, particularly Lincoln Park:

Unfortunately, as with any interaction with the media, there’s the risk of having one’s comments taken out of context, and that is precisely what happened in my July 2009 interview with Stephane Fitch for his Forbes magazine story entitled “America’s Most Troubled Luxury Neighborhoods.”

Fitch distilled our 30-minute interview into two quotes that, out of context, contradict the key points I made in our interview.

So, I’d like to set the record straight: Chicago’s Lincoln Park is not a “troubled” neighborhood. While I cannot comment on the other neighborhoods mentioned in his story, I disagree with his assertion that home prices in Lincoln Park are on the verge of “collapse.”

Lincoln Park has fared better than most other neighborhoods during the current adjustment and is poised to recover faster.

For details, click here.

State Offers $6,000 Loans to First-Time Buyers

In today's Chicago Tribune, Mary Ellen Podmolik offers some good news for first-time buyers:

The Illinois Housing Development Authority is set to announce later today that it will offer qualifying consumers short-term, interest-free loans of up to $6,000 to be used as down payments on home purchases.

Under the program, qualifying buyers who finance their purchases through the state's Home Start Loan Program will receive a zero-interest loan for up to 3.5 percent, or up to $6,000, of the purchase price to use for a down payment when they arrange a 30-year, fixed-rate, Federal Housing Administration-insured loan through one of the state's participating lenders.

A $300 application fee is required and the down payment loan must be repaid before June 30, 2010, otherwise interest will start accruing.

Income and purchase limits apply. To participate in the program, households of three or more people can make no more than $86,135 and a single-family home can cost no more than $349,020. Veterans and active-duty military personnel don't need to be first-time buyers to participate.

More information and a list of participating lenders is available at www.ihda.org.

New-Construction Update: 7/20/09

Library Tower

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

520 S. State, Library Tower
10 of 184 available, 1-3 BR, $245K-$950K, Delivery now
Developed and Marketed by Lennar Homes

8 E. 9th, Astoria Tower
60 of 240 available, 1-2 BR, $230K-$1.5M, Delivery now
Developed by Provence, Marketed by Coldwell Banker

1720 S. Michigan, 1720 S. Michigan
20 of 498 available, 1-3 BR, $190K-$350K, Delivery now
Developed and Marketed by CMK Companies

3434-3464 S. Halsted, Bridgeport Condominiums
30 of 67 available, 1-2 BR, $210K-$370K, Delivery now
Developed by Mega Group, Marketed by Koenig & Strey

600 W. 16th, Union Row
6 of 35 available, 2-4 BR, $530K-$680K, Delivery now
Developed and Marketed by Belgravia Group

Previous New-Construction Updates

Tighter Lending Rules Choking Sales

According to Chicago Tribune reporter Mary Ellen Podmolik:

Dramatically tightening guidelines on mortgages that government-controlled companies will back . . . are crimping a local condo market burdened with an oversupply of inventory at the same time consumers are dealing with the Chicago area's 10.7 percent jobless rate.

As of July 1, Freddie Mac no longer will guarantee mortgages in new condo buildings where less than 70 percent of the units have been sold. Fannie Mae adopted the same threshold March 1. Previously, the requirement was 51 percent. The changes come on top of a matrix of fees adopted by Fannie and Freddie this spring that increase the cost of a mortgage for condo buyers with various credit scores and also impose fees for buyers who make down payments of less than 25 percent.

As a result, some developers are turning to their own lenders and arranging short-term private financing for buyers. An increasing number, though, are applying to have their developments approved by the Federal Housing Administration.

A building has to be only 51 percent sold in order for buyers to receive FHA-backed mortgages, and the down payment required is 3 1/2 percent. Because of the lesser underwriting requirements, the FHA's share of mortgages insured for new-home purchases has grown.

Condo buildings want in on that action. Since October, 68 Chicago condo buildings have received FHA approval, and an additional 51 buildings have applications pending.

For the entire article, click here.

New-Construction Update: 7/13/09

Silver Tower

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

303 W. Ohio, Silver Tower
NA of 233 available, 1-3 BR, $270K-$790K, Delivery now
Developed and Marketed by Stonegate Development

3340 N. Damen, 3340 N. Damen
2 of 6 available, 2-4 BR, $470K-$610K, Delivery now
Developed by NA, Marketed by Conlon

1201 S. Prairie, One Museum Park West
80 of 298 available, 2-3 BR, $530K-$2.1M, Delivery 2010
Developed and Marketed by Enterprise Companies

2326 W. Giddings, Fountain View
1 of 18 available, 2 BR, $530K+, Delivery now
Developed by Terra Firma, Marketed by Koenig & Strey

1937 W. Diversey, 1937 W. Diversey
3 of 24 available, 2 BR, $300K-$310K, Delivery now
Developed by NA, Marketed by Property Consultants

Previous New-Construction Updates

YTD: Dollars Down 53%, Units Drop 44%

According to figures generated by MRED, the regional MLS, year-to-date sales of Chicago condos for the first half of 2009 are:
* Down 53% in total dollar volume, to $1.3 billion
* Down 44% in units closed, to 3,877
* Down 12% in median sales price, to $280,000
* Up 20% in average market time, to 157 days.

This shows an improving market since the end of May, when year-to-date dollar volume was down 57% and units closed were down 48%. At the end of April, sales year-to-date were down 59% and 51% respectively. So the picture has brightened two months in a row.

Reports the Chicago Sun-Times: David Hanna of Prudential SourceOne Realty and president of the Chicago Association of Realtors, said federal rules for mortgage lenders deserve much of the blame [for the decline in the condo market]. Policies of such mortgage underwriters as the Federal Housing Administration have penalized relatively strong local markets for condos, he said. Hanna said the FHA, "the lender of choice for condos," has adopted somewhat looser loan standards for large condo buildings as of Oct. 1, but that help should have come by now.

Comparing June sales to May:
* Units closed were up 37%, from 766 in May to 1,050 in June
* Dollar volume was up 38%, from $239 million to $330 million
* Median sales price was up 1%, from $279,000 to $283,000
* Average market time was up 9%, from 148 days to 161 days.

For details on month-over-month and year-over-year, click here. For previous market reports, click here.

New-Construction Update: 7/6/09

Clarovista

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

6238 N. Broadway, Clarovista
80 of 160 available, 1-3 BR, $100K-$270K, Delivery now
Developed by The Access Group, Marketed by Jameson

123 S. Green, Emerald
84 of 212 available, 1-2 BR, $270K-$620K, Delivery now
Developed by Senco, Marketed by Property Consultants

2523 N. Southport, 2523 N. Southport
6 of 6 available, 2-3 BR, $470K-$770K, Delivery now
Developed by NA, Marketed by Conlon

2208 W. Chicago, 2208 W. Chicago
1 of 3 available, 3 BR, $420K+, Delivery Fall
Developed by NA, Marketed by North Clybourn Group

8 E. Randolph, Joffrey Tower
11 of 208 available, 1-2 BR, $280K+, Delivery now
Developed by Smithfield, Marketed by @properties

Previous New-Construction Updates

Lawmakers Vote To License Property Managers

In the Chicago Tribune, Pamela Dittmer McKuen summarizes recently passed legislation that affects condo associations:

Association managers soon will need a license to practice their trade. The Community Association Manager Licensing and Disciplinary Act, originally known as SB-1579, passed both houses of the Illinois General Assembly on May 30. Many of the details have yet to be worked out, but the bill creates a regulatory board and denies licensure to anyone convicted of a felony.

Other association-related legislation that passed:

Bills HB-688 and SB-267 allow municipalities to get court permission to reclaim uncompleted and deteriorating condominium projects that are a danger or nuisance to the community. The properties can be turned over to a receiver for management, rehabilitation, completion, sale or dissolution.

HB-155: When a condo owner sells a unit, the association can't exercise its right of first refusal or option to purchase on the basis of the type of financing used by the buyer.

SB-1390 amends the General Not-For-Profit Act to allow the use of e-mail for notices and other informal communications.

All of those bills await the signature of Gov. Pat Quinn to become law.

For details, see the complete article.

New-Construction Update: 6/29/09

3763 N. Wilton

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

3763 N. Wilton, 3763 N. Wilton
7 of 10 available, 2-3 BR, $390K-$690K, Delivery now
Developed by Ronan Construction, Marketed by NA

1464 S. Michigan, Marquee
NA of 214 available, 1-3 BR, $220K-$940K, Delivery now
Developed by Sedgwick Properties, Marketed by Jameson

2408 W. Rice, Lumiere
5 of 12 available, 3 BR, $340K-$430K, Delivery now
Developed by DenMax Corp, Marketed by @properties

860 W. Blackhawk, SoNo
NA of 275 available, 1-3 BR, $240K-$470K, Delivery now
Developed and Marketed by Smithfield Development

1621 S. Carpenter, Chantico South
5 of 9 available, 2-3 BR, $240K-$430K, Delivery now
Developed by Lipe Property, Marketed by Jameson

Previous New-Construction Updates

New-Construction Update: 6/22/09

1720 S. Michigan

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

1720 S. Michigan, 1720 S. Michigan
20 of 498 available, 1-3 BR, $190K-$390K, Delivery now
Developed and Marketed by CMK Companies

2523 N. Southport, 2523 N. Southport
6 of 6 available, 2-3 BR, $490K-$770K, Delivery now
Developed by Pat O’Donnell and Pat Gibbons, Marketed by Conlon Real Estate

1624 W. Division, Vision
NA of 33 available, 2-3 BR, $440K-$590K, Delivery October '09
Developed by RDM Development, Marketed by Jameson

60 E. Monroe, Legacy at Millennium Park
50 of 355 available, 1-3 BR, $480K-$4.2M, Delivery fall '09
Developed and Marketed by Mesa Development

1555 Wabash, 1555 S. Wabash
85 of 176 available, 1-3 BR, $200K-$500K, Delivery now
Developed and Marketed by New West Realty

Previous New-Construction Updates

Buyer & Seller, Beware: Appraisals in Disarray

Adding to the problems of buying or selling a condo these days is increasing disarray in the appraisal industry.

For insight, including some personal experiences with valuations coming in far below the contract price and home equity lines of credit being dramatically reduced, see recent posts of @properties agent Bob Darrow on "Your Windy City Guide," Bob's blog.

South Loop Units Being Coverted To Rentals?

In its June 15 edition, Crain's Chicago Business reports that Centrum Properties, the lead developer of the 12-acre Roosevelt Collection at Roosevelt Road and Wells, is "preparing to tear up contracts with condo buyers" and convert the 342-unit Lofts at Roosevelt Collection into an apartment building.

Crain's says a source familiar with the matter says the decision ultimately rests with a group of six lenders and that "the deal isn't done and might not materialize.

"Such a switch would portend a larger shift as a downtown condo glut turns into an apartment glut," the publication states.

According to Crain's, Roosevelt Collection is one of eight new condo buildings to be delivered this year in the South Loop. As other projects approach their delivery dates, it adds, "there's a good chance more will convert."

The seven other conversion candidates on Crain's list are Astoria Tower at 8 E. 9th; Coliseum Park at 1440 S. Wabash; 1600 Museum Park at 1629 S. Prairie; Museum Park Place South at 1901 S. Calumet; Terrazio at 1935 S. Wabash; Lexington Park at 2138 S. Indiana; and 1555 S. Wabash.

YTD: Dollars Down 57%, Units Drop 48%

According to figures generated by MRED, the regional MLS, year-to-date sales of Chicago condos are:
* Down 57% in total dollar volume, to $914 million
* Down 48% in units closed, to 2,805
* Down 13% in median sales price, to $280,000
* Up 23% in average market time, to 156 days.

Comparing May sales to April:
* Units closed were up 19%, from 645 in April to 766 in May
* Dollar volume was up 18%, from $202 million to $239 million
* Median sales price was down 0.3%, from $280,000 to $279,000
* Average market time was down 8%, from 161 days to 148 days.

For details on month-over-month and year-over-year, click here. For previous market reports, click here.

New-Construction Update: 6/15/09

340 Evergreen

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

340 W. Evergreen, 340 Evergreen
3 of 9 available, 3-4 BR, $660K-$1.2M, Delivery now
Developed by ITK2 Development, Marketed by Jameson

1415-1425 W. Belmont, Alexandria on Belmont
2 of 15 available, 2 BR, $490K-$520K, Delivery now
Developed by NA, Marketed by Coldwell Banker

5832-5836 S. Prairie, Prairie Parc
5 of 8 available, 2 BR, $160-$200K, Delivery now
Developed by NA, Marketed by Coldwell Banker

1418 N. Lasalle, 1418 N. Lasalle
2 of 4 available, 3 BR, $1.2M-$1.9M, Delivery now
Developed by NA, Marketed by Rubloff

757 N. Orleans, 757 Orleans
NA of 198 available, 0-3 BR, $240K-$760K, Delivery now
Developed and Marketed by Gammonley Group

Previous New-Construction Updates

Warning: Before You Buy in a Condo Hotel

If you are ever tempted to buy a unit in a condo hotel (aka a "condotel"), including at the Trump International Hotel & Tower in Chicago, do your research first. A good place to start is this helpful article by Steve Bergsman at Inman News.

Warns Bergsman, a real-estate author based in Arizona: "This product has been on my watch list as one of the worst real estate investments ever created for the simple reason that it is really just a financing mechanism for the developer and for all practical purposes, caveat emptor, which in today's world means let the buyer be damned.

"Basically," explains Bergsman, "a condotel works like this: An investor buys a condominium in a hotel building and then allows the hotel to use the unit for guests when the owner is not in residence. The sales pitch suggests the buyer will recoup investment costs and fees through the daily rental of the condo unit by the hotel, which, by the way, rarely ever happens.

"Even if you wanted to buy into a condotel today," he concludes, "it's doubtful you could find a bank that would finance this loan. Lenders have come to view a condotel mortgage as a high-risk investment."

SoNo, 860 W. Blackhawk, Cuts Prices 16-20%

Crib Chatter reports today that SoNo, the new construction high rise at 860 W. Blackhawk, is the lastest development to cut prices. According to a "tipster," prices are being cut 16-20% in a sale that starts this weekend.

Some of the new prices:
01 Tier: 1/1, 905 square feet; Now priced: $302,400 to $338,400
02 Tier: 2/2, 1416 square feet; Unit #1402 is listed on the MLS for $505,400; Now priced: $421,400 to $469,400
03 Tier: 2/2, 1416 square feet; Unit #2803 is listed on the MLS for $547,400; Now priced: $394,900 to $463,900

Parking is now available for $9,000. @properties is handling sales. For floor plans and building details, see SoNo's Web site at Sono Chicago.

New-Construction Update: 6/8/09

Silver Cloud

Every Monday, with help from our friends at YoChicago.com, we present vital data on five condos under construction.

To view Building Profile on ChicagoCondosOnline.com, click address. To visit developer’s Web site, click name. To use Chicago's best condo search engine to review in-depth profiles of 900+ new-construction properties and find the unit types that meet any combination of 100 preferences, click here.

5346 S. Cornell, Silver Cloud
NA of 74 available, 2 BR, $240K-$280K, Delivery NA
Developed by Creative Designs, Marketed by Sudler Sotheby's

1900 N. Central, Enclave at Galewood Crossings
23 of 54 available, 2-4 BR, $239K-$330K, Delivery now
Developed and Marketed by Red Seal Homes
To buy at auction, see details in June 4 post below

2330-2334 W. Wabansia, Wabansia Row
NA of 11 available, 4 BR, $790K-$1M, Delivery Sept '09
Developed by Origin Development, Marketed by @properties

2333 N. Bosworth, 2333 N. Bosworth
2 of 3 available, 2-3 BR, $450K-$650K, Delivery now
Developed by NA, Marketed by Coldwell Banker

150 W. Roosevelt, Lofts at Roosevelt Collection
130 of 324 available, 1-2 BR, $300K-$650K, Delivery Fall '09
Developed and Marketed by Centrum Properties

Previous New-Construction Updates

Enjoy the Views From Aqua, 225 N. Columbus

Among the videos offered by Magellan Development of its Lakeshore East project are these panoramic views. They were taken from a 60th-floor balcony of Aqua, its new 82-story condo at 225 N. Columbus. Enjoy the views and the music!

29 Condos in 2 Developments Up for Auction

Among the properties to be auctioned later this month by Rick Levin & Associates are 29 condos at two new developments in Chicago: Metro Place, at South Campbell and Roosevelt; and The Enclave, at Grand and Laramie.

7 p.m. Thursday, June 25:
MCL Companies' Metro Place: Six 2BR/2BA condos to be sold absolute, regardless of price. Previously priced up to $259,900. Suggested opening bids from $125,000. Details, including times of open houses.

11 a.m. Saturday, June 27:
Red Seal Homes' The Enclave at Galewood Crossings: an FHA-approved gated community. In addition to six single-family homes and 17 townhomes, 23 condos will be on the block. Six of the condos to be sold absolute, regardless of price. 2-4BR, 2-3BA. 2-flats available. Previously priced up to $359,900. Suggested opening bids from $85,000. Details, including times of open houses.

Both auctions will be conducted at the Crowne Plaza Hotel-Chicago Metro at 733 W. Madison.