Developers thinking small in tougher market for new homes To counteract
the glut of larger new-construction condominiums downtown, some of
Chicago’s most savvy developers are starting to think small,
real estate experts say. According to Appraisal
Research Counselors, the smallest new-construction condo units continued
to sell fastest during the second quarter of 2003. “Buyer sensitivity
to prices continued to drive demand for the smaller and less expensive
units in typical downtown developments,” noted John R. Jaeger,
vice president of Appraisal Research, the city’s top condo appraisal
firm. “One-bedroom
and one-bedroom-plus-den units continue to sell out prior to the inventory
of larger units in most buildings,” Jaeger said. “Brokers
are also reporting strong interest in two-bedroom units with parking
included at a price under $300,000, which is rarity in the new-construction
market.” With more than
4,400 new-construction condominiums scheduled for delivery downtown
this spring, Jameson Development, LLC took a hard look at the initial
design of Jefferson Tower, a 24-story new-construction highrise planned
for 200 N. Jefferson St., northwest of Chicago’s Loop. Noting the abundance
of two-bedroom units currently available in the downtown market, developers
Harry and Charles Huzenis asked architects Loewenberg Associates to
redesign the contemporary concrete, granite and glass building to
include special tiers of more compact one-bedroom residences, and
fewer one-bedrooms with dens. “The original
plan had 176 units; we now have 198. We took two tiers of two-bedroom
floor plans and changed them to one-bedrooms,” Huzenis said. While Jameson
Development is redesigning its building, developer Donald J. Gianone
is starting from scratch to design a “back-to-basics” new-construction
loft-style condominium on the northeast corner of Jackson and Sangamon
in the West Loop. “We want
to bring back the affordable artist loft of the 1970s and 1980s,”
said Gianone, president of Oculus Development, LLC. “It’s
all about market-driven design-building condominiums priced under
$200,000, including parking.” Pre-construction
base prices at Jameson Development’s newly redesigned Jefferson
Tower range from $189,800 to $364,800. There are 10 different floor
plans from which to choose. The plans have one bedroom and one bath
or one bedroom with a den and 1.5 baths. Living areas range from 623
to 1,072 square feet. Preliminary plans
for compact one-bedroom units in Oculus Development’s proposed
mid-rise condominium at Jackson and Sangamon call for 750 square feet
of space, while two-bedrooms would feature 1,000 square feet. Prices
for one-bedrooms may start as low as $160,000 and two-bedrooms would
start at less than $250,000. Interiors would
be Spartan, with no fireplaces, laminate countertops instead of granite,
36-inch kitchen cabinets instead of 42-inch and wall-to-wall carpeting
instead of hardwood floors. However, all the usual upgrades would
be available as options for buyers who want them. “Although
there would be less square footage, the residences will be efficiently
designed, with kitchen islands that also can double as breakfast bars
and dining tables,” Gianone said. Closets would be designed with
double-stacked racks. |