Condo conversions make comeback in value-conscious market Condominium conversions
are cooking again as Windy City developers offer a growing menu of
units in 2003, real estate experts say. Appraisal Research
Counselors, a firm that tracks performance of the condominium market
in Chicago, reports that “2003 is shaping up to be a big conversion
year,” with 859 units announced so far and the potential for
more than 1,600 units to be converted to condominiums. New conversions
range from Gold Coast highrises, such as 33 W. Delaware Place and
1250 N. LaSalle, to Printers Row Lofts, at 732 Financial Place in
the South Loop. “The condo
conversion market in 2003 appears to be headed for the steady 1,000-units-per-year
average Chicago has maintained since 1991,” Gail Lissner, vice
president of Appraisal Research, noted in the company’s Downtown
Chicago Residential Benchmark Report. During the height
of the “condomania” era of the late 1970s, the lion’s
share of conversion units were located in “front-row” buildings
along North Lake Shore Drive, real estate experts say. More recently,
Appraisal Research has tracked strong condo conversion activity in
the Gold Coast, the West Loop, the South Loop and Lakeview East. Several
of the new projects are quite large, said Lissner. In the first two
quarters of 2003 a total of 518 condo conversion sales were made. What’s the
biggest attraction of today’s condo conversions? “Condo conversion
prices generally are lower than new construction condo prices, and
the buyer can count on fast delivery,” said John Jaeger, vice
president of Appraisal Research. While most well
located new construction condo developments are selling for more than
$300 a square foot, the appraisal experts say several conversions
in renovated buildings are going for far less, and value conscious
buyers are noticing the advantages of buying in an older, renovated
building. Here are some
highlights from neighborhoods hosting the new conversions: Another successful
Gold Coast conversion is Phase II at Gallery 1250 Tower, an 18-story
highrise apartment building at 1250 N. LaSalle. Developer Jeffrey
Gelman converted 102 units in the project’s first phase in 2001,
operating the rest as rentals. Now, 33 condominiums have been sold
in the 49-unit second phase at Gallery 1250, where prices start at
$180,400 for a one-bedroom and at $280,900 for a two-bedroom, two-bath
condo. The 45-unit phase III is scheduled to be launched in early
2004. West Loop.
Paramount Lofts, a 207-unit adaptive-reuse conversion is underway
in the former W. A. Wieboldt and Company’s “Midwest Store”
building at 130 S. Ashland Avenue. More than 65 units have been marketed
since mid-September, said co-developer Ted Mazola, president of New
West Realty, Inc. One-bedroom, one-bath
lofts with 546 to 899 square feet range from $154,900 to $215,900.
One-bedrooms with dens and one or two baths and 835 to 1,043 square
feet of space range from $192,900 to $265,900. Two-bedroom units with
two baths have 887 to 1,328 square feet and range from $192,900 to
$350,900. South Loop.
The 138-unit Printers Row Lofts, a classic timber-beam loft conversion
at 732 South Financial Place, offers one-bedroom and two-bedroom lofts
priced from $198,700 to $346,500. Eighty-nine units have been sold,
according to Winthrop Properties, the developer. Lakeview East.
Crescent Heights, a major condominium conversion firm, is marketing
the 442 “skyline residences” in the upper half of the 55-story
Park Place Tower, at 655 W. Irving. The developer already has sold
more than 400 units in the lower half of the mammoth 901-unit building. Base prices run
from the $140,000 bracket for studios to the $280,000 range for two-bedroom
layouts. Through Nov. 31, Crescent Heights is offering a $5,000 cash
incentive to pay for assessments, upgrades or closing costs. |