A year ago, just about any Chicago neighborhood outside of the downtown area was described as “up and coming” in real-estate listings. New condo and townhouse construction in some of the city’s outlying regions has since slowed, but one neighborhood that still appears to be developing at a fierce pace is Rogers Park, the lakeside neighborhood on the Far North Side of Chicago that has long been known as a rental community.

Condo conversions in Rogers Park started in 1993 with Paul Goguen and Capstone Partners’ first project on Eastlake Terrace, says RE/MAX NorthCoast Realty broker Connie Abels.

“What Goguen started was the ‘lily pad’ theory: Lily pads reproduce and double themselves every day, and that’s kind of what’s happening here in Rogers Park,” Abels says.

Gut rehabs are indeed multiplying in Rogers Park. The neighborhood is now flush with courtyard and loft conversions. Some infill new construction also can be seen on a few of the neighborhood’s more developed commercial and retail corridors.

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The irony of the South Loop’s emergence as one of Chicago’s great residential neighborhoods is that it’s been one before.

The area immediately south of the Loop was once a popular place to build a home. Entrepreneurs like Marshall Field and Philip Armour constructed their lavish mansions on Prairie Avenue. Then the trains came, as did the printing houses, the warehouses, and the houses of ill repute. The wealthy business owners left their South Loop palaces; without tenants, many of the palaces themselves disappeared.

But with its proximity to Lake Michigan, Grant Park, Soldier Field, and the Loop itself, and its access to the rest of Chicago and beyond via ‘L’ and Metra tracks, two expressways and Lake Shore Drive, the South Loop was ripe for a comeback. And come back it has.

New Homes’ New Home Notebook lists 30 new and rehabilitated residential developments in the South Loop, ranging from modern condos in sky-scraping towers to century-old storehouses converted into lofts.

In 2007, Midwest Real Estate Data listed more than 1,500 homes for sale in the South Loop, which is defined as the area bounded by Jackson Boulevard, Lake Michigan, and the Stevenson and Dan Ryan expressways (I-55 and I-90/94, respectively). Two-thirds of those were priced from the $200s to the $490s, although the neighborhood also saw a number of homes priced below $150,000 and above $800,000.

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Historically, the West Loop has been a market district, and an active storage and shipping industry still operates in the neighborhood. Among the forklifts and fish markets, though, some of Chicago’s trendiest galleries and chicest restaurants have opened shop in recent years, capitalizing on the West Loop’s industrial lofts and its easy access to the Loop.

“It’s now called the SoHo of the Midwest, because it’s a meatpacking district with restaurants and galleries,” says Martha Goldstein, executive director of the West Loop Community Organization.

The neighborhood wasn’t always such a hotbed of cultural activity though. Most of the residential development in the West Loop has taken place within the past 15 years. Before that, the nightlife scene was markedly different.

“It was a skid row. There were no people living there,” Goldstein says.

Goldstein points to the restaurants that opened in the Randolph Street market district in the early 1990s as the harbingers of change. Vivo, an Italian restaurant that has served the likes of Michael Jordan and Oprah Winfrey, was considered a pioneer when it opened at the corner of Randolph and Green streets in 1991. Two years later, restaurateur Jerry Kleiner opened his popular French restaurant, Marché, across the street. Within a few years, the street developed into one of the city’s most vibrant dining scenes.

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For a man who made his name in real estate by selling lofts and condo conversions in Bucktown, @properties co-founder Thad Wong is remarkably frank about the neighborhood’s biggest drawback.

“I’ll admit, it's a pain getting to the lake,” Wong says. “People want to walk out their front door in the summer and walk to the lake, and you can't do that when you’re in Bucktown.”

“Aside from that, it has almost everything.”

Gentrification was already underway in Bucktown and its neighbor to the south, Wicker Park, when Wong moved to the area in the mid-1990s. Even if the neighborhoods’ commercial options at the time left buyers much to be desired, a number of key amenities were in place that would set the stage for future development, he says.

The CTA Blue Line, which stops Ashland and Damen avenues in Wicker Park and at Western Avenue in Bucktown, gave residents a straight shot to offices in the Loop and their vacation destinations via O’Hare International Airport. Buses ran regularly on all of the neighborhood's major thoroughfares, and drivers could access the Kennedy Expressway from ramps at six different locations.

Wicker Park also “felt more urban” than its upscale neighbors to the east, Wong says. The 12-story Coyote Building at the intersection of North, Damen and Milwaukee avenues was a reminder of downtown high-rises. Artists and musicians mingled with the area’s traditional population of Germans, Polish, Scandinavians and Latinos, making the neighborhood of a melting pot of fashion and flavor. Rock clubs, record stores and book shops only bolstered the area’s air of bohemian independence.

“People want to be reminded that they live in the city. You can get off the train at Damen and feel like you’re stepping into a very gritty environment,” he says.

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As communities go, the North Side has what you might call brand appeal. Descriptions of the neighborhoods read like tourist brochures: lakefront homes, lush parks, upscale retail and accessible transportation via Lake Shore Drive. Of course, not every new home can hope to fit this image, but even buyers relocating from elsewhere in the country have probably heard of the Lincoln Park and Lake View – and real estate agents are able to tap this equity when it comes to marketing the region to newcomers.

“They’re setting themselves up with new and different lifestyles,” says Dana DiPasquale, an agent with Baird & Warner. “Buyers are really gravitating toward new construction, fresh places. Any homebuyer likes to go into a home that’s really in turnkey condition.”

The different neighborhoods within the larger communities of Lincoln Park and Lake View contribute to these new lifestyles, she says. Diehard Cubs fans can buy within walking distance of Wrigley Field. Boating enthusiasts can secure a home near Belmont Harbor. The Southport Corridor, which cuts across the border between Lincoln Park and Lake View, attracts young adults with its bars and restaurants.

What’s changed, DiPasquale says, is the discipline of new home shoppers.

Today’s buyer is not willing to jump the gun,” she explains. “It’s a buyer’s market.”

In 2007, the 4,106 condos, townhomes and single-family homes sold in Lake View and Lincoln Park, according to data from the Multiple Listing Service of Illinois, representing more than $2 billion in sales. The average sale price was $494,952. That’s down only slightly from 2006, when prices averaged $490,144 and total sales exceeded $2.1 billion for 4,291 homes.

Real estate veterans are quick to point to these numbers as evidence that the national housing slump has had a somewhat muted effect on Chicago’s desirable North Side neighborhoods.

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By Dana Dubriwny

In the recent history of Chicago, buyers have had few opportunities to purchase new homes along Lake Michigan. Rarer still are new residences in the city’s celebrated South Side neighborhoods like North Kenwood-Oakland and Hyde Park, where history is woven into the very fabric of the neighborhood.

The relative dearth of new-construction homes has drawn buyers to Draper and Kramer’s Lake Park Crescent, under development on a piece of lakefront land bounded by Lake Park and Oakenwald avenues and 40th and 42nd streets.

To date, the developer has completed 13 rental buildings, which are 100 percent occupied – with a waiting list of prospective occupants. Another 68 for-sale homes are ready for occupancy this month, and about 50 percent of them have been sold, says Mike Kennelly, managing broker with Draper and Kramer.

The residences are part of a whole new neighborhood emerging on the south lakefront. The first phase of the ambitious development includes 55 market-rate condos and 13 affordable units.

According to Draper and Kramer, the new community offers the same opportunity as previous “emerging neighborhoods” like Wicker Park or Logan Square. What makes Lake Park Crescent different, however, is its proximity to Lake Michigan and the historic nature of the surrounding area.

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Motor Row Development Corp. president Paul Zucker has 25 years of residential development experience under his belt, but that doesn’t stop him from exuding rookie enthusiasm at the mention of Motor Row Lofts. His firm’s 52-unit loft transformation of three historic properties at 2301 – 2315 S. Michigan Ave. sits squarely in the midst of the South Loop’s burgeoning Motor Row Historic District.

“We were drawn to this wonderful collection of turn-of-the-century – or should I say ‘last century’ – auto showrooms, designed by the city’s most famous architects,” says Zucker, referring to Holabird and Roche, who (as successors to Daniel Burnham) authored a plethora of Chicago landmark structures, among them Soldier Field and City Hall.

Back then, the giants of the auto industry displayed their wares in lavish buildings located in the area. Cadillac enlisted the architectural duo to design three structures that today define the neighborhood with their distinctive terra cotta façade and enormous windows. The five-story white Cadillac Building and its slightly shorter neighbors, the Cowles and the Saxon, were built between 1911 and 1915.

In those days, architects weren’t constrained by context. They were all trying to make their own unique statement.” Zucker says. “Holabird and Roche certainly succeeded with these three little jewels that have the flavor of the traditional Chicago loft look, yet are dramatic in their detail.”

Eventually the auto showrooms vanished, and then, according to the developer, “nothing happened.”

That is, until now. MRDC has restored, renovated and transformed the buildings into 52 luxury one-to three-bedroom loft residences with 36 different floor plans. And because the project is in the Motor Row Historic District, all original buyers benefit from an eight-year tax assessment freeze followed by four years of modest adjustments under the Illinois Property Tax Assessment Freeze Program.

The tax benefits are a huge selling point,” says Tina Feldstein, of Koenig & Strey GMAC Real Estate. “Buyers can afford to purchase much more for their money because the real estate taxes are a much smaller part of their annual costs.”

The beauty of the buildings’ stone, terra cotta and glass facades has been completely restored, according to Zucker. The shared ground floor lobby in the Cadillac building is replete with a 60-foot carpeted floor and 18-foot windows.

Two high speed elevators lead to the soundproofed loft residences, located on floors two through five, ranging from one to three bedrooms, with and without dens, with one to 2.5 baths. Square footage varies from 1,057 to 2,050 square feet.

The last of a dying breed in Chicago, the residences are lofts in the true sense of the word, according to Zucker. “We’re not back in the Flashdance era,” says Zucker. “But the exposed brick and ductwork, the heavy timber beams, the 13- to 20-foot ceilings, and the 10 to 15-foot windows certainly take these residences out of the overused ‘soft loft’ category.”

In January, prices began in the $310s and topped out in the $650s, with parking starting at $25,000. Motor Row Lofts were already 40 percent sold in January, according to Feldstein, who says the first units will be delivered in the spring of 2008.

-Story by Dan Schuyler, photography by Michael Kardas

by Dana Dubriwny

In the South Loop housing market, where homebuyers wade through a swell of newly constructed high-rises, loft living offers a tangible reminder of the city’s industrial past. History is a selling point, and Prairie District Lofts, 1727 S Indiana Ave, allows buyers to invest in the past.

“We found that the appeal of something that has history, something with exposed brick and timber, has more of an urban experience,” says Brian Giles, senior vice president of Kargil Development. “More so than the new construction, which can be found anywhere. These types of buildings are 100 years old and older, and you don’t get that everywhere.”

Built in 1905 for the commercial photography company Kodak, the building received a concrete addition around 1931 and was converted into a 116-unit apartment complex in 1994. In September 2007, Brian Giles, along with brother and business partner Keith, purchased the building and launched a $35 million condo conversion effort. (more…)

by Dana Dubriwny

Although River North has earned a reputation in recent years as a haven for high-rise development, it’s still possible to find something of the neighborhood’s gritty, industrial past hidden among the gleaming towers.

In its latest venture, development firm and River North landowner Cataldo/Marovitz Group has uncovered one of these urban gems. Forty loft homes are planned for a historic warehouse at 660 N Kingsbury Ave between Huron and Erie streets.

Rechristened the Park Kingsbury Residences, the building formerly housed a florist and today stands as “one of the latter turn-of-the-century timber loft conversions, representing a product and niche that is in high demand in this neighborhood,” says Rizzo Realty Group’s Carolyn Lester, sales manager for Park Kingsbury.

There is no doubt that area residents have supported the transformation of this building since its conception. When the Park Kingsbury was introduced to the River North Residents Association in May of 2007, it was met with overwhelming approval – which Lester credits to a neighborhood mantra of continuous renewal.

“The neighborhood is looking to reinvest in the value-driven River North sector, and many of these individuals do not have the kind of space they are looking for,” Lester says.

It was not long ago that the River North neighborhood was landscaped with warehouses and manufacturing facilities. Armed with a history that was transformed only 30 years ago, residents pride themselves on preserving the architectural diversity of the neighborhood while maintaining the chic and sophisticated image that has become River North.

Aptly named, River North is flanked by the Chicago River on the south and west sides; Michigan Avenue and Oak Street delineate the eastern and northern boundaries, respectively. The neighborhood boasts several renowned restaurants, including Harry Caray’s, House of Blues, Ed Debevic’s, Hard Rock Café and Rainforest Café.

During Park Kingsbury’s soft opening in 2007, 43 percent of the building was claimed in presales. Terese Cataldo, principal with Des Plaines, Ill.-based Cataldo Interiors Group Ltd., says the development’s early interest can be attributed in part to the high-end finishes selected for the Park Kingsbury units.

“Loft purchasers were getting tired of the same old interior elements inside, so my goal was to present a unit where a purchaser didn’t have to get any upgrades,” says Cataldo, whose company spearheaded the interior design of the building. “We went above and beyond what owners would receive as an upgrade at other developments.”
Calling it “the newest look in the modern urban loft,” Cataldo admits her inspiration for the interior finishes came from the Euro-style sophistication of the Milan, Italy’s fashion capital, combined with the lifestyle of the typical Chicago resident.

“Chicagoans are a blended people, with blended occupations and activities, and their home needs to reflect that,” Cataldo says. “What they all have in common is that they want a lifestyle that allows them to transition [from] casual to formal entertainment, and their home should reflect that. The units are like a good little black dress; you can dress them up or down.”

Park Kingsbury Residences, designed by local architecture firm FitzGerald Associates Architects, is comprised of 23 different floor plans, from 927-square-foot one-bedrooms priced from the $409s to custom three-bedroom-plus-den models starting at more than $1.1 million. The first deliveries are expected at the start of 2009.

Photographs by Michael Kardas

When Jim and Laura Munro moved into their Central Station townhome in 2002, they knew the South Loop would grow, but they weren’t prepared for what happened during the next five years.

“We didn’t expect this amount of inundation,” Laura says. “We were attracted to the area because it was quiet and, at least when we moved here, a little off the beaten path, but at the same time, so accessible.”

Indeed, the pace of development in the neighborhood directly south of the Loop has been phenomenal. Since 1990, the number of housing units in the area bounded by Congress Parkway, Lake Shore Drive, Cermak and the south branch of the Chicago River has roughly doubled, according to U.S. Census figures compiled by Metro Chicago Information Center. And in 2006, the South Loop accounted for 53 percent of the 6,582 new condos that entered the downtown market, according to housing analyst Appraisal Research Counselors.

The overall real estate market has softened, but the South Loop continues to outperform all other downtown neighborhoods in residential development. (more…)