By Dana Dubriwny
With lender requirements becoming more stringent and financing becoming more difficult to secure, homebuyers are taking the long view on luxury high-rise construction. They’re searching for established builders with solid reputations that can weather seesawing market conditions, says Michael Kelly, sales director for Related Midwest.
Related Midwest, known for Park Tower, 840 N Lake Shore Drive and 340 on the Park, is currently building the Peshtigo, a 57-story high-rise at 515 N Peshtigo Ct in Streeterville.
Today’s market may seem formidable, but Related Midwest is a veteran developer with a volume of experience in luxury construction. The Peshtigo is in a three-year building cycle, says Kelly. Groundbreaking is expected in late summer or early fall, with occupancy several years away.
“It’s important [that] buyers know we’ve done these buildings before,” Kelly says. “We feel our reputation and expertise in producing architecturally significant buildings is important in today’s marketplace.”
Related Midwest tapped famed architect Ralph Johnson of Perkins & Will to design the tower. To maximize the site, Johnson created what he refers to as the “bent bar.” Rather than a typical four-sided configuration, the building is designed around a series of angles offering expanded views from each residence.
The Peshtigo will consist of 358 condominiums: 113 one-bedroom homes, 165 two-bedroom homes and 72 three-bedroom homes. Eight penthouses crown the tower, ranging in size from two to three bedrooms.
Prices start in the $480s for a one-bedroom, 882 square-foot condo. Two-bedroom homes range upward from the $730s, and three-bedrooms start in the $990s. At the penthouse level, 2,330 square-foot to 3,793 square-foot units are priced from $1.63 million to $2.77 million. Deeded parking is $45,000. Assessments run about $5 per square foot annually.
Unit amenities include hardwood floors, stainless-steel KitchenAid appliances, Kohler fixtures, Brookhaven flat-panel cabinet doors and engineered stone countertops.
Kelly expects the Peshtigo will attract a sophisticated buyer – someone who appreciates the chic style of the neighborhood. Streeterville borders Chicago’s Magnificent Mile and is bounded by Lake Michigan to the east and the Chicago River to the south. Fox & Obel, a gourmet market, is just blocks away, and the neighborhood overlooks Navy Pier, North Pier and Olive Park.
Armed with an impressive portfolio and a disciplined outlook, Related Midwest is already looking to the horizon, says Kelly.
“When this project is done in 2010 or 2011, the market will be in better shape,” he says. “It’s hard for people to look that far into the future, but that’s what we’ve seen in our experience.”
The sales center at 515 N Peshtigo Ct is open Mondays, Tuesdays, Wednesdays and Fridays from 11 a.m. to 6 p.m.; Thursdays from 11 a.m. to 7 p.m.; Saturdays 11 a.m. to 5 p.m.; and Sundays noon to 4 p.m.