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:
Gold Coast. One of the hottest new conversions to hit the market is the 185-unit Delaware Place, at 33 W. Delaware, a highrise being converted by American Invsco. Eight-five percent units have been sold since May at prices ranging from $191,000 for studios to $433,500 for two-bedroom units. Incentives are a big draw at Delaware Place, which offers no down payment, no real estate taxes and no assessments due the first year.
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.
Real estate columnist and media consultant Don DeBat has written about Chicago-area housing and mortgage markets since 1968. He is president of Don DeBat and Associates, www.dondebat.net.