Story by Jefferey Steele
Conjure an image of the ideal urban neighborhood, and you might visualize Hyde Park on a recent warm Sunday morning. On sun-dappled 53rd Street west of Lake Park Avenue, throngs have converged on the tree-lined sidewalks, strolling, window shopping, sipping coffee at an outdoor cafe.
Near the University of Chicago, a soccer game consumes the energies of players from across the globe, and on Hyde Park Boulevard, dog walkers amble past the stately, ivy-covered apartment buildings that line the street.

The distinction can be sensed immediately on 53rd Street, the neighborhood’s main commercial strip. For one thing, in a city that’s among the most segregated in the U.S., the crowd here is incredibly diverse – African American, white, Asian and Latino. Well-off and poor. Jewish, Muslim, Christian. According to the 2000 U.S. Census, Hyde Park is about 46 percent white, 38 percent African American, 11 percent Asian and 4 percent Latino, making it one of the few truly integrated communities in the city.
Physically, the neighborhood is nestled in a stunning pocket of parks – Jackson Park and a beautiful stretch of lakefront on the east, Washington Park on the west and the grassy Midway Plaisance on the south, connecting the two. The architecture is nearly as varied as the population. There are the vintage brick apartment buildings, many of them former hotels, that house rambling, gracious apartments and condos, and stately single-families with wide lawns. Some gems, such as Frank Lloyd Wright’s breathtaking Robie House, are known the world over.
But perhaps the most distinctive neighborhood trait is also the most intangible. Words like culture, recalcitrance and optimism hint at this quality, but they don’t adequately explain it. The neighborhood character has been evolving ever since the two formative events that shaped a young Hyde Park: the birth of the University of Chicago in the early 1890s and the World’s Columbian Exposition of 1893.
The Columbian Exposition spurred massive development, including the creation of an elevated train line extending from the Loop to Jackson Park, and the community was elevated to a world stage as Daniel H. Burnham oversaw creation of the “White City.” The University of Chicago brought an intellectual and cultural powerhouse to the neighborhood and though its role in Hyde Park has not been without controversy, the school proved to be an important anchor and stabilizing force when white flight scarred so much of the South Side.

Troubled neighbors
In the neighborhoods that frame Hyde Park to the north and south, however, the picture is very different. Here, sidewalks are far less populated and stores virtually non-existent. Empty lots dot the vintage streetscapes like missing teeth.

The avenues to the north and south of Hyde Park may lack street life, but not construction activity. Everywhere one looks, jackhammers stutter, bulldozers shift earth and hammers pound roofs under construction. North Kenwood-Oakland and Woodlawn are being built anew, many of the single-family homes, condominium buildings and townhome developments rising on lots long devoid of anything but weeds.
What’s driving the boom in neighborhoods around Hyde Park? Prices that are significantly lower than those in Hyde Park-South Kenwood, a convenient lakefront location close to downtown as well as Hyde Park shopping and amenities, and the availability of prime comparatively affordable land in a super-heated real estate market.
Few observers have a better perspective on the changes than Jerome Wade. As president of Wade Enterprise & Associates, a South Side development company, Wade remembers building on Oakenwald Avenue in North Kenwood in 1994, when lots could be purchased from the city of Chicago for one dollar each.
Today the city sells lots for $30 a square foot, he says. “Now, it’s a whole different ballgame. We have developers coming down from the North Side, and they believe lots at $30 a square foot are cheap.”
David Chase can relate. As president and CEO of Chicago-based Thrush Companies, he recalls the days seven or eight years ago when his company sold new townhouses and condos in the North Kenwood-Oakland area for $105 to $110 a square foot. Today, new units range from $180 to $200 a square a foot.

Among the beneficiaries are long-time residents like Gregory Newsome. The owner of Loop-based CNI&M, a mortgage and real estate brokerage, he lives in the vintage house he bought at 40th and Ellis in 1984. “When I first bought my house, there were a lot of issues and problems, because of the projects being there,” he recalls. “Now those are gone. And while it’s not utopia . . . it’s considerably more livable. I love the neighborhood.”
Much to like

Developers enjoy an added incentive in North Kenwood-Oakland, as in other South Side neighborhoods where the Chicago Housing Authority’s plan for transforming public housing is “turning a negative into a positive,” says Brian Moore, asset manager with Draper & Kramer, a full-service real estate firm with a long history on Chicago’s South Side.
The former CHA sites in North Kenwood-Oakland offer large blocks of land close to the lake and downtown and in return for taking a mixed-income approach that includes new housing for CHA residents, developers receive a much better deal than they would trying to piece land together on the private market.
Buyers converging on the area are drawn by the prospect of city living at a fraction of the cost of Lincoln Park, Lakeview and other Near North and Northwest Side enclaves, says Mark Sutherland, a partner with Alex Pearsall in Sutherland Pearsall Development Corp., a builder active on the South Side. “People are not afraid to pay top dollar for quality new housing,” he says. “It’s still literally a bargain compared with North Side housing prices.”

Wade, whose firm is building 10 single-family homes on South Berkeley, finds that his buyers include émigrés from the North Side and South Loop. Having reaped sizable windfalls on their condos, they salivate at the $365,000 price tags on Wade’s single-family homes. For that price, they gain three-story, eight-room homes with all-brick exteriors on a landmark street – and have money left for upgrades.
Lake Park Crescent, Draper & Kramer’s ambitious mixed-income development on Lake Park, between 41st and 42nd, is large enough to have an impact on surrounding blocks in Oakland. Standing on land once occupied by Chicago Housing Authority buildings, Lake Park Crescent’s 480 units will be about evenly divided between for-sale and rental housing. About a third of the total units will be market-rate, a third affordable or “workforce” housing and a third public housing.

A major selling point for Lake Park Crescent, Moore says, is the planned pedestrian bridge over Lake Shore Drive to a new beach under construction between 40th and 42nd. The subject of an international design competition held by the city of Chicago, the bridge is being designed by Cordogan Clark & Associates, which has produced an innovative serpentine design. Draper & Kramer is also attempting to convince Metra to reopen its shuttered station at 39th.
A tribute to area’s heritage
One of the main perks at Jazz on the Boulevard, another mixed-income community on former CHA land, is Drexel Boulevard itself, a grassy thoroughfare with a landscaped median that at 100 feet, is wider than many parks. The Thrush Companies, which is building Jazz along Drexel between 41st and 42nd, paid tribute to Duke Ellington, Louis Armstrong, and the other jazz greats who once performed at the nearby Regal Theater and other legendary venues in the area in naming the project.

“We have a great constituency from Chicago Public Schools, the fire department, police department and the University of Chicago buying these units,” Chase says.
The workforce housing is discounted by 10 percent to 50 percent over market rate. For instance, a market-rate one-bedroom, one-bath condominium with a garage is $175,000 to $185,000, while the same workforce unit is $110,000. At the other end of the spectrum, two market-rate “Morton” duplexes will sell for $400,000, while their workforce counterparts are $210,000.
Based on sales figures, the formula seems to be working. At press time, the first phase of construction was nearly sold out, 29 of 36 condos were sold in phase II, and in phase III, only one townhouse and about half of the 24 condos remained for sale.

The company’s largest current project is a 59-unit condo conversion called Drexel Parc Lofts, at 4537 S. Drexel. More than 60 percent sold, the seven-story building will feature lofts with one to three bedrooms and one or two baths, priced from $156,900 to $279,900.
Community Organizations Spearheaded Change
Just as community-based organizations played a central role in stabilizing Hyde Park, homegrown groups have shaped the rebirth of North Kenwood-Oakland and Woodlawn. The North Kenwood-Oakland Conservation Community Council, founded in 1991, has been the dominant force in spurring change in the community.

At one point, Newsome says, the 4th Ward, which includes all of North Kenwood-Oakland, was the poorest ward in Chicago, and one of the poorest in the nation. Beautiful old houses were abandoned, vandalized, then razed by the city, which held title to endless vacant lots.
Since its inception, the North Kenwood-Oakland CCC’s goal has been to bring private developers into the neighborhood and guide redevelopment. It has been aided in that mission by the Fund for Community Development and Revitalization, which Newsome now chairs. The fund tries to attract commercial investment and large-scale redevelopment of vacant apartment buildings, and is majority partner in Lake Park Pointe Plaza, the area’s six-year-old shopping center on 47th just west of Lake Park.
Newsome’s aunt, Shirley Newsome, since 1992 has served as chairman of the CCC, which now is also involved in improving schools, beaches and parks.
“There are lots of things going on in the neighborhood,” she said. “We’re taking a holistic approach. It’s not just about houses, it’s about everything in the community, including people.”
In Woodlawn, it’s the Woodlawn Preservation and Investment Corporation (WPIC) that has battled to stimulate real estate investment in the community.
Once overwhelmingly white, Woodlawn changed almost overnight to 99 percent African American in the mid-1960s. During the following years, the area suffered from wholesale disinvestment, widespread arson and a crumbling economy. The population, which had swelled to 80,000 in the early 1960s as the neighborhood’s large old buildings were subdivided into apartments, plummeted by three-quarters. Its current level is 24,000.

An enhanced level of safety and improving retail and cultural environments are attracting newcomers to North Kenwood-Oakland and Woodlawn. Both neighborhoods have been extended the protection of the University of Chicago Police, which now patrol as far south as 64th in Woodlawn and north of 39th, in North Kenwood-Oakland.
So far, North Kenwood-Oakland is outstripping Woodlawn in spurring retail and cultural amenities. Lake Park Pointe Plaza houses a drugstore, an athletic footwear store, a cellular phone store and myriad other shops, and stands right across the street from a Bally’s Fitness, and Cottage Grove, from 39th to 47th, has been designated a tax-increment financing district to spur retail development.
The limited number of existing businesses also are preparing for an influx of new customers as the base of new housing grows, according to Draper & Kramer’s Moore. When the company began looking at the site of its Lake Park Crescent development five years ago, Draper & Kramer officials huddled with the owners of a store just south of the site called the One Stop. “We met with them about revitalizing the store, cleaning it up and making it more attractive,” Moore recalls. “The owner said, ‘I’ll wait till the people are here, so I know I have a market.’ Just in the last two months, that renovation has been completed.”

Along with the cultural, educational and housing assets that are bringing North Kenwood-Oakland and Woodlawn closer to Hyde Park, the established community’s less affluent neighbors now rival the hosting grounds of the World’s Columbian Exposition of 1893 in another category – optimism.


As a 20 something first time home buyer, it’s hard to find something that is affordable ($200 or less) while still in a decent to good neighborhood. After touring neighborhoods in Chicago, I’ve found that the Oakland neighborhood/North Kenwood is my target area to buy in because of its many times reasonably priced newer construction and its changing for the better face.
Based on the expertise of those who contribute to this outstanding site, I’d like to pose this question (in hope someone out there can give me some info):
Does anybody know anything about the development at:
809 E 40th Street
I’ve driven past a few times a week in search for a newly posted sign, a phone number to call, etc. I’ve even gotten out of my car and inquired with contractors working on the site. Four months worth of waiting, google searching the address and watching them continue to rehab this property…and no info. The development is a 4 or 5 story brick that sits between Drexel Blvd. and Cottage Grove on E 40th Street. From the outside, definately looks like something worth checking out on the inside when completed (which will be in about 2 months says one of the contractors). Insiders and Experts…any info would be much appreciated. Thanks!
-Hopeful Early Bird Looking to get the worm
Hey Jay,
Glad you like the site, and thanks for your feedback. The best source for info on new-construction projects that are for sale is here: click on “Guides” on the top menu and then select “The new homes guide.” The list is the most comprehensive you’ll find, but the building you’re interested in is not in there. Given this and the fact that there’s never been a sign up, it’s possible that this will be a rental building and not condos.
If you’re in the area again, you might look closely to see if there’s a building permit posted (by law there should be). That should tell you the type of construction and the development company. A quick call the alderman’s office also can be helpful.
Good luck.
Hi Jay,
I share your interest in the North Kenwood neighborhood. I’ve recently driven by the building at 809 E 40th. I don’t have any prices for you, but they recently erected a sign in front of the building with a phone number to call. Make another visit to the property and take down the number.
Good luck.
Check Baird & Warner’s website. I saw two 2bed/2bath duplex units for the loft building sell for $300,000. There was also a listing of a unit for sale for $289,000. These units have stainless steel appliances, exposed brick, granite, the works. Parking is an additional $10-$15K
I’m also a mid 20’s person looking to purchase a home. Your article was a very good read. But the reality of the situation is that Middle income African Americans have become unwelcome as land owners north of 55th street. I’ve spent various times of my life living in the Bronzeville/Oakland area and as a Working Married family man I’d like to buy a home in that area. But thanks deals made by the City and groups like KOCCC and TWO further south theirs no room for people like us. We both went to college and have good jobs but couldn’t dream of purchasing any of the homes built on land that was pretty much given give to developers by the city of chicago and the area’s aldermen. $400k-600k for 3 bedroom frame townhouse ? Affordable housing, what a joke. Let the area fall apart for decades then use that as an excuse to get rid of the poor people. Chicago, “The City that works”
That’s terrible, Jason. In what way are you saying African Americans aren’t welcome? Is that just a feeling you got or is there actually some kind of policy/practice that is making it more difficult for them to buy homes?
So are you saying it is the fault of the city that an area falls apart? The residents have nothing to do with this?
What are the deals with KOCCC and TWO you speak of? What areas did this affect? I want to learn more.
You raise some great points, but the name of the game is equity. If you want to live in some neighborhoods, you ultimately have to buy a few times to build equity. Even in you early 30’s. I bought my first place 10 years ago for $135K and never dreamed I would ever be able to affort these $500K places. After investing buying a few places, fixing them up or flipping, I utltimately was able to move up, but not soley on income.
I consider my self lucky on income, but not huge, and I often wonder what people can afford on $50K, which is an above average income.
You real estate strategy needs to be long term. If you want something nice, right now, move to the suburbs…you might get nice place, good size, better schools. If you want to invest, then pick areas with growth, or focus on unique locations or property you can fix up easily. Kenwood is overpriced for the ammenaties.
I don’t know what Jason is talking about. The neighborhood already is mostly black owned. I live in a new condo on Drexel at 45th and 90% of my neighbors are black. If you work hard and make smart decisions, then anyone can own their own home. It’s not about color or race. It’s about economics.
I would have to agree with some of the comments. I would consider myself to be middle clasee I make + 70K , I’m seeking a 2bd/2bath. Based on my income I can afford it however I will be spending a large chunk of my paycheck for my mortgage.I really feellike these afforabale housing programs are a joke. The incoe requirmenets are like 50K or so, on 50K after taxes it;s 30K , no way can you afford a 200K mortgage an live, so who is really getting these ” affordable” housing breaks?