University Commons is one of the larger and more successful loft conversions in recent memory. The Enterprise Companies transformed the old South Water Market, a wholesale produce hub spread over five city blocks on the Near West Side, into 824 homes (720 lofts and 124 new-construction units added to the original six buildings).
Alleyways are now green courtyards, loading docks have become terraces, and intricate details in the terra cotta facades have been cleaned and restored.
Amenities at the development (1112 W 15th St) include a fitness center in each building, private rooftop decks and a clubhouse with a theater room and an outdoor pool. The buildings’ landmark status means that buyers get the same tax assessment freeze offered at Motor Row Lofts.
The project won the 2007 Multifamily Community of the Year award from the National Association of Homebuilders and a citation of merit from AIA Chicago. Ralph Oliva, of Coldwell Banker Residential Brokerage, noted that 35 units were still available in January. Among the remaining residences are a two-bed, two-bath loft at 980 square feet and a new-construction duplex at 1,600 square feet. Deliveries are immediate.
-Story by Kate Hawley, photography by Michael Kardas
I have been by these before and I really like the layout of it and the feel. It has a nice vibe to it and feels very “communal” with the big decks in the front of the house and the big balconies. A lot of people were outside on their decks and balconies when I walked through and lots of people walking on the street. Maybe it was just by coincedence that they were all out. It seemed kind of isolated though, like it was tucked in a corner.
Now THIS is what a loft-style conversion should be all about!
Agree; I can’t think of a adaptive reuse project so large, yet so under the radar. Could be the location. In 2005, I was convinced them that this was one of the last conversion projects of this cycle with room for small capital gains in a conservative market. Looking at the project I felt that the price point was at least discounting for the location and future gentrification period.
Now it seems that developers are not offering the lower price point incentive on the fringe or pioneering locations, which was factor in the South Loop development movement.
Jeff, why do you think developers aren’t offering those incentives anymore? Is it a problem of not being able to afford those financial incentives at this point, primarily due to tighter banking regs?
Possible issue, but it Could be a number of things:
1. Land and vacant property prices have gone up
signficantly. Early speculators are out, new
regime wants to make their money. As some
developers holding excess inventory of
property may take a bath, will be interesting
to see if this happens to land owners.
Look at the recent McCormick Place hotel/casino discussion. A few years ago that property could have been bought in the $5M-$15M range; now looking at $80M.
Would be interesting to see comparison of land costs and West Loop vs. South loop over ten year.
2. Zoning – early in gentrification cycle, previous projects looked at keeping projects as is, make decent money, move on to next project. Since zoning ordinance change in 2003, new zoning code, added FAR Bonuses, etc. land owners have more ‘unobstructed’ options for development of vacant land than before. (along with the political connections to get their stuff rezoned).
3. Greed – only a matter of time before everyone
wanted a piece of your pioneer patience. Developers want a piece of your profit, even though you deal with the homeless guys…ditto for agents – first wave of pioneers were homebuyers, a few speculators from 1997-2001. Some cashed out, some stayed. 2002-2005 saw agents saying, hey, if these guys are making money, why do I not hold places for myself and flip. I was astounded to see number of agents not only buying units to flip, but buying multiple units.
Anybody ever been in this building?
The hallways are literally a city block long…pretty funky!
I have been in the building. I have two friends that each have a one bedroom unit facing the train tracks to the south. These were pretty much the cheapest units available, and at the time (late ’05 early ’06) went for $219,000 + $30,000 for parking. I know this because I was considering buying one of these units as well. The trains are almost a non issue. The metra is the furthest tracks from the buildings and the freight noise is hardly any at all. It’s actually a very cool landscape to look at. It would probably be described by a realtor as “Sunny south exposure, wide open views!” But I digress… The hallways are a straight shot, city block long… You can barely see from one end to the other. These guys were offering a free parking space from Novemeber-December last year, but I noticed on their website it’s no longer available. Nice place in general.
These places are great! I went to a few get togethers on a first floor terrace. They have a huge space for entertaining. I also noticed it’s very dog friendly. Seemed like there were lots of people walking around and enteraining on their terrace. Very vibrant.
Very vibrant for suburbia.