You’ll find a number of multi-million dollar homes north of Addison along Wayne and Janssen. The home pictured above at 3804 N Janssen, for example, had once been listed for more than $3.5M and just came back on the market at an asking price of $3.295M. The 6-bedroom home, with 5 full and 2 half baths, is on an oversized 34 x 125 foot lot.
It’s obvious from the listing and selling price of homes in the immediate area that vacant land commands a premium price. How high a price is the question?
A 98 x 121 foot parcel of vacant land at 3630 N Wayne in Lake View is currently on offer for $3,600,000. There are, per the listing, “three large rental buildings next to each other” on the land.
The listing describes the property’s zoning as “MULTI,” which is not a known zoning classification in Chicago.
According to the Chicago Zoning Map, the property is zoned RT3.5. That relatively low-density zoning classification allows for a Floor Area Ratio of 1.05, which would translate into building homes or condos with a maximum of 12,451 square feet of non-basement living area. At a $3.6M asking price, the land component of new construction, before teardown costs, would cost $289 a square foot.
Another metric to consider is the per-unit cost of the land. RT3.5 zoning requires a minimum of 1,250 square feet of land per unit. That works out to a land cost of $400,000 per unit for each of 9 units averaging 1,383 square feet at the $3.6M asking price.
Does the current market support that level of land prices in this part of Lake View?