Category Archivedowntown chicago condos
June 7, 2011 - Yesterday we posted about how rents for Downtown Chicago apartments are predicted to go up another 10% this year. We also told you about a Crain’s article that stated the 97% leased Parc Huron is the most expensive downtown Chicago apartment tower right now. The article named the top 10 towers behind the Parc Huron so we thought we’d pass those along to you.
#1) Parc Huron on 469 W Huron at $2.73 per square foot.
#2) 215 West on 215 W Washington at $2.69 per square foot.
#3) One Superior Place on 1 W Superior St. at $2.68 per square foot.
#4) Aqua 225 on N Columbus Ave. at $2.67 per square foot.
#5) EnV on 161 W Kinzie St. at $2.66 per square foot.
#6) Flair Tower on 222 W Erie St. at $2.64 per square foot.
#7) Streeter Place on 355 E Ohio St. at $2.63 per square foot.
#8) The Bernardin on 747 N Wabash Ave. at $2.61 per square foot.
#9) One East Delaware on 1 E Delaware Place at $2.57 per square foot.
#10) Alta at K Station on 555 W Kinzie St. at $2.53 per square foot.
Some interesting points that the article made included Appraisal Research Counselors stating that the 171 apartment Bernadin has the highest jumpin rent with a 21.4% increase.
At 215 West, where the average monthly apartment rent is $2,221, Jupiter Realty will probably raise rents another 6% to 8% nest year and the free rent concessions will most likely stop by the end of this summer. Developers usually stop offering a month or two of free rent once a building is 90% leased.
So if you’re already renting, expect your rates to go up. And if you’re looking to rent Downtown Chicago apartments, expect to pay more next year.
June 6, 2011 - Rents for Downtown Chicago apartments are climbing almost as high as the Chicago real estate developments themselves. According to a recent Crain’s article, downtown Chicago apartment rents could climb 10% more this year.
So which are the most expensive luxury rental towers? The recently completed 221 unit Parc Huron on 469 West Huron Street tops the list at $2.73 per square foot. That adds up to around $2,628 per month for an average unit. According to the article, Appraisal Research Counselors stated that net rents at the Parc Huron jumped 10% this past year.
So if tenants can pay that much in rent, why lease and not buy? Because buyers are still unsure of the housing market. prices have yet to rebound, so more people are still renting becuase they are afraid of too much depreciation.
RMK Management president Tony Rossi developed the Parc Huron and was quoted as saying that, “It’s fairly obvious that most (of the tenants in the building) would be able to buy a condo if they were willing.”
As for concessions like free rent? They may become fewer and farther between, at least in these luxury apartment towers. The Parc Huron is 97% leased, and Mr. Rossi said,
“When you get 97% leased, it’s kind of like, ‘What’s the point?’”
Tomorrow we’ll tell you which other downtown Chicago apartments are the most expensive after the Parc Huron.
May 24, 2011 - The recent Chicago real estate developments that have, in one form or another, switched from market rate condos for sale to rental units is helping to reduce the over supply of downtown Chicago condos. Investors have bought large blocks of condos in developments like Astoria Tower and are leasing them. Even the Gold Coast Walton on the Park is now renting units. And with the 82 unsold condos in Silver Tower up for sale, there is a good chance that those might be converted to rental as well.
A recent Crain’s article states that according to Appraisal Research Counselors, there were only 174 downtown condos sold during the first quarter of 2011. Last year (2010) there were 256 downtown condos sold in the first quarter.
But the good news for developers is that ARC reports that there were 2,031 unsold downtown Chicago condos at the end of the first quarter of this year (2011). There were 4,182 unsold downtown Chicago condos at the end of the first quarter last year (2010) and a whopping 8,222 unsold downtown Chicago condos at the end of the first quarter of 2008. ARC said in the article that the number of unsold downtown condos is close to the low levels in 1997, which is when they starting keeping records.
The drop in excess condo inventory isn’t due to sales but because of developers scrapping projects and the conversion to rental. Marketing firm Garrison Partners CEO and president Garry Benson told Crain’s that he believes that around six more downtown condo towers will switch to rental before the year is over.
Tomorrow we’ll speculate on which developments might be offering Chicago condos for rent in the future if sales don’t improve.