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J. P. Morgan to buy majority stake in Aqua apartments
Crain's Chicago Business, Alby Gallun, 12/29/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors..."
J. P. Morgan Asset Management has agreed to invest about $182 million in the apartments in the 82-story Aqua tower, the biggest local multifamily deal in more than three years. Magellan Development Group LLC, the developer and owner of the prominent highrise near Millennium Park, has agreed to sell to the New York investment firm an unspecified majority stake in the building's 474 apartments, parking and commercial space, according to people familiar with the transaction. Chicago-based Magellan hooked up with J. P. Morgan after Dallas-based Behringer Harvard Multifamily REIT I Inc. in September backed out of a $189-million deal to buy a 75% stake in the skyscraper at 225 N. Columbus Drive....
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Housing Sector Recovery Forecast for 2011
Nightly Business Report (PBS), 12/28/10
"Russ Haraus, vice president with Appraisal Research Counselors says..."
There's no good news in October's report. This is how economist David Blitzer summed up today's S&P Case Shiller home price index and he should know. He chairs the group that puts this index together. Home prices fell in October, highlighting a renewed decline in the housing market. All this week here on NBR, we're looking at economic forecasts for 2011. Experts think that's when an improving economy could spark home buying. But as Diane Eastabrook reports tonight, foreclosures and rising mortgage rates could still dim a housing recovery....
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Industry Experts Predict Residential Real Estate Trends for 2011
PRWeb, 12/28/10
"Appraisal Research reports..."
The start of a new year is often a time of reflection, as well as a time of anticipation for the future. It’s no different for Chicago’s real estate professionals, many of whom have weathered the recession and are now optimistic about 2011. From the return of new construction to the creation of healthier homes, the following are 10 residential real estate trends they see for the coming year...
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Press Release: Industry Experts Predict Residential Trends for 2011
American Consumer News, 12/28/10
"Appraisal Research reports..."
Industry Experts Predict Residential Real Estate Trends for 2011 10 residential real estate trends, as predicted by Chicago-area real estate professionals, for 2011....
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Newly built condos dying out
Chicago Sun Times, Don DeBat, 12/27/10
"... predicted Gail Lissner, vice president of Appraisal Research Counselors..."
Downtown Chicago’s once-booming condominium market is headed back to a construction slowdown reminiscent of early 1990s, experts say. As new-construction units become an endangered species, condo buyers in 2011 likely will be forced to shop the resale market, predicted Gail Lissner, vice president of Appraisal Research Counselors, Ltd., Chicago’s top condo appraisal firm. That gloomy outlook is forecast in “Downtown Chicago Residential Benchmark Report,” the latest analysis by Appraisal Research on the condition of the condominium market in Central Business District, which includes the neighborhoods of the Gold Coast/Near North, South Streeterville, River North, West Loop/River West, South Loop and the Loop/New Eastside....
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Big loss likely as Roosevelt Collection goes on the block
Crain's Chicago Business, Alby Gallun, 12/22/10
"... says Ron DeVries, vice president at local consulting firm Appraisal Research Counselors..."
Centrum Properties has put a $350- million mixed-use project in the South Loop up for sale, a move that will likely wipe out the developer’s entire investment and potentially result in tens of millions of dollars in losses for its lenders. The Chicago-based developer has hired the Chicago office of Holliday Fenoglio Fowler L.P. to sell the Roosevelt Collection, a recently completed retail-and-residential development on Roosevelt Road just west of Clark Street. Launched in 2007 at the peak of the real estate boom but finished in the depths of the bust, the project missed the market and now may be worth only half the $350 million it cost to build. Proceeds from any sale are expected to fall well short of the $285 million that Centrum and its New York-based partner, Angelo Gordon & Co., borrowed to finance the development....
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West Town project slow after conversion to rental
Crain's Chicago Business, Andrew Schroedter, 12/16/10
"... according to Chicago-based Appraisal Research Counselors."
Switching a 33-unit project in West Town from condo to rental hasn't been a quick fix for developer Robert Mosky. About six months after changing course, Mr. Mosky has leased just 13 units in the four-story Vision project at Ashland Avenue and Division Street, which was completed in June. But he is charging rents more likely to be found in some of the city's most fashionable neighborhoods than on a busy Northwest Side intersection. Monthly rents at Vision range from $2,500 to $4,000, or between $1.90 and $2 a square foot. “It's high compared to everything else” in the area, says Aaron Galvin, broker/owner of apartment finding service Luxury Living Chicago. Vision's rents are just slightly cheaper than downtown, where the average is more than $2.20 a square foot, according to Chicago-based Appraisal Research Counselors....
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Partner cuts value of stake in Central Station condos
Crain's Chicago Business, Alby Gallun, 12/15/10
"... according to Appraisal Research Counselors..."
A partner in the largest real estate project in the South Loop has taken an $18- million hit on its investment, an acknowledgement that the condominium business is unlikely to perk up anytime soon. Four towers in the Central Station development have struggled with slow sales in the cutthroat South Loop condo market, the most overbuilt neighborhood in the city. The impact has trickled down to the balance sheet of Forest City Enterprises Inc., a joint-venture partner in the project, which recorded an $18.3-million impairment charge in the third quarter. “There's an oversupply of condos in Chicago and prices have deteriorated,” Forest City Chief Financial Officer Robert O'Brien told analysts on a conference call last Friday. “The impairment recognizes this deterioration.” Buyers had closed on just 564, or 49%, of the 1,149 condos in the four towers by the end of the third quarter, according to Appraisal Research Counselors, a Chicago-based real estate consulting firm. The four buildings — 1600 Museum Park, One Museum Park West, One Museum Park East and Museum Park Place South — sit within Central Station, an 80-acre development started in 1989 that stretches from Grant Park to McCormick Place. Cleveland-based Forest City owns a 25% stake in the joint venture that is developing Central Station, along with Chicago developers Fogelson Properties Inc. and Enterprise Cos....
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Real Estate Consulting - Chicago Residential Market
Mesirow Financial, 12/15/10
"According to Appraisal Research Counselors..."
The past year has remained a very tumultuous time for real estate, both in Chicago and nationally, as the challenges of the broader economy continue to weigh heavily on real estate fundamentals and erode real estate values....
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High-end suburban apartments fetch $55 million
Crain's Chicago Business, Alby Gallun, 12/8/10
"...says Ron DeVries, vice-president at Appraisal Research Counselors..."
A Boston pension fund adviser has agreed to buy a 483-unit apartment complex in north suburban Gurnee for about $55 million, reflecting the growing interest large institutional investors are taking in higher-end multifamily properties. TA Associates Realty LLC is acquiring Amli at Osprey Lake, an 87-acre property at 2025 Greystone Circle, from Chicago-based Amli Residential Partners LLC, according to people familiar with the transaction. It is the second suburban Chicago apartment complex TA has bought this year from Amli, which acquired Osprey Lake in a joint venture for $52 million in 2001....
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Columbia College buys home of Ebony, Jet
Chicago Sun Times, David Roeder, 12/2/10
"...Appraisal Research Counselors said..."
Johnson Publishing Co. Inc., publisher of Ebony and Jet magazines, said Tuesday it has sold its home of nearly 40 years on Michigan Avenue....
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Market Conditions: New Construction Downtown Condo Sales Still Grim
Crib Chatter, Sabrina, 11/23/10
"...says Appraisal Research Vice-President Gail Lissner."
Crain’s checked in with Appraisal Research for an assessment on new construction downtown condo sales for the third quarter. It should be no surprise that the numbers aren’t great....
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Downtown condo sales ‘kind of glued in place’
Crain's Chicago Business, Alby Gallun, 11/22/10
"...says Appraisal Research Vice-President Gail Lissner."
The downtown condominium market still has a pulse, but it’s hard to find. Downtown developers sold 111 condos and townhomes in the third quarter, down from 150 in the second quarter but up from 56 a year ago, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm....
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Downtown’s new construction market on pace to 600 sales in 2010
Yo Chicago, Joseph Askins, 11/22/10
"... says Gail Lissner, vice president of Appraisal Research Counselors..."
“Right now, we’re just kind of glued in place,” says Gail Lissner, vice president of Appraisal Research Counselors, in a new Crain’s article about the state of the downtown condo market. According to ARC’s latest report, 111 new condos and townhomes in downtown Chicago (bounded by North and Ashland avenues, Cermak Road, and the lake) sold in the third quarter, putting developers on pace to about 600 sales for the year....
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Will Downtown Apartment Rents Soar in 2011?
Crib Chatter, 11/16/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors."
Crain’s is reporting that due to too many people wanting to rent, and not enough willing to buy condos or other property, that there won’t be enough apartments to house all those who want to rent one downtown. The result? Downtown apartment rents are expected to jump anywhere from 8% to 10% in 2011....
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Get Ready To Hurt: Rent Rates Are Going Up Fast
Chicago Now (Tribune), TheCondoist, 11/16/10
"... according to Appraisal Research."
Sabrina over at Cribchatter drew our attention to the Crain's article about skyrocketing rent rates. It's so good it is worth a second mention... Landlords, get ready; you're about to have the upper hand. Still renting? Start looking for roommates saving Early indicators predict an 8-10% increase in rent rates between now and Summer 2011. The reason?...
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Chicago Rent Prices Could Rise
Fox News Chicago, 11/16/10
"A report from the Appraisal Research Counselors said..."
Rent could soon be going up for many Chicago renters. A report from the Appraisal Research Counselors said roughly half of the apartments in downtown's seven newest rental high-rises are now under lease, and lease-up rates for these buildings have been on the rise since February. Because of that increase in demand, ARC predicts rent rates will go up 8 to 10 percent by this time next year. ARC also expects more unsold condos to convert to rental.
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Big rent hikes foreseen for downtown apartments
Crain's Chicago Business, Alby Gallun, 11/15/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors..."
Last year, apartment landlords worried that downtown Chicago would soon have too much rental housing. By next year, it may not have enough — much to landlords' delight. After surviving a big development boom, downtown apartment owners will soon have the upper hand over tenants, allowing them to hike rents by as much as 8% to 10% in the second half of 2011, says Ron DeVries, vice-president at Appraisal Research Counselors, a Chicago-based research and consulting firm. “I think we are poised for some rent spikes next year because demand is so high,” he says. “Everyone wants to rent.” Demand for downtown apartments has outpaced supply, even as developers have built nearly 5,600 units over the past three years amid the worst economy since the Great Depression....
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Appraisal Research: Half of downtown's newest apartments are leased...
Chicago Now (Tribune), Joseph Askins, 11/15/10
"... according to Appraisal Research Counselors...."
Roughly half of the apartments in downtown's seven newest rental high-rises are now under lease, according to Appraisal Research Counselors' latest Downtown Chicago Residential Benchmark Report....
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Midwest Apartment Market on Rebound
Multi-Housing News, Debbie Corson and Susan Lawson, Apartment Realty Advisors, 11/1/10
"Source: Appraisal Research Counselors."
Despite subdued job growth and employment statistics, the Chicago multifamily market is rebounding very satisfactorily, posting the best rent growth, occupancy and demand driver statistics since 2008. The downtown and principal suburban investment-grade multifamily markets consist of about 575 properties with 162,000 units. The downtown market represents about 18 percent of inventory, while suburban properties are located in South and West Cook, DuPage, Lake and other suburban counties that are included in the Chicago Metropolitan Statistical Area. Properties in both sectors report that apartment demand is increasing, resulting in higher occupancies, increasing effective rents and declining concessions....
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Discussion on Home Sellers Continuing to Slash Prices
Texas Real Estate Magazine, 11/1/10
"... according to Russ Haraus, of Appraisal Research Counselors..."
Watch video on discussion on Home sellers continuing to slash their asking prices, according to Trulia.com. our own Steve Haines, of Texas Real Estate Magazine; Russ Haraus, of Appraisal Research Counselors in Chicago; and Charles Cohen, of Cohen Brothers Realty in New York, share their perspectives.
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Sales update: 23 condos left at ParkView
Yo Chicago, Joseph Askins, 10/27/10
"... in an Appraisal Research Counselors report."
ParkView Condominiums hit the ground running in 2010 with 11 sales in the first quarter, enough to make it onto a “most improved” list in an Appraisal Research Counselors report. By June there had been at least 16 sales in the building, including resales; that number has rocketed up to at least 45 (again, including resales). This building’s been busy....
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Office Sales Spike in Windy City
National Real Estate Investor, H. Lee Murphy, 10/26/10
"... according to Appraisal Research Counselors...."
Office Sales Spike in Windy City - The high-rise construction cranes around Chicago’s skyline have been mostly absent this year, as the marketplace suffers its highest office vacancy rates in at least two decades. In recent months, however, dealmakers have swung into action, signaling the beginning of an investment rebound in the Windy City’s capital markets.
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South Loop condos for sale, development on hold
Northwestern University - Medill News Service, Bob Spoerl, 10/22/10
"...Gail Lissner, vice president of Appraisal Research Counselors, forecasts...""
Condominium developers flocked to the South Loop in the 1990s because it contained available land near downtown that was affordable compared to surrounding neighborhoods. They hoped to cash in on the housing boom and offer young professionals an opportunity to own their homes. But the recession intervened. “Because [the South Loop] has had the most growth in the last few years in any neighborhood, you have some of the most troubled projects down here,” said Keith Giles, who started a realty group in 1996 focusing on South Loop real estate....
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Chicago Spire's Foreclosure Marks the End of an Era
Architectural Record (McGraw Hill Construction), Tudor Van Hampton, 10/20/10
"... says Gail Lissner, vice president of Appraisal Research Counselors..."
Foreclosure lawsuits mounting atop the $2-billion Chicago Spire project come at a time when the Windy City’s glut of condominium inventory has forced developers to make other deals. In the near term, “I think any high-rise residential developments will be rentals,” says Gail Lissner, vice president of Appraisal Research Counselors, Chicago. A dozen rental high-rises are planned downtown, she says, including a 49-story tower that is being floated by luxury apartment developer AMLI Residential, Chicago. As for condos, such as the 2,000-ft-tall Spire—which so far has produced only a spiraling design by famed architect-engineer Santiago Calatrava and a $38.6-million foundation that was installed in 2009—“there is no pipeline anymore,” says Lissner. “We’ve got about 2,400 units unsold. … It’s going to take another two to three years to absorb all this.” The top five creditors suing the Irish developer of the Spire, Shelbourne North Water Street L.P., in Cook County court claim more than $118 million. Anglo Irish Bank Corp. holds the largest claim, $77.3 million, for a mortgage racking up $7,800 per day in interest charges. Other creditors include Shelbourne’s in-house construction manager, Chicago Spire LLC, claiming $15 million; Calatrava’s Festina Lente (IL) Ltd., $11.3 million; Case Foundation Co., $10.4 million; and Perkins + Will, $4.8 million. Lorig Construction Co., Des Plaines, Ill., built ramps linking the Spire to Lake Shore Drive. It filed an initial foreclosure suit in July, claiming it is owed $512,386....
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Get used to the skyline, because no projects coming along to alter it
Northwestern University - Medill News Service, Bob Spoerl, 10/19/10
"... said Gail Lissner, vice president of Appraisal Research Counselors."
A sluggish real-estate market and the recently scrapped plans to build the Spire Tower are both part of dwindling development downtown. In the shadows of a recession, the city’s skyline will likely look the same for some time, according to Gail Lissner, a downtown real estate appraiser. “Nobody is putting a shovel in the ground anymore,” said Lissner, vice president of Appraisal Research Counselors. Current foreclosure rates in the Loop are more than 100 percent higher than this time last year, according to data compiled by the Woodstock Institute, an economic and housing research group. After two quarters in 2009, there were 60 foreclosures filed in the Loop, compared to the 132 filed in the first two quarters of 2010....
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Lake views add value to condos
Chicago Sun Times, 10/14/10
"... according to Gail Lissner, vice president of Appraisal Research Counselors...."
CMK COMPANIES - Condominium appraisers say breathtaking, unobstructed Windy City views are worth their weight in gold at resale time, especially in today’s slow real estate market. Premium views and a great location are a major lure for city condominium shoppers, so much so that they’re willing to pay a higher price for the vista, appraisers say. Great views have a concrete, and often hefty, value as an amenity, according to Gail Lissner, vice president of Appraisal Research Counselors Ltd., who notes that the value of premium vistas sometimes could account for up to half of a condo’s value. Identical units are priced higher if they are positioned on higher floors or overlooking Lake Michigan, the Chicago River or downtown’s skyline instead of city neighborhoods....
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Owner hopes to get $260 million for River North apartments
Crain's Chicago Business, Alby Gallun, 10/13/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors..."
Institutional investors grumbling about the lack of big downtown apartment buildings for sale now have a chance to buy one of the biggest: One Superior Place, an 809-unit tower in River North. A fund managed by Brookfield Asset Management Inc. has not set an asking price for the property at 1 W. Superior St. but is seeking about $260 million and has hired CB Richard Ellis Inc. to solicit buyers, according to people familiar with the company’s plans. That price would easily be the most paid for a local apartment building since the $475-million sale of Presidential Towers in 2007. Toronto-based Brookfield took over One Superior Place in an auction last December after its previous owner, New York-based Stellar Management, defaulted on mezzanine loans secured by the building and six other multifamily properties around the country. Stellar bought the 3,931- unit portfolio in 2007 in a top-of-the market deal that valued the River North high-rise at $218 million. Big apartment sales have been scarce since then, but large institutional investors are eager to buy again, encouraged by rebounding occupancies and rents — and signs that property values are rising again. One Superior Place could attract a lot of interest simply because so few institutionalquality downtown properties are for sale, says Ron DeVries, vice-president at Appraisal Research Counselors, a Chicago-based consulting firm. “It’s a large deal and an institution could place a lot of capital in one product,” he says....
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Trump Tower dressing up model units to spur sales
Chicago Tribune, Mary Ellen Podmolik, 10/12/10
"... said Gail Lissner, a vice president at Appraisal Research Counselors."
Skyscraper finalizing plans to turn five of its unsold condominiums into furnished models - With the real estate market still reeling and one-third of its units unsold, Trump International Hotel & Tower wants to show potential buyers not just where they can live, but how. The 92-story skyscraper is finalizing plans to turn five of its unsold condominiums into furnished models, signaling a change in a marketing strategy that until now has focused on attracting buyers to the Trump brand and panoramic views of Chicago. "We're sitting here with this real estate built in a climate where nothing is getting built. We want to maximize that," Ivanka Trump, executive vice president of development at The Trump Organization, said Tuesday in Chicago....
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October 20 - Thinking Outside the Box
NBC5 Chicago, 10/11/10
"... moderated by Gail Lissner, CRE, SRA, Appraisal Research Counselors ."
Thinking Outside the Box-Chicago Developers A Panel of Chicago Developers moderated by Gail Lissner, CRE, SRA, Appraisal Research Counselors October 20, 2010 8:30-10:30 am Hosted by Lincoln Park 2520 Sales Center Address: John Hancock Center, 875 N. Michigan Ave, Suite 3980.
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Marquette venture refinances northwest suburban apartments
Crain's Chicago Business, 10/4/10
"... according to Appraisal Research Counselors."
The owner of the Bourbon Square apartment complex in Palatine refinanced the 612-unit property with a $57.0-million loan through the U.S. Department of Housing and Urban Development (HUD), according to Horsham, Pa.-based Berkadia Commercial Mortgage LLC, which arranged the loan. The borrower, a joint venture including Naperville-based Marquette Cos., paid $78 million in 2006 for the property at 500 E. Constitution Drive, with plans to convert the apartments to condominiums. But Marquette dropped that idea when the condo market crashed. The new fixedrate, 35-year loan, through HUD's 223(f) multifamily program, partially replaces two loans totaling $79.5 million from Bank of America that the Marquette venture used to finance its acquisition. Bourbon Square was 92% occupied at the end of the second quarter, according to Appraisal Research Counselors.
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Deal to sell stake in Aqua apartments collapses
Crain's Chicago Business, Alby Gallun, 10/4/10
"... according to Chicago-based Appraisal Research Counselors."
A Dallas-based investor has backed out of what would have been the biggest local apartment sale of the year, a $189-million deal to invest in Aqua, the prominent 82-story East Loop tower with wavy balconies. Behringer Harvard Multifamily REIT I Inc. terminated its agreement to buy a 75% stake in the 474 apartments, parking and commercial space in the high-rise at 225 N. Columbus Drive, according to a Securities and Exchange Commission filing last week. The real estate investment trust exercised its “right to terminate for any reason during the inspection period,” the filing says. “We just weren't able to get it done,” says David Carlins, president of Chicago-based Magellan Development Group LLC, Aqua's developer and owner. Behringer Harvard placed several conditions on the transaction, including a requirement that Magellan complete its sale of 18 floors in the tower that would house a hotel. That sale, to Carlson Hotels Worldwide, is on track to close near the end of the month, Mr. Carlins says....
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Vulture investors purchase empty Chicago condo towers with eye on rental market
Crain's Chicago Business, Edie Baeb, 9/27/10
"...agrees Gail Lissner, a vice-president at Appraisal Research."
Monday, September 27th, 2010 Welcome, William! My Settings Log out Contact Us Classifieds Subscribe Now Home > This Week's Crain's > News > ShareThis Print | Reprints 0 comments | Related Stories ' It's hard to say whether we'll see a flood or a trickle' of deals. — Marc Davidson, managing director, AEW Capital Management L.P. From this week's In Other News Vulture investors purchase empty Chicago condo towers with eye on rental market By: Eddie Baeb September 27, 2010 Vulture investors are snapping up almost 400 unsold condominiums in three downtown towers with plans to rent them out, deals that will reduce the condo glut but boost competition in the apartment market. A Boston real estate investment giant and a local apartment firm teamed up this month to buy about 185 units in two busted condo projects in the West Loop and Gold Coast, paying $35 million, according to sources familiar with the matter. Separately, sources say, a South Loop tower with about 200 unsold units is moving toward a sale in the $45-million range.....
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City's new condo conversion rules come too late for some
Chicago Tribune, Mary Ellen Podmolik, 9/17/10
"... said Gail Lissner, vice president at Appraisal Research Counselors."
Complaints from renters had already piled up at the Metropolitan Tenants Organization by the time the city of Chicago formed a committee in 2007 to address condominium conversions and their impact on tenants. Last week, almost three years after the first meeting of a condominium conversion task force, Mayor Richard Daley proposed an ordinance intended to boost the protections afforded to tenants when their building "goes" condo. Right now, it's a moot point. In downtown Chicago, condo conversions peaked in 2005, when almost 4,000 apartments were converted into condos. The number plunged after that, and for 2008, 2009 and this year the number of downtown building conversions was zero, zero and zero, according to data compiled by Appraisal Research Counselors....
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Suburban apartment complex sells for $59 million
Crain's Chicago Business, Alby Gallun, 9/15/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors..."
A Boston pension-fund adviser paid nearly $59 million last week for a high-end apartment complex in West Dundee, the largest suburban sale of the year in a rebounding multifamily investment market. TA Associates Realty LLC acquired the 352-unit Amli at Canterfield from Amli Residential Partners LLC, a Chicago-based apartment investor that has owned the northwest suburban complex since 2004, property records show. It’s a sign that large institutional investors are getting more aggressive pursuing multifamily properties after a post-credit crisis pullback. Investor demand for suburban apartments has been building over the past year amid rising occupancies and rents, low interest rates and easy access to financing through governmentsupported lenders Fannie Mae and Freddie Mac. First-year yields, or capitalization rates, which move inversely to prices, have fallen as a result, dipping below 6% on the best properties. “There’s not a lot for sale in Chicago right now. So there’s a lot of competition when properties are for sale,” says Mark Stern, senior vice-president at Waterton Associates LLC, a Chicago-based apartment investor....
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Home Sellers Continue to Slash Prices
Yahoo! Fianance, CNBC, 9/15/10
"Russ Haraus, of Appraisal Research Counselors in Chicago, shares..."
Home sellers continue to slash their asking prices, according to Trulia.com...
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Discussion on Housing From the Ground Up
Texas Real Estate Magazine, CNBC's On the Street with Erin Burnett, 9/6/10
"Russ Haraus, a Vice President at Appraisal Researh Counselors..."
Watch video of discussion on whether the housing market has hit a bottom that aired on CNBC's on the Street, with Russ Haraus, Appraisal Research Counselors; our own Steve Haines, Texas Estate Magazine; and Charles Cohen, Cohen Brothers Realty.
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Shipka, Stein win condo loan extension
Crain's Chicago Business, Andrew Schroedter, 9/1/10
"... says Gail Lissner, a vice president at Appraisal Research Counselors..."
Developers Ronald Shipka Sr. and Richard Stein have won a key loan extension on the slow-selling first tower at Walton on the Park and have scrapped plans for a second condo high-rise on the site. Now, their joint venture is considering renting out the nearly 100 unsold units in the 201-unit tower, completed earlier this year at State Street and Delaware Place on the Near North Side, according to a lawsuit by two prospective buyers....
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Condo sales up - New construction running ahead of 2009
Chicago Journal, Don DeBat, 9/1/10
"... said Gail Lissner, vice president of Appraisal Research Counselors."
As bleak as Chicago’s new-construction condominium market looks, there are a few rays of sunshine filtering through the gloom, real estate analysts say. “With 406 net new-construction condo sales in the first two quarters, 2010 is still tracking to be a stronger year than 2009 when developers marketed a total of 572 units for the whole year,” said Gail Lissner, vice president of Appraisal Research Counselors...
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Appraisal Research: Light traffic, low conversion ratio among condos
Yo Chicago, Joseph Askins, 8/31/10
"... according to Appraisal Research Counselors' latest Residential Benchmark Report."
New condo developments in Chicago saw an average of 12 visits by prospective buyers per week in the first half of 2010, according to Appraisal Research Counselors‘ latest Residential Benchmark Report. Traffic peaked at around 22 or 23 visits per development in late March and early April, as the April 30 deadline for home buyer tax credits drew near, and hit a low of six or seven visits around the beginning of July. So far, about 5 percent of those visits convert into actual sales. That’s about even with 2009’s conversion ratio, a little better than 2008’s bottom of just 3 percent, and well below a peak in 2009 of almost 16 percent. Every week, Appraisal Research collects sales activity figures from 70 to 100 developments ranging from nine-flats to 300-unit high-rises. Although the information is published in ARC’s Downtown Chicago report, the traffic study includes developments from all over the city....
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Hot downtown apartment market piques developer interest
Crain's Chicago Business, Alby Gallun, 8/30/10
"... says Appraisal Research Vice-president Ron DeVries."
The downtown apartment market is on such a roll that developers like Tony Rossi are getting ready to start building again. Mr. Rossi, president of Chicago-based RMK Management Corp., is putting together cost estimates for a 44-story tower in the Loop and expects to start soliciting lenders in the next few weeks. Leasing at a recently completed project Mr. Rossi co-developed in River North has been surprisingly strong, giving him the confidence to push forward with another one. “The leasing pace has been really good,” he says. “I don't want to uncross my fingers, but we're pretty happy right now.” So are a lot of his competitors. The occupancy rate at top-tier downtown apartments rose to 94.5% in the second quarter, up from 93.6% in the first quarter and 93.4% in the year-ago period, according to a recent report by Appraisal Research Counselors, a Chicago-based consulting firm. It was the highest Class A occupancy rate in nearly three years. Net effective rents, which include concessions such as free rent, rose to $2.22 a square foot in the quarter, up 2.8% from the first quarter and 2.3% from the year-earlier period, the Appraisal Research report says....
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Chicagoland Apartment Association event
Crain's Chicago Business, 8/27/10
"Panelists included Ron DeVries of Appraisal Research Counselors..."
Greg Lozinak, left, of Waterton Residential moderated the panel discussion. Panelists, beginning second from left, were Ron DeVries of Appraisal Research Counselors, Jerry Gawlik of Berkshire Properties, Bruce Webster of Lincoln Property Co., Dan Woodworth of Reside Living and Kellie Sanders of Village Green.
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'It's a slow repair' for condo market as experts look to 2013
Chicago Sun Times, David Roeder, 8/25/10
"... Appraisal Research Counselors said..."
In Chicago, where the cry "Wait 'til next year" is a common refrain, the condominium market is getting its own version of a losers' lament: "Wait 'til 2013." If you are a condo investor, owner, builder, Realtor or anybody else with a vested interest in rising condo prices, the market probably won't appear stable for three years. That consensus view emerged Tuesday in interviews with condo experts commenting on the latest data on housing, numbers that threw the stock market into a tizzy....
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Majority Thinks Renting Is Better Option, Chicago Apartments Swing to Owners'
National Apartment Association - The Industry Insider, Don DeBat, Chicago Sun times, 8/25/10
"Ron DeVries, vice president of Appraisal Research Counselors, remarks...."
The U.S. Census Bureau reports that its Housing Vacancy Survey found that overall homeownership has declined five years in a row from a 20- year high of 69.1 percent in the first quarter of 2005. The rental apartment market has benefited, as a result. The number of occupied apartments in 64 major U.S. markets nationwide increased by 215,000 in the first half of the year, according to MFP Research. According to a recent survey of 2,000 adults commissioned by the National Apartment Association, 76 percent of consumers now believe renting to be a better option than owning. Roughly 50 percent of those respondents cited financial reasons, while 64 percent cited having no responsibility for upkeep and repairs. Looking at individual markets, rents in the Chicago area are rising again and owners and managers are quite pleased. Ron DeVries, vice president of Appraisal Research Counselors Ltd., remarks, "Over the past three years, net rent growth in the suburbs has amounted to a positive 0.8 of 1 percent. There is a clear rebound in the rental market." One-bedroom units in the Windy City now have a median rent of $890 a month, while two-bedroom units are at $1,105. Consequently, concessions are now being handed out in only 56 percent of Chicago-area rental communities. Another trend that is evolving in Chicago's apartment market is some major apartment managers phasing out security deposits in favor of move-in fees.
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Price Cuts May Heat Up This Fall With More New Condo Developments
Best Chicago Condos, 8/25/10
"ARC vice president Gail Lissner was quoted..."
With last week’s news that Lincoln Park 2520 now has construction financing in place and should start delivering in early 2012 and be completed by summer 2012, most would consider it a positive sign for the Chicago real estate market. So far Lincoln Park is the only major development set to deliver in 2012, with the next closest being the Ritz-Carlton Residences with 86 luxury Chicago condos in 2011. But a recent article in the Tribune points out that the latest report from Appraisal Research Counselors notes that 25% off all downtown Chicago condo projects experienced contract walk-away (negative sales) from April through June of this year and 21% of them made no new sales at all during that time. Adding another 229 units to the mix could have mixed results....
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New condo project adds upside to a down market
Chicago Tribune, Mary Ellen Podmolik, 8/20/10
"... said Gail Lissner, an Appraisal Research vice president."
Monday's announcement that Lincoln Park 2520 had secured construction financing and that its development would proceed is a welcome piece of news for the local new-construction condo market. Chicago Spire and Waterview Tower are gathering cobwebs, and the lone new project that's really gotten off the ground is the ultra-high-end Ritz-Carlton Residences, an 86-unit development that will be the only building to deliver units to the market in 2011. That's not necessarily a bad thing, because the initial exuberance for downtown condos earlier this year, brought about by aggressive marketing campaigns and federal homebuyer tax credits, seems to have foundered in the second quarter. On the same day that Ricker-Murphy Development LLC and GE Pension Trust affiliate Lake Tower Development LLC announced plans to move forward with Lincoln Park 2520, Appraisal Research Counselors painted a picture of a downtown residential sales environment that is more sluggish than it was during the second quarter of 2009. And it's not like sales were setting the world on fire a year ago either....
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Majority thinks renting is better option
Chicago Sun Times, Don DeBat, 8/18/10
"... noted Ron DeVries, vice president of Appraisal Research Counselors."
Mortgage rates may be at a 50-year low, but a soft job market and consumer worries about obtaining a loan and maintaining a residence is keeping many potential home and condominium buyers on the fence, experts say. That’s probably the biggest reason the national homeownership rate slipped to 66.9 percent in the second quarter of 2010, compared with 67.4 percent during the same quarter in 2009. The U.S. Census Bureau’s Housing Vacancy Survey reported that overall homeownership has declined five years in a row from a 20-year high of 69.1 percent in the first quarter of 2005....
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ARC: High demand for downtown rentals
Yo Chicago, Joseph Askins, 8/18/10
"Appraisal Research Counselors on downtown apartment inventory, pricing, trends and incentives..."
Appraisal Research Counselors on downtown apartment inventory: Demand for downtown apartments continues to expand at a record pace. There are 2,146 more occupied rental units downtown in 2Q ‘10 vs. 2Q ‘09 — 698 units were absorbed in 2Q ‘10 alone. We expect the new product (2,324 units) delivering this year, combined with the remaining units at existing product, to be leased up by fall 2011. By 3Q ‘11, the market will transition to an overall shortage of rental units downtown. We project the number of occupied survey units to increase by 44.6 percent from 1Q ‘07 to 3Q ‘11 — an additional 6,570 renters downtown compared to early 2007....
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Chicago luxury condo project gets $170 million building loan
Daily Herald, Bloomberg News, 8/17/10
"... said Gail Lissner, a vice president at Appraisal Research Counselors..."
A luxury Chicago condo project got a $170 million construction loan in one of the city's largest residential financings since the credit crisis. The Americas division of Sumitomo Mitsui Banking Corp. is leading a group of lenders on Lincoln Park 2520, the project's developers said in an e-mailed statement today. The development group includes an affiliate of General Electric Pension Trust....
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Deal extends $600M construction loan on Trump Tower
Chicago Tribune, Mary Ellen Podmolik, 8/17/10
"... according to Appraisal Research Counselors."
development of his Trump International Hotel & Tower in Chicago. Trump and his lenders, led by Deutsche Bank Trust Co. Americas and Fortress Credit Corp., last week agreed to extend the term on an approximate $600 million construction loan for five years. So, all litigation between the parties has been dismissed....
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Downtown condo sales lag as tax credits end
Crain's Chicago Business, Alby Gallun, 8/16/10
"... Appraisal Research Vice-president Gail Lissner."
The market for new downtown condominiums remained stuck in the doldrums in the second quarter, as popular tax credits for home purchases expired and the economy lost momentum. Downtown developers sold 150 condos and townhomes in the quarter, down from 256 in the first quarter and 313 in the year-earlier period, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm. Developers are still on track to sell more condos than they did last year — but not by much. “We're just continuing to plod along,” says Appraisal Research Vice-president Gail Lissner....
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Suburban apartment rents back near peak
Crain's Chicago Business, Alby Gallun, 8/9/10
"... says Ron DeVries, vice-president of Appraisal Research Counselors..."
The suburban apartment market continued its comeback in the second quarter, with rents nearing their peak hit two years earlier, before the economy tanked. Suburban landlords are flourishing again despite the lousy job market, which usually depresses demand for apartments. Their savior: the shaky residential market, which has made many renters wary of buying a house or condominium. “Right now, people are choosing the least-risk decision, and that's to rent,” says Ron DeVries, vice-president of Appraisal Research Counselors, a Chicago-based consulting firm that tracks the local apartment market....
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$47-million apartment sale signals suddenly 'overheated' market
Crain's Chicago Business, Alby Gallun, 8/4/10
"... according to Appraisal Research Counselors..."
Money continues to flow back into the suburban apartment market, this time in Schaumburg, where a local investment firm has agreed to buy a 428-unit property for more than $47 million. Naperville-based Marquette Cos. has signed a contract to buy the Lakes of Schaumburg from Cornerstone Real Estate Advisors LLC, according to people familiar with the transaction. Cornerstone, a subsidiary of Massachusetts Mutual Life Insurance Co., has owned the complex at 801 Belinder Lane near Interstates 90 and 290 since 1989....
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AI in the News: AI President’s Article Featured in National Trade Magazine
Appraiser News Online (Appraisal Institute), 8/4/10
... Also appearing in national media coverage this past week were Howie Gelbtuch, MAI, the focus of a lengthy feature in The Wall Street Journal, Gail Lissner, SRA, on REJournals.com, and Jonathan Miller, Associate member, on Bloomberg.com...
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Housing From the Ground Up
CNBC, Discussion with Erin Burnett, 8/3/10
"Russ Haraus, a Vice President at Appraisal Researh Counselors..."
Discussing whether the housing sector has hit a bottom, with Russ Haraus, Appraisal Research Counselors; Steve Haines ,Texas Real Estate Magazine; and Charles Cohen, Cohen Brothers Realty....
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Absorption in Condos
BisNow, 7/26/10
"Appraisal Research Counselors' Gail Lissner says..."
With just 1.1k new condos being delivered this year and fewer than 100 coming online in 2011, Appraisal Research Counselors' Gail Lissner says absorption should start to take place in the downtown condo market. Gail led off the panel at the REIA monthly breakfast on Thursday. For the roughly 3k unsold new condo units downtown, discounting is starting to work, especially in big projects with large vacancies like 565 Quincy and 310 S. Michigan, meaning fewer auctions, Gail said. Developers are offering units at 40% off, but since no one is sure if that's 40% off of a 2007 price or a 2010 price, she says, they may still be getting close to market rate.
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Wal-Mart Cracks Chicago by Splitting Union, Non-Union Workers
Bloomberg News, Leslie Patton and Matthew Boyle, 7/22/10
"... said James Kutill, a vice president with Chicago-based Appraisal Research Counselors..."
Wal-Mart Stores Inc.’s divide-and- conquer strategy prevailed in Chicago by pitting construction workers against employees who will stock shelves and ring registers. The biggest U.S. retailer reached a deal with the building trades union two weeks before the city council unanimously approved Chicago’s second store. Those workers will erect all Wal-Mart facilities in northern Illinois during the next three years, according to a labor agreement signed by Patrick Hamilton, Wal-Mart’s vice president of construction. The non-union employees who will staff the stores in the nation’s third-largest city have no such agreement. “Wal-Mart played on the whims of the building trade unions, and the rest gave in,” Reverend Booker Vance, a spokesman for Good Jobs Chicago, a coalition of local unions, congregations and community groups, said in a telephone interview. “You have a lot of smoke and mirrors, and Wal-Mart would like to give the impression that they acted in good faith, but they have not.” Nelson Lichtenstein, director of the Center for the Study of Work, Labor, and Democracy at the University of California at Santa Barbara and author of “The Retail Revolution: How Wal- Mart Created a Brave New World of Business,” agreed with Vance. The United Food and Commercial Workers International Union and the Chicago Federation of Labor, an umbrella organization representing 300 unions in the area, were “sold out by the building trades, who are still pretty powerful in the city,” Lichtenstein said in a telephone interview....
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Wal-Mart Cracks Chicago by Splitting Union, Non-Union Workers
Greater Southeastern Massachusetts Labor Council, Bloomberg News, 7/22/10
"... said James Kutill, a vice president with Chicago-based Appraisal Research Counselors..."
Wal-Mart Stores Inc. [2]’s divide-and- conquer strategy prevailed in Chicago by pitting construction workers against employees who will stock shelves and ring registers....
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New York firm buys second DuPage apartment complex
Crain's Chicago Business, Alby Gallun, 7/21/10
"... according to Appraisal Research Counselors..."
A New York investment firm has acquired its second DuPage County apartment complex in seven months, paying $30.8 million for a 252-unit property in southwest suburban Woodridge. Edge Principal Advisors LLC, which bought a 295-unit Wheaton property in January, decided to come back for more, closing two weeks ago on its purchase of Lincoln at Seven Bridges in Woodridge from the Multi-Employer Property Trust, a $3.8- billion real estate investment fund. It’s hard to get zoning to build apartments in DuPage County, limiting competition, one reason Edge likes the area. “We feel like it’s a great long-term market to invest in,” says Edge Principal Jeffrey Walker....
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Foreclosures hit suburban condo market
Chicago Tribune, Mary Ellen Podmolik,, 7/21/10
"... said Ron DeVries, a vice president at Appraisal Research Counselors..."
Some of the most recent Chicago-area homes to enter foreclosure are hard to spot. There are no weedy front yards or plywood-covered windows. That's because they are condos. While single-family homes continue to represent the bulk of initial foreclosure filings in the Chicago area, the rate at which condominiums are entering the foreclosure process, particularly in parts of suburban Cook County, is startling, according to a study to be released Wednesday. Condo foreclosure filings within the city of Chicago rose 37.5 percent during the year's first half, but add in suburban condo foreclosures, particularly in northwestern Cook County, and regional condo foreclosures have swelled 53.8 percent compared with 2009's first half, the Woodstock Institute study found....
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Foreclosures hit suburban condo market
BigBuilder Online (Hanley Wood), Mary Ellen Podmolik, Chicago Tribune, 7/21/10
"... said Ron DeVries, a vice president at Appraisal Research Counselors..."
Some of the most recent Chicago-area homes to enter foreclosure are hard to spot. There are no weedy front yards or plywood-covered windows. That's because they are condos. While single-family homes continue to represent the bulk of initial foreclosure filings in the Chicago area, the rate at which condominiums are entering the foreclosure process, particularly in parts of suburban Cook County, is startling, according to a study to be released Wednesday. Condo foreclosure filings within the city of Chicago rose 37.5 percent during the year's first half, but add in suburban condo foreclosures, particularly in northwestern Cook County, and regional condo foreclosures have swelled 53.8 percent compared with 2009's first half, the Woodstock Institute study found....
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Early buyers in Trump's tower pocket profits while he presses for loan extension
Crain's Chicago Business, Alby Gallun, 7/6/10
"... says Gail Lissner, vice-president at Appraisal Research Counselors..."
As Donald Trump negotiates to buy more time from lenders on his downtown high-rise, some early buyers in the high-end condominium-and-hotel tower have cashed out at a handsome profit. Betting on The Donald paid off for most of the buyers who have resold their residential and hotel condos since the 92-story Trump International Hotel & Tower opened more than two years ago. Of the 31 units that have changed hands, 18 sold for a gain, and the average unit sold for 12% more than the original price paid to the developer, according to county property records....
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Price cuts mount as condos linger
Chicago Tribune, Mary Ellen Podmolik, 7/4/10
"... said Gail Lissner, a vice president at Appraisal Research Counselors."
A trio of condo developments — one small, one medium and one large — announced price cuts recently as the market readjusts in a post-tax credit market and lenders show their nervousness about the summer selling season. Price cuts in Chicago's condo market are nothing new, particularly downtown. Earlier this year, 565 Quincy, 200 North Dearborn, 222 E. Pearson and Metropolitan Tower all trimmed their advertised prices. Other buildings conducted auctions and then set new prices for the remaining units, based on the auctions. The size and scope of the decreases, at Parkside of Old Town, The Columbian and Wabansia Row, vary. The constant, though, is lenders' efforts to jump-start stalled sales in new buildings....
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What's Driving the Sale of Downtown Luxury Condos?
Chicago Magazine, Dennis Rodkin, 7/1/10
"As Gail Lissner of Appraisal Research Counselors notes..."
In the first few months of 2010, as some local developers slashed prices or staged auctions on their newly built condominiums, a small segment at the upper end of the condo market flourished. As Gail Lissner of Appraisal Research Counselors notes, “There are always wealthy people with the ability to buy.” The big difference lately is that those well-heeled folks have been shelling out princely sums to buy luxurious new condos in downtown high-rises. “These are not speculators buying cookie-cutter condos,” says Lissner. “By and large, they are buying to live in these really high-end, unique places.” ...
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Chicago Real Estate Council Luncheon
Crain's Chicago Business, 6/25/10
"... James Kutill of Appraisal Research Counselors attend..."
Jon Schultz of Peregrine Group, left, and James Kutill of Appraisal Research Counselors attend the Chicago Real Estate Council's luncheon panel at Maggiano's last week on alternative asset class investments in real estate.
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US Apartment Rental Market Shows Signs Of Improvment
NuWire Investor, written by: National Real Estate Investor, 6/24/10
"... according to consulting firm Appraisal Research Counselors."
SHARE RSS PRINT E-MAIL COMMENTS The first quarter of 2010 saw a slight gain in US rental prices — the first since 2008. While the apartment rental market appears to have bottomed out, a high unemployment rate for young people, and a growth in the inventory of single-family homes and condos entering some markets, present challenges for recovery. See the following article from National Real Estate Investor for more on this. After two years of rising vacancies and slumping rents, apartment owners have reason to be cheerier these days. According to the latest survey of 169 markets across the U.S. by researcher Reis, the national apartment vacancy rate peaked at a record 8% in the fourth quarter of 2009 and remained unchanged in the first quarter of 2010. Asking rents increased by a scant 0.1% in the first quarter, but that was the first gain since the third quarter of 2008....
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Naperville apartment complex to fetch over $41 million
Crain's Chicago Business, Alby Gallun, 6/23/10
"... says Appraisal Research Vice-President Ron DeVries."
A Northbrook-based investment firm has agreed to pay more than $41 million for a 400-unit apartment complex in west suburban Naperville that was hit with a foreclosure suit last year. Banner Realty LLC is buying McDowell Place from a fund managed by New York-based investment manager BlackRock Inc., according to people familiar with the transaction. It is the first local acquisition in six years for Banner, which owns more than 5,100 apartments in the Midwest, and further evidence that investor demand for multifamily properties has bounced back from the credit crisis. McDowell Place looked like a victim of the crisis in May 2009, when lender Metropolitan Life Insurance Co. filed to foreclose on the property at 1647 Westminster Drive. MetLife alleged that BlackRock failed to pay back a $33-million loan when it came due....
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Apartments Stage a Comeback as Renters Return in Surprising Numbers
National Real Estate Investor, Ben Johnson, NREI Contributing Writer, 6/23/10
"... according to consulting firm Appraisal Research Counselors."
After two years of rising vacancies and slumping rents, apartment owners have reason to be cheerier these days. According to the latest survey of 169 markets across the U.S. by researcher Reis, the national apartment vacancy rate peaked at a record 8% in the fourth quarter of 2009 and remained unchanged in the first quarter of 2010. Asking rents increased by a scant 0.1% in the first quarter, but that was the first gain since the third quarter of 2008. Some 20,000 apartment units were absorbed in the first quarter of 2010, which is the strongest firstquarter showing in the past 10 years, according to Victor Calanog, director of research at Reis. “The multifamily market appears to be on the cusp of recovery. If so, pricing and transaction activity will rise and the window of opportunity for landing good deals may close soon,” says Calanog. Rental demand drove the occupancy rate for downtown Chicago apartments higher in the first quarter, to 93.6% from 91.4% in the fourth quarter of 2009, according to consulting firm Appraisal Research Counselors. The latest results surprised long-time industry watchers, including Robert Bach, senior vice president and chief economist at Grubb & Ellis....
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RMK Begins Leases at $82M Apt. Tower
Globe Street, Robert Carr, 6/22/10
... according to Appraisal Research Counselors..."
Residents have begun moving into the new $82-million Parc Huron apartment tower here. Locally-based RMK Management is leasing units in the 21-story building, which started out as a condo project. M&R Development, a sister company to RMK, bought the project for $8.3 million in 2008 from Miami-based Lennar Corp. when it was a planned condo building. However, with the market shift, RMK officials said the River North tower made more sense as an apartment building....
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Downtown Chicago rental market soaring
Chicago Tribune, Mary Ellen Podmolik, 6/13/10
"Ron DeVries, vice president at Appraisal Research Counselors, predicts..."
Poor housing market, new projects' high-end amenities encourage would-be buyers to rent - One morning last week, Fabio Mazzilli warmed up by shooting hoops on a full-size basketball court and later relaxed in an outdoor spa tub before getting ready for work. He wasn't at the nearby East Bank Club. Mazzilli had walked across the street from his apartment to enjoy the perks of the new apartment building he and his wife will relocate to later this month. "I feel I can really relax, be isolated and recharge my batteries," Mazzilli said. "The amenities are what sold me." This year, six buildings brimming with amenities and high-end design will add more than 2,200 apartments to the downtown Chicago rental market, including Alta at K Station, at 848 units the largest apartment complex to open downtown in at least 11 years. Until recently, this year's influx of new units into a tough economy, particularly after the addition of almost 1,300 apartments downtown in 2009, had developers holding their breath....
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The Upside Down Recovery: Part Two
Multifamily Executive, Chriss Wood, 6/4/10
"... we fall right in line with the [Appraisal Research Counselor] data."
Multifamily operators are forced to account for concessions, as effective rent comps are vital for recovery benchmarking. With nearly 5,000 apartment units added to downtown Chicago since 2008 and unemployment hovering in the low doubledigits, you’d think the Windy City is a multifamily market nightmare. You'd be wrong. Data released May 25 by Chicagobased real estate consulting firm Appraisal Research Counselors shows downtown apartment occupancy on the increase, at 93.6 percent in the first quarter, a 2.7 percentage point increase from just a year earlier and an improvement from 2009 fourth quarter occupancy levels of 91.4 percent....
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Tishman Speyer restructures debt on Chicago office buildings
Chicago Daily Herald, Bloomberg News, 6/4/10
"... James Kutill, a vice president with Chicago-based Appraisal Research Counselors..."
Tishman Speyer Properties LP reached an agreement with its lenders to restructure debt on a group of downtown Chicago office properties that it bought from Blackstone Group LP at the height of the U.S. property boom. "We can now move forward quickly to meet current obligations and complete all leasing and capital projects, now and into the future," Casey Wold, a Tishman senior managing director, said in an emailed statement. Tishman, a New York-based real estate investor, had been in discussions since at least last year with its lenders to rework the loans. Among the creditors was the Federal Reserve Bank of New York, which acquired a stake in the debt when it facilitated the sale of Bear Stearns Cos. in 2008. Tishman bought the Chicago buildings from an affiliate of Blackstone for $1.72 billion at the height of the commercial real estate market. Tishman simultaneously sold one of the buildings to an investment fund of Houston-based Hines. Blackstone had acquired the towers in its purchase of billionaire Sam Zell's Equity Office Properties Trust in 2007. Robert Lawson, a spokesman for Tishman, declined to comment on terms of the restructuring. Jack Gutt, a spokesman for the New York Federal Reserve Bank, also declined to comment. The properties tied to the restructuring are One N. Franklin St., 161 N. Clark St., 10 & 30 S. Wacker Dr., the Civic Opera Building on Wacker Drive, and 30 N. LaSalle St. Demand for office space in downtown Chicago is "pretty slow," James Kutill, a vice president with Chicago-based Appraisal Research Counselors, said in a telephone interview. "There are some people out there looking but generally it's slow," Kutill said....
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3 deals invigorate suburban apartment market
Crain's Chicago Business, Alby Gallun, 6/2/10
"... says Ron DeVries, vice-president at Appraisal Research Counselors..."
Three suburban apartment complexes are changing hands, perking up a local multifamily investment market that’s off to a slow start this year. In the biggest deal, a venture led by Chicago-based real estate firm Golub & Co. has agreed to buy Clover Creek, a 504-unit property in west suburban Lombard, for more than $45 million, according to people familiar with the transaction. Golub and an unidentified partner are acquiring the complex at 830 Foxworth Blvd. from a venture including Boston-based Intercontinental Real Estate Corp., which paid $48.2 million for the property in 2004. Clover Creek was listed for $49.5 million. About six miles south, local investment firm Trilogy Real Estate Group LLC has signed a contract to buy the Eagle Creek Apartments, a 346-unit property in Westmont that is listed for $24.5 million, say people with knowledge of the deal. In the third and smallest transaction, property records show that a group including local investors Jeffrey Annenberg and Greg Moyer has acquired the 239-unit Park Colony apartment complex in northwest suburban Des Plaines for $10.6 million....
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Suburban apartments rents show first annual gain since 2008
Crain's Chicago Business, Alby Gallun, 6/1/10
"... says Appraisal Research Vice-President Ron DeVries."
Suburban apartment landlords are pulling out of a two-year slump amid signs that the job market has stabilized. The median suburban net rent rose to $1.10 a square foot in the first quarter, up 2.8% from $1.07 in both the fourth quarter and the yearearlier period, according to Appraisal Research Counselors, a Chicago-based consulting firm. It was the first year-over-year rent increase since the third quarter of 2008, before the economy plunged, dragging demand for apartments down with it. The suburban occupancy rate, meanwhile, rose to 92.7% in the first quarter, vs. 92.2% in the fourth quarter and 91.3% a year earlier. “We’re still not where we were a few years ago, but we’re definitely heading in a pretty positive direction,” says Appraisal Research Vice- President Ron DeVries....
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Big, small, cheap, or pricey: The long and the short of Metropolitan Tower
Yo Chicago, Joseph Askins, 5/28/10
"According to Appraisal Research Counselors..."
Equity’s sales team at Metropolitan Tower, 310 S Michigan Ave, was one of the success stories of 1Q 2010, having sold 23 of the tower’s newly renovated condos, even in the face of some tough resale competition. According to Appraisal Research Counselors, the tower was the highest priced building in the downtown Chicago market to engage in significant discounting between January and April....
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Nearly vacant condo tower goes back to lender
Crain's Chicago Business, Eddie Baeb, 5/26/10
"... says Gail Lissner, a vice-president with Chicago-based Appraisal Research."
A Near South Loop site where Chicago gangster Al Capone once had his headquarters, and where Geraldo Rivera famously found nothing in Mr. Capone’s vault, has gained new notoriety as the city’s biggest condo tower to be taken over by its lender in the current housing crisis. The 35-story Lexington Park, near Michigan Avenue and Cermak Road, was surrendered last week by its Irish developer through a deed-in-lieu of foreclosure. The private-equity venture that now owns the property acquired Corus Bank’s the distressed condo loans after the Chicago-based lender failed last fall. Just three buyers have closed on Lexington Park’s 333 units, according to property records. The tower, 2138 S. Indiana Ave., was supposed to be ready for occupancy in 2008. Limerick, Ireland-based Chieftain Group Ltd. borrowed $84 million from Corus in fall 2006 to finance the tower’s construction, and also obtained $10.6 million in financing from 47 individuals in Ireland, according to mortgages recorded in Cook County. A Chieftain executive who had overseen the development declines to comment and referred questions to ST Residential LLC, a venture led by Greenwich, Conn.-based Starwood Capital Group and TPG Capital of Fort Worth, Texas....
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Downtown residential condo construction levels back to the 1990s
Chicago Journal, Micah Maidenberg, 5/26/10
"Gail Lissner, an Appraisal vice president, said..."
Retro crazes and vintage trends bubble up in generational cycles, mostly in the world of style. Thus in recent years has early ’80s New Wave music regained its modish gloss and Ray Ban sunglasses suddenly again became the sun blocker du jour. But now the market for new development projects in the broader downtown area is going through its own retro spell — back to the 1990s. According to the real estate information firm Appraisal Research Counselors, developers will complete construction on 1,133 new condo units and 2,234 new construction rental units this year in an area stretching from Old Town to the South Loop, and including the West Loop out to Ashland....
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Appetite for apartments
Crain's Chicago Business, Lisa Leiter, 5/26/10
"...according to Appraisal Research Counselors.."
Hi. I’m Lisa Leiter. In Chicago Business Today: Appetite for apartments. Downtown landlords are smiling this spring. The occupancy rate for top-tier apartment buildings rose to 93.6% in the first quarter, up from 90.9 percent a year ago. This is according to Appraisal Research Counselors. A key gauge of demand is rising at its fastest pace in the past decade. The number of occupied downtown apartments rose by almost 2,200 units from a year ago....
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Rents up at downtown apartments for first time in 2 years
Crain's Chicago Business, Alby Gallun, 5/24/10
"... says Appraisal Research Vice-President Ron DeVries."
A construction wave coupled with 11.2% unemployment would normally make life miserable for apartment owners, but downtown landlords are holding up surprisingly well. The occupancy rate for top-tier downtown apartment buildings rose to 93.6% in the first quarter, up from 91.4% in the fourth quarter and 90.9% in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based consulting firm. Including concessions like free rent, net rents at Class A buildings rose to $2.16 a square foot, up 3.9% from $2.08 in the fourth quarter and 1.9% from $2.12 in first-quarter 2009. It was the first year -over-year rent increase in two years. “There’s just huge demand for rental product downtown right now, and owners have been quick to capitalize on it,” says Appraisal Research Vice-President Ron DeVries....
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Cutting the Condo Glut
Crain's Chicago Business, Lisa Leiter, 5/21/10
"Gail Lissner, Vice President, Appraisal Research Counselors, says..."
Downtown condo sales. Developer discounts helped boost condo sales in the first quarter. Downtown builders sold 256 condos and townhomes between January and March, more than 4 times the number sold a year ago. This is according to the most recent figures from Appraisal Research Counselors...
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Cap and gown factory rises again as loft development
Chicago Tribune, Mary Ellen Podmolik, 5/21/10
"... Appraisal Research Counselors reports..."
"Absolutely not." That was the instant, and emphatic, answer to a simple question I posed to Nick Kopley. The question was whether Kopley, who heads a multifamily property management and development company, could today get financed the project he started four years ago to turn the E.R. Moore cap and gown factory into lofts....
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Chicago Tribune Mary Ellen Podmolik column...
Verizon Small Business Center, YellowBrix, May 21, 2010, By Mary Ellen Podmolik, Chicago Tribune, 5/21/10
"... Appraisal Research Counselors reports..."
May 21--"Absolutely not." That was the instant, and emphatic, answer to a simple question I posed to Nick Kopley. The question was whether Kopley, who heads a multifamily property management and development company, could today get financed the project he started four years ago to turn the E.R. Moore cap and gown factory into lofts.
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Downtown Chicago condo logjam finally breaks
Home To Chicago (Sue Fox, Realtor, @Properties), Sue Fox, 5/20/10
"... Gail Lissner, vice president at Appraisal Research, told Crain’s..."
And now for some good news… After several years of sluggish sales, condos in downtown Chicago are finally selling at a healthy clip, according to a recent report. Is it time to buy a condo in downtown Chicago? Buyers finally say yes. Downtown builders sold 256 condos and townhomes in the first quarter of 2010, up from 148 in the previous quarter and just 55 in the same period a year ago, according to Appraisal Research Counselors, a real estate consulting firm. Just to be clear, that’s nearly five times as many condos sold as compared to a year ago!...
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Crain's: Huge Reduction In Downtown Developer Condo Inventory
Chicago Now (Tribune), Gary Lucido, 5/18/10
"...according to Appraisal Research Counselors..."
Yesterday Crain's reported a huge decline in the inventory of unsold condos in downtown Chicago - half of what it was two years ago. What drove the decrease? Canceled projects and discounting. According to the article "Downtown builders sold 256 condos and townhomes in the first three months of the year, up from 148 in the fourth quarter and 55 in the year-earlier period, according to Appraisal Research Counselors, a Chicagobased real estate consulting firm"...
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Mondial condos headed back to market
Yo Chicago, Joseph Askins, 5/18/10
"... story on Appraisal Research Counselors’ latest downtown benchmark report..."
If diarrhea and not sleeping at night is trepidation, yes. - Mondial developer Jack Berger, admitting some nervousness to Crain’s about marketing more than 100 newconstruction condos in today’s environment. Last week we learned that Jack was making another attempt at selling off the condos at Mondial, 900 W Huron St in River West, instead of converting the units to apartments. Yesterday, near the end of a story on Appraisal Research Counselors’ latest downtown benchmark report, Crain’s fleshed out some details: Prices at Mondial will now run from the $190s for a junior one-bedroom to the $380s for a two-bedroom, down from a range of the $230s to $500s, according to old Yo posts. Jack will be sending us details on pricing and availability as he gets closer to go-time, so keep an eye out for more in the coming weeks....
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Discounting boosts first-quarter downtown condo sales
Crain's Chicago Business, Alby Gallun, 5/17/10
"... says Appraisal Research Vice-president Gail Lissner."
More price-cutting spurred sales of downtown condominiums in the first quarter, helping developers chip away at a mountain of unsold units built during the bubble. Downtown builders sold 256 condos and townhomes in the first three months of the year, up from 148 in the fourth quarter and 55 in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based real estate consulting firm....
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A recent history of rental concessions in Chicago's suburbs
Yo Chicago, Joseph Askins, 5/12/10
"... From Appraisal Research Counselors‘ latest Apartment & Condo Conversion Benchmark Report..."
From Appraisal Research Counselors‘ latest Apartment & Condo Conversion Benchmark Report for the suburban Chicago market. Along with its quarterly benchmark report on downtown Chicago condos, Appraisal Research also keeps tabs on 266 apartment complexes located in Cook, DuPage, Kane, Kendall, McHenry, Lake, and Will counties....
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Take-Aways: 2010 "Successful Women in Commercial Real Estate"
Chicago Realtor, 5/6/10
"... Gail Lissner, Vice President, Appraisal Research Counselors, said..."
Learning from the Best - More than 100 real estate industry professionals gathered for "Successful Women in Commercial Real Estate," an event "related to what is going on in the industry, and the world, right now," according to Deena Zimmerman, Helios Commercial Realty and 2010 President of Chicago WCR. WCR co-hosted the April 28 event with C.A.R. CommercialForum and Roosevelt University's Goldie B. Wolfe Miller Women Leaders in Real Estate Initiative. Moderated by Zimmerman, preeminent women in Chicago real estate who served as the event's guest panelists included: Gail Lissner, Vice President, Appraisal Research Counselors, focused on data; Goldie B. Wolfe Miller, President, Millbrook Corporate Real Estate Services, focused on suburban transactions; and Victoria L. Noonan, Managing Director, Director of Leasing, Tishman Speyer, Chicago Region, focused on the city.
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Price cut - Discounts pulled in at 1400 N. Lake Shore Drive
Skyline, Ian Fullerton, 5/5/10
"... said Gail Lissner, vice president of Appraisal Research Counselors."
As the gears of the residential real estate market strain to turn again, one development firm recently proved that there’s more than one way to grease the skids. In what has quickly become a fabled marketing event, Chicago-based RDM Development last week auctioned off 26 units at their 1400 N. Lake Shore Drive condominium project, roping in more than $4.2 million in heavily discounted sales with additional deals still pending....
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Today's Commercial Market: Finding Opportunity in Crisis
International Business Times, By Brian Summerfield, Online Editor, REALTOR® Magazine, 5/3/10
In spite of the well-known woes of the commercial real estate market today, the watchword among practitioners in this space seems to be "opportunity." That word came up time and again in a "Women in Commercial Real Estate" meeting I attended on Wednesday. The event featured a panel of leaders in the commercial space: Gail Lissner, vice president of Appraisal Research Counselors; Victoria Noonan, regional leasing director of commercial development firm Tishman Speyer's Chicago portfolio; and Goldie B. Wolfe Miller, one of the top commercial real estate brokers in the country. The event was hosted by the Chicago Association of REALTORS®, the Women's Council of REALTORS®, and the Goldie B. Wolfe Miller Women Leaders in Real Estate Initiative....
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Today’s Commercial Market: Finding Opportunity in Crisis
Realtor Magazine Online, Brian Summerfield, Online Editor, 4/30/10
In spite of the well-known woes of the commercial real estate market today, the watchword among practitioners in this space seems to be “opportunity.” That word came up time and again in a “Women in Commercial Real Estate” meeting I attended on Wednesday. The event featured a panel of leaders in the commercial space: Gail Lissner, vice president of Appraisal Research Counselors; Victoria Noonan, regional leasing director of commercial development firm Tishman Speyer’s Chicago portfolio; and Goldie B. Wolfe Miller, one of the top commercial real estate brokers in the country. The event was hosted by the Chicago Association of REALTORS®, the Women’s Council of REALTORS®, and the Goldie B. Wolfe Miller Women Leaders in Real Estate Initiative....
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2010 Successful Women in Commercial Real Estate Panelist
Chicago Realtor, 4/30/10
Gail Lissner is a vice president at Appraisal Research Counselors, a firm she has been associated with for the past 28 years. A graduate of Washington University, she also holds the SRA designation from the Appraisal Institute. Ms. Lissner engages in residential development appraisal and consulting assignments, particularly focused on downtown Chicago. She co-authors the “Appraisal Research Counselors Downtown Chicago Residential Benchmark Report,” an in-depth analysis and review of the downtown Chicago housing market written on a quarterly basis and used by people who want to make informed investment decisions regarding residential real estate.
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Developers indicted over loans for East Loop projects
Crain's Chicago Business, Eddie Baeb and Alby Gallun, 4/19/10
"... according to a report by Chicago-based consulting firm Appraisal Reasearch Counselors."
A pair of developers who had sought to convert two vintage office buildings in the East Loop into condominiums have been hit with federal fraud charges over loans they received for the projects. Romel Esmail and Bassam Haj Yousif of Global Real Estate Investors LLC are accused of using at least $3.6 million of loan proceeds for their own personal benefit — including the purchase of a vehicle, jewelry and other real estate. The two men were each charged with two counts of bank fraud and three counts of making false statements in bank loan documents, according to a grand jury indictment. The two launched an effort to convert a building at 6 N. Michigan Ave. into condominiums and also acquired the nearby 59 E. Van Buren St. with loans from the former CIB Bank of Hillside....
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It's a buyer's market and a renter's market, too
Northwestern University - Medill News Service, Eleanor Goldberg and Jacquelyn Ryan, 3/22/10
"... Observed Gail Lissner of Appraisal Research Counselors."
Analysts across the board here agree that the next 10 months in Chicago real estate will certainly be defined as a buyer’s market—and a renter’s market too--for the 20-to-30-something set. As both vacancy rates climb and home prices drop to levels not seen since 2003, this generation need not agonize over whether to capitalize on the soft market and tax credit, or sit tight in their sunny Lake Shore Drive rentals. For those positioned to buy a home right now, this could be the opportunity of a lifetime thanks to attractive prices and low mortgage rates. For those not ready to take that plunge though, renting offers competitive deals and compelling advantages too. "I think that there are some excellent buying opportunities out there right now...certainly renting gives you a lot more flexibility,” observed Gail Lissner of Appraisal Research Counselors....
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Refi at Sky 55
Chicago Journal, Micah Maidenberg, 3/4/10
"Ron DeVries, a vice president for the real estate analysis firm Appraisal Research Counselors, said..."
Rental market forces 'tremendous concessions' at South Loop building - The battered economy has a prominent development group seeking permission to restructure the financing behind Sky 55, a glassy, 40-story tower that was one of the first rental buildings to go up in the South Loop during the boom years. Central Station Development Corporation, a firm that has invested deeply in South Loop residential projects, built the tower, located at 1255 S. Michigan, and was helped in that effort with more than $83 million in multi-family housing bonds the city issued in 2004....
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Market Overview: Chicago, Illinois
Red Capital Group, 3/1/10
"Appraisal Research Counselors report..."
Data published by the Chicago Chapter of the Institute for Supply Chain Management suggest that underlying economic trends improved in the fourth quarter, relative to the steep declines observed in previous periods. The seasonally-adjusted Business Barometer Index rose from 46.0 in September to 58.7 in December. Moreover, the index reached 62.6 in February, marking the fifth consecutive month of economic expansion....
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Aqua makes waves as world's best
Chicago Sun Times, David roeder, 2/24/10
"... Appraisal Research Counselors Vice President Gail Lissner said..."
Stunner named 2009 Skyscraper of the Year - The lady trumped The Donald. Jeanne Gang, founder of Studio Gang Architects, designed a residential building called the Aqua at 225 N. Columbus. Aqua was named Tuesday as the 2009 Skyscraper of the Year, an annual award issued by Emporis, a company that sells data about tall buildings. With it comes a Top 10 list of the new buildings Emporis judges best in a calendar year. For 2009, Aqua was ranked first in balloting by the award's jury, Emporis' senior editors. Chicago's Trump International Hotel & Tower finished fifth....
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Developer lands $100 million for West Loop condos
Crain's Chicago Business, Alby Gallun, 2/24/10
"... says Appraisal Research Vice-President Gail Lissner."
Developer Gary Rosenberg says he has lined up $100 million in financing for a 220-unit condo tower in the West Loop, beating the odds in a market where lending for such projects has all but evaporated. With lenders stuck in survival mode and the downtown market awash in unsold condos, many downtown condominium developers are just trying to hang on to what they have. But after a long search, Mr. Rosenberg says he has found a single capital source to provide $100 million in debt and equity for the Catalyst, a 21-story tower at the northeast corner of Washington and Des Plaines....
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Condo market goes on hiatus
Chicago Sun Times, David Roeder, 2/24/10
"... reports Gail Lissner, vice president of Appraisal Research Counselors."
“Condomania” is going to take a vacation in downtown Chicago in 2010 and 2011, forecasters predict. “With only 1,200 new condominiums in the pipeline for construction in 2010, and only 86 units planned for delivery in 2011, the Chicago’s downtown market is returning to production levels reminiscent of the early 1990s when there was very little new condo development activity,” reports Gail Lissner, vice president of Appraisal Research Counselors...
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Job market to keep suburban apartments stagnant
Crain's Chicago Business, Alby Gallun, 2/16/10
"... says Appraisal Research Vice-President Ron DeVries."
Suburban apartment landlords ended 2009 on a flat note, and the bad job market will keep this year from being much better. The median suburban net rent held steady in the fourth quarter, at $1.07 a square foot, unchanged from the previous quarter but down from $1.10 in the year-ago period, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm. The suburban occupancy rate rose to 92.2%, up from 92.0% in the third quarter and 92.1% in fourth-quarter 2008....
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Bargains for condo buyers
Chicago Tribune, Jeffrey Steele, 2/14/10
"... said Gail Lissner, vice president at Appraisal Research Counselors..."
As many downtown condos sit empty, sellers cut prices - Jodi Geoghan couldn't believe her good fortune. She and her husband, Ritchie, had just moved back to Chicago from California in mid-December, taken a sublet on the Gold Coast and needed to buy a new home quickly. The couple got preapproved for a loan, and on Jan. 31 saw an ad for an open house at a condo high-rise development in the West Loop....
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Apartment deals aplenty as supply outstrips demand
Chicago Tribune, Mary Ellen Podmolik, 2/12/10
"... said Ron DeVries, vice president at Appraisal Research Counselors."
A record 2,234 apartments will be added to downtown Chicago this year, increasing the supply of rental units at a time when inventory is already outstripping demand. It's not that interest in downtown living is on the wane. It's just that there aren't enough people for the number of apartments — and increasingly, condos are available for rent. The additions, which come on top of 1,296 units this year, will ratchet up the pressure to trim rents in existing buildings and could lead to a 10 percent vacancy rate in the rental market, said Ron DeVries, vice president at Appraisal Research Counselors. But what's a negative for property owners should be viewed as welcome news for renters this spring. "There is so much supply, the owners are getting very competitive," DeVries said. Luxury apartment rents are at their lowest level since 2005's fourth quarter and rents at more modest buildings are at their lowest level since 2006's first quarter, according to Appraisal Research data.....
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New condo units to test rental market
Chicago Sun Times, David Roeder, 2/12/10
"Ron DeVries, vice president at Appraisal Research, said..."
While condo sales suffer, demand for rental housing remains strong downtown. But the market will face a test in 2010. In a report on apartments, Appraisal Research Counselors said six new projects will bring 2,234 units to the downtown market this year. It's an unusually large addition to the inventory, made possible because developers had an easier time financing rental buildings rather than for-sale condos. Ron DeVries, vice president at Appraisal Research, said the newcomers will put pressure on rents and increase vacancy rates. But he said landlords that hang on could see an improving economy that allows for spikes in rental rates by 2013....
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Downtown condo sales up in 4th quarter
Crain's Chicago Business, Alby gallun, 2/11/10
"... Appraisal Research Vice-President Gail Lissner said..."
Sales of downtown condominiums inched higher in the fourth quarter as developers continued to cut prices to bring in buyers. Downtown builders sold 148 condos and townhomes in the last three months of 2009, up from 56 units in the third quarter and a loss of 253 sales in fourth-quarter 2009, according to Appraisal Research Counselors, a Chicago-based real estate consulting firm. But the market won’t stage a meaningful comeback until the job market recovers and buyers overcome their fear of further price declines. “They have to be convinced that the market has bottomed out and we’re going to see some price appreciation,” Appraisal Research Vice-President Gail Lissner said at lunch presentation Thursday....
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Downtown condo market shrinks for second year
Chicago Sun Times, David Roeder, 2/11/10
"... said Gail Lissner, vice president at Appraisal Research."
Chicago's downtown condominium market shrank for the second straight year in 2009 as meager sales forced developers to put construction plans on hold, said a report released today. Appraisal Research Counselors said 572 condo units sold downtown last year, the lowest number since the company began keeping track in 1997. It also said developers of 1,041 future units cancelled construction plans during the year as several factors drove buyers from the market. They include job loss, inability to get a mortgage, or lack of confidence in condo valuations....
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Davis loses control of Grant Park condo tower
Crain's Chicago Business, Alby Gallun, 2/10/10
"... says Appraisal Research Vice-President Gail Lissner."
Chicago developer Allison Davis has lost control of a slow-selling $117-million condominium tower overlooking Grant Park, rankling an investor in the project who has sued the lender that took it over. A unit of Boston-based Fidelity Investments reneged on a deal to modify an $18.5-million mezzanine loan to the Columbian, a 46-story building at 1160 S. Michigan Ave., according to the lawsuit, filed last week in Cook County Circuit Court....
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Crain’s: Lender takes over the Columbian
Yo Chicago, Joseph Askins, 2/10/10
Fidelity Investments took control of the Columbian high-rise at 1160 S Michigan Ave last week after sending a default notice to developer Allison Davis, Crain’s reports. The takeover has sparked a suit by one of the South Loop tower’s investors, who claims Fidelity backed out of a deal to restructure its $18.5 million mezzanine loan to Davis’ development company. According to Appraisal Research Counselors data cited in the Crain’s article, just 156, or 71 percent, of the Columbian’s 220 condos have sold since the project launched in 2005. Available units are priced from the $270s to more than $2 million....
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More Real Estate Forecasting
Vranas Properties, Paul Vranas, 2/4/10
"... said Gail Lissner, vice-president of Appraisal Research Counselors."
The Chicago Association of REALTORS recently hosted an economic forecast panel for 2010. Chicago Magazine reported 10 highlights of the panel...
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The end of new construction
Yo Chicago, Joseph Askins, 2/3/10
Not forever, mind you — just for the foreseeable future. The Ritz-Carlton Residences, slated for completion in 2011, will be the last new-construction condo project we’ll see in the downtown market for several years. “You can just forget” anything proposed beyond that, says Gail Lissner of Appraisal Research Counselors, “because we’re not going to be seeing those.” Lissner gave an update on downtown market trends during last week’s 2010 Economic Forecast panel, hosted by the Chicago Association of Realtors...
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Turning traffic into sales – it’s not easy
Yo Chicago, Joseph Askins, 2/1/10
"... according to Gail Lissner, vice-president of Appraisal Research Counselors."
One of the ways Appraisal Research Counselors keeps tabs on the downtown market is by tracking buyer traffic to sales centers and open houses on a weekly basis. ARC can then compare this data with weekly sales figures to determine how many visits actually result in contracts. These conversion ratios don’t show up in the executive summaries we receive every quarter, but they were a part of Gail Lissner’s presentation at last week’s 2010 Economic Forecast panel hosted by the Chicago Association of Realtors. According to one of Gail’s slides, just 4 percent of visits to downtown developments resulted in sales last year, down from a peak of 11 percent in 2006....
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Top 10 real estate predictions in 2010
Northwestern University - Medill News Service, Eleanor Goldberg, 1/30/10
"... reported Gail Lissner, of Appraisal Research Counselors."
Four of the city’s real estate all-stars—an appraiser, investor, academic and analyst—spent a little over two hours bemoaning the industry’s bleak 2010 fate at Thursday’s Chicago Association of Realtors Forecast. Then, they boiled their complicated, chart-heavy predictions into a bookmark-sized Letterman-esque top 10 list....
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The alarm bells aren’t ringing
Yo Chicago, Joseph Askins, 1/29/10
A real estate recovery will be difficult without job creation, and Illinois entered the recent economic downturn with one distinct disadvantage: It never really recovered from the last recession. So says Geoffrey Hewings, director of the University of Illinois’ Regional Economics Applications Laboratory, who was the first guest to take the mic at Thursday’s 2010 Economic Forecast panel hosted by the Chicago Association of Realtors. The presentation, moderated by WBBM’s Ron Gleason, also featured Inland Real Estate Group Vice President Joe Cosenza, Hanley Wood Market Intelligence Regional Manager Michael Hart, and Appraisal Research Counselors Vice President Gail Lissner, all of whom gave Realtors updates on the state of the residential, commercial, and industrial real estate markets in the Chicago metro area....
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CAR's 2010 Economic Forecast: The end of new construction in downtown Chicago
You Tube, Gail Lissner (speaker), 1/28/10
"Gail Lissner, vice-president of Appraisal Research Counselors said...."
Is recovery at hand? What does the future hold for the economy? What can buyers and sellers expect in 2010? Are short sales the new selling point? How will the future economic climate affect the housing inventory? The past year has been one of the most challenging for the real estate industry. The C.A.R. 2010 Economic Forecast ...
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Wheaton apartment complex sold to New York firm
Crain's Chicago Business, Thomas A. Corfman, 1/20/10
"... according to Chicago-based residential consulting firm Appraisal Research Counselors."
A little-known New York real estate investment firm is entering the Chicago market with the $45-million purchase of a Wheaton apartment complex, another sign of a pickup in investment activity for residential rental properties. Edge Principal Advisors LLC last week bought the 295-unit Avalon at Danada Farms complex from AvalonBay Communities Inc., an apartment real estate investment trust that has been paring back its holdings here. Apartment lender Freddie Mac, which is backed by the federal government, provided a 10-year, nearly $33.2-million loan, or more than 73% of the $45.45-million purchase price, property documents show. Edge was formed in 2008 with the financial backing of an investor group that includes the principals in New York-based LS Power, a privately held power generation and transmission company, says Jeffrey Walker, a principal with Edge. LS Power has often teamed up with New York hedge fund Luminus Capital Management on deals, including an unsuccessful $7-billion bid in 2008 to buy Calgary, Canada-based TransAlta Corp., that country’s largest independent utility. Luminus isn’t involved in Edge, Mr. Walker says....
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Welcome to Bargainville
Chicago Journal, Don DeBat, 1/20/10
"... said Gail Lissner, vice president of Appraisal Research."
With home and condominium prices starting the year on the edge of a slippery slope, both buyers and sellers are seeking clarity on the future of residential real estate values, experts say. Although the nation’s housing market showed signs of stabilizing in the second half of 2009 and several economic indicators are pointing up, risks of a relapse remain high. Heavy foreclosure activity forecast for 2010 could potentially depress real estate prices further in the hardest-hit areas, according to a new economic outlook by Freddie Mac....
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