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Fifield to buy, expand West Loop apartment building
Crain's Chicago Business, Alby Gallun, 12/26/12
"... said Ron DeVries, vice president at Appraisal Research Counselors..."
Just days after pulling off the biggest downtown apartment sale of the year, Chicago developer Steven Fifield is pouring some of the proceeds from that deal into his next one: the acquisition and expansion of a 58-unit apartment building in the West Loop. Mr. Fifield said he is paying $20 million, or about $345,000 a unit, for Mod, a five-story condominium-turned-apartment building at 1222 W. Madison St. The sale includes a parcel next door, where Mr. Fifield plans to build another 44 apartments. The transaction will generate a fat profit for the seller, a Sam Zell-backed venture that paid $13.3 million for the property about two years ago....
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Streeterville apartment tower to sell for almost $190 million
Crain's Chicago Business, Alby Gallun, 12/19/12
"... according to Appraisal Research Counselors..."
The investment arm of Jones Lang LaSalle Inc. is buying a 60-story apartment tower in Streeterville, the second-biggest downtown multifamily acquisition since the beginning of the year. Chicago-based LaSalle Investment Management has signed a contract to buy Onterie Center, a 615-unit high-rise at 441 E. Erie St., from Boston-based Metropolitan Properties of America Inc., according to people familiar with the transaction. A price could not be determined, but the people estimated it at almost $190 million, or about $309,000 a unit. That's 42 percent more than the $143 million Metropolitan paid for the building in 2005....
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Chicago commercial property values return to 2005 levels
Crain's Chicago Business, Alby Gallun, 12/17/12
"... according to Appraisal Research Counselors..."
After two years of solid price gains, Chicagoarea commercial landlords are back to where they were in 2005. Local commercial property values have risen 37 percent in the past two years but are still well below pre-crash levels, according to a new price index compiled by Real Capital Analytics Inc. Prices today are roughly where they were in mid-2005, when the real estate bubble was still inflating and the Chicago White Sox were on the path to their World Series triumph....
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Buying suburban apartments? He's game
Crain's Chicago Business, Alby Gallun, 12/5/12
"... according to Appraisal Research Counselors..."
Morton Friedkin has become the Pac- Man of the suburban Chicago apartment market. The San Francisco-based apartment investor has acquired nearly 2,000 apartments in the suburbs, 1,676 of them since the beginning of 2011. Now, his company, Friedkin Realty Group, is poised to gobble up two more properties with another 702 units, both in west suburban Bloomingdale. Mr. Friedkin confirmed that his firm has agreed to buy Stratford Place, a 342-unit property at 232 Butterfield Road, and Camden at Bloomingdale, a 360-unit complex at 348 Glenwood Drive. Friedkin is buying the properties from Chicago-based LaSalle Investment Management, which paid a combined $104.8 million for them as the real estate market was peaking in 2007. He declined to disclose a price, but one person familiar with the properties doubted they would fetch that much today....
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Investor looks to flip 15 units at Lincoln Park 2550
Crain's Chicago Business, David Lee Matthews, 11/29/12
"... according to a report from Appraisal Research Counselors..."
An investor who has agreed to buy 15 condominiums in a new luxury high-rise overlooking Lincoln Park is trying to flip them for $10.5 million, a sign that the great condo bust hasn't completely purged the market of speculators. The investor has hired @properties agent Tricia Fox to sell purchase contracts for the 15 condos and 30 parking spaces at Lincoln Park 2550 even before closing on them. To sweeten the deal, the investor, whose identity could not be determined, also is offering to pay property taxes and assessments for a year after the sale....
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MetLife to pay nearly $120 million for Loop apartments
Crain's Chicago Business, Alby Gallun, 11/28/12
"... according to a report from Appraisal Research Counselors..."
MetLife Inc. is poised to pay nearly $120 million for a 389-unit apartment tower in the Loop, the insurer's fourth big high-rise acquisition in downtown Chicago in the past year. The New York-based company has agreed to buy 215 West, a 50-story building at 215 W. Washington St., from a joint venture led by Chicago-based Jupiter Realty Co. that built the highrise in 2010, sources said. MetLife is paying about $305,000 a unit, or about $119 million, for the building, the sources said....
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Is Change Going to Blow Through the Windy City's Housing Market?
PR Newswire, 11/26/12
"... according to Appraisal Research Counselors..."
If you're an investor in Chicago real estate, you're probably ready for 2012 to be over. After all, this year hasn't been a particularly good one in the Windy City. As dismal as the national numbers have been, Chicago's have been worse. By the end of September, 8% of the city's home loans were delinquent. By the end of October, another 3.6% loans were added to that total. Right now, there are 18% more foreclosures in Chicago than there were this time last year -- a much faster rate than the rest of the country is seeing as a whole. In fact, Illinois as a whole has been hit especially hard by foreclosures in 2012. Adding to the problems in Chicago is that Illinois has a particularly slow judicial process. It takes years and years for homes here to officially go from "delinquent" to "foreclosed" -- meaning the "shadow inventory" in the Windy City could wind up being much larger here than in other parts of the country....
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Arc Residential president helping Lincoln Park 2550 sell itself
Crain's Chicago Business, Abraham Tekippe, 11/24/12
"... according to Appraisal Research Counselors..."
WHO: TERE PROCTOR Job: President, Chicago-based Arc Residential, a firm formed by the developers of the Lincoln Park 2550 condominium project to sell out the 218-unit tower, since Sept. 4. Vitals: 60 years old; attended Rosemont College, Rosemont, Pa.; national marketing director, Robert Sheridan & Partners LLC, Chicago, 1977-82; director of sales for 1418 N. Lake Shore Drive, Dunbar Builders, Chicago, 1982-83; director of marketing for 161 E. Chicago Ave., Olympia & York, Chicago, 1984-85; director of sales for 132 E. Delaware St., JMB Realty Corp., Chicago, 1985-91; broker, Koenig & Strey Real Living, Chicago, 1991- 94; broker, Rubloff Residential, Chicago, 1994-99; vice president of sales and marketing for 25 E. Superior St., 65 E. Goethe St. and 21 E. Huron St., Fordham Co., Chicago, 1999-2002; sales executive for the Heritage at Millennium Park, Mesa Development LLC, Chicago, 2002-03; director of sales for Trump International Hotel & Tower Chicago, Koenig & Strey, 2003-08; broker, Koenig & Strey, 2009-12....
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Why 'small ball' is a good sign in condo development
Crain's Chicago Business, Alby Gallun, 11/23/12
"... says Gail Lissner, Vice President at Appraisal Research Counselors..."
It may be years before David “Buzz” Ruttenberg builds another high-rise condo in downtown Chicago. But thinking small is working out for him so far in the post-bubble world. After selling all 48 condominiums in a five-story West Loop development, Mr. Ruttenberg is getting ready to build another 40 nearby. The project would barely have merited notice five years ago, when the Chicago developer was working on a two-tower, 400-unit project on Lake Shore Drive. Now, it offers a small sign that the downtown condo market is starting to get back on its feet—and a preview of what a recovery might look like. Don't expect a run on construction cranes anytime soon....
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Developers plan 71 apartments in Old Town
Crain's Chicago Business, Micah Maidenberg, 11/21/12
"... according to Appraisal Research Counselors."
Two developers that have been scouring the North Side for apartment sites have found one at the southern end of Old Town. A venture between Chicago-based JDL Development Corp. and Norridge-based Harlem Irving Cos. plans a five-story, 71-unit rental building at the southwest corner of Wells and Scott streets, according to JDL President James Letchinger. The project, which is expected to cost about $30 million, would be across the street from a 250-unit apartment complex JDL and Houston-based Hines Interests L.P. debuted earlier this year....
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Downtown rental market is still on a roll
Chicago Tribune, Maru Umberger, 11/18/12
"... according to Ron DeVries, vice president of Appraisal Research Counselors...
If you're one of the growing number of apartment renters in downtown Chicago, take a minute to look down at your feet. Chances are, if you're in one of the fancier buildings, you're paying $2.58 each month for the square foot (or so) that those tootsies occupy. That monthly average third-quarter rent for so-called "A" buildings has been climbing upward for the past few years, when being a tenant suddenly started looking good again to a lot of people who no longer were sure that homeownership is such a good thing, according to Ron DeVries, vice president of Appraisal Research Counselors in Chicago, which studies the downtown housing market....
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Lawsuit opens new front in Ritz-Carlton legal fracas
Crain's Chicago Business, Micah Maidenberg, 11/14/12
"... according to a recent report from Appraisal Research Counselors."
The legal dispute embroiling the Ritz-Carlton Residences is getting messier, triggering a lawsuit from a doctor who had agreed buy a $1.7 million condominium in the Mag Mile tower but now wants out. The 89-unit luxury condo project at 664 N. Michigan Ave. is ready for occupancy, but its developer, Chicago-based Prism Development Co., is locked in a stalemate preventing buyers from moving into their units. The lawsuit shows that at least one buyer has run out of patience, putting pressure on Prism to resolve the dispute. Hilton Hudson, a surgeon, sued two Prism affiliates to recover $173,556 in earnest money he put down when he signed a contract for a $1.7 million condo in 2008. After Prism repeatedly pushed back the date to close on the purchase, he grew frustrated and terminated his contract. Prism won't refund his deposit, according to the complaint, filed in Cook County Circuit Court....
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San Francisco investor to buy Glen Ellyn apartments
Crain's Chicago Business, Alby Gallun, 11/14/12
"... said Appraisal Research Vice-President Ron DeVries."
A San Francisco apartment investor with a taste for the Chicago suburbs has struck again, agreeing to buy a 264-unit complex in west suburban Glen Ellyn. Friedkin Realty Group is acquiring the Berkshires of Glen Ellyn from Berkshire Property Advisors LLC, a Boston-based apartment owner, according to people familiar with the transaction. A price for the property at 325 Ramblewood Drive could not be determined. Friedkin has been an active buyer of apartments in the Chicago suburbs since its first acquisition here in 2008, especially in the past year. Excluding the Glen Ellyn acquisition, the firm has paid $182 million for five suburban properties with 1,705 units, according to Appraisal Research Counselors, a Chicagobased consulting firm. Friedkin Chairman and President Morton Friedkin “is clearly in a position where he's trying to get some scale in operations,” said Appraisal Research Vice-President Ron DeVries. Mr. Friedkin and an executive at Boston-based Berkshire did not return calls. An executive at CBRE Inc., the brokerage handling the sale, also did not return a call....
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Downtown condo sales fall in third quarter
Crain's Chicago Business, David Lee Matthews, 11/13/12
"... said Appraisal Research Vice-President Gail Lissner."
The downtown condominium market may be in recovery mode, but developers still are on pace to sell fewer condos than they sold last year. Developers sold 154 units downtown in the third quarter, down from 182 sales in the second quarter and 229 in the third quarter last year, according to Chicago-based consulting firm Appraisal Research Counselors. The local residential market has rebounded this year, as many homebuyers take advantage of record-low interest rates and low prices. Yet many downtown residents still prefer renting over buying, and the supply of recently built condos has declined so much over the past few years that buyers seeking brand-new units have few choices. In some downtown neighborhoods, such as Streeterville, there are no new options. “We don't have much inventory left at this point,” said Appraisal Research Vice-president Gail Lissner....
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Record downtown apartment rents reflect shortage
Crain's Chicago Business, Alby Gallun, 11/12/12
"... said Appraisal Research Vice-President Ron DeVries."
Rents at top-tier downtown apartment buildings inched up to a new high in the third quarter, but the increases are likely to moderate next year, when a development boom eases a shortage that has given landlords the upper hand. Effective rents at Class A apartment buildings downtown rose to $2.58 a square foot, up 0.4 percent from the second quarter and 7.5 percent from a year earlier, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm. Effective rents include concessions such as free rent. The downtown Class A occupancy rate was 95.6 percent, vs. 96.0 percent in the second quarter and 95.1 percent a year earlier. With more downtown residents choosing apartments over condominiums, demand for rental housing is outpacing supply, giving landlords the power to hike rents without losing tenants. But supply will catch up with demand next year, when developers complete 2,686 units. Another 2,000 are on tap for 2014. “Right now, we're seeing rents reflecting the shortage of units downtown,” said Appraisal Research Vice-President Ron DeVries. “As we head into next year, as these buildings start to lease, the upward pressure on rents is going to subside.” The question is whether the construction boom will result in a glut of apartments, dragging rents and occupancies lower. Mr. DeVries doesn't expect that to happen, predicting instead that rents will continue to rise next year, but at a lower rate — 3 percent to 4 percent annually....
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Obama finds Hope in West Side pickup game
Crain's Chicago Business, David Roeder, 11/7/12
"... Ron DeVries, vice president of Appraisal Research Counselors..."
President Barack Obama, following his Election Day custom, played his education secretary, Arne Duncan, and friends in a pickup basketball game Tuesday. Former U.S. Senate candidate Alexi Giannoulias also tweeted his participation. They played at a place that has gone through foreclosure — what the Republicans could have done with that a few days ago. Obama was at Attack Athletics, 2641 W. Harrison, which in an unusual set of circumstances is coming under control of Chicago Hope Academy, a private Christian high school. The 60,000-square-foot complex, with its four NBA-regulation courts, was built by Michael Jordan's trainer, Tim Grover, in 2007. But Grover defaulted on a more than $10 million mortgage and in a bankruptcy listed Jordan as a creditor to the tune of $1.5 million....
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Developer offers closeout savings on 15 high-rise condos
Chicago Daily Herald, 11/2/12
"... crowned the top-selling condominium building in Chicago by Appraisal Research Counselors."
A 47-story luxury high-rise located in the heart of the Loop has again been crowned the top-selling condominium building in Chicago by Appraisal Research Counselors Ltd. The building, 200 North Dearborn Private Residences, documented 35 closed sales in the second quarter. Year-to-date closings through July total 69 completed sales. 200 North Dearborn actually has been Chicago's No. 1 condo sales leader since the second half of 2011. Equally impressive is the fact that 95 percent of all sales have been cash purchases. "We are now offering our final closeout sale with savings up to $231,600 off the original pricing for cash purchases," said Nicholas S. Gouletas, chairman and CEO of American Invsco, Chicago's leading condominium marketer....
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Oak Park apartment building with a Trader Joe's sells for about $63 million
Crain's Chicago Business, Alby Gallun, 10/24/12
"... according to a report from Appraisal Research Counselors..."
The pension fund for public employees in Tennessee has acquired Oak Park Place, a 204-unit apartment building in downtown Oak Park completed three years ago. An affiliate of the Tennessee Consolidated Retirement System bought the 14-story building at 479 N. Harlem Ave. from Whiteco Residential LLC, the Merrillville, Ind.-based company that developed the property, public records show. A source said the pension fund paid about $63 million, or roughly $309,000 a unit, a high price that reflects the value of a Trader Joe's grocery store on the ground floor. Whiteco picked a good time to sell, with investors bidding up apartment prices amid a strong leasing market and low interest rates. Rising prices pushed first-year returns, or capitalization rates, on suburban Chicago apartment sales down to 6.3 percent in the second quarter, from a recent peak of 7.4 percent in 2009, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. Compared to the alternatives, that's still not bad....
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After losing Streeterville site, developer plans West Loop apartments
Crain's Chicago Business, Alby Gallun, 10/18/12
"... said Ron DeVries, vice-president at Appraisal Research Counselors,..."
After losing a prime Streeterville development site to foreclosure, developer Enrico Plati has zeroed in on a property in the West Loop where he plans to build 240 or more apartments. Mr. Plati, principal at Chicago-based Savoy Development LLC, said he has signed a contract to buy a 26,000-square-foot property at Jackson Boulevard and Jefferson Street, currently a surface parking lot owned by the Illinois Institute of Technology. Mr. Plati is in the early stages of planning an apartment tower there, saying he still has to schedule meetings about his proposed project with Ald. Robert Fioretti and the city Department of Housing and Economic Development. He estimates he could build about 240 apartments on the parcel under current zoning, but he would be interested in building as many as 320 if the city agreed. With the site's proximity to West Loop office buildings and Union Station, the location “is going to be very desirable to a certain type of tenant.” He's pushing ahead with his plans there almost two months after a lender seized a property at 150 E. Ontario St., just east of Michigan Avenue, where a venture he led had proposed a 330- room hotel. Republic Bank of Chicago, which filed a $20 million foreclosure suitagainst the property in January, repossessed it through a sheriff's sale in August, county records show. The developers did not fight the suit....
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Leasing agent is preservation chief Orland Park swears in official who leases ne
Chicago Tribune, Dennis Sullivan, 10/18/12
"... Gail Lissner, the vice president of Appraisal Research Counselors..."
Orland Park's newest Historic Preservation Review commissioner -- sworn in during a Village Board meeting this week -- is also the leasing agent for a luxury apartment complex that sits partly on the Orland Plaza shopping center, now slated for demolition. But Marianne "Mimi" Citarella, a six-year resident of Old Orland who grew up in Chicago's Mount Greenwood neighborhood, was a logical choice for the commission, Development Services Director Karie Friling said Monday while attending the meeting. Friling said the Ninety 7 Fifty apartment building west of 143rd Street and LaGrange Road is a key element in Orland Park's growing Downtown Triangle....
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Canadian firm plans 2 River North apartment projects
Crain's Chicago Business, Abraham Tekippe, 10/17/12
"... according to Appraisal Research Counselors..."
Nearly six months after breaking into the Loop office market, a Canadian developer has set its sights on River North, where it plans to build two apartment towers, one on a site formerly controlled by jailed developer Antoin “Tony” Rezko. Vancouver, B.C.-based Onni Group of Cos. recently paid a combined $17.8 million for a 30,000-square-foot commercial building at 353 W. Grand Ave., the former site of the Clark & Barlow hardware store, and a 40,900 -square-foot parcel at 750 N. Hudson, the former Rezko property, property records show. Onni, which bought the 30-story office tower at 200 N. LaSalle St. in April, intends to build a mixed-use development on each site that would include 200 or more apartments and retail or office space, said Onni acquisitions executive Dan Bell....
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Developers seek bulk sale at South Loop condo project
Crain's Chicago Business, David Lee Matthews, 10/11/12
"... said Ron DeVries, vice president at Appraisal Research Counselors."
Three local developers who converted the home of a historic record label into 119 condominiums are counting on a real estate broker to solve their South Loop development blues. William Warman, Thomas DiPiazza and Richard Ferro have hired the Kiser Group to sell 31 unsold units in the Chess Lofts, 320 E. 21st St., a redevelopment of Chess Records, which counted Muddy Waters, Chuck Berry and Howlin' Wolf as artists. The asking price for the bulk sale is $5.5 million, or about $177,000 per unit. These days, the property has produced more lawsuits than hit records, with the building's condominium association suingthe developers for more than $1.3 million, accusing them of shoddy construction. In 2010, Messrs. Warman, DiPiazza and Ferro settled a $1.9 million bill-collection suit filed by contractor Klein Construction Inc., according to the Lemont builder's Burr Ridge-based lawyer, Brad Staubus....
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New York investor to buy big Aurora apartment complex
Crain's Chicago Business, Alby Gallun, 10/10/12
"... said Appraisal Research Vice-President Ron DeVries."
After pulling off the biggest apartment acquisition in the Chicago suburbs in more than four years, New York investor TGM Associates L.P. has come back for more. TGM Managing Principal and CEO Thomas Gochberg confirmed that his firm has signed a contract to buy Chesapeake Landing, a 600-unit apartment complex in west suburban Aurora. He declined to disclose a price or discuss the transaction. TGM owns 13,000 units in 23 states but only one property here, TGM Park Meadows Apartments, a 576-unit complex in Schaumburg that it bought in March for $86.7 million, the highest price paid for a suburban multifamily property since 2008. Investor demand for suburban apartments has been strong the past couple years, fueled by the recovery in the financial markets and rising rents and occupancies. Eleven major suburban multifamily properties have changed hands this year for a total of $454 million, after 24 sales last year for nearly $600 million, according to a report from Appraisal Research Counselors, a Chicago -based consulting firm....
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The complete guide to Chicago's condo collapse
Crain's Chicago Business, Alby Gallun and David Lee Matthews, 10/6/12
"... says Gail Lissner, Vice President at Appraisal Research Counselors..."
This is what a washout looks like. As the downtown condo market crashed, developers from North Avenue to Motor Row were stuck with thousands of unsold units—and bad debt up to their penthouses. At least four in 10 downtown condo projects proposed or under way five years ago wound up in financial distress, according to a Crain's analysis that for the first time shows the full impact of the recession on residential development in the city's core. In retrospect, 2007 “was the beginning of the end, and stupid deals were going on,” says Garry Benson, president and CEO of Garrison Partners Inc., a Chicago-based residential consulting and marketing firm. “Stupid deals fall first, and they were exceedingly stupid at the end.”...
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Veteran tapped to head sales at Lincoln Park 2550
Crain's Chicago Business, Abraham Tekippe, 9/18/12
"... according to Appraisal Research."
The developer of luxury condominium high-rise Lincoln Park 2550 has tapped veteran residential broker Tere Proctor to head up its new in-house sales team, ending a three-year partnership with Chicagobased Prudential Rubloff Properties. As president of Arc Properties, Ms. Proctor, 60, already has started courting buyers for condos in the 218-unit building overlooking Lincoln Park. Ms. Proctor has worked for developers on other big condo projects, including the Heritage at Millennium Park and the Trump International Hotel & Tower, where she was head of sales. Developed by a joint venture between Ricker-Murphy Development LLC and the General Electric Pension Trust, the project at 2550 Lakeview Ave. was completed earlier this summer, with the first residents moving into their units last month. Though Ms. Proctor faces less competition from other projects because development has all but stopped, the anemic condo market still presents a major challenge. At the end of June, buyers had acquired or signed contracts to buy 92 units at Lincoln Park 2550, or about 42 percent of the building, according to Appraisal Research Counselors, a Chicago-based consulting firm. John T. Murphy, co-principal of Ricker-Murphy Development LLC and president of Chicagobased MB Real Estate Services LLC, declined to provide updated sales figures but said there has been “a significant uptick in activity” since occupancy began in August....
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What's a view worth? Putting a price on a vista
Crain's Chicago Business, Alby Gallun, 9/17/12
"... says Gail Lissner, Vice President at Appraisal Research Counselors..."
Condominiums in the Residences at RiverBend command a premium for several reasons, but one stands out: the view. “Unforgettable panoramas of the city, river and bridges,” touts a broker listing for a 16th-floor unit in the building, a 37-story high-rise at the confluence of the Chicago River's north and south branches on Canal Street. “Chicago's most phenomenal down-the-river views,” crows another. Other superlatives include “spectacular,” “breathtaking” and “unparalleled.” Yet there's one word you won't see in the marketing materials: endangered. With the Kennedy family pushing a plan to build three high-rises on Wolf Point, a four-acre parcel that juts out into the river, RiverBend residents face the prospect of losing their precious vista to the east....
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Apartment boom sweeps Chicago area
Chicago Tribune, Erik J. Martin, 9/13/12
"... according to Gail Lissner, vice president of Appraisal Research Counselors..."
Hear that noise? It's the growing rumble of an apartment construction boom — and the sound of opportunity knocking for renters seeking to lease a new luxury unit in prime downtown and suburban locations. After nearly a decade of limited construction activity in the rental sector, the Chicago area is in the midst of a mid- and high-rise development renaissance. Consider the evidence downtown: 1,149 new apartment units opened for leasing in 2012 and 3,018 units are under construction and on pace for 2013-2014 deliveries, according to Gail Lissner, vice president of Appraisal Research Counselors, a Chicago-based appraisal and consulting firm. Lissner added that about 7,500 downtown apartment units are proposed. In the suburbs, an estimated 1,933 units are planned for delivery in 2013....
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South Loop apartment tower to sell for about $70 million
Crain's Chicago Business, Alby Gallun, 9/12/12
"... according to Appraisal Research Counselors..."
Local apartment developer Marquette Cos. is paying about $70 million for a 278-unit apartment tower in the South Loop, perking up a downtown apartment investment market that has been subdued this year after a frenetic 2011. The Naperville-based company has agreed to buy the 22-story building at 1401 S. State St. from a joint venture of Equity Residential and Lincoln Property Co., according to people familiar with the transaction. They said Marquette is paying $250,000 to $255,000 a unit, or $69.5 million to $70.9 million. It is the third downtown acquisition in two years for Marquette, which took over the struggling Trio condominium projectin the River West neighborhood in 2010 and converted the project’s unsold units to rentals. The company also recently took over a West Loop property where it plans to build a 233-unit apartment tower. A Marquette executive declines to comment. For Equity Residential, the Chicago-based real estate investment trust headed by Sam Zell, the sale marks the company’s exit from the Chicago market, part of a strategy conceived several years ago to focus on faster-growing coastal markets like San Francisco and Washington D.C. At about $70 million, the sale will generate a slim gain for Equity Residential and Dallas-based Lincoln, which spent $68.5 million to construct the 1401 South State, completing it in 2008. The price also falls well short of the $89 million price that some had expected the property to fetch....
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NBC Tower owner buys unsold Streeterville condos
Crain's Chicago Business, David Lee Matthews, 9/11/12
"... says Gail Lissner, Vice President of Appraisal Research Counselors."
The family of the late German billionaire Hugo Mann, which owns the NBC Tower, is dipping into the downtown condominium market, paying $6.2 million for eight units in a Streeterville high-rise just a few blocks from the Art Deco skyscraper on the river. A venture of Metropolis Investment Holdings Inc., which manages real estate for the Mann family, paid about $385 per square foot for most of the unsold condos at 550 N. St. Clair St., a 112-unit project completed in 2008 as condo market was crashing. The venture plans to rent out the units, some of which are already leased. The sale brings the project to a conclusion for developer Mark Sutherland, who began marketing the 26-story project in 2005 and navigated the downturn through a series of price cuts. In 2010, he leased out his unsold condos and still holds onto a one-bedroom rental he said he will likely sell to one of his partners. “We feel very happy to have sold the units and we're going to move on,” said Mr. Sutherland, president and co-owner of Sutherland Pearsall Development Corp....
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Ritz-Carlton Residences hung up in legal battle
Crain's Chicago Business, Micah Maidenberg, 9/11/12
"... according to a recent report from Appraisal Research Counselors."
— A court battle over the Ritz-Carlton Residences on Michigan Avenue is preventing residents from moving into the nearly finished luxury high-rise and disrupting plans by retailers Tommy Bahama and Loft from opening stores there. The developer of the 89-unit condominium tower, Chicago-based Prism Development Co., is feuding with the Terra Foundation for American Art, which owns the land under the building at 664 N. Michigan Ave. and will own retail and office space in the project when it is finished. The dispute came to a head Friday, when Prism prevented construction workers from entering the project to build out the stores for Tommy Bahama and Loft. The Terra Foundation struck back Monday by seeking a temporary restraining order forcing Prism to let the workers in. In a hearing Monday afternoon, Cook County Circuit Court Judge Mary Mikva granted Terra's request, issuing an order that will allow construction workers, the retail tenants and Terra to enter the building through the end of the week....
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Why get a mortgage when you can get a sweet apartment instead?
Chicago Tribune, Tracy Swartz, 9/11/12
"Sources: Appraisal Research Counselors..."
No one knows better than Jeremy Dubin that now is a great time to buy a house. And yet Dubin, an @Properties real estate broker, sold his Roscoe Village townhouse in the spring and moved into his new place—a luxury apartment in Goose Island. His 23-story building, SoNo East, opened in June, but it's quickly becoming its own social network. Management hosts happy hours for its residents, who have access to a hot tub, fire pit, gym, billiard room and a four-story parking garage (one of the amenities that appealed most to Dubin)....
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Forest City to sell Central Station land
Crain's Chicago Business, Micah Maidenberg, 9/6/12
"... according to Appraisal Research Counselors."
Forest City Enterprises Inc. is selling its remaining land holdings in the Central Station development in the South Loop, a huge residential project that has transformed the once gritty neighborhood but has been hit hard by the condo crash. The Cleveland-based developer said it has signed a letter of intent to sell its interest in Central Station land for about $30 million, declining to identify the buyer. Forest City owns 30 acres in the development at the south end of Grant Park, according to a recent filing with the Securities and Exchange Commission....
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Chicago's Most Expensive Apartment Buildings
Crain's Chicago Business, Alby Gallun, 9/3/12
"Source: Appraisal Research Counselors."
Downtown high-rise rents hit an all-time high in the second quarter. For big spenders, the top five choices range from the Aqua skyscraper near Millennium Park to a new tower in Old Town.
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Venture 'working on' deal to take over Northbrook development site
Crain's Chicago Business, Alby Gallun, 8/29/12
"... said Appraisal Research Vice-President Ron DeVries."
More than a year after foreclosing on a 14-acre development site in Northbrook, a Texas bank is in talks to sell the property to a local venture that wants to build apartments and retail there. The venture between Chicago-based Morningside Group and Schaumburg-based Crossroads Development Partners LLC would take over the property at Skokie Boulevard and Dundee Road from an affiliate of Beal Bank....
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Suburban apartment occupancy highest since 2007
Crain's Chicago Business, Alby Gallun, 8/27/12
"... said Appraisal Research Vice-President Ron DeVries..."
Suburban apartment buildings kept filling up in the second quarter, with occupancies hitting their highest level in nearly five years. The suburban apartment occupancy rate rose to 95.2 percent in the quarter, up from 94.7 percent in the first three months of the year and 93.6 percent a year earlier, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. Median net rents were $1.17 a square foot, unchanged from the first quarter but up 1.9 percent from a year earlier and still the highest they have ever been. “It seems that the owners were really just trying to fill up their buildings and get occupancy higher instead of raising rents,” said Appraisal Research Vice-President Ron DeVries, the author of the report....
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Downtown condo resale prices down 18% since 2008
Crain's Chicago Business, David Lee Matthews, 8/23/12
"... said Gail Lissner, Vice President at Appraisal Research."
The past several years have been tough on almost all downtown condominium owners, but residents of the Gold Coast have fewer bruises than the South Loop set. A recent survey of 65 large downtown condo buildings found that resale prices on a square-foot basis fell 18 percent on average from 2008 to 2012. The Gold Coast registered the smallest decline, 11 percent, while the South Loop suffered the largest, 30 percent, according to Appraisal Research Counselors, the Chicago-based consulting firm that conducted the survey....
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Reinsdorf-founded firm plans West Loop apartments
Crain's Chicago Business, Micah Maidenberg, 8/22/12
"... according to a recent report by Appraisal Research Counselors."
A real estate investment firm formed after the housing crash to snap up distressed condominiums is moving into development, laying plans to jump into the red-hot downtown apartment market. Northbrook-based Michigan Avenue Real Estate Group, which counts Chicago White Sox and Bulls owner Jerry Reinsdorf among its co-founders, wants to build four, four-story buildings totaling 81 apartments at the intersection of Madison and Aberdeen streets in the West Loop, said its president, Thomas Meador. It would be the firm's first new-construction project, which Mr. Meador said the company is undertaking because of the strength of the rental market. The plans underscore how the soaring downtown apartment market has spurred developers to draw up plans for new rental buildings. In the second quarter, rents and occupancies at top downtown buildings hit new peaks, according to a recent report by the Chicago consultancy Appraisal Research Counselors....
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A real estate investment firm formed after the housing crash to snap up distress
Crain's Chicago Business, Alby Gallun, 8/22/12
"... according to Appraisal Research Counselors..."
A Naperville developer is preparing to move forward on two big apartment projects, one in the West Loop and the other in northwest suburban Algonquin. Marquette Cos. has taken control of Catalyst, a proposed 223-unit rental tower in at 630 W. Washington St., from developer Gary Rosenberg, who was facing foreclosure while trying to secure financing for the project, one of several planned downtown high-rises amid a sizzling apartment market. Marquette acquired the loan on the development site from lender Kennedy Funding Inc. and worked out a so-called deed-in-lieu of foreclosure that allowed Mr. Rosenberg to retain a stake in the project, said Darren Sloniger, Marquette's managing director of acquisitions....
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Downtown apartment rents hit another all-time high
Crain's Chicago Business, Alby Gallun, 8/20/12
"... Appraisal Research Vice-President Ron DeVries said..."
Downtown apartment landlords hiked rents again in the second quarter, something that will be tougher to pull off next year, when a wave of development washes over the market. The average net rent at top-tier, or Class A, downtown apartment buildings rose to another all-time high of $2.57 a square foot in the quarter, up 2.6 percent from the first quarter and 5.8 percent from a year earlier, according to Appraisal Research Counselors, a Chicago-based consulting firm. The Class A occupancy rate hit 96 percent, its highest level in six years. “It's the Energizer Bunny,” Appraisal Research Vice-President Ron DeVries said of the market. “It just keeps going and going.” ...
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Sales of downtown Chicago condos shrink, but so does inventory
Chicago Sun Times, David Roeder, 8/16/12
"Gail Lissner, vice president at Appraisal Research, said..."
Sales of new condominiums downtown fell 23 percent during the first half of 2012 as potential buyers prefer to stick with renting, a report by Appraisal Research Counselors shows. The consulting firm’s analysis found that downtown developers closed on sales of 295 condos for the year through June 30, compared with 385 for the same period in 2011. On an annual basis, the Chicago condo market has contracted every year since 2005, and sales collapsed once the financial crisis deepened in 2008. But a report offers a sign of improvement. It noted that developers’ unsold inventory continues to fall. It now stands at 1,229 units, the lowest Appraisal Research has recorded since it began its surveys in 1997. No new condo buildings in the central area were completed in 2011, and the report said only two small projects are due to arrive this year. Gail Lissner, vice president at Appraisal Research, said many factors are steering potential buyers into the rental market. Among them are fears about job security and about the stability of condo prices. Many also would have trouble selling existing homes or getting a mortgage. Add it up and “many people are opting for the easier decision — to rent,” Lissner wrote in the report. The report said that after substantial declines the last few years, condo prices have stabilized.
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He is focusing on what he knows best: resorts and golf courses DONALD Trump's ap
Crain's Chicago Business, David Lee Matthews, 8/14/12
"... said Appraisal Research Vice-president Gail Lissner."
Home sales are picking up for all kinds of sellers these days, unless you're a downtown condominium developer. Developers sold 182 downtown condos in the second quarter, up from 113 in the first quarter but down from 196 a year earlier, according to a report from Appraisal Research Counselors, a Chicagobased consulting firm. The local housing market has shown encouraging signs through the key spring selling season, as many homebuyers have taken advantage of record-low interest rates and falling prices. But what may be a nascent recovery has yet to arrive for downtown condo developers as urbanites, flush with rental options, choose to wait for clearer signs of a recovery or enjoy the flexibility apartments provide. “There are not only rental alternatives, there are excellent rental alternatives, newly finished with all the bells and whistles,” said Appraisal Research Vice-president Gail Lissner. “Anybody buying a residence right now really needs to want to stay there for a long time.” ...
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Suburban rentals going upscale Developers break ground on complexes with ...
Chicago Tribune, Mary Ellen Podmolik, 8/2/12
"... according to Appraisal Research Counselors..."
At these suburban apartments, the list of features outside the front door outweighs what's inside the units. Yoga and Pilates studio? Check. Dog run and washing station? Check. Fire pit? Of course. High rents to accompany the luxury amenities? Yes, definitely. With the nation's homeownership rate at an almost 15-year low of 65.5 percent and financing for condominium developments difficult to secure, residential developers have turned their attention to the rental market. They are designing complexes with hotel or condo-like amenities to attract discriminating consumers, and not just in downtown Chicago. Apartment complexes now under construction -- including Wheaton 121, Arboretum Landmark in Lisle, Amli Evanston and Ninety7Fifty on the Park in Orland Park -- as well as others still in the planning stage promise to bring a long list of bells and whistles to the suburbs. Monthly rents for most units will start at $1,000 and top out at more than $2,000....
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New rental units await Motorola workers
Chicago Tribune, Mary Ellen Podmolik, 7/27/12
"... said Gail Lissner, a Vice President at Appraisal Research Counselors.".
Motorola Mobility's announcement that it will move 3,000 employees to Chicago next summer couldn't come at a better time for developers of a handful of residential buildings in downtown Chicago. Buildings under construction will add more than 3,200 rental units this year and next. Two of those projects near the Merchandise Mart, AMLI River North and Habitat Co.'s Hubbard Place, alone will add more than 850 units in mid-2013. Stephen Ross, an executive vice president at AMLI Residential, said he was "outrageously happy" about Motorola's decision. "These high-quality jobs will generate significant demand for luxury rental housing in the River North neighborhood." Another apartment complex with more than 500 units has been proposed for Wolf Point, southwest of the Merchandise Mart on a parcel controlled by the Kennedy family. "Certainly with the Groupons of the world having offices in River North and the Loop, it brings more people downtown," said Gail Lissner, a vice president at Appraisal Research Counselors. "Let's face it, those people never wanted to live in Lake County. Young people always want to be downtown." ...
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South Loop sales job
Crain's Chicago Business, Abraham Tekippe, 7/27/12
"... according to Appraisal Research Counselors."
After taking over nearly 500 unsold condominiums in the South Loop, Related Midwest has hired a former @properties broker to lead the campaign to sell them. David Wolf, 35, has been named president of Related Midwest Sales, an affiliate of New York-based developer Related Cos. His challenge: Finding buyers for Related Midwest's newly acquired condos amid a downtown market that has yet to pull out of a six-year slump....
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Former Lakeshore Athletic Club now slated for residential
Crain's Chicago Business, Micah Maidenberg, 7/24/12
"... according to Appraisal Research Counselors."
The owner of the former Lakeshore Athletic Club building in Streeterville wants to convert the vacant structure into residential complex, dropping plans for senior housing there. A venture of Northbrook-based Integrated Development Group LLC plans 200 residential units at the property at 850 N. Lake Shore Drive, according to an e-mail Ald. Brendan Reilly (42nd) sent to constituents Monday....
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Developer Warren Barr named in mortgage fraud suit
Crain's Chicago Business, Abraham Tekippe, 7/20/12
"... said Gail Lissner, Vice President at Appraisal Research Counselors..."
A Chicago mortgage company has sued developer Warren Barr, alleging he was part of a mortgage fraud scheme to boost sales at a South Loop condominium project so he could pay off a $56 million construction loan on the property. Guaranteed Rate Inc. has accused Mr. Barr and other members of the venture that developed the Vision on State project of orchestrating a “wide-ranging conspiracy” to recruit straw buyers to buy condos at inflated prices in the 253-unit building. Sitting on 73 unsold condos, they hatched their plan in late 2007, according to the 75-page lawsuit, filed this month in U.S. District Court in Chicago....
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Developer Related Cos. wagers on South Loop
Crain's Chicago Business, Alby Gallun, 6/30/12
"... says Gail Lissner, a Vice President at Appraisal Research Counselors..."
In a bold bet on the recovery of the downtown condominium market, a New York developer has taken over nearly 500 unsold units in three failed South Loop towers, the biggest distressed condo deal since the crash. Related Cos. aims to jump-start sales at the high-rises through a joint venture it recently formed with the lenders that financed them, part of the massive Central Station development at the south end of Grant Park. The projects have languished as the condo market has struggled to pull out of its funk, but Related executives are convinced that's about to change. “We're long this market and believers in it,” says Curt Bailey, president of the firm's Chicago division, Related Midwest....
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Optimistic Trump looks to fill commercial spaces at his tower...
Chicago Sun Times, Mary Ellen Podmolik, 6/21/12
"... said Gail Lissner, a Vice President at Appraisal Research Counselors."
Donald Trump is moving forward to fill the empty commercial portions of his Trump International Hotel & Tower. Celebrity hairstylist Anthony Cristiano is shooting for a mid-July opening of a 3,400-square-foot salon on the building's mezzanine level. In August, a crew will begin a 1,100-square-foot expansion of the 2,800-square-foot Rebar lounge, adding 50 seats and space for more private events. Meanwhile, the plan has changed for the 55,000-square-foot commercial space that runs along the river that was expected to be filled with boutiques and high-end retailers. The higher level is now being marketed as office space; the company is meeting with doctors' groups. Trump still hopes to lease the lower level to retailers. "I think things are getting better in Chicago," he added. He estimated that more than 75 percent of the building's 486 condominiums have been sold; Chicago Bulls star Derrick Rose is among the recent buyers. The market for Trump's 339 hotel-condo units, aimed at investors, has ground to a halt, but the residences continue to attract buyers, said Gail Lissner, a vice president at Appraisal Research Counselors. Of the 486 units, 347 sales have closed. "The building is very well regarded in the market. The retail space is a lot more difficult due to the amount of space he has and the visibility." ...
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Fifield to list Alta at K Station again
Crain's Chicago Business, 6/21/12
"... according to Appraisal Research Counselors."
Fifield Cos. is preparing to put Alta at K Station, a two-tower, 848-unit apartment complex at 555 W. Kinzie St., up for sale again after taking the property off the market late last year. Sources say the Chicago-based developer and its partner, Newport Beach, Calif.-based Pacific Life Insurance Co., have hired the Chicago office of CBRE Inc. to sell the property, which was 89.4 percent leased in the first quarter, according to Chicago-based Appraisal Research Counselors. An executive at CBRE, which also had the listing last year, declines to comment. Fifield executives did not return phone calls.
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60-story Streeterville tower hits the market
@ Properties, Alby Gallun, 6/19/12
"... according to Appraisal Research Counselors."
Another downtown apartment landlord has decided to cash in on the booming multifamily investment market. Boston-based Metropolitan Properties of America Inc. has hired Moran & Co. to sell Onterie Center, a 60-story tower in Streeterville that could fetch as much as $200 million. The building at 441 E. Erie St. includes 615 apartments and about 103,000 square feet of office space, according to a Moran marketing brochure. Downtown apartment values have surged the past two years as rents and occupancies have risen and interest rates have remained low, tempting many landlords to sell. Sales of downtown apartment buildings hit a record $1.4 billion in 2011, according to Appraisal Research Counselors, a Chicago-based consulting firm. So far this year, four buildings have changed hands for a combined $273 million. A Metropolitan executive did not return a phone call for comment. The company paid $134 million for Onterie Center in 2005 and converted some of its office space into 32 apartments. Demand for apartments is strong in Streeterville, home to Northwestern Memorial Hospital, the Rehabilitation Institute of Chicago and Ann & Robert H. Lurie Children's Hospital of Chicago, formerly Children's Memorial Hospital, which just moved there from Lincoln Park. Yet a rising supply of downtown apartments could mean tougher competition for tenants in the future: Developers are expected to add more than 7,200 units to the downtown market by the end of 2014, according to Appraisal Research....
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Rising rents, rock-bottom interest rates tempt downtown dwellers to go condo
Crain's Chicago Business, Micah Maidenberg, 6/18/12
"... a report by Appraisal Research Counselors says."
Rising rents, rock-bottom interest rates tempt downtown dwellers to go condo...
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Area home sales spring up in April Realty agents optimistic as prices show stabi
Chicago Tribune, Mary Ellen Podmolik, 5/23/12
"... said Gail Lissner, a Vice President at Appraisal Research.
More condos were sold in the city of Chicago in April than in any month since June, at prices that were the highest since September. It was one of the pieces of encouraging news in Tuesday's report on existing home sales from the Illinois Association of Realtors. The Chicago-area housing market as a whole also looked stronger in terms of the number of existing single-family detached homes and condos sold. Median sales prices, while not rising marketwide, recorded the smallest year-over-year decrease -- of 1.5 percent -- in more than a year....
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The downtown condominium market can't get much lower, but it did in the first qu
Crain's Chicago Business, Alby Gallun, 5/16/12
"... according to a recent report from Appraisal Research Counselors..."
Golub & Co. is expanding its playbook to include neighborhood real estate, paying $23.1 million for 11 apartment buildings in Lincoln Park. A venture led by the Chicago-based real estate firm has acquired the 144-unit portfolio on the 1700 and 1800 blocks of Dayton and Halsted streets, according to a recent report from Appraisal Research Counselors, a Chicago-based consulting firm. Golub bought the properties in March from Chicago-based East Lake Management & Development Corp., financing the transaction with a $17.8-million loan from Amerisphere Multifamily Finance LLP, county records show. The acquisition suggests a shift in style at Golub, which is best known as a builder and owner of high-end office and residential buildings downtown and in the suburbs. Recent Golub projects include two apartment towers in Streeterville encompassing 961 units and the 440,000-square-foot office tower within the Block 37 development on State Street....
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$41 million rental phase on tap at former Stateway Gardens
Crain's Chicago Business, Micah Maidenberg, 5/16/12
"... James Kutill, vice president at Appraisal Research Counselors, says..."
The venture redeveloping the former Stateway Gardens public housing project on the South Side is preparing to start its next phase, which will include 108 apartments and cost $41 million. Developers charged with creating mixed-income neighborhoods on former high-rise public housing sites in Chicago have not been immune to the sluggish real estate market of recent years, and the group behind Park Boulevard, as the Stateway redevelopment is called, appears to be no exception. Just 239 out of a planned 1,316 units are built at Park Boulevard, about 18 percent of the total, according a May court filing from Habitat Co., which monitors Chicago Housing Authority development activities under a federal receivership that is now winding down. Another 128 rental units are under construction. The Park Boulevard venture may be hitting the market with new rental units, however, at just the time to grab a piece of the hot apartment sector. “Here, you can get far more unit than you can get in the South Loop area or in Hyde Park,” James Kutill, vice president and director of neighborhood properties at Appraisal Research Counselors, a Chicago-based consultancy, says of the Park Boulevard's planned market-rate units. He notes demand for public housing and affordable units as well. "It's filling in a hole between Hyde Park and the greater South Loop." One challenge will be drawing market-rate renters further west into Bronzeville; the Park Boulevard site is on the neighborhood's edge next to the Dan Ryan Expressway. Mr. Kutill says in-demand areas on the mid-South Side have generally clustered closer to the lakefront....
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Chicago Tower Is Planned in Biggest Project in Five Years
Bloomberg Businessweek, Brian Louis, 5/16/12
"... James Kutill, a vice president of Chicago-based Appraisal Research Counselors, said..."
Hines, an international property investor, and the real estate arm of Canada’s biggest pension- fund manager plan to build a $300 million office tower in Chicago, the largest new project in the city in five years. The proposed 45-story building, known as River Point, will be constructed downtown on the western bank of the Chicago River at Lake Street, Ivanhoe Cambridge, the Montreal-based real estate operation of Caisse de Depot et Placement du Quebec, and Houston-based Hines said today in a statement. The project will have 900,000 square feet (84,000 square meters) of space and is scheduled for completion in 2016, the companies said....
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Downtown condo sales drop in first quarter
Crain's Chicago Business, David Lee Matthews, 5/15/12
"... says Gail Lissner, vice president at Appraisal Research."
The downtown condominium market can't get much lower, but it did in the first quarter. Developers sold just 113 downtown condos in the first three months of 2012, down from 156 in the fourth quarter and 189 in the first quarter a year earlier, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. While many homebuyers have started to take advantage of record-low interest rates and falling home prices, the numbers suggest that has yet to happen in any meaningful way at new downtown projects. Many would-be owners remain on the sidelines as renters, waiting for prices to stabilize before making a purchase. “There hasn't been a great feeling of urgency to buy,” says Gail Lissner, vice president at Appraisal Research....
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Rents rise again in sizzling downtown apartment market
Crain's Chicago Business, Alby Gallun, 5/14/12
"...says Appraisal Research Vice president Ron DeVries."
Downtown apartment rents hit another high in the first quarter, and more hikes may be in the offing amid a red-hot rental market. The average effective rent at top-tier, or Class A, downtown apartment buildings rose to $2.50 a square foot in the quarter, up 2.9 percent from the fourth quarter and 9.2 percent from a year earlier, according to Appraisal Research Counselors, a Chicago-based consulting firm. Landlords have been raising rents for more than two years as many people have steered clear of the depressed condominium market and decided to rent instead. Rents at the high end of the downtown market have risen 20.2 percent since bottoming out at the end of 2009; the average Class A apartment costs $2,148 a month today vs. $1,787 back then. The increases are likely to continue until next year, but a construction boom could end that in 2013, when developers add about 3,000 apartments to the downtown market. “Right now, it's tight,” says Appraisal Research Vice president Ron DeVries. “But when we get into March, April, May of 2013, that's when things are going to get interesting.” For the past couple years, however, demand for apartments has outstripped supply. The Class A occupancy rate rose to 94.9 percent in the first quarter, up from 94.2 percent in the first quarter and 93.9 percent a year earlier, according to Appraisal Research. Mr. DeVries expects the rate to exceed 96 percent by the end of the year. Read more: http://www.chicagorealestatedaily.com/article/20120514/CRED02/120519948/rents-rise-again-in-sizzling-downtown-apartment-market#ixzz1usZ2HYXb Stay up-to-date on Chicago real estate with our free, daily e-newsletter...
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TRUMPEDup; Condo prices in trophy towers rise above housing slump
Crain's Chicago Business, Ryan Ori and Micah Maidenberg, 4/16/12
"... says Gail Lissner, vice president at Appraisal Research."
The region’s housing and condo market is still mired in a historic slump. But when it comes to buying and selling in Chicago’s high-end condo market, life is surprisingly good. Condominium owners at the $850 million Trump International Hotel & Tower and other newer top-end buildings have, more often than not, experienced value appreciation when they sold in recent years, deals that came together at a time when the city was saturated with condos at a wide range of price points. Crain’s analysis of Cook County records shows that residential unit re-sales at Trump have been above the purchase price for 31 of the 49 residential units that have been re-sold, a 63 percent success rate. By comparison, a 60-building survey of downtown and North Side condo buildings by Chicago-based Appraisal Research Counselors shows an overall 19 percent decline in condo values since the end of 2007, around the time prices peaked....
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Apartment hunting in a tight market With vacancy rates at decades-low levels
Chicago Sun Times, Sharon Stangenes, 4/15/12
"... said Ron DeVries, vice president of Appraisal Research Counselors."
When she returned to Chicago recently after several years absence, Rita Ciolek was surprised by how much renting had changed. Prices for downtown apartments had skyrocketed, incentives like one or two months' free rent were gone and desirable units disappeared at warp speed. "Most units go within 24 to 48 hours," said Ciolek, a 37-year-old tax accountant, who lost one apartment because she thought about it for 24 hours. Nationally, vacancy rates are at some of the lowest levels in a decade, according to research firm Reis Inc. Ron DeVries, vice president of Appraisal Research Counselors, said fourth-quarter 2011 occupancy in prime buildings in downtown Chicago was 94 percent. Suburban occupancy rates reached the same level, he added....
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How did your home market hold up?
Chicago Sun Times, Francine Knowles, 4/8/12
"... noted Jim Kutill, vice president at Appraisal Research Counselors."
Depending on where homes in the Chicago area sold last year, there were some big winners and losers, according to city and suburban median sales price data compiled for the Sun-Times by BlockShopper.com. The wealthy communities of Lake Forest and Kenilworth, ZIP codes 60045 and 60043, had the biggest price gains in Chicago suburbs in 2011 vs. 2010, BlockShopper.com’s data showed. In Lake Forest, the median price spiked 75.09 percent. In Kenilworth, it shot up 69.12 percent....
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How did your home market hold up?; Short sales not easy
Southtown Star, Francine Knowles, 4/8/12
"... noted Jim Kutill, vice president at Appraisal Research Counselors."
Depending on where homes in the Chicago area sold last year, there were some big winners and losers, according to city and suburban median sales price data compiled for the Sun-Times by BlockShopper.com. The wealthy communities of Lake Forest and Kenilworth, ZIP codes 60045 and 60043, had the biggest price gains in Chicago suburbs in 2011 vs. 2010, BlockShopper.com’s data showed. In Lake Forest, the median price spiked 75.09 percent. In Kenilworth, it shot up 69.12 percent....
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Trump back in the ring and ready for risk
The Austrailian, Robbie Whelan, Eliot Brown, Deals, 3/29/12
"... according to Appraisal Research Counselors..."
He is focusing on what he knows best: resorts and golf courses DONALD Trump's appetite for real estate risk has returned. The developer, who became more risk-averse after getting clobbered in the early 1990s, largely avoided the carnage of the latest downturn by mostly limiting his deal-making during the boom years to licensing the Trump name to other developers. But earlier this year he closed on a $US150 million ($143.8m) purchase of the Doral Golf Resort and Spa, taking it out of a bankruptcy proceeding. And a venture of Mr Trump and Colony Capital plans to invest about $US200m to convert the historic Old Post Office building in Washington into a hotel. Now Mr Trump is placing a new bet. He is doubling-down on the Trump International Hotel and Tower, Chicago, the second-tallest building in the city. Mr Trump paid $US48m earlier this month to buy out junior creditors led by Fortress Investment Group on the 92-storey hotel and condominium tower, according to people familiar with the matter. The Fortress group's debt, which could have turned into a big headache for Mr Trump, was originally about $US130m....
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Trump Makes Return to Risk
Wall Street Journal, Robbie Whelan and Eliot Brown, 3/28/12
"... according to Appraisal Research Counselors, a Chicago appraisal firm."
Donald Trump's appetite for real-estate risk has returned. The developer, who became more risk-averse after getting clobbered in the early 1990s, largely avoided the carnage of the latest downturn by mostly limiting his deal making during the boom years to licensing the Trump name to other developers. But earlier this year he closed on a $150 million purchase of the Doral Golf Resort and Spa, taking it out of a bankruptcy proceeding. And a venture of Mr. Trump and Colony Capital LLC plans to invest about $200 million to convert the historic Old Post Office Building in Washington to a hotel. Now Mr. Trump is placing a new bet. He is doubling-down on the Trump International Hotel and Tower Chicago, the second-tallest building in the city. Mr. Trump paid $48 million earlier this month to buy out junior creditors led by Fortress Investment Group on the 92- story hotel and condominium tower, according to people familiar with the matter. The Fortress group's debt, which could have turned into a big headache for Mr. Trump, was originally about $130 million....
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NIGHTLY BUSINESS REPORT for March 28, 2012, PBS
Nightly Business Report (PBS), Susie Gharib, Tom Hudson, Suzanne Pratt, Diane Eastabrook, Darren Gersh, 3/28/12
"... said Russ Haraus, V.P. Appraisal Research Counselors..."
... Real estate expert Russ Haraus says the reason for the excitement is the increase in pending home sales last month. They were up roughly 70 percent for both single family homes and condominiums....
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Mind over money for Chicago renters
Crain's Chicago Business, Dave Mathews, 3/20/12
"... says Ron DeVries, vice-president at Chicago-based consulting firm Appraisal Research Counselors."
Renting is the rage, but buying is better in Chicago than in most U.S. cities. The cost of renting vs. owning a home was higher in the Chicago area than in all but seven U.S. metropolitan areas in the fourth quarter, according to a recent report by Deutsche Bank A.G. Amid falling home prices, ultra-low mortgage rates and rising rents, the ratio here is hovering near its highest level since at least 1991, the earliest year for which Deutsche Bank has data. Read more: http://www.chicagorealestatedaily.com/article/20120320/CRED0701/120329985/mind-over-money-for-chicago-renters#ixzz1qADYbxbD Stay up-to-date on Chicago real estate with our free, daily e-newsletter...
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Bank alleges developer wrongly sold South Loop condos
Crain's Chicago Business, Dave Mathews, 3/15/12
"... according to Appraisal Research Counselors..."
A 39-unit condominium project in the South Loop has been hit with a $6.2 million foreclosure suit alleging that its developer sold condos without lender approval. Parkway Bank & Trust Co. filed the lawsuit last month against the Coliseum Park Condominiums, a project at 1440 S. Wabash Ave. built by Melrose Park-based developer Aved Group LLC. It looks like a familiar story of a developer unable to sell enough condos to pay off its lender. Aved had sold just 13 of the project’s 39 units by the end of 2011, according to Chicago-based consulting firm Appraisal Research Counselors, and property records show that the project’s $9.8 million construction loan was scheduled to come due in 2008....
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Sales of new condos in Chicago plummet in 2011
Chicago Journal, Don DeBat, 3/14/12
"... said Ron DeVries, vice president of Appraisal Research Counselors."
Chicago’s new-construction condominium sales downtown over the past four years have looked like a roller-coaster on a downhill run. More than 40,000 new condo units were constructed downtown over the past 15 years. The market peaked in 2007 when developers completed a whopping 4,800 units. However, the condo market finished 2011 with a whimper. Only 770 new units were closed in 2011. That compares with 1,682 closings in 2010 and 1,891 units in 2009, Appraisal Research Counselors Ltd. noted in its latest Downtown Chicago Residential Benchmark Report. “Only 156 new condo sales were closed downtown in the fourth quarter of 2011,” said Gail Lissner, vice president of Appraisal Research. “The pipeline of potential future projects has disappeared. At the present time, there are no high-rise condominium buildings being planned for development anytime soon.” Meanwhile, a bulging downtown condo inventory of 2,397 units remains unsold. The mix includes 1,958 new construction units, 212 adaptive-reuse loft units, 208 apartment conversion condos and 19 townhomes. “Not all of these unsold developer units are currently being marketed for sale, because some developers are choosing to rent out their units until market conditions strengthen,” said Ron DeVries, vice president of Appraisal Research....
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River North apartment tower to sell for $110 million
Crain's Chicago Business, Alby Gallun, 3/14/12
"... according to Appraisal Research Counselors."
A Texas pension fund adviser is paying $110 million for a new River North apartment tower, a sign that multifamily investors haven't lost their appetite for trophy buildings after a feeding frenzy in 2011. Sources say an affiliate of Dallas-based L&B Realty Advisors LLP has agreed to buy the Parc Huron, a 221-unit building at 469 W. Huron St., from local developers Tony Rossi and Thomas Moran and financial partner J. P. Morgan Asset Management. While declining to disclose the buyer, Mr. Rossi confirms the $110-million price, or about $498,000 a unit, among the highest per-unit prices ever for a downtown apartment tower. Downtown apartments have been the most desired property type among real estate investors, attracted by high occupancies and rents and expectations that renting will remain the preferred housing choice for many urbanites. Seventeen major downtown apartment buildings changed hands last year for a record $1.42 billion, up from $343 million in 2010, according to Appraisal Research Counselors, a Chicago-based research firm....
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Derrick Rose buys condo in Chicago's Trump Tower for 2.8 million
Examiner.com, Pat Patrick, 3/13/12
"... data is from Appraisal Research Counselors..."
Derrick Rose said he “fell in love” with the tower after spending three weeks in a hotel room there last summer. He said he chose the Trump Tower because “no one bothers you there.” The Chicago Bulls point guard recently purchased the condo in Chicago’s Trump International Hotel and Tower for 2.8 million, according to Crain’s Chicago Business Real Estate. With panoramic views of Chicago, the 3,100 square foot luxurious condo sits high near the top of the 92-story tower....
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Bulls' Derrick Rose buys condo in Trump Tower
Crain's Chicago Business, Dave Mathews, 3/13/12
"... according to Appraisal Research Counselors..."
Chicago Bulls star Derrick Rose has found a new home to match his sky-high game: a condominium in the Trump International Hotel & Tower. Just before signing a $95 million contract extension with the Bulls, the reigning NBA MVP paid $2.8 million for a three-bedroom unit on the upper floors of the riverside skyscraper, county records show. The Englewood native and former Simeon Career Academy standout says he is waiting for furniture to arrive at his new pad before moving from north suburban Northbrook. “It's definitely an unbelievable feeling just being up there,” Mr. Rose, 23, said before Saturday's game against the Utah Jazz. “The view is nice and I don't take it for granted. It's a blessing.” County records show that a private trust paid $2.8 million in December for a 3,102-square-foot unit near the top of the 92-story tower and two parking spots, financing the deal with a $1.7 million mortgage from Northern Trust Co. Other recently sold condos in the building at 401 N. Wabash Ave. went to people other than Mr. Rose, records show. Mr. Rose bought the unit and parking spaces directly from a venture led by developer Donald Trump. The condo offers uninterrupted, nearly panoramic views of Chicago, said Andrew Glatz, president of Chicago-based brokerage Crown Heights Realty and an active agent in the tower. The unit also includes four bathrooms and a den....
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Executive Summary: Condo sales drop in 2011
Chicago Tribune, Mary Ellen Podmolik, 2/18/12
"... according to a report released by Appraisal Research Counselors."
The number of newly constructed condominiums sold in downtown Chicago last year was less than half that of 2010, and a lack of new construction should help whittle the still-long list of units still available for sale. Last year, 770 condo units were sold downtown, compared with 1,682 closings in 2010 and 1,891 in 2009, according to a quarterly report released by Appraisal Research Counselors. At year's end, 2,013 units were unsold, but only 1,632 of them were actively marketed for sale. Others had been, at least temporarily, converted to rentals...
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Downtown condo sales slide to 770 in 2011
Chicago Tribune, Mary Ellen Podmolik, 2/17/12
"...according to a quarterly report released by Appraisal Research Counselors."
The number of newly constructed condominiums sold in downtown Chicago last year was less than half that of 2010, and a lack of new construction should help whittle the stilllong list of units still available for sale. Last year, 770 condo units were sold downtown, compared with 1,682 closings in 2010 and 1,891 in 2009, according to a quarterly report released by Appraisal Research Counselors. At year's end, another 2,013 units were unsold, but only 1,632 of them were actively marketed for sale. Others had been, at least temporarily, converted to rental units. The company noted that it appears that contract fallout is affecting sales less than it had been, and the market will slowly absorb the existing inventory. No additional condo projects are in the proposal stage or under construction and will be completed in 2013. The only project slated to deliver units this year is the 89-unit Ritz-Carlton Residences. Meanwhile, 10 rental buildings now under construction will add 3,905 units to the marketplace by the end of 2013. The report covers the market bordered by North Avenue on the north, Cermak Road on the south, Lake Michigan on the east and portions of the Chicago River and Ashland Avenue on the west....
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Downtown condo sales drop as buyers hold off
Crain's Chicago Business, Dave Mathews, 2/16/12
"...says Gail Lissner, Appraisal Research vice president."
Downtown condominium developers continued to limp along in 2011 as the apartment market stole the spotlight. Developers sold 770 downtown condos in 2011, down from 1,682 in 2010 and 1,891 in 2009, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. The figures represent closed sales, not contracts to purchase condos; one reason closings were higher in prior years was that buyers took possession of units they agreed to buy much earlier. Uncertainty still reigns in the minds of would-be buyers, who are opting to play it safe renting than invest in a condo, says Gail Lissner, Appraisal Research vice president....
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Surge in supply could hit downtown apartment rents
Crain's Chicago Business, Alby Gallun, 2/15/12
"...Appraisal Research Vice-President Ron DeVries said at a luncheon Tuesday.
Downtown apartment landlords are poised to have another strong year, but a construction boom could make their lives more difficult in 2013 and beyond. Demand for apartments is booming as more people choose renting over buying, one reason effective rents at the most expensive downtown high-rises jumped 9 percent last year, according to Appraisal Research Counselors, a Chicagobased consulting firm. But now supply is surging, too, which could limit landlords' ability to raise rents next year or, if demand falters, even force them to cut rents to remain competitive. Downtown developers are poised to complete 1,219 apartments this year and 3,500 in 2013, Appraisal Research Vice- President Ron DeVries said at a luncheon Tuesday....
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Apartment sector upswing lets Amli put third local project on the drawing board
Crain's Chicago Business, Alby Gallun, 2/8/12
"... according to a report from Appraisal Research Counselors..."
With big apartment developments already under way in River North and Evanston, Amli Residential is working up plans for its third local one, a two-tower 398-unit project in the South Loop. Amli CEO Greg Mutz confirms that the Chicagobased developer has signed a contract to buy the 3.5-acre site at the southwest corner of Clark and Polk streets where it would build the project, just north of a 440-unit apartment building it owns. “We really want to start this thing this year,” Mr. Mutz says. “We think the South Loop has a lot of upside.” Amli is buying the property from AvalonBay Communities Inc., which had planned on building as many as 1,000 apartments on the parcel but backed off after the real estate market crashed in 2008....
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Legacy's luck: Luxury tower refinances with $60 million loan
Crain's Chicago Business, Dave Mathews, 2/8/12
"... says Gail Lissner, vice president of Appraisal Research Counselors..."
The developers of a half-empty 72-story condominium tower overlooking Millennium Park have pulled off a rare feat in today's depressed condo market, refinancing their project with a new $60.6 million loan. A venture led by Chicago-based Mesa Development LLC borrowed the money last month from U.S. Bank and PrivateBank & Trust to refinance the Legacy at Millennium Park, a 355-unit project at 60 E. Monroe St. The $60.6 million loan allows Mesa to maintain control of the project in a market where so many developers have been cast aside by lenders trying to collect on unpaid loans....
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Trump suspends retail leasing effort: 'I'm in no rush'
Crain's Chicago Business, Alby Gallun, 2/1/12
"... according to Appraisal Research Counselors..."
The big retail space in Donald Trump's riverfront skyscraper has sat empty so long that the brash New York developer has stopped courting tenants to fill it. Ready for occupancy nearly three years ago, the four-level, 83,000-square-foot space at the bottom of the Trump International Hotel & Tower still has no stores or restaurants, save for a small salon that serves the hotel. If that bothers Mr. Trump, he's not showing it. “We've put (leasing) on hold until such time as the retail market comes back in Chicago,” he says. “I'm in no rush to rent it.” Still papered over with posters promoting the building, the retail space remains a gaping hole at the bottom of the 92-story skyscraper at 401 N. Wabash Ave., a project completed in the depths of the housing and financial crises. After a legal showdown in late 2008, Mr. Trump won a reprieve from his lenders on the $850 million project, but the weak demand for shopping space in the building is yet another problem for a development that has also struggled with slow sales of its condominiums, some of the most expensive in the city. Of the tower's 486 residential condos, 159, or 29 percent, were unsold at the end of the third quarter, according to Appraisal Research Counselors, a Chicago-based consulting firm....
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River North apartment building expected to sell for $100 million-plus
Crain's Chicago Business, 1/26/12
"... according to Appraisal Research Counselors..."
Waterton Associates LLC has decided to sell a 399-unit River North apartment building, which could fetch more than $100 million, or $251,000 a unit. The Chicago-based apartment landlord has hired the Chicago office of Holliday Fenoglio Fowler L.P. to seek buyers for River North Park, a 24-story tower at 320 W. Illinois St. Waterton, which also owns the Presidential Towers complex in the West Loop, paid $60.5 million for the River North building in 2006 and spent additional money fixing up the building, which was completed in 1987. The firm decided now was the right time to sell given the strong investor demand for downtown apartment towers, with many buyers back in the market this month after setting new investment allocations for 2012, says Waterton Senior Vice President Mark Stern. He expects interest from buyers seeking so-called value-add acquisitions, noting that the building's retail space and facade could be spruced up. River North Park was 96.1% occupied at the end of the third quarter, with rents ranging from $1,165 to $2,295 a month, according to Appraisal Research Counselors, a Chicago-based consulting firm....
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Q&A with Habitat CEO
Crain's Chicago Business, Bob Craig, 1/20/12
"... according to Appraisal Research Counselors..."
After watching eight other developers break ground on downtown apartment towers in the past year, Mark Segal has joined the party. Mr. Segal’s firm, Chicago-based Habitat Co. LLC, recently started construction of a 43-story, 450-unit building in River North after lining up financing from Bentall Kennedy L.P., a Seattle-based pension-fund adviser. The $140-million project at 360 W. Hubbard St. is part of a construction boom that will add more than 5,000 apartments to the downtown market over the next few years. Apartments remain the strongest downtown real estate sector as more people, wary of falling home prices, have forsaken the monthly mortgage payment for the check. Rents at the most expensive downtown buildings were 8.1% higher at the end of the third quarter than they were a year earlier, according to Appraisal Research Counselors, a Chicago-based research firm....
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