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Homeownership rises amid improving market
Crain's Chicago Business, David Lee Matthews, 12/26/13
"... according to Appraisal Research Counselors."
More Chicago-area residents are favoring mortgage payments over rent checks. The local homeownership rate climbed to 68.1 percent in the third quarter, up from 66.9 percent a year earlier, according to the U.S. Census Bureau. A key indicator of homebuyer confidence, the local homeownership rate peaked in 2006 and quickly fell once the housing market turned. The foreclosure crisis then took hold, forcing many homeowners into renting. Still, though the homeownership rate fell as low as 66.3 percent in 2011, it never dipped to 1990s levels. The current rate is roughly where it was about 10 years ago, before the bubble started inflating. But unlike the subprime-fueled buying spree that drove the market in the prior decade, this rally is boosted by a shifting philosophy among qualified buyers....
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Lincoln Park apartments sell for big gain
Crain's Chicago Business, Alby Gallun, 12/16/13
"... said Ron DeVries, vice president at Appraisal Research Counselors..."
Prudential Real Estate Investors bought the Belden-Stratford apartments for $86.8 million, allowing the seller to cash out for a big gain less than two years after buying the Lincoln Park building. New Jersey-based Prudential acquired the 297-unit property from an affiliate of Laramar Group LLC that bought it for $59.3 million in December 2011, Cook County property records show. The 46 percent price jump reflects the voracious appetite among investors for apartments in the city, spurred by low interest rates and high occupancies and rents. Also working in Laramar's favor was the location of the Belden-Stratford, a 16-story Beaux Arts building at 2300 N. Lincoln Park West. It's not downtown, where developers are building thousands of apartments, fueling concerns that an oversupply could depress occupancies and rents. “I think they are little bit more protected from what's going on downtown,” said Ron DeVries, vice president at Appraisal Research Counselors, a Chicago-based consulting firm that tracks the apartment market....
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Reinsdorf-backed developer plans 72 apartments in the West Loop
Crain's Chicago Business, Micah Maidenberg, 12/3/13
"... according to Appraisal Research Counselors."
A Northbrook developer backed by Chicago Bulls owner Jerry Reinsdorf is forging ahead with another apartment project in the West Loop, teeing up two more buildings with 72 units in a neighborhood becoming increasingly competitive for apartment landlords. An affiliate of Michigan Avenue Real Estate Group plans to demolish a building at 1237-1245 W. Madison St., replacing it with a four-story, 42-unit apartment structure, city zoning documents show. Immediately to the west, at 1249-59 W. Madison, the Michigan Avenue venture wants to build a four-story, 30-unit building, according to the documents. Michigan Avenue, which is developing apartments at Aberdeen and Madison streets, near Ashland Avenue and Madison Street and other locations, is among a slew of developers that have targeted the West Loop, believing the area doesn't have enough units to meet demand. A venture led by Rosemont-based White Oak Realty Partners LLC is building a 351-unit skyscraper in Greektown, while a venture including Chicago-based Ascend Real Estate Group LLC broke ground last summer on a 216-unit apartment building across the street from Michigan Avenue's proposed project....
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Apartment sales slip as prices break records
Crain's Chicago Business, Alby Gallun, 12/2/13
"... said Appraisal Research Vice President Ron DeVries."
It's still a sellers' market for apartments, but fewer landlords here are selling. Sales of Chicago-area apartments total $1.48 billion so far this year, down about 12 percent from all of 2012, according to Appraisal Research Counselors, a Chicagobased consulting firm. While suburban sales are up 26 percent, at $900.6 million — the highest level since 2007 — downtown sales have fallen nearly 40 percent, to $580.2 million. Investor demand for apartments here has been strong the past few years, fueled by low interest rates, high occupancies and rising rents. Prices have hit new highs as a result, allowing many landlords to cash out for a big profit. The question is whether prices can go much higher from here, especially downtown, where a development boom is making it harder for landlords to fill their high-rises. Investors probably won't be willing to bid as aggressively on properties, knowing they won't be able to hike rents as much as they have in the past. Rents and occupancies at high-end downtown buildings fell in the third quarter, according to Appraisal Research....
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Amli sells off suburban apartments for $85 million
Crain's Chicago Business, Micah Maidenberg, 11/27/13
"... according to Appraisal Research Counselors."
Taking advantage of strong investor demand for suburban apartment properties, Amli Residential sold two complexes for more than $85 million, nearly 21 percent more than the Chicago-based development firm paid nearly a decade ago. In one transaction, Amli sold River Run, a 206-unit complex in Naperville, to a venture of real estate investment fund manager CBRE Global Investors LLC for $43.4 million, property records show. In another deal, Amli sold Kirkland Crossing, a 266-unit complex in Aurora near the Fermi National Accelerator Laboratory, for $41.9 million to an affiliate of a real estate fund managed by Chicago-based Mesirow Financial, property records show....
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Developer mulls condo tower for River North site
Crain's Chicago Business, David Lee Matthews, 11/21/13
"... according to Appraisal Research Counselors."
A vacant River North property slated for condominiums may go condo again with a new developer. A venture led by Rajen Shastri of Chicago-based Akara Partners paid $3.7 million last week for a nearly 9,000-square-foot parcel at Clark and Huron streets, county records show. The venture plans 65 condominiums and ground-floor retail on the site at 100 W. Huron St., currently a surface parking lot, according to Paul Tsakiris, president and managing broker at Chicago-based brokerage First Western Properties Inc., who sold the property. Those plans mark a bullish bet on housing in the tony neighborhood, where new condo supply has dried up amid the recovering market. With little development to speak of over the past few years, no new condos are priced under $700 per square foot in River North, according to Chicago residential consulting firm Appraisal Research Counselors....
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Winning streak continues for suburban apartment landlords
Crain's Chicago Business, Alby Gallun, 11/18/13
"... said Appraisal Research Vice-President Ron Devries."
The steady rise of the suburban apartment market continued in the third quarter, and the good times aren't expected to end anytime soon. The median suburban net rent rose to a record $1.23 a square foot in the quarter, up 0.8 percent from the second quarter and 4.3 percent from a year earlier, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. The suburban occupancy rate was 95.2 percent, down from 95.6 percent in the second quarter but up from 95.1 percent a year earlier. The suburban multifamily market has been a dependable performer for investors over the past few years, as job growth has boosted demand for apartments. And while development is picking up, meaning more competition, it's not yet the cause for concern that it is in downtown Chicago. “Overall, I think operations are still looking pretty good,” said Appraisal Research Vice- President Ron DeVries. “Next year I think will be a bit of a repeat performance.” ...
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Developer goes from condos to rentals and back
Crain's Chicago Business, David Lee Matthews, 11/18/13
"... said Gail Lissner, vice-president of Appraisal Research Counselor..."
The developer of a 66-unit Vernon Hills condominium project who turned to renting after the crash is restarting sales at the project, testing whether the condo comeback can reach the suburbs. Minnetonka, Minn.-based Opus Group hired Chicago-based Draper & Kramer Inc. to sell out Port Clinton Place, a seven-story development it built in 2009 near U.S. 45 and Milwaukee Avenue in the north suburb, Opus Vice President and General Manager Sean Spellman confirmed yesterday. Opus was able to sell only six condos in 2009 before renting out the rest of the project, a common post-bubble strategy used by developers stuck with unsold units. With that condo glut gone, some downtown developers have recently sold out their previously rented units amid a healthier market. Now, Opus is betting it can repeat that success in the suburbs, bucking the rental trend. Just 20 condos were for sale in Vernon Hills last month, according to national real estate brokerage Redfin. “This could be the beginning of a new trend,” said Gail Lissner, vice-president of Appraisal Research Counselors, a Chicago-based residential consulting firm. Ms. Lissner was unaware of any other stalled suburban condo projects resuming sales but said several small mid-rise projects with rented inventory are scattered across the area....
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Have high-rise apartment rents peaked?
Crain's Chicago Business, Alby Gallun, 11/18/13
"... Appraisal Research Vice President Ron DeVries says."
Downtown apartment owners have been bracing for increased competition from a building boom that will add about 5,000 units to the market this year and next. But new data show they have an additional and more immediate problem: Demand is slowing exactly when landlords need it to pick up. The overall downtown apartment occupancy rate dropped to 92.6 percent in the third quarter, down from 95.3 percent a year earlier and the lowest rate since the end of 2009, according to a report by Appraisal Research Counselors, a Chicago-based consulting firm....
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Shrinking supply of new condos leaves buyers with few choices
Crain's Chicago Business, David Lee Matthews, 11/12/13
"... said Appraisal Research Vice-President Gail Lissner."
Demand for new condominiums is strong, but downtown developers are on pace to sell fewer units than last year. Developers closed 159 condo sales downtown in the third quarter, up slightly from 151 sales in the second quarter and 154 a year earlier, according to Chicago-based consulting firm Appraisal Research Counselors. Sales have not taken off like they have for existing condos simply because there aren't a lot of new condos on the market, the residual effect of a severe residential slump that choked off development. The downtown market had just 518 unsold new condos at the end of the quarter, the lowest supply since at least 1997, according to Appraisal Research. In 2008, when the glut was at its worst, there were more than 7,000 unsold new units. Dwindling supply has created “significant gaps” of inventory downtown, where no new condos are for sale in the Gold Coast and Streeterville and where most “entry-level” projects are in the West and South loops, said Appraisal Research Vice-President Gail Lissner....
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Developer turns to apartments for his third Loop project
Crain's Chicago Business, Alby Gallun, 10/23/13
"... said Ron DeVries, vice president of Appraisal Research Counselors..."
After buying two Loop office buildings with plans to convert them into hotels, John T. Murphy has another idea for his third. A group led by the Chicago real estate executive wants to turn the offices in the Oriental Theatre building into 220 apartments, according to a person familiar with his plans, joining a downtown building frenzy that's fueling worries about a potential glut. Mr. Murphy is buying the property at 32 W. Randolph St., supplanting an earlier bid by Chicago developer Chris Carley, the person said. Mr. Murphy already has a busy agenda. When he's not attending to his duties as president of Chicago-based brokerage MB Real Estate Services LLC, he's overseeing Lincoln Park 2550, a 218-unit luxury condominium project he and partner Peter Ricker built in Lincoln Park. Mr. Murphy also is converting a 22-story office building at 100 W. Monroe St. into a Hyatt hotel and the former Chicago Motor Club at 68 E. Wacker Place, into a 144-room hotel, possibly a Hampton Inn....
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Condos on tap for Gold Coast site
Crain's Chicago Business, David Lee Mathews, 10/17/13
"... said Appraisal Research vice president Gail Lissner."
Chicago trader Don Wilson is going condo with his proposed Gold Coast residential tower, the first such project in the neighborhood proposed since the crash. Mr. Wilson's development venture, which includes local developers Fred Latsko and Mark Hunt, plans 35 luxury condominiums at the 26-story project at State and Elm streets, according to documents recently posted to construction industry website BidClerk.com. The venture filed a zoning application in July to accommodate the planned tower at 1149-67 N. State St. but didn't reveal whether it would build apartments or condos. Condo plans make Mr. Wilson, who is also redeveloping the nearby Esquire Theater on Oak Street, the latest developer hoping to capitalize on the rebounding housing market. There were only 12 active downtown condo projects with just 645 unsold condos at the end of the second quarter, the lowest supply of new condos downtown since at least 1997, according to Chicago consulting firm Appraisal Research Counselors. “It's certainly a logical development kind of early in the recovery cycle,” said Appraisal Research Vice- President Gail Lissner....
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Downtown apartment sale to generate big gain for Waterton
Crain's Chicago Business, Alby Gallun, 10/10/13
"... according to Appraisal Research Counselors..."
The owner of a 141-unit River West apartment building is selling it for about $56 million, less than three years after buying it for $37 million. Waterton Associates LLC has agreed to sell Mondial River West, a 15-story building at 900 W. Huron St., to Cornerstone Real Estate Advisers LLC, according people familiar with the transaction. Hartford-based Cornerstone is paying about $400,000 a unit for the building, a former condominium project that was converted to apartments after the residential bust, the people said. The sale underscores how much apartment values have jumped since April 2011, when Waterton bought Mondial. The Chicago-based investment firm paid about $250,000 a unit, or $31.6 million, for 124 unsold condos in the building. Waterton then reassembled Mondial as a pure apartment building, buying back the 17 remaining condos for a combined $5.4 million, bringing its total acquisition cost to $37.1 million, county property records show. Waterton hired Chicago-based brokerage Moran & Co. to sell the property in May....
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Apartment fund buys nearly1,000 units in Rolling Meadows, South Side
Crain's Chicago Business, Alby Gallun, 9/25/13
"... said Ron DeVries, vice president at Appraisal Research Counselors..."
A new fund that invests in affordable housing acquired two properties in the Chicago area, paying $57 million for an apartment complex in northwest suburban Rolling Meadows and buying a South Side tower valued at about $29 million. The Canyon Multifamily Impact Fund, a vehicle formed by Los Angelesbased Canyon Capital Realty Advisors and the community development arm of Citigroup Inc., bought the Apartments at Woodfield Crossing, a 662-unit property north of Woodfield Mall. The fund also acquired York Terrace, a 21-story high-rise with 331 apartments at 2701 S. Indiana Ave. in Chicago.
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Where are the highest apartment rents in Chicago?
Crain's Chicago Business, Abraham Tekippe, 9/23/13
"... according to Appraisal Research."
A new 500-unit tower at 500 N. Lake Shore Drive tops the list of 10 most expensive apartment buildings in downtown Chicago. Four of the top 10 buildings are in River North and six are new, part of a downtown development wave expected to continue through at least 2015. Crain's compiled the list from interviews with landlords and a report from Chicago-based consulting firm Appraisal Research Counselors. The average apartment in the top 10 is 898 square feet and rents for more than $2,800 a month, according to Appraisal Research....
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Developer braves market with South Loop condo plan
Crain's Chicago Business, Micah Maidenberg, 9/19/13
"... according to Appraisal Research Counselors..."
Developer Colin Kihnke is forging ahead with the first big downtown condominium since the crash, testing a market for new homes that's still groggy from the housing crisis. The developer who starts work on the first significant condo project in the central business district is expected to have a crucial advantage because of a lack of competition from rival proposals. In a sign of caution, Mr. Kihnke has pared back his proposal to 140 units, from the 150 units he was considering in August. The building, to be at 1345 S. Wabash Ave., would be 15 stories instead of the 16 stories he had planned, according to a report by the staff of the Chicago Plan Commission, which is scheduled to considering his zoning request for the parcel....
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New Evanston apartment building sells for $70 million
Crain's Chicago Business, Alby Gallun, 9/11/13
"... according to Appraisal Research Counselors..."
The developers of a brand-new 175-unit apartment building in Evanston sold the project for a hefty gain even before leasing up the project, a sign of the strong investor demand for multifamily properties in the Chicago suburbs. Atlanta-based pension fund adviser Invesco Ltd. paid about $70 million for the eight-story building at 1717 Ridge Ave., according to people familiar with the transaction. At $400,000 a unit, it is likely the highest perunit price ever paid for a suburban Chicago apartment property. Invesco acquired 1717 Ridge from a joint venture of Northfield-based Focus Development Inc., Atlanta-based Atlantic Realty Partners and Carlyle Group of Washington....
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Pension fund buys River North apartment tower
Crain's Chicago Business, Alby Gallun, 9/4/13
"... says Ron DeVries, vice president at Appraisal Research Counselors..."
The Teachers' Retirement System of the State of Illinois is betting that the good times will keep rolling in the downtown apartment market. The pension fund acquired a majority stake in Kingsbury Plaza, a 47-story tower just north of the East Bank Club in River North, according to people familiar with the transaction. TRS acquired its interest from GE Asset Management, which built the 420-unit high-rise in 2007 in a joint venture with Chicago-based apartment landlord Habitat Co. Prices of high-end apartment towers in downtown Chicago have soared the past few years, fueled by rising occupancies and rents, a favorable lending climate and strong demand for risky assets among yield-hungry investors. Downtown Chicago is an “extremely attractive market,” said Kenneth Lombard, partner at Capri Capital Partners LLC, the Chicago-based real estate firm that advised TRS on the acquisition....
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With 'Dark Knight' days over, film lab to go condo
Crain's Chicago Business, Allison Burdo, 8/29/13
"... according to Appraisal Research Counselors..."
The River North building where clips of "The Dark Knight" were first screened will soon be knocked down to make way for condominiums. A venture of Chicago-based developer MCZ Development Corp. paid $1.8 million in July for the Filmworkers/Astrolab, a 10,156- square-foot film processing studio at 61 W. Erie St., according to Cook County records. The venture, which bought the property from Astrolab owner Alan Kubicka, plans to build condos on the site, said Jan Smith of @properties, who represented Mr. Kubicka in the sale. Michael Lerner, president of MCZ Development, did not return calls. Mr. Kubicka, who owns the post-production facility Filmworkers Club, bought the Erie Street property for nearly $1.3 million in 2001, Cook County records show. With the purchase, Mr. Kubicka also took over the Astrolab, which processed film for all of John Hughes' movies, including "Ferris Bueller's Day Off" and "Home Alone," and other Chicago-based flicks like "The Break-Up" and "Barbershop." ...
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The dark side of downtown's apartment boom
Crain's Chicago Business, Alby Gallun, 8/26/13
"... says Ron DeVries, vice president of Appraisal Research Counselors..."
Downtown apartment landlords have 3,000 reasons to be worried about a coming glut. Landlords have known for a while that more than 5,300 downtown apartments will be completed in 2013 and 2014, the biggest supply surge since at least 1990. But a new report is predicting another 3,000 rental units or more in 2015. That's a big number for a market that already is showing signs of a slowdown, says the report's author, Ron DeVries, vice president of Appraisal Research Counselors in Chicago. “There clearly are going to be winners and losers,” he says. “We thought that the market was going to be a little more disciplined, but there are still a large number of units that are getting financed.” ...
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Luxury builder seeks triple play in Lincoln Park
Crain's Chicago Business, David Lee Mathews, 8/22/13
"... according to Appraisal Research Counselors..."
A year after opening a luxury highrise overlooking Lincoln Park, developer John Murphy has found a builder to court more grounded homebuyers next door. A venture led by Chicago-based LG Development Group paid $3.7 million earlier this month for four of 11 vacant single-family lots adjacent to Lincoln Park 2550, a condominium tower at 2550 N. Lakeview Ave. that Mr. Murphy built, according to a person familiar with the transaction. LG, which acquired the parcels on Deming Place and Lakeview Avenue from a venture led by Mr. Murphy, will build three large single-family homes on the lots, which have sat vacant since construction began on the 39- story tower in 2010. In 2011, the developer sold eight lots on St. James Place nearby to Joe Mansueto, the billionaire founder of Morningstar Inc., who is building his own mega-mansion there....
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Near sellout on one Lakeview condo project, developers plan second
Crain's Chicago Business, David Lee Mathews, 8/20/13
"... according to Appraisal Research Counselors..."
A hedge fund-led venture that bought two failed Lakeview condominium conversions out of foreclosure two years ago is on the brink of selling out one of them, an encouraging sign for neighborhood landlords looking to go condo. Buyers have closed on or signed contracts to buy 65 of 67 condos at 2930 N. Sheridan Road, a rentalturned- condo high-rise controlled by a joint venture between Greenwich, Conn.-based Contrarian Capital Management LLC and local firm Conlon & Co., said Conlon Chief Administrative Officer Melissa Archer- Wirtz. The venture plans to start marketing 63 similar units nearby at 3033 N. Sheridan as early as next month, she said....
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Little by little, suburban apartment market keeps on growing
Crain's Chicago Business, Alby Gallun, 8/19/13
"... said Appraisal Research vice president Ron DeVries..."
If the downtown apartment market is a hare, the suburban market is a tortoise. Suburban occupancies and rents rose further in the second quarter, as slow, steady job growth continued to boost demand for apartments. The suburban occupancy rate hit 95.6 percent, its highest level since thirdquarter 2007, while median net rents climbed to a record $1.22 a square foot, up 4.4 percent from a year earlier, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. Net rents include concessions like free rent. “Things are still steady as she goes,” said Appraisal Research Vice-President Ron DeVries, the author of the report. “We're seeing good rent growth, occupancies remain solid.” The suburbs have delivered solid if unspectacular results for landlords the past couple years, especially compared with the hot downtown apartment market, where rents at top-tier buildings have risen 26.9 percent since bottoming out at the end of 2009, according to Appraisal Research. In the suburbs, the median net rent has increased 15.1 percent from its second-quarter 2009 trough. The suburbs may be on the wrong side of the “back to city” trend, unable to offer the nightlife and urban fun that many 20- somethings crave. But they offer an affordable alternative to city living and have yet to see the torrid development that has fueled concerns about an apartment glut downtown. Regardless of location, Chicago-area landlords are profiting from the improving job market. As hiring picks up, young professionals who have been living with their parents or roommates move out and get their own places, boosting demand for apartments. Employers in the Chicago area added 64,100 jobs in 2012, up from 57,800 in 2011, according to Moody's Analytics figures cited in the Appraisal Research report. But job growth is expected to slow this year, to less than 50,000 jobs....
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Gouletas Lincoln Park property lands in bankruptcy
Crain's Chicago Business, Abraham Tekippe, 8/16/13
"... according to Appraisal Research Counselors..."
Seven years after wrapping up a condo conversion in a Lincoln Park high-rise, Nicholas V. Gouletas is trying to stave off foreclosure on the building's commercial space. A venture led by the Chicago developer that owns the commercial space and nine parking spots in the building at 2625 N. Clark St. has filed for Chapter 11 protection in U.S. Bankruptcy Court in Chicago, listing both assets and liabilities of $500,001 to $1 million. The Gouletas venture acquired the 20-story apartment building in 2005 for about $25 million, Cook County records show. The venture converted the 133 rental units into condos, selling out by 2006, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm....
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Gouletas Lincoln Park property lands in bankruptcy
Crain's Chicago Business, Abraham Tekippe, 8/16/13
"... according to Appraisal Research Counselors..."
Seven years after wrapping up a condo conversion in a Lincoln Park high-rise, Nicholas V. Gouletas is trying to stave off foreclosure on the building's commercial space. A venture led by the Chicago developer that owns the commercial space and nine parking spots in the building at 2625 N. Clark St. has filed for Chapter 11 protection in U.S. Bankruptcy Court in Chicago, listing both assets and liabilities of $500,001 to $1 million. The Gouletas venture acquired the 20-story apartment building in 2005 for about $25 million, Cook County records show. The venture converted the 133 rental units into condos, selling out by 2006, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm....
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Once condo bust poster child, South Loop now comeback kid
Crain's Chicago Business, David Lee Mathews, 8/15/13
"... said Gail Lissner, vice-president at Appraisal Research."
After falling the hardest in the great downtown condo bust, the South Loop is rising the fastest in the recovery. A recent survey of 65 large downtown buildings found that average condominium resale prices on a square-foot basis rose nearly 10 percent between the first half of 2012 and the first half of this year. The South Loop led all downtown submarkets, with a 20.2 percent gain, according to the survey by Appraisal Research Counselors, a Chicago-based consulting firm. The figures offer an encouraging sign to residents in the South Loop, where average resale prices fell 30 percent from 2008 through mid-2012, more than any other downtown neighborhood, according to Appraisal Research. Downtown prices overall fell 18 percent over the same period....
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Casino Consultants: No Negative Impact on Housing Values
Milford, MA Patch, Mary McDonald, 8/5/13
"... wrote William Miller, vice-president of Appraisal Research Counselors."
How will the proposed Foxwoods Massachusetts casino affect property values in and around Milford? Two consultants, including one hired to represent the town's interests, say it will have little to no effect. Appraisal Research Consultants, of Chicago, hired to represent the town, issued a report July 29 that found no adverse impacts on real estate values in other communities within one, three, five and 10 miles of comparable casinos. According to its data, 501 households are within a mile of the proposed casino site in Milford. The median value of the homes in that band is $334,641 — the highest value of any segment surrounding the casino. "While there is always the potential for a specific property to be adversely affected by an adjoining or a nearby property, the marketplace indicates that broad effects that diminish value across neighborhoods are unlikely," wrote William Miller, vice-president of Appraisal Research Consultants. The findings generally matched those of the casino-appointed consultant, Gaming Market Advisors....
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Casino Developer: Property values won''''t be affected
MetroWest Daily News, Lindsay Corcoran, 8/1/13
"The town's consultant, William Miller from Appraisal Research Counselors, studied..."
Consultants for the proposed Milford casino developers and those for the town agreed after performing studies from communities across the country that the casino should have no impact on property values. Consultants and officials from Foxwoods, the developers of the proposed $1 billion, 660-square-foot resortcasino at the intersection of Interstate 495 and Route 16, gave presentations on that subject and their site plans at their last subject-specific meeting on Wednesday. Steve Gallaway from Gaming Market Advisors, consulting for Foxwoods, said he looked at 10 communities where casinos have been built since 2009, in order to gain the most recent data. At the request of a resident at the last meeting, Gallaway said he also looked at two residential communities in the country, including Hanover, Md., and Des Plaines, Ill....
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Casino Developer: Property values won''t be affected
Milford Daily News, Lindsay Corcoran, 8/1/13
"The town's consultant, William Miller from Appraisal Research Counselors, studied..."
Consultants for the proposed Milford casino developers and those for the town agreed after performing studies from communities across the country that the casino should have no impact on property values. Consultants and officials from Foxwoods, the developers of the proposed $1 billion, 660-square-foot resortcasino at the intersection of Interstate 495 and Rte. 16, gave presentations on that subject and their site plans at their last subject-specific meeting on Wednesday. Steve Gallaway from Gaming Market Advisors, consulting for Foxwoods, said he looked at 10 communities where casinos have been built since 2009, in order to gain the most recent data. At the request of a resident at the last meeting, Gallaway said he also looked at two residential communities in the country, including Hanover, Md., and Des Plaines, Ill...
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Elk Grove apartments on the market
Crain's Chicago Business, 7/26/13
"... according to Appraisal Research Counselors..."
Golub & Co. put a 579-unit apartment complex in Elk Grove Village up for sale about two years after buying it for $40 million. A joint venture between the Chicago-based real estate firm and Boston-based Alcion Ventures hired the Chicago office of HFF Inc. to sell Willow Crossing, a 28-acre complex at 1031 Charlela Lane that was completed in 1981. The property is expected to fetch as much as $110,000 a unit, or about $64 million. The Golub venture has built a clubhouse and swimming pool on the property and started renovating its apartments, said HFF Managing Director Marty O'Connell. Only about 10 percent of the units have been rehabbed, leaving an opportunity for a buyer to fix up the rest and hike rents, he said. Willow Crossing was 94.6 percent leased at the end of the first quarter, with rents ranging from $835 a month to $1,450 a month, according to Chicago-based consulting firm Appraisal Research Counselors. The Golub venture bought the property for $40 million in August 2011 from a venture controlled by the Baird family, owners of residential broker Baird & Warner Inc. A Golub executive was not immediately available for comment.
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Related Midwest bets big on Streeterville
Crain's Chicago Business, Alby Gallun, 7/24/13
"... said Ron DeVries, vice president of Appraisal Research Counselors."
Related Midwest just can't get enough of Streeterville. The residential developer acquired the defaulted loan on the failed Chicago Spire project at the end of June, weeks after the first residents started moving into its new 500-unit apartment tower a couple blocks away at 500 N. Lake Shore Drive. Not content to stop there, the firm, a unit of New York-based Related Cos., now is buying a 22,300-square-foot development site just west of its apartment building, according to people familiar with the transaction. It's unclear what Related Midwest plans to build there, but it's going long on Streeterville at an interesting point in the real estate cycle. Though demand for apartments remains strong, a downtown construction boom well under way will test that strength and could make it harder for new projects to get off the ground. The condo market, meanwhile, is rebounding from a long slump. But “it's probably too soon” for developers to start stamping out high-rises again, said Ron DeVries, vice president of Chicago-based consulting firm Appraisal Research Counselors....
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New broker takes over at Ritz-Carlton Residences
Crain's Chicago Business, Micah Maidenberg, 7/24/13
"... according to Appraisal Research Counselors..."
A new brokerage is taking over the marketing effort at the Ritz-Carlton Residences on North Michigan Avenue, a luxury condominium project that suffered from slow sales amid a legal dispute involving its developer. Prism Development Co., which built the 89-unit tower at 664 N. Michigan Ave., hired Coldwell Banker Previews International, the luxury unit of Coldwell Banker Residential Brokerage, to sell the remaining condos in the building, taking over for Prudential Rubloff Properties as exclusive broker, according to a Prism spokesman. Yet key personnel will remain the same. Brokers Jane Shawkey and Rachel Bailey, who worked on sales at the Ritz with Prudential, have jumped over to Coldwell Banker and will continue there as sales manager and sales executive, respectively, according to Prism. Neither could immediately be reached....
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Vernon Hills apartment development lands financing
Crain's Chicago Business, Abraham Tekippe, 7/23/13
"... according to Appraisal Research Counselors..."
A 304-unit apartment project in north suburban Vernon Hills has a landed a new equity partner and construction loan, clearing the way for work there to begin this month. An affiliate of Deutsche Asset & Wealth Management, formerly known as RREEF Real Estate, has teamed up with Chicago-based REVA Development Partners LLC and Itasca-based Hamilton Partners to develop the Oaks of Vernon Hills, a multifamily community that will include 256 apartments and 48 town home rentals, according to a news release. Located at 770 E. US Highway 45, between Corporate Woods Parkway and Woodlands Parkway, the 29.5-acre parcel was previously home to Kelly's Day Camp. Although Hamilton Partners initially planned an office and industrial development on the site — adjacent to the Corporate Woods Office Park — the project was derailed by the recession....
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Developer of West Loop apartment tower lands $70 million loan
Crain's Chicago Business, Alby Gallun, 7/23/13
"... according to Appraisal Research Counselors..."
The developer of a 33-story West Loop apartment tower has secured a $70 million loan to finance the project, the 21st downtown multifamily high-rise to get under way in the current construction boom. A joint venture between Rosemontbased White Oak Realty Partners LLC and New Jersey-based Prudential Real Estate Investors borrowed the money from PNC Bank N.A. for the 351-unit Arkadia at 765 W. Adams St., according to a mortgage filed with the Cook County Recorder. The high-rise will cost about $103 million to build, or $294,000 a unit, and is valued at $141 million, or about $402,000 a unit, after it's leased up, said White Oak Managing Principal Richard Blum. He expects the first residents to start moving in in January 2015. With downtown apartment rents at record highs, developers are racing to land the construction financing they need to get new high-rises off the ground. Developers completed 4,143 downtown apartments between 2010 and 2012, according to Appraisal Research Counselors, a Chicago-based consulting firm. Including the White Oak project, developers are on track to finish another 5,289 units from the beginning of this year to January 2015, fueling concerns in some quarters about a potential glut....
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This apartment sale will test the market's strength
Crain's Chicago Business, Alby Gallun, 7/22/13
"... says Ron DeVries, vice president at Appraisal Research Counselors..."
Real estate investors soon will have a chance to buy a piece of Chicago's biggest property in its hottest sector. Waterton Associates LLC, the owner of Presidential Towers, has hired brokerage Eastdil Secured LLC to sell a 49 percent stake in the 2,346-unit West Loop apartment complex, sources say. Chicago-based Waterton paid $475 million for the four-tower property in 2007, just as the real estate market was peaking, and the sales effort will test the strength of a downtown apartment market that many believe is cresting once again. “If you're looking to recapitalize the asset, this is the time to do it,” says Ron DeVries, vice president at Appraisal Research Counselors, a Chicago-based consulting firm that tracks the local apartment market....
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Upstart bets $18 million on suburban apartments
Crain's Chicago Business, Abraham Tekippe, 7/8/13
"... according to Appraisal Research Counselors..."
A relative newcomer to the Chicago apartment market paid $18.1 million for 251 units in a Mt. Prospect housing complex, part of a plan acquire the entire community and cash in on a strong demand for rental units. Windy City RE LLC bought the apartments in 10 of the 14 buildings that make up Colonial Greens, 1958 W. Algonquin Road, said Milan Rubenstein, principal in the Chicago-based firm. The deal marks the largest local acquisition for Windy City, which was started in 2010 and specializes in distressed assets that it buys and flips, though the 251 Mt. Prospect units were not distressed....
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Central Station developers lose appeal over condo deposits
Crain's Chicago Business, David Lee Mathews, 7/2/13
"... according to Appraisal Research Counselors..."
The Illinois Appellate Court ruled that 21 buyers in a failed South Loop condominium tower are entitled to back out of their contracts and recoup their earnest money deposits, a blow for the project's lender. The court last month affirmed a 2011 Cook County Circuit Court decision that the developer of the 298-unit tower at 1201 S. Prairie Ave., part of the Central Station development, failed to meet construction deadlines, voiding the purchase contracts. The buyers, who collectively were under contract to pay more than $17 million for their condos at the tower, sued to get back their deposits, which total nearly $2 million. “They're not going to allow a developer to write a contract so open-ended there's no deadline for performance whatsoever,” said Robert McLaughlin, shareholder at Segal McCambridge Singer & Mahoney Ltd., which represented the buyers. The ruling brings another headache for Bank of America, which through a separate entity took back the ill-fated tower from its developer last year, and would have received the deposits out of escrow if the court ruled the other way. The Charlotte, N.C.-based bank loaned more than $100 million to the tower's developers, Gerald Fogelson and Ronald Shipka Sr., before seizing the property through a deed-in-lieu of foreclosure. A Bank of America spokeswoman and Ronald Shipka Jr., Mr. Shipka's son and a principal at Chicago-based development firm Enterprise Cos., did not return messages seeking comment. Entities managed by the developers were the defendants, but B of A stands to lose the money. IMPACT ON BUILDING UNCLEAR It's unclear what impact, if any, the ruling will have on the building, formerly called One Museum Park West but now called the Grant. Bank of America, through developer Related Midwest, relaunched sales at the tower this year amid the recovering condo market. Through the first quarter, 63 condo sales had closed at the tower while another 27 units were under contract, according to Chicago consulting firm Appraisal Research Counselors....
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Understanding Real Estate Market Fluctuations In Order To Leverage...
PRWeb, 6/27/13
Panel includes: "... Gail Lissner, CRE, SRA, VP Appraisal Research Counselors..."
The economic impact of the 2008 financial crisis could be felt across the Chicagoland marketplace in indicators such as unemployment including a contraction in real estate professionals, foreclosed and underwater homes, and lost or reduced retirements accounts. Yet from the ashes of a ravaged real estate market, the seeds of opportunity began to rise up. In early 2010, forward-looking and vulture investors began targeting select real estate opportunities for acquisition. By the first half of 2013, real estate investors, developers, builders, and rehabbers were returning to the market en masse given the strong momentum that some Chicago markets have experienced. Join Chicago Real Estate Professionals as we present a panel of distinguished real estate and appraisal experts who will bring their crystal balls and share their views on the current marketplace, and how to maximize opportunity by understanding the timing, demand and volatility of this real estate marketplace....
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After delays, buyers back out at Ritz condo project
Crain's Chicago Business, David Lee Mathews, 6/25/13
"... according to Appraisal Research Counselors..."
Four months after ending a dispute that kept condominium buyers out of the Ritz- Carlton Residences, the Mag Mile tower's developer has a new problem: buyers' remorse. Thirty-one buyers who agreed to purchase a condo in the 89-unit project at 664 N. Michigan Ave. dropped their sales contracts in the first quarter, according to Chicago consulting firm Appraisal Research Counselors. The development, which began marketing in 2006, had just 11 sales under contract at the end of the quarter. The fallout presents a new challenge for Chicago developer Prism Development Co., which met several obstacles after launching the luxury tower at the market's peak. The Metropolitan Water Reclamation District of Greater Chicago sued Prism in 2006, blocking the developer's access alley for about three years and delaying construction. Last year, the Terra Foundation for American Art, which owns the land under the tower and agreed to buy commercial space in the new building, refused to close on its deal, shutting out pending condo buyers....
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Allison Davis loses appeal over failed South Loop condo project
Crain's Chicago Business, Abraham Tekippe, 6/24/13
"... said Gail Lissner, vice president at Appraisal Research Counselors..."
The Illinois Appellate Court ruled against developer Allison Davis in a lawsuit over a defaulted $18 million loan on a South Loop condominium project. The appellate court upheld a Cook County Circuit Court decision reached last year that found a unit of Boston-based Fidelity Investments was within its rights to repossess unsold condos in the Columbian, after a development venture led by Mr. Davis defaulted on a forbearance agreement to repay the past-due loan and avoid foreclosure. “While the real estate tumble over the past several years may have doomed many real estate projects and investments, it also caused a mini-boom for lawsuits by disgruntled developers, owners and investors. This is one of those cases,” Justice Michael Hyman wrote in the opinion, issued last week. The ruling comes more than three years after Edward T. Joyce, a Chicago attorney, sued Fidelity on behalf of a limited partnership whose general partner was Mr. Davis, records show. In his complaint, Mr. Joyce alleged it was Fidelity, not the tower's developer, that violated the forbearance agreement....
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Amid rising condo market, 'For Sale' could replace 'For Rent'
Crain's Chicago Business, David Lee Mathews, 6/20/13
"... said Gail Lissner, vice president at Appraisal Research Counselors..."
With no downtown high-rises in the pipeline, the next surge of new condominiums may come from ghosts of the market's past: rented units in fractured projects. Some developers that have been riding out the market by renting out their condos are changing course, offering the units for sale as demand for new condos outpaces supply. The switchers include Speedwagon Properties, which has sold 15 units this year at 400 N. LaSalle St., about three years after paying nearly $20 million for 102 of the building's 450 condos. The Northbrook-based investor is selling the condos “two or three at a time” for more than $400 a square foot, close to the market highs of 2006, said Speedwagon Managing Director Steve Khoshabe. The condo-to-rental-to-condo trend is likely to accelerate in the coming months as the market continues to improve. 400 N. LaSalle, a former apartment building that went condo in the prior decade, is one of 11 downtown buildings with more than 600 rented units that could go up for sale, according to Appraisal Research Counselors, a Chicago-based consulting firm....
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Trail leads to Chicago for Oregon apartment developer
Crain's Chicago Business, Ryan Ori, 6/19/13
"... according to Appraisal Research Counselors..."
A Portland, Ore.-based based developer is blazing a trail to the Midwest with plans for two apartment towers in Chicago, including one in River North that has landed a $46 million construction loan. Gerding Edlen Development Inc. is joining a construction boom that will add 5,200 new apartments to the downtown market in 2013 and 2014, according to Chicago-based Appraisal Research Counselors. The projects in River North and Old Town, which will cost about $147 million combined, are the first in the Midwest for Gerding Edlen, an office and apartment developer that has a strong concentration in western states and in recent years has ventured into the East Coast. The firm formed a joint venture last month with Chicago developer Fred Latsko to build a 25- story tower with 188 units at 212-232 W. Illinois St., which valued the River North site at $12.5 million, according to Cook County records. Mr. Latsko, who bought the property near Gene & Georgetti restaurant for $9.5 million in 2008, according to county records, maintains sole control of a landmarked former firehouse on the western portion of the parcel at 228 W. Illinois, where he is expected to open a restaurant of about 5,000 square feet....
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Local investor to buy 147-unit apartment tower in Gold Coast
Crain's Chicago Business, Alby Gallun, 6/19/13
"... according to Appraisal Research Counselors..."
Local real estate investment firm Ansonia Properties is buying a 21-story apartment tower in the Gold Coast, betting the good times will keep rolling for the downtown rental market. Ansonia has agreed to buy the 147-unit building at 860 N. DeWitt Place from a trust affiliated with Chicago-based real estate firm Supera Asset Management Inc., according to people familiar with the transaction. Ansonia is not buying the land underneath the property, which Supera leases under an agreement that expires in 48 years....
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Frisco investor adds to suburban apartment portfolio
Crain's Chicago Business, Alby Gallun, 6/19/13
"... says Appraisal Research Vice-President Ron DeVries."
Morton Friedkin is adding another apartment complex to his suburban portfolio, Lincoln at River Run, a 374- unit property in southwest suburban Bolingbrook. A venture led by the San Francisco apartment investor is set to close later this month on its acquisition of the 25-acre property at 350 Whitewater Drive from the Multi- Employer Property Trust, a real estate fund that invests pension plan money, sources said. A price could not be determined, but people familiar with property estimated it at about $55 million, or about $147,000 a unit....
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Imperial plans 130 apartments in Uptown office building
Crain's Chicago Business, Micah Maidenberg, 6/10/13
"... said James Kutill, VP and director of neighborhood properties at Appraisal Research."
Imperial Realty Co. plans to convert an Uptown office building into apartments, joining a pack of companies seeking to take advantage of the strong north lakefront rental market. Chicago-based Imperial, best known as an office landlord, plans to build out 130 rental units and 30,000 square feet of ground-floor retail space in the former Combined Insurance Co. of America building at 5050 N. Broadway St., said Imperial President Alfred Klairmont....
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St. Charles apartments to sell for $19.2 million
Crain's Chicago Business, Alby Gallun, 6/7/13
"... according to Appraisal Research Counselors..."
An Atlanta investor is paying about $19.2 million for a 208-unit apartment complex in west suburban St. Charles, its second Chicagoarea acquisition in four months. Radco Cos. is acquiring Covington Court apartments from Shodeen Inc., the Genevabased developer that built the complex in 1987, for about $92,500 a unit, according to a statement from Shodeen. The property at 1690 Covington Court includes a clubhouse and swimming pool and is 99 percent leased, according to the statement....
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Developers supersize condos to meet demand in city
Chicago Tribune, 6/7/13
"Gail Lissner, vice president of Appraisal Research Counselors, said..."
For some urban dwellers, starting a family often means pulling up stakes and heading to the suburbs for a roomy single-family home. But demand is driving the development of larger condos and town homes in Chicago that are designed not only to appeal to younger couples but also to empty nesters, move-down buyers and those who want to maintain a city address...
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Tri-Housing Conference will feature Merrill, Schwartz, Heucksteadt and Lissner
REjournals.com, Staff, 6/5/13
"Interviews will be conducted by Gail Lissner, Appraisal Research Counselors."
Illinois Real Estate Journal and Midwest Real Estate News are hosting what is being billed as a “Tri-Housing Conference” on June 26, 2013 at the Crowne Plaza in Rosemont, Illinois. The conference has been assembled to look closer at the many facets of the student, senior and multihousing market sectors from the perspective of key people in their respective specialties. The conference will feature interviews and presentations with and by leading authorities in the housing segments, including Chris Merrill, Harrison Street Real Estate Capital; David Schwartz, Waterton Associates; Chris Hueckstaedt, MetroStudy; and Gail Lissner, Appraisal Research Counselors. Conference organizers continue to add speakers. Among those who are scheduled to appear include Jeff Raday, McShane Construction; Jerry DeCicco, Joseph Duffy; George Mesires, Ungaretti & Harris; David Ruttenberg, Marc Realty Residential; and Bennett Neumann, Laramar Group....
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Condo market comeback boosts sales at tower near Millennium Park
Crain's Chicago Business, David Lee Mathews, 6/4/13
"... according to Appraisal Research Counselors..."
The condominium market's comeback arrived just in time for the developer of the Park Monroe, a 216-unit project overlooking Millennium Park that's on the verge of selling out. Buyers have signed contracts for all but two condos in the 48-unit second phase of the development at 65 E. Monroe St., about eight months after the units went on the market, according to the Park Monroe's sales office. “I don't know what happened. After Jan. everybody woke up and just decided they were going to buy real estate,” said Patricia Young, head of Park Monroe's sales team and vice president of marketing at Equity Marketing Services Inc. “It was a total turnaround.” The strong sales offer further evidence that the downtown condo market has pulled out of its sixyear slump. The project's developer, a venture of GlenStar Properties LLC and Walton Street Capital LLC, is building the condos on the upper floors of an office building. The venture launched a 168-unit first phase in July 2006, just as the residential market was peaking, but it wasn't until last year that enough units sold to launch Phase 2. Phase 1 is sold out, though buyers have yet to close on the last two units....
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Suburban apartment renters get no relief
Crain's Chicago Business, Abraham Tekippe, 6/3/13
"... said Appraisal Research Vice-President Ron DeVries."
Suburban apartment rents climbed to yet another high in the first quarter, continuing an upward trend that began nearly 3½ years ago. The median net suburban rent rose to $1.21 a square foot in the first three months of the year, up from $1.19 in the fourth quarter and $1.17 a year earlier, an annual increase of 2.9 percent, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. The suburban occupancy rate also increased, reaching 95.1 percent, vs. 94.9 percent the previous quarter and 94.7 percent a year earlier. Demand for apartments remains strong as many suburbanites continue to favor renting over owning. While the pendulum is shifting back in favor of owning amid a recovering market for single-family homes and condominiums, it's still hard for many people to get a mortgage, leaving them with no alternative to renting. “We used to have people running out the back door to buy homes or condos but the door's been closed a bit for a while,” said Appraisal Research Vice-President Ron DeVries. The door has opened slightly “as the housing market is recovering, but we're still seeing good capture of people just remaining in the rental market.” The job market also may be starting to work in landlords' favor. When hiring is weak, renters tend to double up or even move in with family to save money, depressing demand for apartments. But revised numbers from the U.S. Bureau of Labor Statistics show that the Chicago area added 64,100 jobs in 2012, up from 57,800 in 2011 and the first time annual job growth has topped 60,000 since 1998, according to the report. Mr. DeVries expects rents to increase 3 percent to 5 percent this year but said that growth could slow in certain submarkets in 2014....
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Condos overlooking Millennium Park sell for $5 million
Crain's Chicago Business, David Lee Mathews, 5/30/13
"... according to Appraisal Research Counselors..."
A local hedge fund executive paid nearly $5 million for two condominiums he will combine near the top of a 72 -story tower overlooking Millennium Park, the top sale in the development and one of the most expensive Chicago condo sales of the last year. County records show Peng Zhao and Yu Chen paid $4.95 million earlier this month for two adjacent condos at the Legacy at Millennium Park, the slender 355-unit glass tower at 60 E. Monroe St. Records show Mr. Zhao, co-head of quantitative strategies at Citadel LLC, plans to combine the two 69th-floor units, which are unfinished, to create a full-floor penthouse. It is the seventh-highest price paid for a downtown condominium over the past 12 months, according to Midwest Real Estate Data and Crain's research. Mr. Zhao's boss tops the list: Citadel chief Kenneth Griffin paid $15 million last November for a full-floor unit at Park Tower, 800 N. Michigan Ave., the most ever paid for a Chicago condo....
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Buyer of failed Logan Square town homes stops renting, starts selling
Crain's Chicago Business, David Lee Mathews, 5/28/13
"... according to Appraisal Research Counselors..."
An investor who bought a failed 18- unit town home development in Logan Square is putting the homes up for sale after renting them out, aiming to capitalize on the rebounding residential market. Rebranded as ROW 18, the threelevel, four-bedroom town homes at 2058-66 N. Stave St. will be listed within two weeks, starting in the low- 500s, said Koenig & Strey Real Living broker Karen Ranquist, who is marketing the project. One of the homes is already vacant, she said. The project's original developer, a venture led by John O'Flaherty of O'Flaherty Builders, ran into trouble as the residential market crashed and didn't sell any units, opting instead to rent them out. The developer relinquished the project in 2010 to its lender, American Chartered Bank, which sold it for $5.7 million in 2011 to a venture led by Lizzie Kaplan of Sedgwick Investments Chicago LLC, according to Cook County records....
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'A new pattern' in downtown condo market
Chicago Tribune, Mary Ellen Podmolik, 5/24/13
"... said Gail Lissner, a vice president at Appraisal Research Counselors..."
Donald Trump generated plenty of headlines while in Chicago this month testifying at a trial involving Trump International Hotel & Tower, but beyond the media frenzy, it's a story of "slow and steady wins the race" at his Chicago high-rise. About 92 percent of the condominiums in the 4-year-old building are sold, and not at firesale prices. In fact, the building outsold all other downtown projects during the first quarter, with 24 closings at an average sales price of $623 per square foot....
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Gouletas set to buy 3,866 apartments
Crain's Chicago Business, Ryan Ori, 5/22/13
"... according to Appraisal Research Counselors..."
Prolific condominium converter Nicholas Gouletas is chasing one of the biggest deals of his career, a 3,866-unit apartment portfolio including the Lex, a 296-unit apartment tower in the South Loop. Chicago-based American Invsco Corp., where Mr. Gouletas is chairman and CEO, has emerged as the winning bidder for a 13- property portfolio but has yet to close on the deal, seller ST Residential LLC said today. The question is whether Mr. Gouletas, whose bestknown condo conversion project is Lake Point Tower, will be able to line up the financing to complete the purchase. ST Residential, also based in Chicago, confirmed in January that it had hired brokers Eastdil Secured LLC and HFF Inc. to sell the 13 properties, which were acquired from the failed Corus Bank condominium portfolio. ST Residential manages the portfolio for a venture including Starwood Capital Group and TPG Capital, which gained a stake in a 2009 deal with the Federal Deposit Insurance Corp....
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What’s the Best Real Estate Investment for a Single Person in Chicago?
Chicago Now (Tribune), Dennis Rodkin, 5/21/13
"... according to Appraisal Research Counselors..."
... I wouldn’t say that condos consistently have a lower resale value, only that they have had a lower resale value in recent years in Chicago. We had an enormous glut of condos, both newly built and recently converted from apartments, going into the recession, and that overstock contributed to a big crash in prices. But over the years, the oversupply has been burned off. A report out from Appraisal Research Counselors last week said that developers had 732 unsold condos on their hands in the first quarter of this year. Five years earlier, they had 8,222....
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Downtown apartment rents hit new high, but supply surge coming
Crain's Chicago Business, Alby Gallun, 5/20/13
"... said Appraisal Research Vice-President Ron DeVries."
Downtown apartment rents hit another high in the first quarter, but landlords will lose their pricing power in the coming months. Effective rents at top-tier, or Class A, buildings rose to $2.63 a square foot in the quarter, up 1.9 percent from the fourth quarter and 5.2 percent from a year earlier, according to Appraisal Research Counselors, a Chicago-based consulting firm. Effective rents, which account for concessions such as free rent, have risen more than 26 percent since bottoming out in 2009. Landlords have had the upper hand over tenants as demand for apartments has outpaced supply. Since the residential crash, many downtown residents have become renters by choice, wary of buying in bad market, or by necessity, unable to afford the higher down payment required to get a mortgage these days. Yet supply will soon catch up with demand and could, some fear, even exceed it. A construction wave will add seven new high-rises totaling 2,895 apartments to the downtown market this year, with another 2,330 units to be completed in 2014, according to Appraisal Research....
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New condo sales rise downtown, shrinking supply
Crain's Chicago Business, David Lee Mathews, 5/16/13
"... according to Appraisal Research Counselors..."
The downtown condominium market took another step out of its hole in the first quarter amid signs that demand for new condos is outpacing supply. Developers sold 122 condos downtown in the quarter, up from 72 in fourth-quarter 2012 and 113 a year earlier, according to a report from Chicago-based consulting firm Appraisal Research Counselors. The sales are an encouraging sign for developers that have been trying to unload dozens of unsold units built before the crash, bringing them one step closer to selling out. The report also shows that the condo glut that caused so many problems for so many developers is history. The market’s problem now is a shortage of condos in some places. There are no new condos for sale in the Gold Coast and Streeterville, and the downtown market overall had just 755 unsold new units at the end of the first quarter, the lowest supply since at least 1998. Back in 2008, downtown developers were sitting on more than 8,000 unsold units. That’s good news for developers who have good sites and the financing to start building again. “There are little gaps in the inventory where there may be new development opportunities,” said Appraisal Research Vice President Gail Lissner. The Appraisal Research data cover sales that closed in the first quarter. The market looks even stronger based on pending sales that haven’t closed yet. Buyers signed contracts for 229 downtown condos in the quarter, up from 141 in the fourth quarter and 175 a year earlier, according to the report....
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Trump sparks courtroom drama — and condo sales
Crain's Chicago Business, Alby Gallun, 5/16/13
"... according to Appraisal Research Counselors..."
Never one to miss an opportunity, Donald Trump used his testimony in court this week to brag about his 92-story condominium-and-hotel tower downtown, providing what an opposing lawyer called “an infomercial” for the project. A new report shows that the celebrity developer can brag about at least one thing: Trump International Hotel & Tower outsold all other downtown condo projects in the first quarter. Buyers closed on 24 Trump condos in the quarter, up from 10 in fourth-quarter 2012 and seven a year earlier, according to the report from Appraisal Research Counselors, a Chicago-based consulting firm. It was the best sales quarter for the riverside tower in nearly four years....
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Condo Site Lives Again
Wall Street Journal, Maura Webber Sadovi, 5/15/13
Gail Lissner and Ron DeVries, both of Appraisal Research Counselors, are quoted
As the housing market recovers, bidders are emerging for the note on the stalled Chicago Spire condominium property, once slated to be North America's tallest building. Ireland's National Asset Management Agency, or NAMA, a so-called bad bank that is charged with managing that country's distressed real-estate assets, has received at least a half-dozen offers in the initial round of bidding for about $93 million in soured debt it holds on the property, according to people familiar with the bidding. Among the bidders, according to these people, is DeBartolo Development of Tampa, Fla., and Stephen Ross's Related Cos. of New York. Both bidders are already active developers in downtown Chicago....
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Roger Greenfield plans another downtown restaurant
Crain's Chicago Business, Micah Maidenberg, 5/15/13
"... according to Appraisal Research Counselors..."
Roger Greenfield plans a new restaurant in a vintage Loop high-rise that was recently converted to apartments, the seventh downtown establishment for the veteran restaurateur best known as the founder of the Bar Louie chain. Mr. Greenfield, president at Glenview-based Restaurants America, signed a lease for a restaurant and bar in the 8,500-square-foot retail space in the base of Randolph Tower, 188 W. Randolph St., according to a source. The planned establishment sits right next to the El tracks and across the street from the Allegro Hotel, an area not known for its restaurants. “It's perceived as off because the East Loop, east of State, east of Dearborn, have gotten so much buzz with Millennium Park,” said John Vance, vice president at Chicago-based retail brokerage Stone Real Estate Corp....
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Australian investor buys South Loop development site
Crain's Chicago Business, Abraham Tekippe, 5/14/13
"... said Gail Lissner, vice president at Appraisal Research Counselors..."
An Australian investor paid more than $1 million for a bank-owned South Loop property once controlled by developer William Warman, part of a larger push into metropolitan markets across the United States. Drapac Group USA, a subsidiary of North Melbourne, Australia-based Drapac Group, bought the 22,000- square-foot parcel at 2039 S. Prairie Ave., where Mr. Warman had proposed a 146-unit condominium high-rise. But the condo crash foiled that plan, and Mr. Warman lost the property through foreclosure in 2009....
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Developer gets $80 million loan for Lake Shore Drive apartments
Crain's Chicago Business, Abraham Tekippe, 5/10/13
"... according to Appraisal Research Counselors..."
Construction crews are busy revamping the former Lakeshore Athletic Club building on Lake Shore Drive about three months after the property's owner secured an $80 million construction loan to convert the building to 200 apartments. A venture of Northbrook-based Integrated Development Group LLC obtained the loan from BMO Harris Bank N.A. and JPMorgan Chase Bank N.A. in February, county records show, clearing one of the biggest hurdles facing developers in today's market. “The construction is probably about two-thirds done,” said Integrated CEO Matthew Phillips, adding that the first units will be ready by year-end and the rest completed in first-quarter 2014. Integrated and its partner, Rockville, Md.-based National Electrical Benefit Fund, initially planned to convert the historic building at 850 N. Lake Shore Drive into luxury senior housing, but the developer shifted course after the Clare, a retirement community in the Gold Coast, sold for a fraction of its development cost at a bankruptcy auction in April 2012. High occupancies and soaring rents made apartments an attractive alternative. Yet new projects face growing competition as supply threatens to outpace demand, with developers expected to add some 5,200 units to the downtown apartment market by the end of 2014, according to Appraisal Research Counselors, a Chicago-based consulting firm....
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Optima plans second, 60-story apartment tower in Streeterville
Crain's Chicago Business, Micah Maidenberg, 5/8/13
"... according to Appraisal Research Counselors..."
The developer of a new Streeterville apartment tower is teeing up plans for another one next door, adding to the bulging pipeline of downtown rental projects. A venture led by Glencoe-based Optima Inc. paid $29 million last month for a one-acre site at 220 E. Illinois St., where it plans a $250 million skyscraper rising as high as 60 stories, said David Hovey, Optima's president. The tower would include 400 apartments, a 200-room hotel and a 60,000-square-foot retail space designed for a single tenant, Mr. Hovey said. It would be immediately east of Optima Center, a 42 -story, 325-unit building at 200 E. Illinois St. that Mr. Hovey's firm is also building. Optima hopes to complete the second tower in 2017....
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Is real estate's 'silly season' returning?
Crain's Chicago Business, Alby Gallun, 5/6/13
"... according to Appraisal Research Counselors..."
A record-breaking price for an Old Town apartment building is evoking memories of 2007. Heitman LLC, a Chicago-based real estate investment firm, has agreed to pay about $158 million for a 250-unit luxury apartment building, according to people familiar with the transaction. The price equates to $632,000 per unit, a high for Chicago and a sign of soaring investor demand for trophy apartment towers, fueled by ultralow interest rates....
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United CEO buys condo in Trump Tower
Crain's Chicago Business, David Lee Mathews, 4/30/13
"... according to Appraisal Research Counselors..."
United Continental Holdings Inc. CEO Jeff Smisek has landed at a new Chicago home: a two-bedroom condominium in the Trump International Hotel & Tower. County records show a Texas limited liability company established by the airline chief paid $2.38 million last month for the 3,437-squarefoot condo on the building's 34th floor, which faces northeast and includes a den and media room, according to floor plans on developer Donald Trump's website. The company bought the unit from the developer. Mr. Smisek is the latest among the growing list of prominent Chicagoans who keep a residence in Trump, including McDonald's Corp. CEO Don Thompson, Chicago Blackhawk Patrick Kane, and Chicago Bulls star Derrick Rose. Comic Steve Harvey, who debuted a Chicago-based talk show last year, rents a 6,850-square-foot condo near the top of the riverfront skyscraper at 401 N. Wabash Ave. Though Mr. Smisek lacks the celebrity of those other owners, his purchase still will enhance the building's cachet amid an improving high-end residential market. Mr. Trump's development venture had sold 387, or nearly 80 percent, of the project's residential condos at the end of 2012, according to Chicago-based residential consulting firm Appraisal Research Counselors. The developer had also sold 161, or about 47 percent, of the building's 339 hotel condo units....
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Two suburban apartment complexes sell for $75 million
Crain's Chicago Business, Alby Gallun, 4/24/13
"... said Ron DeVries, vice-president at Appraisal Research Counselors..."
New York Life Insurance Co. paid nearly $39 million for an apartment complex in west suburban Woodridge, while local developer Marquette Cos. is buying an Oswego rental property for about $36 million. The sales mark a return to dealmaking in the suburban apartment market, which has been relatively quiet this year after a strong 2012. Yet investor demand for suburban multifamily properties remains strong amid high occupancies, rising rents and a slow -but-steady outlook for the year. In Woodridge, New York Life paid $38.8 million, or about $154,000 a unit, for the Retreat at Seven Bridges, a 252-unit, 13.2-acre property at 6690 Double Eagle Drive, according to DuPage County property records. That's about 26 percent more than the $30.8 million that the seller, New York-based Edge Principal Advisors LLC, paid for it in July 2010, as the market was starting to turn around....
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Apartment investor buys South Loop office building
Crain's Chicago Business, Alison Burdo, 4/18/13
"... said Gail Lissner, vice president of the Appraisal Research Counselors..."
Apartment investor Marc Realty Residential LLC paid $4.7 million for a vacant seven-story office building in the South Loop, a property poised for conversion to housing. An affiliate of the Chicago-based company acquired the 146,088- square-foot loft building at 2036 S. Michigan Ave., once home to a Studebaker showroom. MRR declined to discuss its plans for the property, but the firm specializes in rental housing. CBRE Inc., the brokerage that sold the building, pitched it “as an excellent adaptive reuse for conversion to a variety of uses including residential or selfstorage.”...
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Developers propose 40 condos in West Loop
Crain's Chicago Business, David Lee Mathews, 4/16/13
"... according to Appraisal Research Counselors."
A pair of developers plans to build 40 condominiums in the West Loop, where new projects keep sprouting up amid strong demand and limited supply. A joint venture led by Patrick O'Flaherty of Foxford Construction and George Nugent of Kilkee Builders acquired the development site last week at Green Street and Jackson Boulevard, where it has proposed five buildings of eight units each. The condos would be a mix of three- and fourbedroom units, Mr. O'Flaherty said...
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Living the high life
Chicago Tribune, Jeffrey Steele, 4/5/13
"...said Gail Lissner, vice president at Chicago-based consulting firm Appraisal Research Counselors."
Penthouses are increasingly defining the Chicago skyline as developers tap into a niche market for luxury residential properties and savvy buyers and renters see an opportunity to elevate their lifestyles. Buyers pay a premium for those lofty perches, of course. Top Gold Coast buildings average $800 to $1,000 per square foot, but penthouses command more than $1,000 per square foot, with some going for more than $1,200 per square foot, according to Mike Golden, co-founder of @properties real estate brokerage firm in Chicago....
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Apartments planned at Streeterville's former North Pier Terminal
Crain's Chicago Business, Alby Gallun, 3/20/13
"... according to Appraisal Research Counselors..."
The former North Pier Terminal, a 108-year-old former warehouse in Streeterville that never made it as an office-and-retail complex, soon could be reincarnated as a loft apartment building. A group led by Chicago investor William O'Kane has acquired the 547,200-square-foot brick building along the Ogden Slip with plans to turn it into rental housing, according to people familiar with his plans. The venture led by Mr. O'Kane, president of Chicago-based property manager Group Fox Inc., bought the building at 401-465 E. Illinois St. from an affiliate of Beal Bank in Texas, which acquired a delinquent loan on the property in 2009....
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New York investor buying big Aurora apartment complex
Crain's Chicago Business, Alby Gallun, 2/27/13
"... according to Appraisal Research Counselors..."
A New York investor is buying a 464-unit apartment complex in west suburban Aurora, its first acquisition here amid a strong multifamily investment market. Abacus Capital Group LLC has agreed to buy Amli at Oakhurst North from a joint venture led by Amli Residential, the Chicago-based developer that built the 29-building complex in 1999, according to people familiar with the transaction. A price could not be determined, but one person familiar with the property estimated it at about $130,000 a unit, or $60.3 million. Sales and prices of large suburban apartment properties have increased the past couple years, boosted by rising rents and occupancies, low interest rates and a bigger appetite for risk-taking among investors. Suburban apartment sales totaled $713.4 million last year, the largest volume since 2007, according to Appraisal Research Counselors, a Chicago-based research firm....
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New York investor cuts biggest suburban apartment deal since 2008
Crain's Chicago Business, Abraham Tekippe, 2/22/13
"... according to Appraisal Research."
In the largest suburban apartment sale in five years, New York investor TGM Associates L.P. paid $101 million for a 712-unit apartment complex in Willowbrook. TGM bought the west suburban property, formerly known as the Communities of Ascot Glen, from an affiliate of RREEF, financing the acquisition with a $75 million loan from Fannie Mae, according to DuPage County property records. TGM has since renamed the community TGM Willowbrook and plans to spend an additional $12 million on renovations, said TGM Managing Principal and CEO Thomas Gochberg....
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Distressed condo sales heavy in Rogers Park, South Shore
Crain's Chicago Business, David Lee Mathews, 2/19/13
"... said Gail Lissner, vice president of the Appraisal Research Counselors..."
The city condominium market may be turning around, but distress still dominates in places like South Shore and Rogers Park. Short sales, or when a home sells for less than its debt, and sales of lender-owned properties accounted for 85 percent of all condominium and town home sales last year in South Shore, the highest share among city neighborhoods tracked in a recent analysis by Appraisal Research Counselors, a Chicago-based consulting firm. Rogers Park had the secondhighest share of distressed sales, at 73 percent. “Housing prices have plummeted in some of the markets that were just starting to gentrify (during the housing boom),” said Gail Lissner, vice-president at Appraisal Research. “Demand dried up and we don't see signs that is changing.”...
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Suburban apartment rents hit new high
Crain's Chicago Business, Alby Gallun, 2/19/13
"... said Appraisal Research Vice-President Ron DeVries..."
Suburban apartment rents continued their climb at the end of 2012, with landlords poised for another good year in 2013. The median net suburban rent rose to $1.19 a square foot in the fourth quarter, up from $1.18 in the third quarter and $1.14 a year ago, a 4.2 percent annual increase, according to Appraisal Research Counselors, a Chicago-based consulting firm. Rents have risen more than 12 percent since bottoming out in mid-2009, the product of a major shift in the housing market away from owning and in favor of renting. Demand for apartments typically depends on job growth, but that hasn't been the case this time around. “It's a healthy market in spite of the modest job numbers we've got,” said Appraisal Research Vice-President Ron DeVries, who expects rents to rise another 3 percent to 4 percent in 2013....
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Starting Over
Crain's Chicago Business, Abraham Tekippe, 2/18/13
source: Appraisal Research Counselors (among others)
Developers have proposals to add more than 8.1 million square feet to the downtown office market, including several smaller buildings on the edge of the west loop. ...
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Chicago area condo, apartment data back an upbeat attitude
Chicago Sun Times, David Roeder, 2/13/13
"... said Gail Lissner, a Vice President at Appraisal Research Counselors.".
Anyone who tries to judge the health of the residential market walks into a blizzard of data. You get the Case-Shiller numbers, the RealtyTrac numbers, the Realtor numbers, the changes in sales volume vs. sales prices, rentals per square foot, sales per square foot, new construction vs. resales and all the above for every imaginable neighborhood. It’s enough to make your head hurt even after you’ve had your morning coffee. It’s safe to say that the data generally point to a recovering market gratifying for people who develop, finance or broker sales of residential property. But to make that point, look at an unconventional indicator. Consider the annual luncheon downtown held by Appraisal Research Counselors, a firm that tracks the local condo and apartment market. The 2013 edition was held Tuesday and it was a jaunty, optimistic affair. People there had smiles — or at least the lean and hungry look — that have been missing from this affair the last few years....
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Downtown apartment owners face test amid construction boom
Crain's Chicago Business, Alby Gallun, 2/12/13
"...according to Appraisal Research Vice-President Ron DeVries."
Downtown apartment landlords are starting 2013 on a strong note, but they will face a test over the next two years, when developers add more than 5,200 units to the market. Effective rents at Class A, or top-tier, downtown apartment buildings were $2.58 a square foot in the fourth quarter, unchanged from the third quarter but up 6.2 percent from a year earlier, according to Appraisal Research Counselors, a Chicago-based consulting firm. Class A rents have jumped 24 percent since hitting bottom in 2009, as many downtown residents have piled into apartments and shunned condominiums. Demand isn't likely to cool off anytime soon, according to Appraisal Research Vice-President Ron DeVries. “We're going to start out this year with a bang,” he said at a Tuesday luncheon at the Standard Club downtown. The question is whether demand will be strong enough to absorb the flood of new apartments under construction. Developers are on track to complete 2,695 units this year and 2,530 in 2014, he said. In the coming months, the first residents will start moving into Coast, a 499-unit tower in the Lakeshore East development being built by Magellan Development Group LLC, and a 500-unit building that Related Midwest is developing at 500 N. Lake Shore Drive. One reason to be worried: Absorption, or the change in the number of leased downtown apartments, totaled just 1,100 apartments in 2012. At that rate, it will take about five years to soak up all the new apartments. The counterargument: Absorption has been artificially low because there is effectively a shortage of apartments downtown. More renters will emerge when more apartments become available, or “supply will induce demand,” Mr. DeVries said. “I don't view this as a five-year supply issue,” he said.
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Downtown condo market showing signs of life
Chicago Tribune, Mary Ellen Podmolik, 2/12/13
"... said Gail Lissner, a Vice President at Appraisal Research Counselors.".
Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory. It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing. With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years. Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors...
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Ritz-Carlton ruling clears path for condo buyers, retailers
Crain's Chicago Business, Micah Maidenberg, 2/6/13
"... according to a report from Appraisal Research Counselors."
An arbitrator has ruled in a bitter legal dispute over the Ritz-Carlton Residences, clearing the way for condominium buyers and retailers to start moving into the luxury high-rise on North Michigan Avenue. Following the arbitrator's decision last month, Chicagobased Prism Development Co. and the Terra Foundation for American Art are negotiating to end a nearly fivemonth standoff that left the recently completed building off-limits to its new residents and Tommy Bahama and Loft, which had signed leases for stores there. A settlement would allow Prism to move onto what could be a more forbidding challenge: getting condominium buyers to the closing table and selling out the 89-unit building at 664 N. Michigan Ave. The developer has a long way to go. Through the third quarter, buyers had signed contracts for just 42, or 47 percent, of the building's condos, according to a report from Chicago consultancy Appraisal Research Counselors....
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Developer plans South Loop apartment tower
Crain's Chicago Business, Alby Gallun, 1/30/13
"... said Ron DeVries, vice president at Appraisal Research Counselors."
CMK Cos. is stepping into the downtown apartment boom with one leg still knee-deep in the condo market. The Chicago-based developer plans to build 268 apartments on the site of an aborted South Loop condominium project as it continues to chip away at a big pile of unsold condos in its own high-rise a couple blocks south of the Willis Tower. CMK is joining the herd of developers jumping into the hot downtown apartment market, attracted by rising occupancies and record rents. The question is whether the firm will be among those to secure a construction loan for its project, a $60-million, 25-story tower at 1333 S. Wabash Ave. “Only so many of these deals are going to make it to the finish line,” said Ron DeVries, vicepresident at Appraisal Research Counselors, a Chicago-based consulting firm....
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Buyers At Legacy At Millennium Park Find What's Missing In Today's Luxury Condo
PRWeb, 1/29/13
"... according to Appraisal Research Counselors..."
Chicago's downtown condominium market came roaring back in 2012 with unit sales increasing by 28 percent and total dollar volume up 33 percent over 2011, according to Midwest Real Estate Data, LLC. The rebound is welcome news for sellers. But diminishing inventory has also frustrated many condo buyers who are finding their choices increasingly limited. New-construction inventory is particularly tight. Appraisal Research Counselors' Downtown Chicago Residential Benchmark Report showed only 513 new-construction condominiums and townhomes actively being marketed in the third quarter of 2012, down from a peak of 6,817 in the first quarter of 2008....
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Town home plan ready to roll on former Rainbo rink site
Crain's Chicago Business, David Lee Matthews, 1/24/13
"... according to Appraisal Research Counselors..."
Two local developers and an architect plan to build 23 town homes on an Uptown parcel left vacant after a $24- million foreclosure suit, reviving the site amid a recovering residential market. A venture led by Bob Ranquist of Ranquist Development Group, David Horowitz of Spartan Development Group and architect George Pappageorge of Pappageorge Haymes Partners paid $1.5 million earlier this month for the site of the former Rainbo roller rink, with plans to build two- and three-bedroom town homes there....
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Investor buys unsold units at Opera Lofts
Crain's Chicago Business, David Lee Matthews, 1/22/13
"... according to Appraisal Research Counselors."
A real estate investment firm specializing in failed condo projects paid nearly $8 million for 58 units in Opera Lofts, a small step toward clearing out the glut of unsold inventory on the Near South Side. Opera Lofts is the fifth and largest acquisition for HP Ventures Group LLC, which since 2009 has focused on lowprofile projects mostly on the North Side. The price is about $136,000 a unit. Completing the project could cost as much as much as $9.5 million, including building out 11 unfinished units. HP plans to continue renting out the finished units until for-sale demand revives, said Steven Cook of HP. “We like what we saw and it made sense with our investment model,” he said. Opera Lofts, 2545 S. Dearborn St., offers some of the “better condominium product out there,” he added. Thirty-five units have sold in the building, according to Chicago consulting firm Appraisal Research Counselors....
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South Loop apartment tower put up for sale
Crain's Chicago Business, Alby Gallun, 1/18/13
"... according to Appraisal Research Counselors."
The venture that took over the failed Corus Bank condominium portfolio is putting 13 properties up for sale, including the Lex, a 326- unit condo-turned-apartment tower in the South Loop. Chicago-based ST Residential LLC said it has hired brokers Eastdil Secured and Holliday Fenoglio Fowler to sell the residential properties, which span eight states and are worth an estimated $1 billion, according to an ST news release. ST manages the properties for a joint venture including Starwood Capital Group and TPG Capital, which acquired a stake in the Corus portfolio in a 2009 deal with the Federal Deposit Insurance Corp. Chieftain Group Ltd., an Irish developer, built the 35-story highrise in the South Loop at the tail end of the condo boom and was stuck with dozens of unsold units by the time it completed the project in 2009. Unable to pay off a Corus construction loan, Chieftain relinquished the property at 2138 S. Indiana St. in 2011 to ST, which converted the building to apartments. The Lex was 75 percent leased at the end of the third quarter, according to a report by Chicagobased consulting firm Appraisal Research Counselors. ST is also selling properties in Atlanta, Houston, Las Vegas, Los Angeles, Phoenix, Stamford, Conn., and Tampa. Starwood Chairman and CEO Barry Sternlicht said in the release that the venture has paid off about $1.3 billion in debt from the acquisition of 102 Corus loans in 2009. More than 32 of the loans have been paid in full, and the venture has sold about 60 percent of the condos it took over, he said....
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Downtown apartment units add up, as do rents
Chicago Tribune, Mary Ellen Podmolik, 1/17/13
"...said Ron DeVries, a vice president at Appraisal Research Counselors."
They're back: Construction cranes. In downtown Chicago. Lots of them, a visible sign of the more than 2,600 luxury rental units that will be added to the apartment market this year. About every downtown neighborhood has a project in the works or in planning stages. Loaded with amenities, the new buildings cater to renters who want to live downtown and are willing to pay for it. And because demand is high — and is expected to stay that way — the additional supply will not lower rents, at least not yet....
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Developers stampede River North with apartment projects
Crain's Chicago Business, Micah Maidenberg, 1/12/13
"... says Ron DeVries, a vice president at Appraisal Research."
There are nearly enough developers with apartment proposals streaming into River North to fill one of the neighborhood's thumping nightclubs. Five projects worth roughly $500 million, including plans by Magellan Development Group LLC and the Kennedy family, would add nearly 1,500 units to the upscale area. The bulging pipeline comes on top of nearly 900 units scheduled to be completed this year, including a 450-unit tower near the East Bank Club by Chicago-based developer Habitat Co....
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New York investor buys majority stake in East Loop apartments
Crain's Chicago Business, Alby Gallun, 1/9/13
"... according to Appraisal Research Counselors."
A New York investor has acquired a majority stake in a 190-unit East Loop apartment building, one of several downtown multifamily deals completed in the waning days of 2012. The Bluerock Enhanced Multifamily Trust Inc. paid $9.8 million in December for a 56.5 percent interest in MDA City Apartments from a venture of the Village Green Cos., a Michigan developer that converted the vintage office building into apartments in 2006, according to a Bluerock filing with the Securities and Exchange Commission....
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Developer plans houses, condos in West Loop
Crain's Chicago Business, David Lee Matthews, 1/8/13
"... according to Appraisal Research Counselors."
A Chicago developer plans to tear down a West Loop warehouse to make way for single-family homes and perhaps condominiums, another boutique project in the post-bubble residential market. Jason Vondrachek of Quest Realty Group paid $2.5 million last month for the 25,000-square-foot parcel at 37 S. Sangamon St., with tentative plans to build five new single-family homes with skyline views, he said....
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Stoneleigh invests in venture turning Arlington Heights Sheraton into apartments
Crain's Chicago Business, Alby Gallun, 1/3/13
"... said Ron DeVries, vice president at Appraisal Research Counselors."
The developer that wants to convert a shuttered Sheraton hotel in Arlington Heights into 214 apartments is preparing to begin construction next month after bringing in a joint venture partner, Barrington-based Stoneleigh Cos. The joint venture between Stoneleigh and a group led by former Prime Group Inc. executive David Trandel is in the final stages of securing a $30 million construction loan for the $46 million project, said Stoneleigh President Rick Cavenaugh. It is the first Chicago-area development for Stoneleigh, a firm Mr. Cavenaugh founded after leaving Fifield Cos. in 2008...
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West Loop condo project eases up on renters
Crain's Chicago Business, David Lee Matthews, 1/3/13
"... co-authored by Gail Lissner, a vice-president of Appraisal Research."
The outspoken developer of a 212-unit condominium project West Loop who turned to renting when the market collapsed is now changing course, another sign of a modest recovery in the for-sale market. The shift is just latest maneuver for veteran developer Bill Senne at the Emerald, 123 S. Green St., which was completed in 2008. As the market slumped, he stopped offering incentives to buyers, such as 30 electric scooters the he gave away to generate sales....
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Owner facing Michigan Avenue foreclosure files Chapter 11
Crain's Chicago Business, Abraham Tekippe, 1/2/13
"... said Gail Lissner, Vice President at Appraisal Research Counselors."
The owner of a Michigan Avenue property once slated for a 52-story hotel-and-apartment tower has sought refuge in Bankruptcy Court, blocking a $24.8-million foreclosure by its lender. A venture controlled by Thomas DiPiazza and Richard Ferro filed a Chapter 11 petition last month, more than a year after Northbrook Bank & Trust Co. filed to foreclose on the four-story building at 300-310 N. Michigan Ave. Messrs. DiPiazza and Ferro, along with developer William Warman, planned to demolish the existing building — currently home to a Walgreens, Subway and RadioShack — and construct a high-rise with 300 hotel rooms, 225 apartments and 29,000 square feet of retail space. The investors bought the property for $31.3 million in 2008, financing the purchase with a $22.9 million senior loan from now-defunct First Chicago Bank & Trust and a $5.1-million junior loan from a company headed by Michael Lerner and Harry Huzenis, part of the group that sold the building, records show....
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