REPORT
Chicago is on the move and we have a front row seat. Watch this video to see the new construction market in action, then dive into the 2017 @report.
table of contents introduction................................................................................................................................................................................2 the chicago economy and housing market............................................................................................................... 4 gold coast................................................................................................................................................................................... 6 design: planning for success............................................................................................................................................14 river north.................................................................................................................................................................................. 17 streeterville..............................................................................................................................................................................26 building marketing momentum in a digital world................................................................................................34 the loop..................................................................................................................................................................................... 37 south loop................................................................................................................................................................................46 west loop..................................................................................................................................................................................54 virtual reality: a real opportunity...................................................................................................................................62 lincoln park...............................................................................................................................................................................65 lakeview..................................................................................................................................................................................... 74 represented developments..............................................................................................................................................82 about @properties...............................................................................................................................................................84 contact.......................................................................................................................................................................................85
@ report 2017 ¡ 1
introduction
introduction
Welcome to the 2017 @report. Competition is really heating up in the newconstruction market. This year Chicago will have two 300-plus-unit condo towers
Differentiation – in product, marketing,
selling simultaneously for the first time in a
sales and service – is more important
long time. In River North, half a dozen new
than ever. Fortunately, we’re honored to
projects are competing for buyers within a
have a number of guest contributors for
few blocks of each other. Interest rates are
this year's @report who ply the trade of
moving up, and stocks are eight years in to
differentiation as well as anybody in real
the current bull market.
estate. They include: • Transparent House – a Bay Area creative agency that, among other services, develops virtual reality applications. VR has moved from the big screen to the videogame console to the smartphone, and Transparent House writes about how practical and accessible this seemingly futuristic technology actually is for real estate.
• SoMe – a digital marketing agency
Whether it’s VR, video, advertising or design,
As always, we are incredibly grateful for your
harnessing the power of technology and
innovation is one of the key themes running
business, your referrals and your support. We
data to deliver advertising that is richer,
through this year’s @report, and it’s one of
hope you find this year’s @report useful, and
more targeted and more relevant to your
the key themes at @properties as well.
we look forward to working with you on your
customers, no matter where or how they access information online. SoMe principal, Aalap Shah, writes about five digital marketing trends you need to be following.
Innovation led us to establish our own video team last year, which now includes
Yours truly,
a full-time videographer and two full-time
Thad Wong & Mike Golden
editors. It also spurred a complete redesign
Co-founders, @properties
• Kara Mann – one of the most sought
of the @properties website, performed
after interior designers among real estate
100% by in-house designers and program-
developers, not only because of her sophis-
mers. Innovation is driving growth (over
ticated style, but also her ability to solve
$8 billion in sales in 2016), and growth is
problems and create value. Kara, who is
driving us out of our original Fulton Street
overseeing the interiors program for the
headquarters, and into a brand new space
new 1000M condominium tower on South
in River West, next to Goose Island.
Michigan Avenue, discusses a number of floor plan hacks and design trends that will set your project apart from the crowd.
And innovation was proudly celebrated last year when @properties earned the Merrick Momentum Award from the
• Dr. Geoffrey J.D. Hewings – director emeri-
Chicago Entrepreneurship Center and
tus of the Regional Economics Applications
1871. The award, which is usually given to
Laboratory at the University of Illinois at
tech startups, reinforced our view that
Urbana-Champaign. Leading things off
marketing and technology are the way
this year, Dr. Hewings’ economic overview
forward in local real estate.
points out some of the headwinds and open lanes developers may encounter in the year ahead, and provides some added context to our 2017 @report data.
next development project.
next
the chicago what's
economy and housing market
the chicago economy and housing market: prospects for 2017
Chicago Housing Market Performance – 2016 Median home prices in 2016 showed moderate growth in both Illinois and the Chicago PMSA (Primary Metropolitan Statistical Area). In Illinois, annual growth rates for each month varied between 3.9% and 10.1%. The comparative range for the Chicago PMSA was between 4.0% and 10.5%. This has been the fourth con-
dr. geoffrey j.d. hewings, university of illinois
secutive year with a positive annual growth rate for each month since 2013. Unit sales in 2016 presented mixed annual growth. The growth rates of sales were be-
Dr. Geoffrey J.D. Hewings is director of
tween -5.4% and 10.3% for Illinois and between
the Regional Economic Applications
-6.1% and 11.2% for the Chicago PMSA. During
Laboratory at the University of Illinois at
the first six months of 2016, the annual growth
Urbana-Champaign (REAL). Dr. Hewings
rates were positive. In contrast, the second half
and his team of researchers focus on the
of year witnessed several months of negative
development and use of analytical mod-
annual growth rates. This was likely related to
els for urban and regional forecasting and
uncertainties from international affairs, increases
economic development. REAL publishes
in the interest rates and the presidential election.
a variety of reports and studies including the Chicago Business Activity Index, Illinois Economic Review Report, Illinois Job Index, and various impact studies.
Furthermore, the changes of sales in the Chicago PMSA are composed of overall positive growth in regular sales and decreases in foreclosed sales. According to the Freddie Mac MiMi index, among the four perspectives this index assesses, the employment situation and portion of on-time mortgages were in the state’s long-run normal ranges, while the other two perspectives measuring home purchase applications and payment-to-income ratios are still weaker than their historically stable levels.
Forecasts for the Chicago Housing Market 2017 Median prices are forecast to continuously grow in 2017 within a narrower and slightly smaller range compared with 2016. On a year-over-year basis, these gains will range from 3.8% to 8.4% for the Chicago PMSA. By December 2017, the median price of homes in the Chicago PMSA is forecast to be 4.8% higher on an annual basis. As a complement to the median housing price index (HPI), the REAL HPI1 forecasts indicate a similar growth trend for the Chicago PMSA in the months ahead. The REAL HPI (Jan 2008=1) is forecast to experience a growth rate between 2.5% to 8.3% for the Chicago PMSA. The REAL HPI takes housing characteristics into account and constructs comparable “baskets” of homes for each month. As for sales, they are forecast to experience overall positive gains in 2017, led by growth of regular (non-foreclosed) sales in the Chicago area. The annual growth in monthly sales is forecast to be in the range from 10.5% to -2.4% in the Chicago PMSA. Evaluation Mortgage rates are still historically very low, but the housing stock offered for sale
+4.8%
HPI EXPECTED GROWTH RATE FOR THE CHICAGO PMSA BY 12/2017
10.5% to -2.4%
EXPECTED 2017 ANNUAL GROWTH IN MONTHLY SALES FOR THE CHICAGO PMSA
remains very limited, creating a drag on sales activity. While time on the market has recovered to pre-recession levels, the volume and variety of properties offered for sale has been well below long-term trends. Looking further into the future, demographic changes are likely to alter the type and location of properties in demand. By 2030, 20% of Chicago’s population will be over 65 years of age. Evidence seems to be accumulating that retirees who do not migrate to warmer climates are relocating in central cities, including Chicago. At the same time, Millennials also seem to prefer central city locations. These two factors seem to point to strong long-term growth prospects for the city housing market.
1
REAL HPI was developed by the Regional Economics Applications Laboratory.
20%
PERCENTAGE OF POPULATION THAT WILL BE 65 OR OLDER BY 2020
@ report 2017 · 5
gold coast
Coast
GOLD
overview The Gold Coast didn’t see as many headline-grabbing sales in 2016 as it
price/square foot (condos)
did the year before, when a Park Tower penthouse traded for $18.75 million and a unit at the Waldorf Astoria went for $16 million (both in off-market
1 YEAR CHANGE
8.7%
3 YEAR CHANGE
10.7%
5 YEAR CHANGE
13.2%
deals). What it did see was a much wider base of multi-million-dollar transactions, led by a small but mighty wave of new-
$498 IN 2016
construction deliveries. The Gold Coast’s biggest sale of 2016, $11.7 million for a high-floor unit at the Waldorf, was more than $7 million below 2015’s chart topper. However, the neighborhood saw double the amount of transactions
market dynamics
over $3 million: 44 vs. 22. Likewise, closings in the $1,000+ PSF (per square foot) category were way up over 2015, with 25 units trading hands above
125
average number of days on market
the four-figure mark vs. only six the year before. These transactions occurred in eight different buildings, only one of which (4 East Elm), was new-construction, supporting the argument that the luxury base is expanding outward. The new-construction segment is driving price growth in the Gold Coast.
95.2%
average sold price vs. original list price
The average PSF for all Gold Coast condos rose 8.7% to $498 PSF vs. $458 in 2015. But it was new-construction, up 28.4%, that really gave that number a kick. Excluding new construction, PSF was up only 1.1%. The 33 new-construction sales in the MLS last year clocked in at
4
average months supply of inventory
an average of $998 PSF. And it’s worth noting that the two highest transactions on a PSF basis – penthouses at The Ritz-Carlton Residences and 4 East Elm – were sold as raw space. @ report 2017 · 7
North Avenue project, where sales to date have not met expectations. Indeed, the tight market may tempt developers to consider riskier projects – “B” locations, non-traditional mixed-use compositions, aggressive pricing models, etc. These conditions should not necessarily deter development. However, they do intensify the need to focus on value creation. Projects where this is a fundamental focus at the programming level will reward developers with incremental revenue and timely absorption. However, failing to adequately address key programming factors will reveal just how price-sensitive the Gold Coast market can be.
outlook In 2017, the overall multi-million-dollar market will continue to expand upward and outward with the closeout of 4 East Elm, first deliveries at 9 West Walton, and various high-end resales. At Walton alone, 70 closings will occur over the next two years, many of which will top the $5 million mark. As of the end of 2016, the top five pending Gold Coast sales in the MLS were all are located at No. 9 Walton, and all are priced over $5.5 million gross and $1,185 PSF. Beyond the handful of remaining units at Walton, however, the Gold Coast’s new-construction pipeline is thin. The only new development likely to kick off a sales program in the next 12 months is the 50-unit high-rise planned for the site of the Ruth Page Center for the Arts in the 1000 block of North Dearborn. That building will join the 30-unit 101
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$458
914
$498
932
8.7%
2%
1 BR
$331
363
$327
334
-1%
-8%
2 BR
$429
321
$422
350
-2%
9%
3+ BR
$531
230
$612
248
15%
8%
Attached New - Summary
$777
7
$998
33
28%
371%
1 BR
N/A
0
$594
2
N/A
N/A
2 BR
$777
7
$845
9
9%
29%
3+ BR
N/A
0
$1042
22
N/A
N/A
Attached Resale - Summary
$454
907
$459
899
1%
-1%
1 BR
$331
363
$325
332
-2%
-9%
2 BR
$413
314
$404
341
-2%
9%
3+ BR
$531
230
$554
226
4%
-2%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$1770
$1432
$1250
$1239
$1216
6610 SF
6028 SF
4000 SF
5400 SF
3486 SF
11 E. WALTON #5200
118 E. ERIE PH 1
11 E. WALTON #4002
4 E. ELM PH 23
4 E. ELM 20S
$11.7 mil
$8.632 mil
$8.0 mil
$6.692 mil
$5.0 mil
6610 SF
6028 SF
7880 SF
5400 SF
4000 SF
11 E. WALTON #5200
118 E. ERIE PH 1
159 E. WALTON PH
4 E. ELM PH 23
11 E. WALTON #4002
@ report 2017 · 9
gold coast months supply of inventory
+0.04
+1.18%
+0.95
+27.08%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
8
7
6
MONTHS
5
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL 2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
gold coast median price
+28.6%
-0.4%
+10.8%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
600
500
$ (IN THOUSANDS)
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 11
gold coast sold price vs. original list price
+0.07
+0.07%
+1.53
+1.62%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
gold coast # of units
-11.6%
-28.9%
-5.2%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
600
500
# UNITS
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 13
next
design: planning for success what's design: planning for success
kara mann, kara mann design
Kara Mann is founder and creative director
Heightened developer expectations for
of Kara Mann Design, which has offices in
pricing levels in new construction require an
Chicago and Manhattan. Mann works with
equally heightened focus on the space itself.
an international roster of discerning clients
At $1,000 PSF in Chicago, or double or triple
and industry leaders on both residential and
that amount in Manhattan, homebuyers want
commercial projects. The New York Times
to understand how a space functions and
describes her signature style as “interiors
how that functionality justifies the cost. At
with a subversive side.� Mann is also the cre-
the same time, the confines of high-rise new
ator of the Kara Mann collection, for Baker
construction mandate maximum efficiency,
Furniture’s Milling Road brand.
and this makes programming more important than ever. The following three floor plan concepts demonstrate examples of efficient programming for luxury condominiums. By suggesting specific uses through design features and furniture plans, we can help homebuyers envision themselves in a space and confirm their perception of value.
Concept One: Wet Room
A Full-height pocket doors allow the kitchen to be
Today’s “jewel box” trend is an essential shift away from the large, ineffi-
open to the dining and living rooms or closed off for privacy.
cient spaces that passed for luxury in the McMansion era. In this case our challenge was to program a luxury master bath within a limited footprint.
B The walls that receive the doors create al-
Our solution is this “Wet Room,” which features a full-sized shower and
coves that become functional spaces: niches
soaking tub grouped within a dedicated space.
for eating, reading or relaxing.
A Matching floor and wall tile and a glass partition
C Secondary access points improve traffic flow
in lieu of a shower door blur the lines between the
and allow the doors to remain closed while serving.
Wet Room and sink area, creating the impression of B
D Thrown open, the pocket doors provide
more expansive space.
dramatic sightlines to and from the kitchen. B The tub and shower borrow open space from one another, making both feel larger and more luxurious. A
C The efficient layout preserves the 5-piece master bath with dual vanity, an important feature in luxury condos. LIVING ROOM
D Privacy is maintained with a separate commode area. E The efficient master bath footprint frees up square
D
DINING ROOM
footage for other in-demand space, such as larger E
closets in the master suite.
A B
B KITCHEN LOUNGE
C
C
FOYER
Concept Two: Flex Kitchen Luxury kitchens are showpieces, and homeowners are eager
KITCHEN
to put them on display with open plans that create a “heartENTRY
of-the-home” feel. But this type of layout doesn’t allow for privacy when preparing a large meal or catering a dinner party. A flexible solution is very much in keeping with the
OUTDOOR TERRACE
casual luxury that defines many contemporary lifestyles. @ report 2017 · 15
Concept Three: Zoned In Open floor plans are desirable in high-rise living because they give the impression
ON TREND FOR 2017
of larger space. But homebuyers often have difficulty envisioning how they will live
Materials, furnishings and finishes can give your
in such space. Using lifestyle as a starting point, we can zone specific uses through
interiors a designer look that will differentiate your
subtle, often inexpensive, elements that make the entire space feel more custom
development from the competition. Here are three
and finished.
design trends we see making a strong impact on the luxury residential market.
A A full-height, non-load-bearing wall zones off an alcove creating an office.
1 Burnished Metals:
B A wall unit features sliding panels that conceal a bar. Modularized panels such
Light-colored stones are
as these can be pre-fabricated and walked in, a cost-saving way to dial up design.
in for kitchens and baths. C A credenza in front of the bar creates a natural hallway. The credenza and bar work
But the high contrast of
together to define a formal dining space without constructing walls.
darker, burnished metals in plumbing fittings,
D The furniture plan in the lounge interacts with the building’s architecture to add
inlays and other accents creates an even more
character and definition to a space that is hard to delineate.
upscale look that is gaining popularity. 2 Quartzite: This natural stone is stronger than marble, with LAUNDRY
veining properties that are
KITCHEN
more interesting and richer looking than granite.
WC
3 Updated Classicism:
B WINE ROOM
OUTDOOR TERRACE DINING ROOM
ENTRY FOYER
Drawing on classic design and architecture from
BAR
LOUNGE
the 1930s and ‘40s, updated classicism marries clean contemporary lines with natural materials
LIVING ROOM
and textures, creating an D
overall scheme that supports the current notion
OFFICE
A
of the home as a place of relaxation and wellness.
river north
North
RIVER
overview
price/square foot (condos)
Despite a healthy market for downtown condos, slowing price growth
1 YEAR CHANGE
0.5%
– and even price regression – has beset a number of neighborhoods where little or no new construction has been delivered of late. River North finds itself in this category. However, the tide will turn in 2017 with the
$394
3 YEAR CHANGE
7.7%
5 YEAR CHANGE
33.6%
IN 2016
completion of at least two new buildings and hopefully groundbreakings on several more. The average price per square foot for River North condos slid for the second consecutive year, this time by a mere 0.5% to $394. Unit volume was basically
market dynamics
unchanged at 894 transactions. Luxury sales were neither as plentiful nor as grand compared to 2015, a condition of the downtown market in general. The two
67
average number of days on market
highest condo sales in River North in 2015 were both over $4 million. But, last year’s top two sales were $3.57 and $3.1 million respectively. The number of sales above $600 per square foot was lower by 25%,
98.5%
average sold price vs. original list price
down to 30 units from 40 in 2015. Ditto for sales of $1,000+ PSF (three vs. four). It’s worth noting that over the last few years, most activity above $600 PSF in River North has occurred at Trump Tower. It just so happens that those 10 fewer sales noted above equals the decline in transaction activity at Trump year over year. But the building is also a market unto itself. A truer picture of the River North luxury market is emerging now.
2.9
average months supply of inventory
For example, slow sales of a 3,400 SF plan at Renelle on the River prompted Belgravia Group to create two smaller alternate plans. The ability (and willingness) to take feedback from the market and shift on the fly is essential. Further west, competition is heating up, as six new projects representing about 200 units are underway or planned within a two-by-four-block rectangle. While a lot of that product looks similar in terms of unit sizing and pricing, there are some significant programming differences: from the type of construction to finishes to amenities. So we are keeping an eye on this little swatch of River North to see how this product is received. It’s the closest thing to a controlled experiment in today’s city market.
outlook Roughly a dozen new condo projects are at various stages in the River North pipeline, ranging from four units up to 70. While the first of those communities, the value-focused “SL,” began deliveries in late ’16, the projects delivering this year and beyond will establish new benchmarks for luxury pricing (Trump excepted), while providing some key data points for future development. One situation we’re watching closely is the push-pull between PSF and chunk pricing. In luxury markets, the mantra over the last few years has been “bigger is better.” In the Gold Coast, for example, plans of 3,000 to 5,000 SF have dominated the unit mix and the $1,000 PSF market. River North developers had some early success with big plans. Half the product at 400 West Huron was over 3,000 square feet and sold quickly in the $700 PSF range. But there’s some indication now that demand for these huge units isn’t as deep as PSF pushes into the $800s, driving chunk prices well past $2 million. @ report 2017 · 19
under the microscope
Seven developments within a 2x4 block area share many similarities in terms of unit sizes, pricing and location.
New River North Condos: LaSalle to Kingsbury and Superior to Erie Address
Developer
Units
Type
Avg. PSF
Sales Status
Delivering
400 W. Huron
Smithfield
25
Mid-Rise/New Constr.
$685
Sold out
2017
676 N. Kingsbury
LG/Marc
41
Mid-Rise/Adaptive Reuse/New Constr.
$750
75%
2017
351 W. Huron
Regency
4
Low Rise/New Constr.
$550-$600
25%
2018
360 W. Erie
Belgravia
38
Mid-Rise/New Constr.
$750
10%
2018
312 W. Huron
JFJ
71
High-Rise/New Constr.
$725-$750
Now selling
2018/19
146 W. Erie
Sedgwick
31
Mid-Rise/New Constr.
$735
Now selling
2018/19
360 W. Superior
Ascend
34
Mid-Rise/New Constr.
$725-$750
TBD
TBD
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$396
884
$394
894
-1%
1%
1 BR
$375
377
$377
427
1%
13%
2 BR
$408
390
$405
387
-1%
-1%
3+ BR
$398
117
$396
80
-1%
-32%
Attached New - Summary
$285
33
$358
22
26%
-33%
1 BR
N/A
0
$221
4
N/A
N/A
2 BR
N/A
0
$357
6
N/A
N/A
3+ BR
$285
33
$373
12
31%
-64%
Attached Resale - Summary
$407
851
$395
872
-3%
2%
1 BR
$375
377
$379
423
1%
12%
2 BR
$408
390
$405
381
-1%
-2%
3+ BR
$457
84
$400
68
-12%
-19%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$1236
$1107
$1039
$999
$969
1558 SF
1475 SF
3437 SF
3102 SF
2063 SF
401 N. WABASH #29F
401 N. WABASH #41J
401 N. WABASH #29A
401 N. WABASH #69E
401 N. WABASH #31K
$3.572 mil
$3.1 mil
$2.275 mil
$2.225 mil
$2.150 mil
3437 SF
3102 SF
3600 SF
2754 SF
2742 SF
401 N. WABASH #29A
401 N. WABASH #69E
500 W. SUPERIOR #2305
401 N. WABASH #43G
401 N. WABASH #38H
@ report 2017 · 21
river north months supply of inventory
+0.03
+1.09%
+0.68
+24.99%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
6
5
MONTHS
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL 2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
river north median price
+13.1%
+6.1%
+7.8%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
500
$ (IN THOUSANDS)
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 23
river north sold price vs. original list price
0
0%
-0.05
-0.05%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
river north # of units
-17.1%
-27.2%
+9.0%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
350
300
# UNITS
250
200
150
100
50
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 25
streeterville
Streeterville
overview
price/square foot (condos)
Next year at this time, we might be talking about Streeterville in superlatives. For now, however, watching the Streeterville condo market 1 YEAR CHANGE
is kind of like watching tumbleweeds roll down Ontario Street. The forsale market in this part of town is as quiet as it was last year…and the year before that…and that’s quiet.
$403
4%
3 YEAR CHANGE
0.5%
5 YEAR CHANGE
3.3%
IN 2016
On a per square foot basis, condo pricing fell 4% compared to 2015, to $403. That’s just 0.5% higher than the average price per square foot three years ago and 3.3% higher than in 2011. The five-year growth figure really jumps out at you, especially when comparing
market dynamics
Streeterville to other mature North Side neighborhoods like the Gold Coast (+13%) and Lincoln Park (+27%).
98
average number of days on market
Among the factors contributing to this malaise are a prolonged absence of forsale new construction and a somewhat dated housing stock that skews toward smaller floor plans. In fact, the larger, luxury floor plans that typically generate higher pricing are increasingly
94%
average sold price vs. original list price
difficult to come by in Streeterville. Closed unit volume for three-bedroom condos in the neighborhood fell 34% in 2016 vs. 2015, and the average PSF on these units fell by 7% (and the market wasn’t that big to begin with). Other measures of market efficiency were similar year over year…over year, as you can see in the Market Dynamics graphic on this page. However, the
5.7
average months supply of inventory
years-long listlessness could potentially be good news for the handful of new-construction condos now working their way into the market.
@ report 2017 · 27
like 4 East Elm and No. 9 Walton. As mentioned, Belgravia is taking a similar approach at Renelle in River North. Two other prominent Streeterville sites could see action in the near future. The first is the old Spire site at 400 N. Lake Shore. Related signaled it was beginning to dust off the project when it hired an SOM architect with considerable tall-building experience. The other site is Tribune Tower, acquired in September by CIM Group and Golub. The redevelopment will involve a mix of uses including luxury condominiums. Construction could get underway in 2018. While it will be a couple of years before the impact of these projects reverberates through the market, Streeterville’s tumble-
outlook The first of those are located at One Bennett Park, the Robert A.M. Stern-designed mixeduse apartment/condo tower at Grand and Peshtigo. Sales officially started last September with the release of only six of the project’s 69 condominiums. As of this writing, the MLS showed five units pending at an average of $1,117 PSF, and another seven active at $1,153 PSF. Related Midwest was able to leverage another project component (apartments) to start construction at OBP long before achieving a conventional pre-sale requirement. This gives the developer the luxury of selling condos at a measured pace and, best-case, increasing prices through a rising market. Also notable is the fact that almost 40% of the units at OBP are less than 2,400 square feet. These efficient two- and three-bedroom layouts make chunk prices more approachable and are a reversal of the “big units only” strategy employed by recent developments
weed days are finally coming to an end.
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$421
416
$403
402
-4%
-3%
1 BR
$350
204
$348
204
-1%
0%
2 BR
$427
147
$413
155
-3%
5%
3+ BR
$504
65
$471
43
-7%
-34%
Attached New - Summary
N/A
0
N/A
0
N/A
N/A
1 BR
N/A
0
N/A
0
N/A
N/A
2 BR
N/A
0
N/A
0
N/A
N/A
3+ BR
N/A
0
N/A
0
N/A
N/A
Attached Resale - Summary
$421
416
$403
402
-4%
-3%
1 BR
$350
204
$348
204
-1%
0%
2 BR
$427
147
$413
155
-3%
5%
3+ BR
$504
65
$471
43
-7%
-34%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$781
$713
$709
$669
$648
1546 SF
2124 SF
2540 SF
1747 SF
2547 SF
600 N. FAIRBANKS #3902
600 N. LAKE SHORE #3911
600 N. LAKE SHORE #2805
600 N. FAIRBANKS #1811
600 N. LAKE SHORE #2512
$2.545 mil
$2.05 mil
$1.8 mil
$1.775 mil
$1.75 mil
3893 SF
3500 SF
2540 SF
4000 SF
3200 SF
445 E. NORTH WATER #2601
445 E. NORTH WATER #2606
600 N. LAKE SHORE #2805
441 E. NORTH WATER TH2
550 N. ST. CLAIR #2502
@ report 2017 · 29
streeterville months supply of inventory
+0.03
+0.51%
+0.65
+11.81%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
9
8
7
MONTHS
6
5
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
streeterville median price
+17.2%
-8.4%
-9.9%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
700
600
$ (IN THOUSANDS)
500
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
2015
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 31
streeterville sold price vs. original list price
+0.04
+0.05%
+0.99
+1.07%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
streeterville # of units
-4.2%
-12.6%
+13.6%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
900
800
700
# UNITS
600
500
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 33
building marketing momentum in a digital world what's
next
building marketing momentum in a digital world
Here are five important digital marketing trends to consider while planning your marketing for current and future projects. 1. The Mobile Web – There are 31 million people in the U.S. today who access the Internet only through their phones. Consumers are way ahead
aalap shah, some
of business in this area. Companies must start designing and building digital assets (websites, advertising, e-mail), for mobile first. From a real SoMe is a Chicago-based digital market-
estate perspective, while it’s important to have
ing agency established by Aalap Shah and
a beautiful website that reflects your brand or
Madhavi Rao. The firm specializes in Search
project, it’s equally important for that site to be
Engine Optimization, Paid Search, Social
functional and fast on smartphones and tablets.
Media Management and Content Marketing
Tools like responsive design and accelerated
for large corporations and small businesses
mobile pages (AMPs) are now essential. But we
in a variety of industries, including consumer
must push beyond the basics, exploring new
brands, healthcare, education, e-commerce
ways to bring real estate to life on mobile.
and real estate. 2. Video Advertising – At SoMe, we’re data When Apple sold its first iPhone 10 years ago,
junkies, but one of our chief creative tenets is
no one imagined the influence smartphones
“put the story first.” And video is one of the
would have over nearly every aspect of con-
greatest storytelling enhancements available
sumer behavior, including real estate. Yet here
through digital marketing. If you’re running dig-
we are with over 30% of all visitors to real estate
ital ads, video should be in the mix, not only be-
websites originating from mobile and tablet
cause it’s engaging, but also because websites
devices, a number that is growing exponentially
and social networks are prioritizing this form of
and converging with other trends in the rapidly
advertising. Facebook’s new Canvas ad units are
changing digital world.
a great example of how rich media can create powerful brand experiences on mobile. Google it to see some examples, and then imagine how your project could live in this format.
3. Hyper Targeting – If you have e-mail ad-
the marketing mix and if they are taking the
thinking about the metrics that are important
dresses of clients who have bought a home
desired action (walking into the sales center,
to your business. In other words, don’t just do
from you, then you have the ability to advert-
giving us their information, or clicking “buy.”)
digital for the sake of doing digital. Do it be-
ise to potential buyers just like them. After all,
Today, companies are investing significant
cause it helps you achieve defined objectives
who’s more likely to buy a home in your dev-
dollars in digital marketing because the per-
more efficiently and effectively. With the right
elopment? That’s hyper-targeting. Basically
ception is it’s the right thing to do. But even
marketing plan and proper analysis, you’ll
the idea is to use customer data and behav-
more important is taking a step back and
stay ahead of the competition.
ior to tailor marketing to your most qualified audiences. There are many ways to hypertarget, including by demographics and online behavior. And the more data and feedback you receive from this type of marketing, the
Mobile search will soon dominate consumers’ online real estate interactions. Making sure your digital marketing program is mobile-friendly is absolutely vital.
better you can target in the future. 4. Voice search – Typing search terms into your smartphone or computer? That’s so 2016! Talking to the Internet is the wave of the future. Voice search has huge potential, fueled by the growth of the mobile web and the rising popularity of voice-control systems like Amazon Echo (Alexa), Google
27%
58%
45%
found their homes through a mobile app
of American adults own a smartphone
have clicked on real estate ads from midnight to 6 AM
Home and Apple’s Siri. But people don’t talk the same way they write. So marketers need to adapt their approach to SEO. Brands that can harness this technology early – with content that anticipates idiomatic interactions, and websites that deliver fast, accurate results – will be in a position to dominate the new world of voice search. 5. Data – We always come back to data, be-
36%
34%
31%
growth in mobile searches about open houses
use mobile or tablet websites or apps
use mobile or tablet search engines
cause data tells us stories about how people are interacting with different elements of
source: leadscon.com
@ report 2017 · 35
developers . atproperties . com
the loop
Loop
THE
overview
price/square foot (condos)
The big price increases we have seen in the Loop over the last couple of years slowed in 2016, and again the issue appears to be supply-related as opposed to any systemic weakness. Average PSF was down 6% to $450, and the average sales price for closed units was down 8.6%.
1 YEAR CHANGE
6.3%
$450 IN 2016
3 YEAR CHANGE
The total number of closed transactions ticked up ever-so-slightly, but the more revealing stat is that closings of million-dollar condos were down about 25% year over year. Similarly, sales of three-bedroom units were 25% lower. A shortage of larger condominiums definitely contributed to lower prices. We examined aggregate closed sales for five luxury buildings in the Loop –
market dynamics
Aqua, 340 E. Randolph, The Heritage, The Legacy, and 65 E. Monroe – and found that average square footage was 7% lower and PSF was 6% lower in 2016 vs. 2015. Despite a lack of inventory, the luxury market still packed a punch in 2016.
100
average number of days on market
Last year brought the largest residential transaction ever south of the Chicago River, the $6.2 million sale of the entire 71st floor at The Legacy. The relatively low PSF ($653) reflected a rather basic spec level and some uninspired décor. We also sold five 2,400-square foot condos above the 60th floor at The
96.8%
average sold price vs. original list price
Legacy in 2016. PSF ranged from the mid $700s to $821 in spite of “last generation” finishes for units that were completed in 2010. But the big story in the Loop last year was the kickoff of Vista Tower in Lake Shore East. Launched in April, Vista now has approximately 135 condos (about 30% of the total) under contract at an average of just over $1,000 PSF. That gave developers Dalian Wanda and Magellan assurance enough to selffund construction while they finalize a loan.
3.7
average months supply of inventory
5.9%
That sounds daunting, but a year’s worth of results at Vista is thus far encouraging. Let’s also keep in mind that while average pricing may be at or near $1,000 PSF, not all units are priced at this level nor do all carry the $3-, $4- and $5-million price tags that have been attached to new construction on the Near North Side. Still, no one is taking anything for granted. As is the case at Vista, the sales presentation at 1000M will be prodigious. Vista Tower at a Glance
outlook Vista is one of four major high-rise construction projects that will add more than 2,000
Units under contract
122
Average PSF
$1006
PSF Range
$572-$1700
Gross Price Range
$935,850$10,261,020
61% of contracted units at Vista Tower are priced under $1,000 PSF. source: Midwest Real Estate Data 12/31/16
combined apartment and condo units and upwards of 3,500 new residents, to the neighborhood over the next four years. The other three – the 76-story One Grant Park, Oxford Capital’s 808 South Michigan, and the 72-story Helmut Jahn-designed 1000M – will remake the southern end of Grant Park, bookending a downtown renaissance that began 15 years ago with the opening of Millennium Park. These projects will also provide a key test for luxury real estate in the neighborhood. With the 400 high-end condos at Vista and another 325 at 1000 South Michigan (which @properties will start selling this summer), the Loop could have more condo inventory above $1,000 PSF than the rest of downtown Chicago combined.
@ report 2017 · 39
luxury transactions in the loop The Loop saw fewer seven-figure sales in 2016, largely because so little high-end inventory is available.
Loop Closed Transactions: $1,000,000+ Price Range
2015
2016
$3MM+
2
2
$2MM-$2.99MM
12
4
$1MM-$1.99MM
56
48
Total
70
54
source: Midwest Real Estate Data
Despite tightening inventory levels, closed sales above $500 PSF in 2016 were similar to 2015 numbers. Loop Closed Transactions: $500 PSF+ PSF Range
2015
2016
$1000+
6
3
$900-$999
3
2
$800-$899
4
6
$700-$799
15
11
$600-$699
31
36
$500-$599
56
55
Total over $500 PSF
115
113
source: Midwest Real Estate Data
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$480
499
$450
515
-6%
3%
1 BR
$372
190
$365
217
-2%
14%
2 BR
$425
229
$436
238
3%
4%
3+ BR
$655
80
$590
60
-10%
-25%
Attached New - Summary
$665
31
$631
16
-5%
-48%
1 BR
$616
1
N/A
0
N/A
-100%
2 BR
$603
16
$555
8
-8%
-50%
3+ BR
$722
14
$685
8
-5%
-43%
Attached Resale - Summary
$460
468
$441
499
-4%
7%
1 BR
$369
189
$365
217
-1%
15%
2 BR
$406
213
$432
230
6%
8%
3+ BR
$642
66
$577
52
-10%
-21%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$1139
$1069
$1021
$944
$925
2064 SF
1567 SF
1567 SF
1567 SF
2064 SF
225 N. COLUMBUS #8105
340 E. RANDOLPH #4303
340 E. RANDOLPH #3303
340 E. RANDOLPH #2103
225 N. COLUMBUS #7505
$6.2 mil
$3.45 mil
$2.925 mil
$2.85 mil
$2.35 mil
9500 SF
5000 SF
4000 SF
4500 SF
2064 SF
60 E. MONROE #7101-2
450 E. WATERSIDE #2801
65 E. MONROE #4101
420 E. WATERSIDE #4310
225 N. COLUMBUS #8105
@ report 2017 · 41
the loop months supply of inventory
-0.04
-0.63%
-0.83
-14.55%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
12
10
MONTHS
8
6
4
2
0
JAN
FEB
MAR
APR
MAY
JUN
JUL 2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
the loop median price
+29.1%
+10.3%
-16.7%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
1,600
1,400
$ (IN THOUSANDS)
1,200
1,000
800
600
400
200
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 43
the loop sold price vs. original list price
+0.03
+0.03%
+0.66
+0.69%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
the loop # of units
+5.2%
+32.3%
+23.7%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
350
300
# UNITS
250
200
150
100
50
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 45
south loop
Loop
SOUTH
overview
price/square foot (condos)
The average price per square foot for South Loop condos was down slight1 YEAR CHANGE
ly in 2016, clocking in at $330 PSF vs. $332 in 2015. Other price measures, including average sales price and median price, were also about 1% to 2% lower, year over year. This follows another pedestrian year appreciation-wise: +2% in 2015. However, PSF is up 41.6% since 2011.
$330
0.6%
3 YEAR CHANGE
9.3%
5 YEAR CHANGE
41.6%
IN 2016
Other indicators point to a healthy market. Inventory remains tight, with supply lower vs. the prior year in every month of 2016 except January and February. Months’ Supply of Inventory fell from an already-low average of 3.4 months for 2015 to 3.0
market dynamics
months last year. And the average market time of 64 days for sold condos was third fastest among @report neighborhoods, trailing only the West Loop and Lincoln
64
average number of days on market
Park. Condos sold for almost 98% of their original asking price. To reconcile these two trends – price inertia and tight supply – we have to look at the product that’s out there…or not out there. The South Loop has had very little new-construction activity throughout the recovery, and some
97.7%
average sold price vs. original list price
of the neighborhood’s existing housing stock is starting to show its age. Much of it was built for the entry level, and some of it – even the mid-range product – wasn’t very well designed. This is an opportunity. There is also very little in the way of luxury product among the South Loop’s current inventory. The neighborhood has logged fewer than 30
3
average months supply of inventory
closings above $1 million in each of the last two years. And closings above $500 per square foot went from 29 in 2015 to just 19 last year.
@ report 2017 · 47
The predominance of townhomes is one reason why the price per square foot for new construction is artificially low. Most of this product is in the mid $300s PSF with the choicest units hitting the high $300s. On the condo front, the only potential new-construction sales activity looks to be in Riverline, the big mixed-use project along the river, north of Roosevelt. No info is public yet regarding a sales program or pricing for Phase I. One other nascent trend in response to the South Loop’s lack of luxury condos is the “rehab and flip” maneuver that has been popular in some Near North Side buildings. An investor split a full floor at 1201 S. Prairie into two units, and sold the first one last June for a record $3.2 million, or $692
outlook
per foot. The second unit, which is larger, is on the market at $3.995 million. It’s a bold move, but if it pays off, we may see a handful
There is one segment of the South Loop attached market that is sizzling, and that’s townhomes. At Prairie Court by Sandz Development (18th and Prairie), @properties opened a sales trailer last March and sold 70% of the project’s 55 townhomes in a year…raising prices as we went. The average price is over $1 million. One block east, at 18th and Calumet, a seven-unit luxury townhome project is sold out at prices ranging from $1.09 to $1.85 million. The units range up to 4,700 square feet, and larger plans include an elevator. Banking on demand for high-end townhomes, developer Seamus Murnin announced in November that he would build 12 townhomes at the corner of Prairie and Cullerton, starting at $1.2 million. He will have no problem finding buyers.
of similar deals to address luxury demand.
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$332
839
$330
860
-1%
3%
1 BR
$299
232
$302
258
1%
11%
2 BR
$326
475
$327
489
0%
3%
3+ BR
$363
132
$356
113
-2%
-14%
Attached New - Summary
$406
143
$347
37
-15%
-74%
1 BR
$353
28
$338
10
-4%
-64%
2 BR
$395
80
$354
26
-10%
-68%
3+ BR
$436
35
$324
1
-26%
-97%
Attached Resale - Summary
$311
696
$329
823
6%
18%
1 BR
$291
204
$301
248
3%
22%
2 BR
$309
395
$326
463
6%
17%
3+ BR
$332
97
$357
112
8%
15%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$692
$649
$597
$595
$587
4623 SF
2920 SF
2197 SF
1639 SF
2920 SF
1201 S. PRAIRIE #2302
1211 S. PRAIRIE #6201
1211 S. PRAIRIE #3502
1201 S. PRAIRIE #5105
1211 S. PRAIRIE #3401
$3.2 mil
$1.895 mil
$1.75 mil
$1.715 mil
$1.71 mil
4623 SF
2920 SF
4000 SF
2920 SF
2920 SF
1201 S. PRAIRIE #2302
1211 S. PRAIRIE #6201
1335 S. PRAIRIE #1501
1211 S. PRAIRIE #3401
1211 S. PRAIRIE #4701
@ report 2017 · 49
south loop months supply of inventory
+0.02
+0.64%
+0.44
+14.64%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
6
5
MONTHS
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL 2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
south loop median price
+17.8%
+6.5%
+3.8%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
$ (IN THOUSANDS)
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 51
south loop sold price vs. original list price
120%
-0.05
-0.05%
-1.07
-1.08%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
south loop # of units
-17.0%
-23.3%
+5.8%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
450
400
350
300
# UNITS
250
200
150
100
50
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
2015
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 53
west loop
Loop
W EST
overview
price/square foot (condos)
Several numbers jump out at you when looking at the West Loop condo market of 2016. The first is 33. That’s the average days on market for West Loop condos in 2016. It’s roughly half the market time of the next fastest selling neighborhood
$335
1 YEAR CHANGE
4.4%
3 YEAR CHANGE
23.2%
5 YEAR CHANGE
43.2%
IN 2016
in the @report, Lincoln Park (63), and three times faster than condos sold in River North (105). The second is 99.3%. That’s the average Selling Price : Original Listing Price ratio for condos in the neighborhood. Once again, the West Loop outperformed all other
market dynamics
@report locales. In fact, last year about half the condos in the West Loop sold for 100% of original list price – or more. The third number is 1.9. That’s how many
33
average number of days on market
months, on average, it would have taken throughout 2016 to absorb all of the condos for sale in the neighborhood. Four to six months is considered a balanced market, and only one other neighborhood, River
99.3%
average sold price vs. original list price
North, had an average MSI under three. And there’s one more number. Zero. That’s the number of new-construction condo deliveries in the West Loop last year. Fortunately about 100 condo units will be completed in the West Loop in 2017,
1.9
average months supply of inventory
and a similar amount will be completed next year. Still, the West Loop is probably the most under-supplied neighborhood in downtown Chicago relative to condo demand. @ report 2017 · 55
We’re also seeing a handful of smaller layouts in the luxury mix; however, one key feature of these units is expansive outdoor space. In fact, of the top five pending sales in the neighborhood on a PSF basis (ranging from about 1,500 to 2,800 SF), all have spectacular terraces. We’re as bullish as ever on the West Loop, however, we still urge developers to keep precedent in mind. That sounds obvious, but some heady numbers are being penciled into pro formas; and as hard as it is to believe, the next West Loop
outlook
development to average $500 PSF upon
While West Loop buyers slug it out for available condos, developers in the enviable
Despite frenetic demand and positive
position of owning land are suddenly facing a new challenge: what to build.
growth, the luxury condo market in the
sellout will be the first!
West Loop needs to walk before it runs. Basically only one type of condo product has been delivered in this neighborhood for the last several years: three-bedroom midrise. Now, for-sale new construction is starting to diversify – in size, configuration, finish and price. New-construction offerings now range up to $750 PSF, chunk prices go up to about $2.5 million, and a handful of floor plans are as large as 5,000 square feet. So what’s the winning formula? How do developers capitalize on the hot market and maximize revenue based on key programming factors? The answers aren’t as clear-cut as one might expect given the West Loop’s halcyon mood, but some clues are starting to emerge. For starters, while the 2,000-square-foot three-bedroom layout still dominates, luxury plans are getting larger. We’re now seeing floor plans of 2,500 to 2,800 square feet capturing prices above $600 and, in rare cases, $700 PSF. This is driving chunk prices to around $1.5 million, a level luxury buyers in the West Loop seem comfortable with.
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$321
847
$335
763
4%
-10%
1 BR
$304
295
$320
292
5%
-1%
2 BR
$310
405
$331
369
7%
-9%
3+ BR
$350
147
$356
102
2%
-31%
Attached New - Summary
$359
48
N/A
0
N/A
-100%
1 BR
N/A
0
N/A
0
N/A
N/A
2 BR
N/A
0
N/A
0
N/A
N/A
3+ BR
$359
48
N/A
0
N/A
-100%
Attached Resale - Summary
$316
799
$335
763
6%
-5%
1 BR
$304
295
$320
292
5%
-1%
2 BR
$310
405
$331
369
7%
-9%
3+ BR
$344
99
$356
102
3%
3%
2016 top 5 closed sales (price/square foot)
2016 top 5 closed sales (gross sales price)
$553
$512
$507
$500
$491
1900 SF
1300 SF
1900 SF
2360 SF
2360 SF
16 N. CARPENTER #PH-N
910 W. MADISION #904E
18 N. CARPENTER #PH-S
850 W. ADAMS #T
850 W. ADAMS #2C
$1.705 mil
$1.651 mil
$1.525 mil
$1.325 mil
$1.25 mil
3700 SF
4055 SF
3700 SF
2855 SF
2725 SF
333 N. CANAL #2205
1121 W. MONROE #A43
333 N. CANAL #2405
333 N. CANAL #3501
100 S. SANGAMON #1N
@ report 2017 · 57
west loop months supply of inventory
+0.02
+1.16%
+0.49
+27.87%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
4
MONTHS
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL 2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
west loop median price
+26.1%
+12.67%
+2.05%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
500
$ (IN THOUSANDS)
400
300
200
100
0
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 59
west loop sold price vs. original list price
+0.01
+0.01%
+0.18
+0.18%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
120%
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
west loop # of units
-9.4%
-24.6%
-13.3%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
350
300
# UNITS
250
200
150
100
50
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 61
virtual reality: a real opportunity
what's
next
virtual reality a real opportunity
Developers have always had to solve the problem of how to get homebuyers to envision a new project before it's built. Over the years there have been a number of innovative solutions, but the Virtual Reality technology emerging now represents perhaps the biggest leap forward in real estate marketing ever.
denis krylov and david scott, transparent house
Virtual Reality (VR) is a cutting-edge visual technology that allows a user to experience and interact with a physical space through a digitally constructed 3D model.
With offices in San Francisco, L.A., Moscow
The difference between VR and the 2D tech-
and Berlin, Transparent House is a next-gen
nology we see in most marketing today (ren-
creative studio that excels at the intersection
derings, photography, video, etc.), is that VR
of technology and ideas. The firm offers vi-
lets users “step inside” a space by donning a
sualization and branding services for archi-
headset or goggles, offering a completely
tecture, marketing and advertising, special-
immersive, photo-realistic experience; a 360-
izing in the creation of stunning 3D assets,
degree spatial understanding that simply can-
animation and interactive experiences for
not be matched by any other technology.
future-looking brands. For more information, visit transparenthouse.com
VR is here now, and it’s here to stay. The biggest names in tech, including Facebook, Google, Microsoft and Samsung, have invested billions of dollars in R&D, acquisitions, production, and marketing. And while many people still associate VR with video games, the technology is quickly establishing a foothold in real estate. On the West Coast, where Transparent House is headquartered, it’s increasingly common to find VR headsets in residential sales centers and at marketing/launch events.
VR benefits for developers VR is mobile: Almost any smartphone can be paired with an inexpensive (and brand-able) cardboard or plastic viewer to become an immersive VR player. VR presentations can be deployed from the Apple App Store or Google Play, as well as other outlets, allowing users to step inside your project from almost anywhere in the world.
VR is boundless: A full-scale model is great, but Virtual Reality can go many steps beyond, offering views from any floor or exposure,
Virtual Reality is succeeding for a number of reasons –
giving buyers the ability to tour multiple units, or allowing a developer
most importantly because the evolution of the technology
to easily change or update interior elements.
has brought us to a place where VR finally looks as real as high-resolution photography. From within a headset, you can walk a space, pick up objects, watch content on virtual TV
VR is an analytics tool: Something a physical model can’t do is
screens, and change components such as finishes and furni-
give real-time data on buyer preferences and behaviors. VR can. The
ture. The experiences are lifelike today, and as the technology
software can track the user through the app, and the data can be
advances in the coming years, the interactivity of the experi-
used to optimize future presentations.
ence will know no bounds.
VR is a marketing campaign within a marketing campaign: The technology itself is ripe for buzz-generating events, PR, and social media. VR is a complementary marketing tool that has multiplicative effects.
VR is accessible: Utilizing some of the same elements you would create for traditional print and digital marketing, such as photos and renderings, you can deploy a VR experience in support of your overall campaign. VR presentations can also be viewed in 2D on laptops, monitors and tablets.
@ report 2017 ¡ 63
The “Owl” app features a unique, semi-permanent VR kiosk, reminiscent of the old coin-operated public binoculars, showing two geo-referenced, 360-degree panoramas that tell the story of the neighborhood’s evolution from a war-time shipyard to a modern mixeduse neighborhood. The second app is a fully stereoscopic, 3D, VR tour set in a luxury, to-be-built home at The Shipyard. Users can virtually step inside the home and move from room to room and even out onto the balcony to enjoy views of the community and San Francisco Bay. The app is available at Google Play or the App Store for a fully mobile experience.
case study: the san francisco shipyard
These apps have been instrumental in effectively communicating the vision of The SF Shipyard for residential, commercial and community audiences. They demonstrate how game engines and other technologies can engage potential
The San Francisco Shipyard is a new master-planned development located
buyers in ways that build very strong percep-
on the waterfront at Hunters Point, a site that has been a vital piece of San
tions, both locally and internationally.
Francisco history for 150 years. Five Point and Lennar Urban hired Transparent House to create a variety of interactive marketing tools to support The Shipyard’s sales efforts. The centerpieces are two photorealistic, interactive VR apps – one designed for use with a special Owlized viewer and the other for use with Oculus Rift, Samsung Gear and Google Cardboard viewers.
lincoln park
Park
LINCOLN
overview
price/square foot (condos)
What’s significant about the $15.5 million single-family home currently on the market in Lincoln Park? For starters, it’s only the second highest-priced listing in the neighborhood. You’d need to come up with another $34.5 million to meet the seller’s price for the most expensive home, a mansion on Burling Street. It’s also one of five active single-family listings in Lincoln Park with an
$344
1 YEAR CHANGE
2%
3 YEAR CHANGE
8.9%
5 YEAR CHANGE
27.4%
IN 2016
asking price over $1,000 per square foot. It’s fair to say some interesting storylines are developing for 2017, but first let’s take a look at what happened in Lincoln Park last year. Despite strong market dynamics, condo prices were somewhat held in check last
market dynamics (condos)
year, rising 2% on a per square foot basis to $344 PSF. Condo unit volume was down 4%; however, more than twice as many new-construction condo deliveries occurred in 2016
63
average number of days on market
vs. 2015 – all of them low-rise. No development featured more than 14 units. In 2015, there were five new-construction condo closings over $500 PSF. Last year there were 24, including four above $600 PSF and two above $700 PSF. Meanwhile, single-family unit volume was nearly identical year over year, even
97.1%
average sold price vs. original list price
across various price ranges, e.g. $1 to $2 million, $2 to $3 million, etc. Unlike in 2015, Lincoln Park did not register a sale above $10 million last year. Still, our Lincoln Park brokers do not sense that ultra-luxury demand is waning. In support of this sentiment, more single-family homes closed above $5 million in 2016 vs. 2015, more homes (new and resale combined) closed above $700 PSF, and the median single-family sales price (for new and resale combined) increased from $1.665 million to $1.8 million, an 8.1% move.
3.1
average months supply of inventory
Meanwhile, new single-family homes in east Lincoln Park continue to push the envelope on account of expensive land and a fondness among luxury buyers for double-lot (and larger) home sites. The $15.5 million custom build we referenced earlier sits on a 100’ wide lot. But the bulk of Lincoln Park new construction today still takes place in the $2.0$3.5 million price range. Over the last 12 months, we have seen more supply for product in this price range in every month vs. the year-earlier period. Inventory levels definitely bear watching as single-family developers look to take down lots for
outlook
future development.
Some long-awaited condo deliveries will finally hit in 2017. The completion of Webster Square and of 1615 N. Burling adds more than 100 units to the neighborhood, helping to redefine the new-construction market west of the park. Most of this new product is in the $500 - $600 PSF range, but penthouse units and/or units with impressive outdoor spaces have topped $900 PSF at Burling, which started closings early in ’17. The most expensive product at Webster is in the $700s PSF. Another boutique project, 2035 N. Orleans, kicked off sales last fall and is currently reporting four of 10 units under contract ranging from the $590s to $780s PSF. A penthouse is listed at $811 PSF. We have seen big price gains among low-rise new construction over the last few years. Consider that in 2014, the average PSF for new-construction condos (excluding 2550 N. Lakeview), was $374. Two years ago it was $409 and last year it jumped to $485. With the arrival of mid-rise product, 2017 should easily cross the $500 mark, and that still looks like a bargain relative to other new-construction/adaptive re-use on the Near North Side. @ report 2017 ¡ 67
SFH pricing and transactions
Lincoln Park Most Expensive SFH Sales of 2016 (Sales Price) Address
Sales Price
PSF
2026 N. Mohawk
$8,350,000
$759
1944 N. Howe
$8,300,000
$790
1829 N. Orchard
$6,100,000
$678
1922 N. Howe
$5,500,000
$764
1804 N. Mohawk
$4,950,000
$773
source: Midwest Real Estate Data
Single-family unit volume was nearly identical throughout various pricing strata, although the median sales price increased 8.1%, from 1.665 million in 2015 to $1.8 million in 2016.
Lincoln Park SFH Sales Over $1 Million Price Range
2015
2016
$1.0 - $1.99 million
85
87
$2.0 - $2.99 million
44
39
$3.0 - $3.99 million
19
19
$4.0 - $4.99 million
3
5
$5.0+ million
3
4
Total Over $2MM
154
154
source: Midwest Real Estate Data
condo pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$337
1229
$344
1171
2%
-5%
1 BR
$323
269
$306
272
-5%
1%
2 BR
$323
533
$334
503
3%
-6%
3+ BR
$351
427
$357
396
2%
-7%
Attached New - Summary
$409
68
$485
59
19%
-13%
1 BR
N/A
6
N/A
0
N/A
N/A
2 BR
$433
19
$519
25
20%
32%
3+ BR
$401
43
$472
34
18%
-21%
Attached Resale - Summary
$334
1161
$330
1112
-1%
-4%
1 BR
$323
263
$306
272
-5%
3%
2 BR
$319
514
$319
478
0%
-7%
3+ BR
$347
384
$342
362
-1%
-6%
2016 top 5 closed condo sales (price/square foot)
2016 top 5 closed condo sales (gross sales price)
$1117
$951
$894
$796
$763
2843 SF
3679 SF
2008 SF
2606 SF
4333 SF
2550 N. LAKEVIEW #S2401
2550 N. LAKEVIEW #S3003
2550 N. LAKEVIEW #N804
2550 N. LAKEVIEW #N705
328 W. WISCONSIN #4S
$3.5 mil
$3.306 mil
$3.2 mil
$3.175 mil
$2.660 mil
3679 SF
4333 SF
5600 SF
2843 SF
3801 SF
2550 N. LAKEVIEW #S3003
328 W. WISCONSIN #4S
2430 N. LAKEVIEW #7-8S
2550 N. LAKEVIEW #S2401
328 W. WISCONSIN #3N
@ report 2017 · 69
lincoln park months supply of inventory
+0.04
+1.61%
+0.98
+37.0%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
5
MONTHS
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
lincoln park median price
+29.7%
+9.0%
+7.0%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
700
600
$ (IN THOUSANDS)
500
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
2015
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 71
lincoln park sold price vs. original list price
+0.06
+0.06%
+1.34
+1.40%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
lincoln park # of units
-6.1%
-28.3%
-2.5%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
700
600
500
# UNITS
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 73
lakeview
Lakeview
overview Last year, we noted the proliferation of new high-end product in the Lakeview
price/square foot (condos)
market, as developers placed bets on stepped-up demand for larger, richer homes, including both condos and detached single-families. For the most part, those bets paid off, but not without some nail-biting. For new-construction condos, unit volume rocketed from 43 closings in 2015 to 70 last year. Sixteen of those sales were for $1 million or more, compared
$277
1 YEAR CHANGE
6.9%
3 YEAR CHANGE
12.8%
5 YEAR CHANGE
24.8%
IN 2016
with just three such sales in 2015. The median price for new construction attached units jumped 12% to $742,000. At 2,143 square feet, the average new-construction condo in Lakeview was 22% larger than its 2015 counterpart. This was due to the introduction of a number of new simplex floor
market dynamics (condos)
plans in the 2,500- to 3,000-square-foot range and duplexes of 4,000 square feet or more. Taking a quantum leap in size and price was not without its challenges. Market
71
average number of days on market
times for new condos increased 31% year over year to 97 days. And despite the big increase in chunk price, the average PSF increased less than 3% vs. 2015.
96.8%
average sold price vs. original list price
In the single-family camp, some developers grappled with what brokers described as an uncomfortable level of inventory. Again, they made it through, but the data indicates some adversity. New single-family homes sat on the market an average of 81 days longer in 2016 vs. the year earlier, an increase of 78%. The median sales price fell from $2.3 million to $2.11 million (-8%), and sales of
3
average months supply of inventory
homes in the $2-million-plus category declined by 44%, from 25 units in 2015 to 14 last year. As a result, some developers resorted to commission incentives – typically offering an extra 0.5%, which is $10,000 on a $2 million listing. @ report 2017 ¡ 75
There are currently 45 active newconstruction condo units in the MLS with a median asking price of $920,000. That’s 24% higher than last year’s median sold price. The average PSF on these units is $476 vs. $399 for closed new-construction condos in 2016. There are also a handful of units priced between $700 and $900 PSF, something we’ve never seen in Lakeview. And five new condos are listed above $2 million. Only one unit – a 5,500-square-foot resale – reached that plateau last year. So the stakes are high. But the city’s luxury condo market is also as strong as ever, and Lakeview is a relative value. In addition, the new luxury product in Lakeview is unique; there aren’t many places in the city where buyers can find 3,000 or 4,000 square feet
outlook
of brand new construction, on one level, so
Some of the conditions that put a drag on the single-family market in 2016 are still in play,
Will it play? TBD. But you can bet we’re
but there are some promising early signs in 2017.
watching closely.
Among detached homes $1.5 million and up, Months’ Supply of Inventory had fallen in November, December and January, compared to the year-earlier period. Now, we are entering the season when single-family home buyers are most active, and rising interest rates should further encourage fence-sitters to make a move this year. We continue to see co-op commission incentives on some listings, and the median price on active new construction is actually slightly below the median sold price of 2016, indicating some caution on the part of single-family developers. Condo developers, on the other hand, seem to be doubling down, encouraged by sales of big luxury units in 2016.
close to the lake and good public schools.
pricing and transactions 2015
2016
2015 vs. 2016
PSF
# Trans
PSF
# Trans
% Change PSF
% Change # Trans
Attached All - Summary
$259
1835
$277
1786
7%
-3%
1 BR
$226
503
$232
520
3%
3%
2 BR
$260
850
$272
801
5%
-6%
3+ BR
$269
482
$297
465
10%
-4%
Attached New - Summary
$388
40
$399
73
3%
83%
1 BR
N/A
0
$340
2
N/A
N/A
2 BR
$430
18
$423
17
-2%
-6%
3+ BR
$363
22
$396
54
9%
145%
Attached Resale - Summary
$256
1795
$264
1713
3%
-5%
1 BR
$226
503
$230
518
2%
3%
2 BR
$257
832
$266
784
4%
-6%
3+ BR
$267
460
$276
411
3%
-11%
2016 top 5 closed condo sales (price/square foot)
2016 top 5 closed condo sales (gross sales price)
$548
$523
$519
$516
$515
3338 SF
1300 SF
2755 SF
2808 SF
1300 SF
731 W. MELROSE #PH
3315 N. KENMORE #3
731 W. MELROSE #3
731 W. MELROSE #2
3336 N. KENMORE #3
$2.04 mil
$1.85 mil
$1.83 mil
$1.75 mil
$1.559 mil
5500 SF
4577 SF
3338 SF
3900 SF
3200 SF
3400 N. LAKE SHORE #2BC
731 W. MELROSE #1
731 W. MELROSE #PH
3438 N. ELAINE #3
3300 N. LAKE SHORE #17DE
@ report 2017 · 77
lakeview months supply of inventory
+0.03
+0.96%
+0.64
+22.15%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
5
MONTHS
4
3
2
1
0 JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 MSI
2016 MSI
NOV
DEC
lakeview median price
+15.1%
+0.2%
+2.5%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
500
$ (IN THOUSANDS)
400
300
200
100
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
2015
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 79
lakeview sold price vs. original list price
+0.04
+0.04%
+0.81
+0.85%
MONTHLY CHANGE
MONTHLY PERCENT
TOTAL CHANGE
TOTAL PERCENT CHANGE
100%
PERCENT
80%
60%
40%
20%
0% JAN
FEB
MAR
APR
MAY
JUN 2015
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2016
2015 SP/OP
2016 SP/OP
NOV
DEC
lakeview # of units
-24.3%
-36.3%
-5.9%
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
TOTAL PERCENT CHANGE
1000
# UNITS
800
600
400
200
0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
2015
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
FOR SALE
UNDER CONTRACT
SOLD
@ report 2017 · 81
represented developments @properties represented developments RIVER NORTH
THE LOOP
• 61 West Erie
• The Legacy at Millennium Park
• 400 West Huron
• 6 North Michigan
• Erie on the Park
• 8 West Randolph (Joffrey Tower)
• Kingsbury on the Park
• 20 North State
• 2 East Erie
• 5 North Wabash
• City Club at Kingsbury Park
• 1000 Michigan
• 351 West Huron • Park Place
SOUTH LOOP
• Superior 110
• Prairie Court Townhomes
• 101 West Superior
• Wells Street Tower • Michigan Avenue Towers
GOLD COAST
• 2001 South Calumet
• 4 East Elm
• Vision on State
• The Ritz-Carlton Residences, Chicago
• Opera Lofts
• 10 East Delaware • 30 West Oak • 850 North Lake Shore Drive (Apartments) • The Waldorf Astoria (formerly Elysian Private Residences) • 1025 North Dearborn • La Schola
WEST LOOP
LINCOLN PARK / LAKEVIEW
• Residences on Racine
• Webster Square
• 565 West Quincy
• SoNo
• R+D 659
• The Vue
• 770 Lofts
• The Helena
• Lofthaus
• The Francisco
• Metro
• Ambiance
• Westgate Terrace • The Edge
SUBURBAN / RESORT
• 23 on Green
• Kelmscott Park, Lake Forest
• Platinum Tower
• River Glen, Libertyville • 1850 Amberley, Lake Forest
BUCKTOWN / WICKER PARK/UKRAINIAN VILLAGE
• Estates of Montefiori, Lemont
• The Row Townhomes
• The Promenade, River Forest
• Bucktown Commons
• The Residences at The Grove, Forest Park
• Stampworks
• Floral Avenue, Skokie
• Churchill Row
• Mallinckrodt on the Park, Wilmette
• Bucktown View
• Port Clinton Place, Vernon Hills
• Willow Court Townhomes
• The Peninsula at New Buffalo, New Buffalo, MI
• Robey Square Townhomes
• Beachwalk, Michigan City, IN
• 469 North Paulina
@ report 2017 · 83
about @properties
about @properties @properties was founded in 2000 by top-producing real estate brokers, Thad Wong and Mike Golden, as a boutique sales and marketing firm serving developers of residential new construction and condominium conversions.
Wong and Golden remain two of the most trust-
Over the past 17 years, the company has
ed advisers to developers of new-construction
grown into Chicago’s largest residential bro-
and condo-conversion projects in the Chicago
kerage firm, the largest independent broker-
area. They take an active role in all facets of
age firm in Illinois, and one of the top residen-
their clients’ developments, working closely with
tial brokers in the country by sales volume.
developers, architects, lenders and strategic partners to address feasibility, product design, promotion and sales. Developers also benefit from @properties’ award-winning, in-house marketing team, offering professional, agency-quality services, including graphic design, digital marketing, advertising and public relations. Notable @properties-represented developments include: 4 East Elm, 10 East Delaware, 30 West Oak, The Waldorf Astoria Residences, The Legacy at Millennium Park, 400 West Huron, Webster Square, Prairie Court Townhomes, R+D659, and The Residences on Racine.
contact
@properties and its founders have earned numerous honors including the Merrick Momentum Award from the Chicago Entrepreneurship Center and 1871; the Ernst & Young Entrepreneur of the Year Award – Midwest; the Lincoln Park Builders Impact Award; Inc. Magazine’s Inc. 500/5000; Crain’s Chicago Business’ Fast 50 and 40 Under 40; and Chicago Tribune’s Top Workplaces. @properties has more than 2,200 licensed brokers and 22 offices throughout Chicago, surrounding suburbs, Southwest Michigan and Southeast Wisconsin. For more information, visit developers.atproperties.com
thad wong, co-founder thadwong@atproperties.com
312.491.0200 · 773.251.6600
mike golden, co-founder mikegolden@atproperties.com
312.491.0200 · 773.251.6611