Urban condominium and townhome buyers are willing to live above the store, and city developers have been happy to accommodate them in new mixed-use developments.

"Mixed-use residential / commercial projects are gaining in popularity in Chicago’s booming neighborhoods, such as Bucktown and Lakeview," said Patrick FitzGerald, president of the Chicago-based architecture firm of FitzGerald Associates. "Many residential developers are reacting to the trend toward downzoning, height and density limitations and more stringent parking requirements.

"Often there is neighborhood opposition to the congestion and density multifamily projects sometimes bring, so many developers are choosing not to fight," he said.

Instead of purchasing residential sites and going through months of rezoning battles and construction delays, FitzGerald said developers of some condominium and townhome projects are seeking commercial sites for residential development.

"Commercial sites with existing B-2 through B-7 zoning allow residential units over ground-floor shops and stores," FitzGerald said.

As a result, residential development especially is on the rise on such commercial streets as Lincoln Avenue, from Addison to Lawrence; Clark Street, from Montrose to Foster; and along Milwaukee Avenue near North Avenue and Damen, FitzGerald said.

"Developers are finding that condominium and townhome buyers are attracted to mixed-use residential-commercial projects because of great location, price and luxury amenities such as roof decks, balconies, indoor parking - people don’t mind living above the store," he said.

Several mixed-use developments currently are underway or planned in hot city neighborhoods.

Dubin Residential Communities is developing luxury townhomes at Plaza Vista, an innovative 17-unit mixed-use residential and retail development at 2840 N. Lincoln Ave. in the heart of Chicago’s Lakeview neighborhood. The four-story elevator building, which features a brick and limestone facade, also includes 7,200 square feet of retail or professional office space at ground level.

"Potential retail tenants are a medical office, dry cleaners and perhaps a Starbuck’s," said developer David J. Dubin, president of Dubin Residential. The commercial space parking will be provided in the lower level of the two-level garage, he said.

Dubin said Plaza Vista will have the "look and feel of a cloistered European courtyard community. It will really be a quiet enclave in the heart of the city," he said.

"Since the residences at Plaza Vista are 20 feet above street level, the views from the third-floor are fantastic. And the central landscaped courtyard will create open space and light," added Dubin.

CMK Development Corp. is planning 16 luxury condominiums above commercial space in a $5.5 million mixed-use development at 1849-57 W. North Ave. in Chicago’s booming Bucktown neighborhood.

"We expect to attract young first-and second-home buyers moving up from luxury rentals and smaller condominiums in the Lincoln Park, DePaul, Bucktown and Wicker Park neighborhoods," said developer Colin Kihnke, president of CMK Development.

Some 7,500 square feet of commercial space is available on the lower-level of the building along with nine off-street parking spaces for commercial use and 16 for residential use. "The commercial space ideally may be utilized as an art gallery or graphic design studio," said Kihnke.

Construction on the full-amenity elevator building, on five city lots at the southeast corner of North Avenue and Elk Grove Avenue, is expected to start early in 1999, following demolition of two existing buildings, an auto body shop and a run-down three-story apartment building.

Also in Bucktown, Oculus Development LLC has acquired a 17,675-square-foot site at 1640-52 N. Milwaukee Ave. for a mixed-use condominium / retail development.

"Plans for the four-story building call for 30 condominiums above 9,500 square feet of retail space," said Donald J. Gianone, chairman of Oculus Development. "A spring construction start is planned."

One-bedroom, one-bedroom plus den and two-bedroom residences will have one or two baths and 830 to 1,200 square feet of living area. Pre-construction base prices are expected to range from $144,000 to $219,000. Garage parking will be provided for 46 cars at a price $12,900 per spot.