Condominium
conversions Smart home shoppers
this autumn are scanning the Chicago lakefront for condominium conversions,
which experts say are the best housing bargains in the Windy City. While most well
located new-construction condominium developments are selling in the
$250 to $350 a square foot price range, appraisal experts say several
conversions in fairly well renovated buildings are going for far less.
Value conscious buyers are noticing the advantage of buying in older
buildings. “Today, condo
conversion developers are offering extensive refurbishments, including
granite kitchens, marble baths, impressive new lobbies, replacement
windows and elevator and mechanical-system upgrades,” noted Gail
Lissner, vice president of Appraisal Research Counselors, Chicago’s
premier condominium appraisal firm. Lissner said one
of the most successful new conversions is Quadrangle Condominiums,
6700 S. Lake Shore Drive in South Shore, where Quadrangle Conversion,
LLC, an affiliate of the Habitat Company, put 261 units on the market
in September. “Nearly 120
residences have already been sold and 85 of the initial buyers are
former renters in the building,” Lissner said. Prices on units
with 591 to 1,081 square feet – convertibles, one- and two-bedrooms
– run from $73,000 to $135,975. That’s about $100 to $129
per square foot. “Quadrangle
Condominiums is a wonderful building with fabulous views,” said
Lissner. “South Shore has a great lakefront location and there
are no comparable properties to this well-maintained highrise, which
was built in 1968 and managed by the Habitat Company as a rental.” In addition to
new thermopane windows and other common area improvements, each apartment
will receive a remodeled kitchen with new appliances, sinks, faucets,
flooring and choice of new cabinets and countertops. Bathroom upgrades
include new medicine cabinets, lighting and a choice of vanity and
countertops. Another hot conversion
property is the 30-story highrise at 525 W. Hawthorne Place, overlooking
Belmont Harbor in East Lakeview. Nearly 100 condos have been sold
at the highrise since June. Designed in the
1970s by architects Solomon Cordwell Buenz & Associates, the $80-million
highrise features 231 residences with angled bay-window views of Lake
Michigan, the Loop and Wrigley Field. The highrise is
being refurbished, with new windows, a new canopied entry and a marble
lobby, according to Vilas Development, the developer. The recreational
focal point of 525 W. Hawthorne is a rooftop swimming pool and sundeck,
which adjoins a renovated fitness center. “Five twenty-five
W. Hawthorne Place is one of the great condominium values on the North
Side,” said Frank Chiodo, sales manager for Vilas Development.
“One-bedroom units can be purchased ‘as is’ for $189,900,
or as little as $212 per square foot, and prices on ‘as is’
two-bedroom residences start at $279,900.” If buyers opt
for the standard interior renovation package with new kitchens and
baths, base prices start at $199,800 for a one-bedroom unit and $294,900
for a two-bedroom layout, Chiodo said. Why should a Chicago
condo shopper consider purchasing a conversion unit? According to Lissner,
strong demand exists today for converted condominiums because “buyers
can expect immediate delivery and today’s low interest rates
have narrowed the cost to own versus renting.” Benchmark 30-year
fixed home-loan rates were 5.98 percent in mid-October, down from
6.58 percent a year ago, according to Freddie Mac’s Primary Mortgage
Market Survey. Although they
may be a long way from the “condomania” era of the late
1970s, condominium conversions once again are carving a significant
niche in Chicago’s housing market, Lissner noted. “Between
1991 and the beginning of 2002 there have been 53 Chicago rental projects
with a total of 11,410 rental units converted to condominium ownership,”
she said. “We project that the condominium-conversion market
can absorb roughly 750 to 1,000 units per year on a sustained basis,
but the availability of buildings will hamper future conversions.” |