ML - Michigan Avenue

2014 - Issue 2 - Spring

Michigan Avenue - Niche Media - Michigan Avenue magazine is a luxury lifestyle magazine centered around Chicago’s finest people, events, fashion, health & beauty, fine dining & more!

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PHOTOGRAPHY BY HERBIE ROOPRAI A home by Environs Development at 2648 North Wayne Avenue. " As a smaller developer, this is the busiest we've been in 15 years." KAREN RANQUIST North Orchard Street with seven bedrooms and six bathrooms, and a 7,200-square-foot neighbor at 1870 North Orchard Street—sold before the roofs went up. He sealed the deals at hefty price tags of $5.975 million and $4.975 million, respectively. Brinkman estimates about 80 percent of his firm's projects in the last year or two began on spec and ended up pre-selling early in construction, which turned them into custom homes by the time buyers were ready to move in. Only about 20 per- cent of Environs' completed homes are fully built on spec till completion, and many of those have gone under contract within 60 days, he adds. Developers like Brinkman say buyers sitting on the sidelines have been beating a path back to the market for the last year or more. "What feels differ- ent now compared to even a year ago is that the potential clients we're talking to are much more confident about their financial situation and more comfortable about the economy," he observes. A lack of inventory is one reason high-end spec homes aren't languishing. Some reluctance among many potential buyers to commit to the drawn-out process of custom-building homes is fueling the feeding frenzy for spec homes, too. "Custom projects have a terrible reputation for being time-consuming, and most people don't want to deal with the details of meeting with architects and builders and making so many decisions," asserts Brian Goldberg, a partner at LG Development Group (2234 W. North Ave., 773-278-6983; lgdevelopmentgroup.com). "It's not that risky for us to build high-end properties on spec because only about 10 percent of the popu- lation buying homes [at those price points] are willing to build custom homes." LG tore down a four-unit apartment building at 2145 North Dayton Street last summer and is at the drywall stage of an 8,000-square-foot single family on that lot with six bedrooms, five bathrooms, two powder rooms, and high-end finishes throughout. Asking price: $4.695 million. Another LG prop- erty going up on spec is at 1720 North Mohawk Street. The single-family, 6,000-square-foot home will have five bedrooms, four baths, two powder rooms, and a price tag of $4.2 million. Deluxe single-family homes aren't the only spec developments enjoying robust activity in Chicago right now. Ranquist Development Group has seen spec building of luxury condos and row homes with well-appointed architecture gaining signifi- cant momentum since mid-to-late 2012, primarily in Bucktown, River North, and Logan Square, according to Karen Ranquist, who markets many of these properties through Koenig & Strey, where she is a real estate broker (1800 N. Clybourn Ave., 312-475-4542; ranquist.com). In collaboration with Seattle-based architec- tural firm Miller Hull Partnership (millerhull.com), Ranquist last year gutted and redesigned a six- unit luxury condo building in River North at 747 North Clark Street that recently sold out. The boutique building features full-f loor units rang- ing from $1.11 million to $1.3 million with elevators that open directly into the homes, says Ranquist, who is married to Bob Ranquist, the development firm's president. "As a smaller developer, this is the busiest we've ever been in the 15 years of projects we've devel- oped in the city," says Ranquist. One of Ranquist's largest development projects to date—47 row homes—is poised to break ground this spring in River North at the corner of Oak Street and Cleveland Avenue. Pre-marketing for this deluxe project, named Basecamp, began in earnest in January and delivery is expected next fall. Some cool features include concrete floors with radiant heat and ultramodern Italian cabinetry by Archisesto. Pricing starts at $549,000. Developers agree there's robust activity now to satisfy hearty market demand. But they're keeping their fingers crossed that this level of interest con- tinues. "If we start building something now, it will take about 18 months to deliver," says Goldberg. "I really hope this strong market lasts." MA continued from page 133 WHAT BUYERS WANT Features like these are getting buyers' attention. Smart technology. Whole-home automation is a hot ticket for owners who want to control their environment from their iPhone or other mobile devices. Functions include lighting, temperature, and security systems, as well as TVs and appliances. Clean, modern lines for interior finishes. Buyers want high-quality materials, but only minimal ornamentation. Many buyers have expensive art and furniture, and the home itself often serves as a backdrop to their curated possessions. Elevators. Many upscale homes are super-vertical and purchased by older buyers who want elevators because they intend to stay there long-term or plan to move in with aging parents. Modern layouts and dimensions. For single-family homes, 10,000-square- foot layouts are less popular. It appears that 8,000 square feet of luxury is enough if there's ample open space. "Fewer people want to live in castles nowadays," quips Brian Goldberg, partner at LG Development. 134 MICHIGANAVEMAG.COM HAUTE PROPERTY 133-134_MA_HP_Opener_Spring_14.indd 134 2/12/14 10:54 AM

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