Second Biggest Story of 2012: How Many New Luxury Condos Will Sell?
2011 marked the first year in over 15 years that there were no new closings on high rise condo units.
But that will change in 2012 when two luxury buildings finish construction.
Lincoln Park 2520 at 2520 N. Lakeview on Lincoln Park and The Ritz Carlton Residences at 664 N. Michigan on the Mag Mile will start closings as soon as the first quarter of 2012.
As of June 2011, the Ritz, which has 88 units, was 50% “sold”- but apparently many of those sales were the smaller units. The building’s smallest unit is a 1370 square feet 1-bedroom starting at $1.25 million.
Lincoln Park 2520 is a bigger building. It will have 228 tower residences and 19 townhouses. There are 50 floorplans but the smallest unit appears to be a 1/1.5 at 1164 square feet.
As of September 2011, 40% of the units were under contract.
The big question is: How many of those that are “pre-sold” will actually close?
And is it really a success if half or less of the units sell?
How long will it take the market to absorb all of this new inventory?
The Ritz Carlton Residences [website]
Lincoln Park 2520 [website]
Lincoln Park 2520 also has a blog with various pictures (including some of the construction). See that here.
“And is it a success if half or less of the units sell?”
If they close on 40-50% of the units this year between presales and regular sales they’ll both be far more sucessful than OMW.
That’s gotta count for something.
OMW is a completely different location altogether. The Ritz is priced at the highest price point ever for Chicago on a price per square foot basis. Not true of OMW.
“2011 marked the first year in over 15 years that there were no new closings on high rise condo units.”
FALSE STATEMENT – have you heard of the elysian? There were several sales in 2011 (all over 2.5 million).
Assuming you mean’t luxury condo units?!
Pretty sure a number of high rise condos closed on new units in 2011
“2011 marked the first year in over 15 years that there were no new closings on high rise condo units.”
“2011 marked the first year in over 15 years that there were no new closings on high rise condo units.”
I think she meant that no new high rise condo buildings started closings in 2011?
I wasn’t saying OMPW was the same location but that at least these will be more successful than other luxury condo buildings as of late.
I would think at the highest price per sq. ft you would still make a decent profit even if only 50% sell the first year. Most high rises take awhile to sell.
I am particularly curious about this myself, especially 2520. I’ve been wondering if the key to building a successful luxury building in Chicago is to exclude two bedroom and lower units. Looking at how poorly Trump has sold relative to the Elysian, I think future developers might be wise to “keep the riff raff out,” but these two building will be a good test of the theory.
I was taking the Amtrak City of New Orleans back to Chicago. After the McCormick Place tunnel, the train goes right next to all of the new South Loop high rise condos. I could swear that the two tic-tac-toe buildings were mostly vacant. Every floor still had contractors tape on the windows. Same thing for One Millenium Place and the others.
Take a walk on Roosevelt Road heading east towards the museums. Look at all of the street-level units with balconies near the sidewalk. Do they look occupied to you?
I know Danny MPW is dead empty.
OMPW was foreclosed on and this past Thursday they bulldozed the sales center. Definitely the most interesting news in the SL. Please continue to hate the SL.
“I was taking the Amtrak City of New Orleans back to Chicago.”
hey, we took that train to Memphis for the holidays. Were you one of the douches who didn’t want to change seats so I could sit with my wife?
They are going to build some green in place of the sales center and later on another high rise. Get your facts straight before you hate on anything : )
“OMPW was foreclosed on and this past Thursday they bulldozed the sales center. Definitely the most interesting news in the SL. Please continue to hate the SL.”
I had no idea that building was almost empty. If I remember there was an auctioned building closer to Roosevelt in the last year or two that was converted into rentals. Maybe that will happen here too. Whoever bought that other building got a great deal because there was a lot of rental demand for those units.
I heard the bank was not allowing the developer to auction OMPW. Now that they have foreclosed it, I wonder if they will rent it out or auction it off. What do you guys think?
“What do you guys think?”
I think there will be deals to be had… in 2014
Now that the bubble has burst, shitholes like 235 W VanBuren are no longer considered “luxury condos”.
235 WVB isn’t a ‘shithole’, but you are very correct in saying that its not “luxury”
then again the word luxury has been thrown around way too much before the real estate bubble in this town
“OMPW was foreclosed on and this past Thursday they bulldozed the sales center. Definitely the most interesting news in the SL. Please continue to hate the SL.”
Are you certain it was foreclosed? I know there was speculation but has it actually occurred. Also, OMPW is not empty. I live in Tower4 and there are plenty of lights on at night. Furthermore, the sales center was way beyond it’s purpose as the models are now in the actual tower. I do not know the veracity of claims that the space will be a green space as stated on this forum.
“Are you certain it was foreclosed?”
Yes- Crain’s was reporting on it. That’s why miumiu and others want to know what happens next. Will the bank sell to an apartment REIT which will then rent out the tower?
“I think she meant that no new high rise condo buildings started closings in 2011?”
Sorry- I should have been clearer. This is the first year in 15 years that no new high rise completed construction and started closing on units. There have certainly been closings on new units- but those buildings had finished construction prior to 2011.
“Are you certain it was foreclosed?”
Yes- Crain’s was reporting on it. That’s why miumiu and others want to know what happens next. Will the bank sell to an apartment REIT which will then rent out the tower?”
I heard that too. However, has the suit actually been filed?!?!?!?
“Lincoln Park 2520 at 2520 N. Lakeview”
I drove by this bldg. a few weeks back. They were hauling up the facade on cranes.
The facade is drab gray conrete slabs, spray painted on one side only (exterior) a putrid yellow mustard color. You know, for what people are paying, they could’ve used some real limestone or something.
Where is Architect? Why do they use concrete slab? what does that say about our period in history? What ever happened to Indiana limestone quarries, like in the movie Breaking Away? Why does Lucien Lagrange, pretend to care about architecture, France, whatever, and use puke yellow paint on concrete slabs for an exterior of a LUXURY building in a “world-class” city?
Re. 2520, I’m still wondering who they expect to be paying $700,000 for one bedrooms. Or whatever outrageous price they’re asking (I know it’s a lot). And if you want a condo there of a decent size and have to ask the price, don’t bother.
helmet:
Good comment, and I have no respect for LaGrange.
“What ever happened to Indiana limestone quarries, like in the movie Breaking Away?”
Ah the good ol days, when the likes of you (cutters), accepted their born-into limitations/station in life.
“I heard that too. However, has the suit actually been filed?!?!?!?”
Crain’s was reporting on the foreclosure 2 1/2 months ago. So this isn’t “recent” news. Don’t know if BAC actually has officially taken over the building. Does it matter? It’s going down either way. Of course, BAC may just be negotiating with other interested parties to take it off their hands.
That’s what I meant about it becoming apartments. Apartment buildings are in high demand. I’m sure there’s an apartment developer who would be interested in it.
“Ah the good ol days, when the likes of you (cutters), accepted their born-into limitations/station in life.”
You’re the one who was born into a despised group and then cut, I hope the blood-sucking mohel didn’t need valtrex!
Anyway, Indiana limestone was used in many Chicago buildings. Look at the exterior (limestone) of the Palmolive Bldg. compared to Lagrange yellow paint concrete at the Fordham, Pinnacle, etc.
“Look at the exterior (limestone) of the Palmolive Bldg. compared to Lagrange yellow paint concrete at the Fordham, Pinnacle, etc.”
I agree with you. Both trash buildings as I have said here prior.
“You’re the one who was born into a despised group”
From what I gather from my gentile friends. We are like the Yankees. Secretly everyone wishes they played for us.
obtw, Happy New Year, Dan!
“obtw, Happy New Year, Dan!”
New Year??? I thought I just closed the first quarter of 5772, today.
Ze, totally confused.
Anyone go to the Open House in Lincoln Park 2520 (otherwise known as 2550 N. Lakeview) this weekend?
They have started closings in the building. As soon as a listing comes on the market (a re-sale or a rental) that actually shows what the interior looks like (instead of just the lobby and the pool), I’ll do a post on the building. But I’m waiting for a “real” listing with “real” pictures.