New Developments in Chicago?? Could it be true?
With the economic downturn of 2009/2009, new developments seem but a memory.
Will the iconic buildings of the recent past be replicated in the future with new developments? Will there be any new housing options from which to choose in the coming years? Is the current economic environment so hostile to capital that developmers will run for the hills and not even attempt to evolve the skyline as movable, living pieces of art – changing, morphing, ever evolving?
NO!
I offer the following as testament to the continuation of the development market in the greatest city of the world!
The Elysian
All these developments are moving forward – forging a new spirit of American will and capitalist determination! On this weekend in which we celebrate all that is American – let us celebrate and champion the spirit of these developers. May they all thrive and succeed!
Add comment July 2, 2009
Chicago City Hall Watch
Originally compiled and published by the Chicago Association of Realtors (C.A.R.), it is a current tracking of several pieces of legislation that could impact the real estate community:
Elevator Inspections: An ordinance has been introduced amending the Municipal Code as it relates to elevators, escalators and similar mechanical lifts and their yearly inspections.
Real Estate Transfer Tax Web site: An ordinance has been introduced authorizing the execution of an intergovernmental agreement by the City of Chicago with Cook County and the State of Illinois regarding a real estate transfer tax Web application.
Weeds: An ordinance has been introduced amending the Municipal Code to increase the penalty for failure to control weeds on a property from between $100 and $300 to between $250 and $500.
Zoning Amendment—Planned Developments: An ordinance has been introduced amending the Zoning Ordinance to permit certain buildings to elect the planned development process even if the site area is smaller than 12,500 square feet.
Zoning Amendment—Accessory Uses: An ordinance has been introduced amending the Zoning Ordinance by setting forth additional restrictions on accessory uses, buildings and structures located within the rear yard and further regulating parking in the rear yard.
Add comment June 20, 2009
Facebook and Reality
Okay. What’s up?
My company, Rubloff, is encouraging all of the agents to sign up for Facebook. What is going on? Why are we all signing up for Facebook? If we really wanted to keep in touch with our High School chums, wouldn’t we pick up the phone? If we want to sell a $5,000,000 property, won’t we have to eventually turn off a computer and meet a client?
I have been ruminating on this since talking with a dear friend yesterday. I have come to 2 conclusions:
1. The chances of a client coming to my website via a Facebook page or group is slim to nil. Who are these people and why do I care what they are eating for breakfast? Facebook seems a wonderful way to keep in touch, albeit voyeuristic, with acquaintances. Friends, I will just text and meet for dinner. Clients – well I don’t really think a multi-million dollar sale is going to be impressed with the fact that I took a sick cat to the vet (or some other insane “Wall Post”) . I am still going to have to earn the right to represent my clients and that will only happen by my ethics and professionalism. Facebook is a nymph that will lure you into complacency. Realtors must continue to work, not just post.
2. Facebook is great to get spiders to recognize us however we must be careful with posting things we don’t want commented on or broadcast, or identifying “friends” that may in reality be clients and not entirely comfortable with Susie Realtor broadcasting her client base. With all the media flooding cyberspace however, how do we stay in focus? How do we keep our profile, and business, in front of the spiders that are crawling the web looking for updated pages, posts and links? Facebook is a tool. Period. I will jump on the bandwagon if it will draw 1 more prospect to view a property I am listing. If my posts can help my company rank higher on Google, then great. Let’s all be above board and see it for what it is. Placement. Most people really don’t want to know “what you are doing right now” and I know my clients do not want their identiy broadcast to the world.
Just my thoughts….
Speaking of $5,000,000 properties – I represent a fabulous building that has a few: Lincoln Park 2520. Visit our site!
Artist rendering of the Grand Lobby
Lincoln Park 2520
Chicago, IL
4 comments January 25, 2009
2009 Where do we go from here?
While many are lamenting the economy and the real estate market throughout the country, I have a different spin: I think it is a great time to buy! Yes, I know it is not popular to say things will get better, but there it is. In Chicago, we have an absorption rate of approximately 6 months and buyers are enjoying declining prices. The hand wringers and chicken Little’s will decry everything associated with real estate, but when the bottom comes and the market rebounds, it will do so at a more sensible trajectory rate and those that have kept credit scores strong and savings high, will enjoy a healthy profit on properties purchased at a more reasonable price.
I had the opportnuity to show a very interesting property to a client this week. It is a former bank turned casket liner company turned real estate company turned mortgage company. Check out the photos!
Lincoln Park, Chicago
Add comment January 24, 2009
Tax Breaks vs Tax incentives
There are four factors to growing rich with investment property – positive cash flow; tax breaks; capital repayment; and — appreciation. Each of these can vary significantly year to year and each has a unique effect on the ultimate return on investment property.
Let’s say you buy a lovely goldcoast brownstone apartment on tree-lined Astor St. You come up with a down-payment (these days upward of 30%+ if you’ll be using it exclusively as a rental). You then get a mortgage (with a little luck), find a renter and start to collect your rent.
So your mortgage payment of PITI (principal, interest, taxes and insurance) is $3000/month. And let’s say you rent the place for $5000/month. With your $2000/month “profit” you earn $22,000/year on your rental property. Kind of. That’s assuming you do all the management, advertising, toilet plunging, etc. by yourself and have no outside costs – but that’s another post altogether. But if you have a lucky year (and your tenant always pays you) you make a tidy profit. In the course of ten years you’ve earned $220,000 and are well on your way to success. But what about taxes?
Fortunately you have depreciation and other tax benefits that also help you grow ‘wealth” when investing in luxury real estate. For example you can take advantage of depreciation (please make depreciation a hotlink to: http://en.wikipedia.org/wiki/Realestateinvestor ). Our generous government let’s you take a sliding rate of depreciation on the value of the property. The IRS publishes guidelines each year – You can take a look at publication 946 – “How to Depreciate” – (hotlink to this please http://www.irs.gov/pub/irs-pdf/p946.pdf ). In some of the early years that you own a property you can deduct up to 3.64% of its value – which can be used against revenue you earned on property.
For example, if the fair market value is $500,000 for your rental property, you can depreciate it in certain years for 3.64%, or $18,200 (personal property depreciates a bit differently). That means $18,200 out of the $22,000 you earned in rent is exempt from taxes – leaving you liable for taxes only on the $3800 difference. You still earned $22,000 but can offset a significant portion of it! That’s how some properties “cash flow negative” while still putting money in the owner’s pocket year after year. I simplify, of course. That’s why the accountants are the ones who make the REAL money!
My favorite “Chicago” thing of the day is the new American Girl Place at Watertower. I don’t have a girl so the lines forming around the store this weekend perplexed me. Upon entering, it was a wonderland! Little boys are given Nintendo DS to occupy their minds while girls frolick like it is a birthday EVERY day! Consumerism at its best and worst and in this depressing economy, I loved being transported even if for half an hour!
Add comment October 28, 2008
The Summer of our Discontent – and my blessings
With all apologies to Shakespeare, the summer of ‘08 has been difficult in the real estate market … to say the least.
The reasons are too numerous to count but the highest ranking are:
- The mortgage meltdown –(Did all those people really think the $4,000 month mortgage was the wisest thing on their $50,000/yr. salary just beside a mortgage person they had never heard of weeks before said it was….?)
- Fannie and Freddie are no longer our favorite aunt and uncle. (They really give new meaning to relatives that overstay their welcome!)
- Cranes stand sentry over skylines throughout the country awaiting the call to action but no one seems to have the helm.
Add comment August 30, 2008
In Pictures: See What $1 Million Will Buy You In Real Estate Around The World – Forbes.com
This is an interesting article. I would suggest, however, that with the assistance of a seasoned Realtor, better choices would be found in the Chicago area!
Here is the Forbes vignette:
Add comment May 29, 2008
Video on the ups and downs of Real Estate Prices!
I have had so many comments from people regarding the use of video clips in my blogs. I love seeing an “added bonus” of the visual element when I peruse blogs. As I continue the work on my blogs of “new developments in Chicago”, I will take today to begin an intermittent series wherein I post some of my favorite real estate videos! I hope you enjoy them, but if you don’t, I promise many more “no video” blogs to come from video.google.com posted with vodpod
Add comment May 22, 2008
New Condo Developments in Chicago – Gold Coast & Streeterville
For the upper end buyer, Chicago is adding new developments that will suit just about anyone’s taste! Here is a compilation of the major developments in the Gold Coast and Streeterville areas.
Gold Coast
- 10 East Delaware 10 E. Delaware 121 private residences designed by Lucien LaGrange Price: $390,000-$1,700,000 base
- 50 East Chestnut 50 E. Chestnut 34 full floor residences over 39 stories Prices: $2,476,900 - $3, 325, 900
- 550 St. Clair 550 N. St. Clair 26 stories with 112 condominium homes. PriceL: $400,000 and up.
- Chicago Spire 400 North Lake Shore Drive Much ballyhooed development by Santiago Calatrava. At 150 stories, upon completion, the Spire will be the tallest residential building in the world 1,200 residences. Price: $750,000-$40 million! This one wins my award for best video link!
- The Elysian 11 East Walton Another new development by renowned architect Lucien LaGrange. 188 hotel condos and 51 private residences.
- The Huron 8 East Huron 28 stories 47 residencews 74 parking spaces Price:$992,000 to $4,858,000 (base price)
- Manadarin Oriental 160 N. Stetson 74 stories, 500 residences. Condo Hotel options
- Palmolive Building 159 E Walton St Almost sold out but with the Art Deco architecture, this is a building and location to pay special note of!
- Superior 110 110 W. Superior 26 floors Price: $500,000-$1.7 Million (base)
- The Residences of the Ritz Carlton 664 N. Michigan Avenue 86 units and 40 floors. My favorite for the downtown market for luxury, ambience and location!
- Trump Tower 401 N. Wabash The one that started all the buzz! 486 condo residences and 339 hotel rooms partially opened.
- Canyon Ranch 64 stories 257 residences with prices starting at $1,000,000 cancelled due to lack of pre sales. Investors will have their money returned.
Next: Luxury Buildings and new conversions in Lincoln Park! (followed by blogs with new developments in River North, West Loop, South Loop and Printers Row!)
2 comments May 21, 2008
