“The Voice of the Housing Industry” for 75 Years
GREATER CHICAGO WWW.HBAGC.COM | WINTER 2015
HBAGC 2015 PRESIDENT
PAT COVENY
A PROVEN PERFORMER
CREATING THE HISTORY OF HBAGC
THE FIRST 20 YEARS
2015 BUILDING TRENDS WINDOWS AND DOORS REAL ESTATE HOME DECOR COLORS
A publication of the Home Builders Association of Greater Chicago
2014
ASSOCIATE OF THE YEAR JOHN KERN
John Kern received the 2014 Associate of the Year Award presented by HBAGC Vice President Dick Greenwood
The Home Builders Association of Greater Chicago is proud to present the 2014 Associate of the Year Award to architect John Kern, owner and president of Premier Architecture, Inc. John Kern has been a member of HBAGC since the 1990s. In 2001 he became the main representative for the architectural firm of Balsamo, Olson & Lewis, Ltd. and an active member of the Key Award Committee, Membership Committee and Board of Directors. On the national level he is active with the NAHB Spike Club for membership recruitment. John was instrumental in developing the Key Award program into the premier event it has become over the last decade. John co-hosted two Key Award ceremonies, one with Joe Safin and another with Rick Burton, and undergirded the Key Award program during the recent recession in order to stop the program from fading away. HBAGC can proudly say that there has been a Key Award event every year since the award’s inception in the 1970s. John opened his own architectural firm in 2010. It specializes in residential design, both single-family and multi-family.
2 WINTER 2015 | HBAGC.COM
2015 BOARD MEMBERS PRESIDENT PAT COVENY ARCH CONSTRUCTION
VP DICK GREENWOOD COLDWELL BANKER
2ND VP JOHN SORENSON US SHELTER
ASSOCIATE VP FRANK BINETTI INLAND BANK
SECRETARY COREY STERN CHITKOWSKI LAW OFFICES
TREASURER REGIS VERLIEDFE WARM UP
2013 PAST PRESIDENT MARTY PARIS SEDGEWICK PROPERTIES
2012 PAST PRESIDENT JOHN WOZNIAK J LAWRENCE HOMES
JOHN KERN PREMIER ARCHITECTURE
JOHN LEE FIRST AMERICAN BANK
MICHAEL MENN MICHAEL MENN LTD
JUDITH L. NELSON NELSON CONSULTING LIFE MEMBER
EMILY JOHNSON TAYLOR JOHNSON
SCOTT WALBRIDGE MARVIN WINDOWS & DOORS
SCOTT SEVON MAW CHICAGO
JANICE SEVON MAW CHICAGO
MIKE NAGEL MAW CHICAGO
TOM DRAKE THE DRAKE GROUP
ROBERT COWHEY COWHEY MANHARD CONSULTING LIFE DIRECTOR
RALPH KRISTENSON LIFE DIRECTOR
RITA UNZNER EXECUTIVE OFFICER
JERRY CONRAD JC CONTRACTING
MATT JANS MATT JANS ARCHITECTURE
DAVID BRADY PAUL LINK LASALLE STREET DEVELOPMENT OAK DESIGN AND CONSTRUCTION
2015 CITY CHAPTER BOARD 2015 CITY CHAPTER PRESIDENT MARTY PARIS SEDGEWICK PROPERTIES
PAUL LINK LASALLE STREET DEVELOPMENT
KEITH ESSES PRIORITY CONSTRUCTION MANAGEMENT
EMILY JOHNSON TAYLOR JOHNSON
KERRI STADLER CIRCA LIGHTING
JEROME WADE WADE ENTERPRISES
BOB DICKINSON GREATER II TITLE
JEFF GOULETTE* SULLIVAN GOULETTE
ALAN LEV BELGRAVIA GROUP, LTD
ED HOFFMAN CASTLEWOOD HOMES
COUNCILS & COMMITEES KEY AWARDS JOHN KERN DICK GREENWOOD PAT COVENY MATT JANS JUDITH NELSON
Congratulations to HBAGC for 75 years! From your friends at
ARO PAUL COLGAN ALAN LEV PWB PRESIDENT - JAN SEVON VICE PRESIDENT - CATHY KIRIN PROGRAMS CHAIR - SHARON SAYRE REMODELERS PRESIDENT - SCOTT WALBRIDGE PROGRAMS/EVENTS REGIONAL CHAIR - DICK GREENWOOD 4 WINTER 2015 | HBAGC.COM
“Only a collective voice, uniting the residential construction industry can succeed in providing substantial benefits for all of its individual members.” www.rcecusa.org
*Image courtesy Wikipedia
GREATER CHICAGO
Building News WINTER 2015 | 75 YEARS OF HBAGC HBAGC BUSINESS OFFICE 1525 West Homer Chicago, IL 60642 Greater Chicago Building News is a publication of the Home Builders Association of Greater Chicago published quarterly by Brandit360.com for HBAGC members. Articles appearing in HBAGC Building News not dot necessesarily represent the opinions of HBAGC.
The Ultimate in Luxury and Convenience
Under all circumstances, copyright remains with the original photographer or author.
ADVERTISING & EDITORIAL INFORMATION Judith L. Nelson 847-778-8634 judithlnelson@aol.com Hans Nelson 773-669-4559 advertise@HBAGC.com HBAGC encourages members to submit articles for publication. Articles should relate to members and the homebuilding industry. For questions or to submit an article send an email to advertise@hbagc.com. PUBLISHER Brandit 360 224-633-9597 www.Brandit360.com CONTRIBUTING EDITORS Rita Unzner - HBAGC Executive Officer Susanne Tauke - HBAGC Member - New American Homes, Inc. Chantel Beauregard - HBAGC Member - Brandit 360
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CREATING THE HISTORY OF HBAGC
PART 1 - THE FIRST 20 YEARS OF NAHB
16
MEMORABLE MOMENTS
MEMBERS TELL THE STORIES OF HBAGC OVER THE YEARS
22
TOP 5 HOME DECOR COLOR TRENDS FOR 2015 PANTONE’S COLOR OF THE YEAR AND MORE
The National Association of Home Builders,
“It was 1995. I had decided to start
While once considered dowdy and dated,
as we know it, began in 1942 while World
building flats in the City. But where to
brown is beginning to be perceived as
War II was still underway. However, in the
begin? Rejoin HBAGC, of course. Get the
more luxurious thanks to indulgences
late 1800s men engaged in the broad
lay of the land . . .”
like coffee, chocolate, toffee and leather
field of real estate made the first efforts to organize land developers and home builders on a national level.
goods. It’s the concept of brown that Read Ed Hoffman’s story and more.
makes Marsala an appealing color in home decor - It’s warm and delicious, rich and robust.
32
PEOPLE & PROJECTS WHO’S BUILDING NOW
Sedgwick Properties luxury development, Hermitage Sixteen11 is a coveted downtown residential community that offers space, luxury and modern technological amenities. 6 WINTER 2015 | HBAGC.COM
26
2015 RESIDENTIAL REAL
ESTATE TRENDS TAYLOR JOHNSON REPORTS
31
REALTOR® CORNER GLORIA NOWAROWSKI
THE RELATIONSHIP BETWEEN REALTORS AND BUILDERS
34
ARO UPDATE - WHAT’S NEXT FOR MULTI-FAMILY HOUSING IN THE CITY OF CHICAGO?
Trend #5 - Get on Board with TOD’s:
Cooperation between builders and
A coalition of real estate groups led
While millennials and boomers are at very
realtors can guarantee a productive
by the Chicago City Chapter of the
different stages of life, these two groups
change. It may also be a way for us to get
Home Builders Association of Greater
are finding common ground when it
on the same path. Let’s start to develop a
Chicago was successful in deferring
comes to the benefits of transit-oriented
winning culture of change through better
action on an Affordable Requirements
developments (TODs).
conversation and exchange of information.
Ordinance (ARO) to allow more time to correct flaws that could hurt future development.
36
THE BEST OF IBS 2015 LAS VEGAS
SEE THE WINNERS AND PHOTOS FROM THE SHOW
2015 COURT OF HONOR INDUCTEES
A Builder member and President/CEO of Belgravia Group, Ltd. Alan’s company specializes in site identification, acquisition and planning, financing, construction, marketing and sales and for sale projects in Chicago. Alan has held various roles including Chair of the Board for the Illinois Division of the American Cancer Society, various Chicago committees including the building code, handicap accessibility and affordable housing. Alan also represented HBAGC as the liaison to the Affordable Requirements Ordinance for the City of Chicago. Alan served as President of the City Chapter of HBAGC and went on to serve as Regional President. His service to the Housing Industry also included several committees, Government Affairs, Nominating Committee, Membership committee, Executive Committee and Attainable Housing Alliance.
8 WINTER 2015 | HBAGC.COM
As an Associate member and Partner with Brandit 360, Judith has been a familiar face with the local, state and national association of Home Builders. Judith has held a number of leadership positions in HBAGC, including trustee and board member of the National Sales and Marketing Council, President of Sustaining Associates, Vice President of Educational Programs, and member of the Regional Board of Directors. She also served as a member of the McHenry County Chapter Board of Directors. With over 35 years of experience in advertising and public relations, Judi brings a broad perspective to the association activities. As an account executive for Brian Keith Advertising, her concentration was with the New Home Showcase, the company’s long running TV Show. She went on to be an independent sales rep and consultant for other builder-related companies. Judith is also active in the Urban Land Institute, the National Association of Female Executives and the Illinois Federation of Junior Women’s Clubs, where she was a past president.
National Association of Home Builders
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“THIS NATION WAS FOUNDED BY HOME BUILDERS. DEEP-ROOTED IN OUR PEOPLE IS THE DESIRE FOR HOME OWNERSHIP. THE BUILDING OF HOMES IS AS FUNDEMENTAL AN AMERICAN INSTITUTION AS IS THE FREEDOM AND SECURITY WHICH THOSE HOMES TYPIFY. “ - WAVERLY TAYLOR, CHAIRMAN, COMMITTEE ON THE HISTORY OF NAHB THROUGH 1943 PHOTO COURTESY NAHB
PART 1 - THE FIRST 20 YEARS OF NAHB This year the Home Builders Association of Greater Chicago celebrates 75 years as an association. There are a number of rumors regarding how HBAGC started. Some say a group of five Chicago area families joined together to form the group. Because our history is important to us, Ed Hoffman has agreed to lead a challenge to create The History of HBAGC. Throughout the year we will be going through our archives to begin this quest. We begin with what we know about the formation of the National Association of Home Builders. The following story is courtesy of the NAHB from The History of The National Association of Home Builders written by Waverly Taylor, Chairman, Committee on the History of NAHB in 1952. The National Association of Home Builders, as we know it, began in 1942 while World War II was still underway. However, in the late 1800s men engaged in the broad field of real estate made the first efforts to organize land developers and home builders on a national level. THE DEVELOPMENT OF THE ENTREPRENEUR BUILDER Homebuilders were instrumental in building our nation. Deep-rooted in the American culture is the desire for home
“ COOPERATION BECAME A NECESSITY AND BROUGHT ABOUT THE FORMATION OF LOCAL ASSOCIATIONS ” 10 WINTER 2015 | HBAGC.COM
ownership. The building of homes is as fundamental an American institution as is the freedom and security that those homes typify. For several centuries Americans usually built their own homes. Even today in some agricultural areas, houses and barns are constructed with the aid of neighbors and friends. However, with the growth of the country, homebuilding as an industry evolved into a fundamental factor in the national economy. As crossroads became villages and villages became great metropolitan areas, the carpenter-builder became the general contractor. This development met the inevitable need for a coordinator of the many crafts and sources of supply that mechanization brought to homebuilding. With the mechanization of industry also came more and more specialization, until building a house became a complex and major undertaking, involving contacts with many different people and a process of self-education in specialized fields that were entirely foreign to the average person. The first step was the site selection, usually accomplished through a real estate man. Then came the preparation of plans and specifications by an architect. Next was the matter of financing, the securing of a mortgage loan through a real estate firm, a bank, a savings and loan institution, or a lawyer. Then the site owner selected a builder, usually through competitive bidding. Next came the selection of finishes -lighting fixtures, hardware, plumbing fixtures, kitchen equipment, inside and
“THE AMERICAN TRADE ASSOCIATION IS UNIQUE. IT WELCOMES NEWCOMERS IN BUSINESS AND INDUSTRY TO IT’S RANKS. IT SEEKS TO IMPROVE THEIR SKILL AND KNOWLEDGE OF THEIR TRADE OR PREFESSION. IN FACT, IT FOSTERS COMPETITION. IT COMBINES THESE DESIREABLE GOALS AND STANDARDS WITH A FLEXIBILITY IN STRUCTURE WHICH HAD MADE IT ADAPTABLE TO SOCIAL, ECONOMIC, AND LEGAL TRENDS IN OUR NATION’S DEVELOPMENT. IT CREATES GOOD WILL AND UNDERSTANDING. IT STRIVES FOR HIGHER STANDARDS OF SERVICE TO THE PEOLPE. IT PROVIDES LEADERSHIP IN THE FIELD OF HUMAN ENDEAVOR. IT IS THE ACCEPTED SEAL OF QUALITY IN EVERY SPHERE OF AMERICAN BUSINESS AND INDUSTRY.” - WAVERLY TAYLOR, CHAIRMAN, COMMITTEE ON THE HISTORY OF NAHB THROUGH 1943 - JANUARY 7, 1952
CREATING THE HISTORY OF HBAGC A FOUR-PART SERIES
AN ASSOCIATION IN THE MAKING outside colors, and a myriad of other fittings - which frequently brought in the professional interior decorator. Last on the scene was the landscape architect or nurseryman to landscape the site. Urban and suburban living and the building of a home had finally become so complex and involved that it required a single entity responsible for the entire process. Thus, the Entrepreneur Builder evolved. The Entrepreneur Builder is truly “a man of many parts” - a composite. He must have a good working knowledge - in many areas: housing market analysis; land development; civil, structural and mechanical engineering; architecture; building methods and materials; real estate and commercial law; banking and financing; public relations and advertising; selling; and sound business procedure. His function is to deliver the “complete housing package” in an environment protected by covenants and zoning assuring lasting value. As the Entrepreneur Builder began to take form and emerge as the dominant factor in the American housing industry, men engaged in this pursuit began to seek counsel with one another, not only for mutual aid and protection, as had primarily motivated such association in the past, but in the enlightened spirit of industry in America, to better their product and offer greater values so that an ever-increasing number of Americans might enjoy the benefits of home ownership. THE EVOLUTION OF TRADE AND PROFESSIONAL ASSOCIATIONS
In cities experiencing rapid commercial and industrial expansion, the ingenuity and capacity of those engaged in housing the people who flocked to them was taxed to the utmost. Cooperation became a necessity and brought about the formation of local associations, commonly called Real Estate Exchanges. By 1891 builders from across the United States recognized the need for coordination at the national level and laid the groundwork for a meeting in Nashville, Tennessee. In February 1892, 266 men engaged in the practice of Real Estate in 22 states and one Canadian province met in the Senate chamber at the state capitol in Nashville, Tennessee, and formed the National Real Estate Association. Presidents, secretaries and members of then-existing real estate boards in cities such as Detroit, Milwaukee, Chicago, Buffalo, St. Louis, Nashville, Louisville and Houston, were the backbone of this organization. T.T. Wright of Nashville was recognized by resolution as the originator of the idea of a national association. This group held subsequent meetings in Chicago, Buffalo and a final meeting in Milwaukee. However, there was a fatal weakness in the group’s structure, the lack of a paid executive to keep the organization going between conventions, so the National Real Estate Association faded away. Not until 1907 were leaders in the real estate business ready for another try. Internal changes in the business of real estate had further paved the way for an organized national effort. The Real Estate Association of Portland, Maine revived interest in the
formation of a national association of real estate exchanges. In May 1908 120 delegates from 19 local real estate boards and the California State Realty Federation met in Chicago and organized the National Association of Real Estate Boards. These founders did not repeat the mistake made by their predecessors. Their bylaws include this statement: “The Executive Committee or Board of Managers shall employ an executive secretary and pay him a suitable salary”. At the same time, the founders laid a clear foundation for the priceless volunteer services essential to any association if it is to survive and grow, by stating in the by-laws that, “The consideration for services rendered 12 WINTER 2015 | HBAGC.COM
the Association by any and all officers or committeemen thereof shall be the benefit derived from such membership in the Association, and no compensation shall be paid.” From the solid foundation of this second start, the National Association of Real Estate Boards prospered and grew rapidly. Various committees, where members grouped to exchange ideas and effect betterments in the specialized fields of real estate, accomplished the goals of the association. Among the most active of these committees were the Housing Committee and the Subdivisions Committee. By 1923 the Association’s membership had grown to 17,504, representing 745 local real estate boards. At that time there was a general demand among the membership for greater
1940
75 YEARS
2015
“WE BUILT THIS CITY”
concentration of specialized interests, and a divisional type of organization was indicated. In January 1923 the Association formed the Brokers Division (now the national Institute of Real Estate Brokers), the Property Management Division (now the Institute of Real Estate Management). the Home Builders and Subdividers Division (progenitor of the National Association of Home Builders), the Mortgage Finance Division (no longer in existence), the Industrial Property Division (now the Society of Industrial Realtors), the Industrial Property Division (now the Society of Industrial Realtors), the Farmlands Division (now the Institute of Farm Brokers) and the Realtor Secretary Division (now the Real Secretary’s Counsel). The membership of the Home Builders and Subdividers Division grew to 400 within a year and exceeded 1,500 by 1925, the top of the building boom of the 1920s. Membership hit a low of several hundred in the early 1930s and, thereafter, through the division’s various changes of name up though July 1943, seldom exceeded 500.
In June 1933 the Home Builders and Subdividers Division changed its name to the Land Developers and Home Builders Division of National Association of Real Estate Boards. In January 1941 the name was changed to the Home Builders Institute of America of the NAREB. In May 1942 the Director of NAREB placed the Home Builders Institute “on its own”. On September 21, 1942, the Home Builders Institute changed its name to the National Association of Home Builders of the United States. The certificate of resolution changing the corporate title was filed on October 7, 1942, in the State of Illinois. The first President of the NAHB was George F. Nixon of Chicago.
Stay tuned as we go through the archives and create “the History of HBAGC”.
EDUCATION EVENTS
14 WINTER 2015 | HBAGC.COM
OUTINGS AWARDS
MEMORABLE MOMENTS
“I had the priviledge, on many occasions, to sit with and listen to Richard J. Brown. He would speak with such passion about the Association, its history and his love for it. He was certainly one of our most memorable Members and I feel fortunate to have had these experiences.”
Rita Unzner
EXECUTIVE OFFICER
“Prior to joining the Association, we attended a Golf Outing where the Grand Finale was a builder, Susanne Tauke of New American Homes, giving away a new home to a wounded vet and his family. We were so moved by the generosity of the builders involved and the sense of community within the room, we joined the Association the following year.”
Chantel Beauregard BRANDIT 360
“Marsha Elliot appointed me the first president of McHenry county sometime around 1990. We would have an annual golf outing and I always wore bright colored socks, lime green usually. The second year instead of getting pantsed, they stole my precious socks! At the next years outing, what did they give me? “The Stinky Golfer Award” and my un-cleaned socks!”
“It was 1995. I had decided to start building flats in the City. But where to begin? Rejoin HBAGC, of course. Get the lay of the land.
Lo and behold. HBAGC finally had a City Chapter. And members are welcomed to attend the board and committee meetings. Everyone was anxious to help the new guy any way they could. What a great way to get to know the City industry players and get a fast start on the job.
Then came involvement in the Governmental Affairs Committee, Programming, Membership, Communications, and more. I became the unofficial photographer at City Chapter events. How cool is that!
Then one morning after a City Board meeting, the Board headed to a member’s boat docked nearby for an hour-long annual get together on the lake. I went down to the dock to wave them goodbye before heading back to my car. Then the strangest thing happened. They all said they weren’t leaving without me. I reminded them that this was a Board event and that I was not yet a Board member then. They told me to get my butt on the boat. I can still see their faces. It’s a moment I will never forget. I had a new family. Joining HBAGC was the smartest thing I ever did.”
Ed Hoffman
CASTLEWOOD HOMES
Scott Sevon
MAW CHICAGO
16 WINTER 2015 | HBAGC.COM
“I recall a grandiose event, the Inaugural Gala of 1995. The event was held at the Cultural Center/National Broadcasting Museum and was so beautifully decorated with hundreds of poinsettia’s lining the staircase. Scott Sevon was sworn in as president by his father, that part was very moving. The rest of the black-tie evening was hysterical - Scotts uncle fell in the garbage can and down the stairs, a woman “fell d asleep” in her dinner and one woman left the washroom unable to get her pantyhose up after “powdering her nose!” It o was the best time ever! A real classy affair! Ha-Ha! ”
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A program built to help your business. And your budget.
Judith L. Nelson LIFE MEMBER
“2007 was an exciting Key Award Celebration. The “License to Build” theme was vividly presented throughout the venue, with silhouettes of secret agents and bond girls in various action poses. Your hosts that year were Gail Payonk (Builder Chair) of Wiseman Hughes Enterprises and Joe Safin of BSB Design (Associate Chair). Mike Pollard of Pollard Construction Company wrote lyrics for the theme song “Gold Builder”, Jane Levy of Levy Custom Homes sang the song to the melody of Goldfinger. The “Gold Builder” song was the background music for the “License to Build” theme video presentation masterfully produced by the Tribune media team. Jana Petersen announced all the winners! The live music and dancing started! A great time was had by all, and many great entries received Key Awards that night.”
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NETWORKING OPPORTUNITIES MARKET
18 WINTER 2015 | HBAGC.COM
TING RESOURCES BENEFITS SUPPORT
PAT COVENY 2015 HBAGC PRESIDENT
A PROVEN PERFORMER
BY CHANTEL BEAUREGARD, BRANDIT 360
MEMBERSHIP AWARD
Pat Coveny received the 2014 Tracy Hill Membership Award presented by HBAGC Vice President Dick Greenwood
“PAT COVENY IS AN INNOVATIVE PRESIDENT. HE HAS MORE IDEAS THAN WE CAN AFFORD TO IMPLEMENT. WITH A LARGER MEMBERSHIP WE CAN BE SURE TO MAKE THIS ASSOCIATION THE MOST INNOVATIVE IN THE COUNTRY AGAIN.” - RITA UNZNER, EXECUTIVE OFFICER
H
BAGC experienced a “facelift” under Patrick Coveny’s
Many challenges presented themselves in 2014. In the first
leadership in 2014. His first order of business as
months he was in office, Pat faced a government affairs issue
president was to create a fresh look for the soon-to-
in the City of Chicago. The newly installed President was
be 75-year-old association.
instrumental in getting the City Chapter to spearhead a campaign
The association, in recovery after the crash of the housing market,
to fight the issue. This re-sparked the need for a City Chapter and Board of Directors.
was in need of re-branding. “Considering what we had been through, it was important to have a different look,” said Pat. This
As President, Pat’s priorities are focused on increasing
in itself was a challenge for Pat, with his “Mercedes” mind and
membership, adding more profitable programs for the
HBAGC’s “KIA” budget. Nevertheless, he networked with HBAGC
association, building relationships with similar organizations such
members to complete the re-brand with a new logo, a redesigned
as RCEC, USGB and Designs for Dignity, as well as interfacing with
website and a fresh look for the HBAGC’s long-running magazine,
building code officials. He also is working on increasing the value
Greater Chicago Building News.
of the association’s Key Awards, expanding the categories to fit the types of communities, homes and structures built today.
20 WINTER 2015 | HBAGC.COM
Pat Coveny was installed by Senator Bill Brady at the Annual Inaugural Gala on January 9, 2015 in Arlington Heights.
He has created a “buzz” in the marketplace about HBAGC.
Pat and his wife have a son and a daughter, both recent University of
Membership has grown more than 40 percent in his first year as
Dayton graduates who live and work in the Chicago area.
President. Other associations are taking notice and asking, “What’s going on over there? and “How are they adding so many new
When asked about his plans for 2015, Pat said, “I am going to have
members?” HBAGC is once again the largest local HBA both in
more fun doing what I am doing, continuing to build credibility in
members and in the state.
the marketplace for our membership and further defining what membership means to both associates and builders.” He has plans
As President and Owner of the Hinsdale-based custom builder,
to pursue a relationship with the Real Estate Tech Accelerator
Arch Construction Management, Pat is no novice when it comes to
at 1871 (Chicago’s entrepreneurial hub for digital startups) and
leadership. He is an active member and Area Vice President for the
intends to make the City Chapter Government Affairs Committee a
HBA of Illinois and serves on two committees and one task force
continuing necessity and source of growth for the City Chapter of
at the national level (NAHB). His 20-plus years experience in the
HBAGC.
construction market and an MBA from DePaul University give him superior knowledge of the business.
No doubt, 2015 will be a performing year for HBAGC, with a proven performer like Pat Coveny, as President.
Pat is actively pursuing the creation of the NAHB Innovation Awards - a reward and recognition program for all members. He also serves as a mentor for real estate start-ups.
Photo Credits: Cathy Best, Fox Valley Media Arts
The Top 5 Home Decor Color Trends for 2015 BY LESLEY MYRICK - LAMPS PLUS PROFESSIONALS
P
antone’s Spring 2015 Fashion Report features 17 colors that are forecasted to be predominant in this year’s fashions. Since fashion trends quickly translate into interior design, we can expect to see these 17 colors making an appearance in home decor shortly after. Of the 17 selected colors, there are 5 that I predict to have the biggest impact on interiors this year. They’re fresh, but familiar; colorful, but not overwhelming; and trendy, but not transient. Lucite green walls in a stylish living room.
CUSTARD Custard is like a little beam of sunshine! More cheerful than beige, it’s still a great, “safe” color for walls and a great backdrop for living rooms and kitchens. Custard isn’t an aggressive yellow - it’s softer and more toned down, without being cutesy. The living room (bottom left) from Cozy Little House uses Custard on the walls beautifully. It pairs harmoniously with the beige sofa and curtains, but definitely brings more personality to the space than beige. And the gold table lamp is a luxurious pairing with Custard.
Marsala is bold, classic and rich. MARSALA Of course, we can’t forget the red-brown hue Marsala, Pantone’s 2015 Color of the Year. Although I didn’t have high hopes for its longevity upon the announcement, I’ve started to appreciate it more.
LUCITE GREEN Lucite Green is my personal favorite of Pantone’s 10 spring 2015 colors. It’s got more oomph than mint, but it’s still soft and livable. It’s neutral with personality. Lucite Green will really pop when offset by complimentary hues of red and orange, pictured above on A Beautiful Mess. Or layer it with shades of seafoam and pale grey to create a serene color palette. I also think the arc floor lamp looks great with this mod color as a backdrop. Add a little Custard color to your home to brighten it up.
This Toasted Almond bedroom is romantic and elegant, yet still casual. TOASTED ALMOND But let’s not be hatin’ on beige! Toasted Almond is a beautiful beige hue with a subtle pink tint. It’s warm, soft, feminine, and cozy.
While once considered dowdy and dated, brown is beginning to be perceived as more luxurious thanks to indulgences like coffee, chocolate, toffee, and leather goods. It’s the concept of brown that makes Marsala an appealing color in home decor - It’s warm and delicious, rich and robust. Marsala looks updated when paired with white and light woods, as shown below in the gorgeous contemporary living room featured on SFGirlByBay.
If you’re so over the cold industrial greys that have been popular in recent years, Toasted Almond is a chic way to update your neutrals and bring a little warmth. Toasted Almond is a like a warm latte - sweet, comforting, and delicious. Paired with coral and ivory, as shown above in Better Homes and Gardens, it’s both sophisticated and inviting. If you want your home to include a little pink in 2015, Strawberry Ice is perfect for you. STRAWBERRY ICE Want a little more pink? Slightly chalky and very on-trend, Strawberry Ice is a soft pastel pink that’s definitely not baby-ish. Used on both the walls and accent chairs in the room (top right) from Decor Pad, it behaves like a neutral and manages to somehow be both stylish and subtle. Paired with gold pillows and bold black and white accents, Strawberry Ice looks crisp and refreshing. Introduce warm cocoa tones for a cozier feel.
22 WINTER 2015 | HBAGC.COM
Image credits: Pantone, A Beautiful Mess, Cozy Little House, Better Homes & Gardens, Decor Pad, SFGirlByBay
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As the exclusive automotive manufacturer of the National Association of Home Builders (NAHB), we’re pleased to extend association members a private offer1 of up to $1,000 toward the purchase or lease of most new GM vehicles. Just visit your local dealer, choose an eligible GM vehicle, and present your NAHB proof of membership. You can add on incentives from the National Fleet Purchase Program2 and Business Choice3 to get the best value on vehicles that run your business. For private-offer details, visit nahb.org/gm.
2-Year/24,000-Mile Scheduled Maintenance
Combine these great savings with our 2-Year/24,000-Mile Brand Maintenance Program5 that covers scheduled oil changes with filter, tire rotations, and 27-point inspections, according to your new vehicle’s recommended maintenance schedule. 2015 BuICk lACroSSe
Private-offer amount varies by model. Up to $500 offer for retail deliveries and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible 2014 and 2015 model-year vehicles. Customer must take delivery by 1/4/16. Not compatible with other private offers. Not valid on prior purchases. Compatible with many current incentives. Incentives are subject to change without notice. Excludes Buick Regal (2014); Chevrolet Corvette (2014), Sonic, Spark, SS, Volt; all Cadillac models. FAN required. See dealer for complete details. 2Offer eligible for non-CAP customers only through 12/31/15. See dealer for details. 3 To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. Must provide proof of business. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit gmbusinesschoice.com. Take delivery by 9/30/15. 4Not valid with all offers. See dealer for details. Take delivery by 9/30/15. Amounts include parts and labor. 5On select models starting with 2014. Eligible vehicles include purchased or leased new 2014 Chevrolet, Buick, or GMC cars, trucks, or crossovers in the U.S. Covers scheduled oil changes with filter, tire rotations, and 27-point inspections, according to your new vehicle’s recommended maintenance schedule, for a maximum of four service events within 2 years or 24,000 miles, whichever comes first. Does not include air filters. Extra charge may apply for dual-rear-wheel tire rotations. See participating dealer for other restrictions and complete details. ©2015 General Motors. All rights reserved. 1
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WHAT TO LOOK FOR WHEN INVESTING IN HOME BUILDER SOFTWARE ith so many options for residential home W builder software on the market today, there is no short answer as to what one is the
best, but simply, what one works best for your company. We turned to the experts at Find Accounting Software, where Adam Bluemner outlines the top 8 attributes to look for when investing in home builder software. WHAT SHOULD I LOOK FOR WHEN PURCHASING HOME BUILDER SOFTWARE? 1. Integration Integration is key. If your staff is spending most of their time entering data into several different software packages, they are spending less time on important tasks like cutting checks and selling houses. “Integration between modules reduces the chance for data errors, minimizes the amount of required administrative labor, and helps maintain a single version of the truth when it comes to all project billing data,” says Bluemner.
For example, you wouldn’t want sales people to see cost, only price. You will want to select a system that allows your administrator to set password controls and define user access. While in the system, one user may see all modules, while another will only see the ones that pertain to their department and level. 4. Automation According to Bluemner, “The more opportunities (for automation) seized, the greater the ROI and the lower the chance of human error.” More than likely, you are shopping for home builder software because you desire some level of automation. There are three main things you should look for: 1. Ease of document conversion 2. Calculation 3. Integration, or the ability to see changes made in one area reflected across the system.
When all data is stored on one system, information flows from one department to another, seamlessly and in real time.
5. Ease-of-use You should not only be looking at what a software suite can do, but the degree of difficulty required to do it. Is it user-friendly and intuitive?
2. Visibility When analyzing different home builder software packages, you will want to choose one with highly visible and accessible data. This includes the ability to generate customizable reports and compare historical data.
A good way to asses ease-of-use is to map the steps required to do a standard task (adding a new prospect, generating a specific report). The organization of menus and detail drill down also play a part in ease-of-use.
With this information, home builders can gain valuable insights into cost breakdowns of their last project, and apply them to their most current and future projects. Also, be sure to select a system with strong search utilities and import/export capabilities. 3. Control Controlling who can access what modules in your software package is critical.
24 WINTER 2015 | HBAGC.COM
Ask your sales representative how many training hours a current customer of your size typically requires and find out what technical support assistance is available. 6. Flexibility Every home builder knows the dynamic, ever-changing nature of this industry. Change orders, contract negotiations, cost variations, percentage completion billing, and schedule changes are all common place on each project.
Select a home builder specific software suite that is flexible enough to allow for these inevitable changes, updates your team in real-time when changes are made, and has the ability to serve multiple entities of your business. 7. Remote access “Mobile access to construction scheduling and billing is rapidly moving from a ‘nice-tohave’ to ‘must-have’ status,” says Bluemner. Keep your superintendents in the field and give trade partners access to payment approvals and real time schedule updates. Providing remote access currently plays a critical role in becoming the builder of choice in your market. Remote access should not be limited to construction crews, but your prospects and previous customers as well. Let your home buyer follow the construction phases of their new home and process change orders via a personalized web portal. Allow your home owners to request warranty service quickly and easily online. Talk about customer service! 8. Presentation It is easy to overlook the fact that home builder software also plays a role in presenting your company’s professional image. Customer quotes, contracts, reports, and invoices are responsible for clearly communicating information AND your brand. The system you choose should also ensure that internet portals provide a branded, professional, polished impression across the board. CONTRIBUTING SOURCE: MARK SYSTEMS http://www.marksystemsusa.com/news-a-blog/blog/ general/item/118-8-attributes-to-look-for-when-investingin-home-builder-software.html
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MIDWEST EXPERTS LOOK AHEAD
“ DEVELOPERS WILL PUT A GREATER EMPHASIS THAN EVER ON COMMON AREAS WITH AN ARTISTIC FLAIR, CONVEYING A PROPERTY’S CHARACTER THROUGH COMMISSIONED ARTWORK, ARCHITECTURAL FIXTURES AND CURATED FURNISHINGS. ”
2015
RESIDENTIAL REAL ESTATE TRENDS BY TAYLOR JOHNSON PUBLIC RELATIONS
CONDOS MAKE A COMEBACK
Building on the positive momentum of 2014, which saw a strengthening for-sale market with Chicago-area home prices up and on par with 2003 numbers, as well as continued demand for new rental options, with Class A downtown apartments averaging 93.8 percent occupancy, Chicago-area real estate experts are looking ahead to 2015 with optimism. Here are the top trends they anticipate shaping the 2015 real estate landscape:
Chicago condominium sales – and pricing – will see an uptick in 2015, although new-construction buildings will remain modest in size for now. Shown here is 100 West Huron, a new, 28-unit luxury condominium building set to deliver in 2016. David Wolf, president of Related Realty, which is overseeing the sales and marketing for 100 West Huron, noted Chicago is still two to three years out from any large-scale new-construction projects being delivered.
26 WINTER 2015 | HBAGC.COM
1. Condos Make a Comeback: As buyer confidence grows and lending restrictions decrease, condominium sales – and pricing – will see an uptick in 2015. “There’s strong demand, but new construction has been nearly nonexistent since the downturn, and condo inventory is at its lowest level since tracking began in 1997,” said David Wolf, president of Related Realty. “That spells opportunity for developers, and we’re starting to see new projects announced.” While Related Realty was recently engaged to oversee the sales and marketing for 100 West Huron, a new 28unit luxury condominium building set to deliver in 2016, Wolf noted Chicago is still two to three years out from any largescale new-construction projects being
delivered. One of the city’s most robust offerings of new-condo inventory in 2015 will continue to be South Loop Luxury by Related, a collection of 500 condos across three towers next to Chicago’s famed Museum Campus. Related Midwest, the developer that reimagined the previously stalled development in 2013, sold 400 units in just over 18 months and Wolf expects the remaining 100 residences to move quickly next year given the neighborhood’s popularity with the proposed DePaul arena and recently announced Lucas Museum. In the suburbs, developers such as Foxford Communities anticipate similar demand for new-construction units in 2015 given low inventory. Foxford sold more than half of its 72 units at Medinah on the Lake, a luxury condo conversion in Bloomingdale, Ill., in just six months following its 2014 opening, and expects swift sales in 2015 at its newest condominium community, Clocktower Pointe in Countryside, Ill. 2. More Pow, Less Wow: Customization will continue to be key. According to Brian Brunhofer, president of Meritus Homes, while new-home buyers aren’t hesitating to spend money on special touches, the trend is to splurge on high-
Baby boomers will be a prime focus for builders and developers in 2015. But unlike millennials, this group isn’t just looking for themselves – they also have grandchildren in mind. Edward R. James Homes’ Brighton Mews (pictured) in downtown Park Ridge, Ill., is a maintenancefree community, allowing residents to spend more time with friends and family, such as their grandchildren. The community is within walking distance to the suburb’s core retail district, the historic Pickwick Theatre and the esteemed Park Ridge Library.
THE GRANDKID REVOLUTION impact, functional features rather than flashy aesthetic finishes. “Buyers can add virtually anything to our semi-custom home designs, but they also haven’t forgotten about the economic downturn, so they’re definitely discerning in their choices,” he said. “We are seeing a lot more long-term convenience enhancements, like tricked-out mudrooms and home automation systems.” Fred Wilson, co-principal of architecture and interior design firm Morgante Wilson Architects, concurs. “Most of our clients aren’t first-time homeowners. They already know what areas need the most attention and investment,” said Wilson. “Right now, one top request is a ‘super pantry’ – a state-of-the art workroom adjacent to the kitchen, complete with appliances, counter space and storage that is intended to minimize clutter, mess and congestion in the kitchen,” he said. “It’s a very high-end feature with a huge impact on the running of the household. When something so practical can look fantastic, it’s all the better.” Jerry S. James, principal of Edward R. James Companies, sees a large group of boomers looking to simplify, while still wanting the level of luxury to which
they’ve grown accustomed. “It’s about quality over quantity for these buyers,” said James. “They are seeking designs that are both elegant and appropriate to their lifestyle. First-floor master bedrooms are in, while fourth and fifth bedrooms, formal living rooms, and large yards are out. But smaller does not mean less luxurious. In fact, buyers are willing to spend as much or more on a per-square-foot basis than the dollar-per-foot value of the home they are coming from. Elements that personalize their home, including countertops, bathroom tiling, kitchen appliances, custom cabinetry and millwork – these are all still very important.” 3. Millennial Mania: With millennials projected to make up a third of the country’s adult population by 2020, it’s no surprise they’ve captured the attention of residential developers. Yet Gen Y has held off on buying their first home; in fact, the homeownership rate for the 35-and-under cohort dropped to 35.9 percent in the second quarter of 2014, its lowest level in two decades, and held steady at 36 percent in the third quarter, suggesting this group will drive demand for rental units in 2015 even as new supply comes online. “In downtown Chicago, the number of
rental units absorbed in the first three quarters of 2014 was more than 50 percent higher than the total for all of 2013, indicating new units in the pipeline will be easily absorbed,” said HBAGC Member Steve Fifield, president and founder of Fifield Companies, which is developing several rental properties in the Chicago area, including Avant River North, which will break ground in first quarter 2015. “Part of this increasing absorption is due to the changing pool of renters. In our developments, the median age of renters has increased from 26 to 32 years old because millennials are choosing to age in place as they postpone major milestones like marriage and homeownership.” Tangible factors like slow job growth and student debt will continue to keep many millennials in apartments in 2015, according to David Schwartz, co-founder and CEO of Waterton Associates, whose portfolio comprises approximately 20,000 rental units across the U.S. “In many parts of the country, the cost of renting vs. owning is even, but most millennials would rather spend their money on travel or entertainment than saving up for a down payment. Plus, the vast majority of millennials certainly don’t want to be saddled with home maintenance at this
stage of their lives. Not until millennials start having families and their student loans are paid down will this group more seriously entertain buying.” Other millennials will continue to rent as much by choice as by necessity due in part to the resort-style amenities that are almost standard in the industry, noted David Strosberg, president and managing principal of Morningside Group, whose current projects include a variety of unique amenities, such as a golf simulator, bocce ball courts, Pilates studio and a car wash. “Millennials want and expect more from a rental than what their parents had. It’s not enough to have a pool – it needs to be a pool on par with a Vegas casino,” said Strosberg. “So it’s no wonder that after growing accustomed to all the bells and whistles the newest apartment communities offer, many would-be homebuyers are in no hurry to leave.” 4. The Grandkid Revolution: Baby boomers are another large demographic that will be a prime focus for builders and developers in 2015. But unlike millennials, this group isn’t just looking for themselves – they also have grandchildren in mind. At 500 Lake Shore Drive, Related Midwest’s luxury rental tower in Chicago’s Streeterville neighborhood, many social boomers appreciate the building’s fivestar amenities such as a screening room, outdoor pool and multiple lounge areas. When grandchildren travel downtown to visit residents at 500 Lake Shore Drive, being steps away from Navy Pier, Lake Michigan and other great cultural attractions can make the visit feel more like a vacation for everyone. 28 WINTER 2015 | HBAGC.COM
5. Get on Board with TODs: While millennials and boomers are at very different stages of life, these two groups are finding common ground when it comes to the benefits of transit-oriented developments (TODs). “Millennials love the urban feel of living near shopping, dining and transportation, and boomers value those same lifestyle benefits, as well as the fact that a TOD might allow them to live independently longer if they lose their ability to drive,” said Strosberg of Morningside Group, which is developing Wheaton 121, an apartment community just two blocks from the Metra in suburban Wheaton, Ill. Based on the fast pace of sales at Lexington Station, its community of 31 rowhomes within walking distance of the Morton Grove, Ill., Metra station, Lexington Homes sees no slowdown for TODs in 2015. It took less than 10 months for the builder to sell all but four rowhomes at the community, and Lexington expects similar results for its new Lexington Oaks townhome community in Palatine, Ill., which is within walking distance to retail, restaurants and the Metra station. “We started our first TOD about 15 years ago, and ever since we’ve always tried to have at least one community near mass transit, as we know how important it is to Chicago-area buyers,” said Jeff Benach, co-principal of Lexington Homes. REVA Development Partners is also bullish on TODs, with plans to deliver two transitoriented rental communities in 2015: Northgate Crossing in north suburban Wheeling, Ill., and The Residences of Orland Park Crossing in south suburban Orland Park, Ill. Both communities will offer a walkable location and proximity to Metra train service.
6. The Office Within: As more people telecommute from home, office space will be a must-have for renters and buyers. In fact, according to a recent John Burns Consulting survey, an office is one of the top three necessary home spaces for buyers in 2015. “Technology is pushing both adults and kids back into their homes,” noted Wilson of Morgante Wilson. “People no longer have to go into the office or library – they can stay connected from home. And even though mobile technology allows us to work from any room, people still want designated home office areas, as well as nooks and workstations with built-in storage.” Benach of Lexington Homes agrees. “One way we’ve addressed the growing home office priority for our buyers is creating the option for a built-in desk or office niche on the second-floor landings of select townhomes at Lexington Hills and Lexington Oaks in Palatine, Ill.,” he said. “Almost 100 percent of buyers of those plans choose a home office option.” And at 73 East Lake, a luxury rental tower in downtown Chicago, developer M&R Development and manager RMK Management Corp. included two separate computer areas: a cyber lounge with an open, social atmosphere, and a business center with reservable conference space, designed for more serious business needs. “Our residents use technology every day, in all aspects of their lives, so we’ll continue to look at new ways to address those different needs through our amenity spaces,” said Anthony Rossi Sr., president of RMK Management Corp. and M&R Development.
THE OFFICE WITHIN
GET ON BOARD WITH TOD’S
In 2015, transit-oriented developments will become increasingly popular with buyers and renters alike for their convenient location near shopping, dining and transportation. Shown here is Morningside Group’s Wheaton 121 rental development, which is only a few blocks from the Metra station in downtown Wheaton, Ill.
With more free time, many empty-nesters are focused on spending it with friends and grandchildren, so finding a place from which they can easily come and go without worrying about maintenance is a big factor, in addition to location. “As folks get older, remaining connected to their families – especially their grandchildren – and staying busy are motivators, and communities and locations that support these desires have done very well for us,” said James of Edward R. James Companies (ERJ). He noted Westgate at The Glen, ERJ’s 171-unit maintenance-free community being developed in Glenview, Ill., is near the Kohl Children’s Museum, a 10-screen movie theater and a number of parks, while Brighton Mews in downtown Park Ridge, Ill., is within walking distance to the suburb’s core retail district, the historic Pickwick Theatre and the esteemed Park Ridge Public Library.
As more people telecommute from home, office space will be a must-have for renters and buyers. In fact, according to a recent John Burns Consulting survey, an office is one of the top three necessary home spaces for buyers in 2015. At 73 East Lake, a luxury rental tower in Chicago’s East Loop by M&R Development, residents have access to two fully equipped business centers. Shown here is 73 East Lake’s Cyber Lounge.
“ EXPECT TO SEE MORE LUXURY REAL ESTATE BOUGHT AND SOLD IN NON-TRADITIONAL WAYS IN 2015 ” THE ART OF MAKING AN ENTRANCE As more urban mixed-use buildings come to market in 2015, developers will put more emphasis than ever on common areas with an artistic flair, conveying a property’s character through commissioned artwork, architectural fixtures and curated furnishings. Shown here is OneEleven, a luxury rental tower in downtown Chicago, where developer Related Midwest chose a one-of-a-kind video installation by international artist Diana Thater as the lobby’s focal point, pairing it with unique pieces handselected by interior designer Kara Mann to reflect the building’s luxurious lifestyle and urban edge. OneEleven opened in the summer of 2014.
7. Buying (and Selling) Outside the Box: The coming year also will see more luxury real estate bought and sold in nontraditional ways, such as the auction market. “In the past, many people viewed auctions as a last attempt to sell a home. But sellers of luxury homes have really come to embrace the auction process as it’s very efficient, gives them a definitive sale date and lets them plan for the disposition of their property accordingly,” said Diana Peterson, president of AuctionWorks. “In fact, with a robust marketing campaign, an auction can create a surge of excitement and anticipation – much more than a traditional real estate listing – which is exactly what high-end listings deserve. “Plus, not only do sellers not have to worry about their home languishing on the market, but an auction can often result in a higher selling price for a property,” added Peterson. In 2014, AuctionWorks successfully auctioned a five-bedroom home in Chicago’s popular Lincoln Park neighborhood for $1.45 million – $100,000 more than the unpublished reserve price due to a preauction bidding war. Upper-bracket buyers are also warming to REO luxury properties, and not just as investments. “With the for-sale market picking back up, banks and other groups that bought up high-end properties
during the downturn see 2015 as a great time to bring them to market,” said Steven Maher, managing broker for Kinzie Real Estate Group. “And many of these are truly spectacular properties, which helps buyers look past the stigma sometimes associated with REO properties and realize the transaction is just like a traditional purchase. They’re simply buying from a bank rather than an individual or developer.” Maher noted a bank-owned 1930s David Adler-designed mansion on Chicago’s North Shore that Kinzie recently sold in just over a month for 5 percent more than its asking price, as well as a 9,500-square-foot REO home in Lincoln Park that sold in less than six days, with multiple offers. 8. The Art of Making an Entrance: As more urban mixed-use buildings open their doors, developers will put a greater emphasis than ever on common areas with an artistic flair, conveying a property’s character through commissioned artwork, architectural fixtures and curated furnishings. Several new buildings already exhibited this trend in 2014, including OneEleven, where Related Midwest chose a one-ofa-kind video installation by international artist Diana Thater as the lobby’s focal point, pairing it with unique pieces hand-selected
by interior designer Kara Mann to reflect the building’s luxurious lifestyle and urban edge. M&R Development and RMK Management Corp. also used video to make an impact in the lobby at 73 East Lake, where one wall features more than a dozen artfully arranged video monitors of various shapes and sizes showcasing a four-minute video loop of iconic Chicago images. Looking ahead, Fifield Cos. partnered with Morgante Wilson Architects for the interior design of E2, a new rental tower delivering in spring 2015 in Evanston, Ill. E2’s lobby captures the flavor of downtown Evanston and includes sculptural light fixtures that are as much art as they are lighting. “Lobbies of premier apartment buildings serve not just as a beautiful entrance, but a place to relax and even do business,” said Randy Fifield, vice chair and principal of Fifield Cos., which in the past has commissioned artwork and even used an on-loan gallery of authentic Salvador Dali prints to set apart the common areas of its luxury rentals. “It’s imperative that we set the right tone for our buildings, and art is a great way for us to introduce residents and guests to a building’s personality.” For interviews, additional photos or more information, please contact Kim Manning at kmanning@taylorjohnson.com.
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30 WINTER 2015 | HBAGC.COM
REALTOR® CORNER CREATING A WINNING CULTURE BETWEEN BUILDERS AND REALTORS®
I
t is interesting to note the symbiotic relationship between REALTORS® and builders. We share similar interest (real estate), selling similar products to similar consumers (homes to homebuyers). And yet, as we cross paths in our work, our roads do not always meet. I am optimistic that going forward, this relationship will improve. If I were a builder, I would want every REALTOR® in my town, city and county to know my name, the location of my business, the quality of build and price. Why? The fact is that REALTOR® are experienced home sellers. They spread the word and they have ongoing relationships with buyers, including the ability to “convert” renters into homebuyers, as well as have the opportunity to introduce the idea of owning a newly built home. Sometimes it doesn’t even occur to a homebuyer, believe it or not. Nevertheless, REALTORS® need builder information at their finger tips to better introduce the concept of new construction to clients. So the question must be asked, why is it so hard for consumers and realtors to learn about a particular builder, development or lot location? Why aren’t more builders and REALTORS® working in a strategic comprehensive alliance to share information in order to develop business? There is plenty of consumer demographic data available that is useful to jointly develop marketing programs which would capture home buyers’ interest in building new construction homes. We could be working together to create a bigger win/win for both side of the business. The other big winners in doing so, are…home buyers! Together we can create a more “user-friendly” process for buyers, which allow them to feel informed, in control and ultimately choose to build more new homes.
Hoodle, an HBAGC Partner, is a new website that is working toward doing just this. Hoodle (www.hoodle. net) is a platform designed specifically for new home building, which makes it possible for builders, residential developers, REALTORS® and related service providers to work together and promote themselves more effectively. Cooperation between builders and REALTORS® can guarantee a productive change. It may also be a way for us to get on the same path. Let’s start to develop a winning culture of change through better conversation and exchange of information to ultimately strengthen the new construction front.
HBAGC Member - Gloria Nowotarski, CSP,GRI, SFR, CNC Broker Associate Coldwell Banker Residential Brokerage, Naperville IL Gloria.now@cbexchange.com Direct: 630-664-6854
NEW & RENEWING MEMBERS Welcome new members. We invite you to stay actively involved in the associations events and activities. Improve your business and make connections by getting involved in one of the HBAGC’s councils such as the Professional Women in Building Council or the Remodeler’s Council. Be sure to attend the scheduled events throughout the year. Active participation is the best way to take advantage of the benefits your membership affords you. Stay up to date on upcoming events at www.HBAGC.com
ASSURANCE AGENCY - MICHAEL ALBERICO KELLER WILLIAMS INFINIITY - KAREN WIDLACKI KELLER WILLIAMS INFINITY - JANE CONDON KELLER WILLIAMS INFINITY - AMY KITE THOMAS PATRICK HOME - TOM SUNDLING MDG BUILDERS INC - DOUG VUKAJLOVIC WADE ENTERPRISE & ASSOCIATES - JEROME WADE BELGRAVIA GROUP, LTD. - ALAN LEV MASCO CABINETRY / MERILLAT - JOHN HICKS NEWLOOK DEVELOPMENT - ADAM CHEZ TAYLOR JOHNSON PUBLIC RELATIONS - EMILY JOHNSON
MATTHIAS JANS ARCHITECT - MATTHIAS A. JANS, JR. PAUL SWANSON ASSOCIATES, INC. - PAUL SWANSON REPUBLIC BANK - TODD OLSON V3 COMPANIES, LTD. - TED FEENSTRA, P.E. K HOVNANIAN HOMES - BRIAN MURPHY K HOVNANIAN HOMES - RAY BLAKENSHIP K. HOVNANIAN CO. - ANDREW KONOVODOFF TOTO USA - MIKE HARRIGAN TOTAL HOME PROFESSIONALS, INC. - FRED WEINER GVP DEVELOPMENT - GREG CROWTHER
PEOPLE & PROJECTS OAK Design & Construction is excited about our latest undertaking! We broke ground on a large whole house remodeling project in December 2014. Working within the parameters of modifying a home located in the historic district we are endeavoring to create a fresh, updated look for the family who’ll be residing here. The homeowners outgrew their early 19th century brick and stucco home and want their new home to be ideal. A new master suite, upstairs laundry room, three baths and an addition off a remodeled kitchen are all on the to do list. Did I mention we’re aiming to be done before summer arrives? Onward!
32 WINTER 2015 | HBAGC.COM
EHLS could not be prouder to have recently supplied a home elevator in River Forest. The family purchased the home in late summer 2014 and reached out to EHLS to make their new home wheelchair accessible for their daughter. We worked diligently with the family’s builder to incorporate the elevator into the remodeling construction. She can now access all three levels of their home.
PEOPLE & PROJECTS
Sedgwick Properties luxury development, Hermitage Sixteen11 is a coveted downtown residential community that offers space, luxury, and modern technological amenities. It is a bold gem in the Bucktown neighborhood of Chicago, Il, but is artfully designed to respect the existing architectural context of the neighborhood. Exclusive features of the property include expansive floor plans, 10 foot ceilings, private elevator entrance to each unit, terrific private outdoor spaces in each unit and one parking space in the attached heated garage included. Additional details include hardwood floors throughout, refined and modern finishes, in-unit laundry and lavish master suites. Hermitage Sixteen11 is conveniently located in the heart of Bucktown with quick access to public transportation and the Kennedy Expressway.
Oliviabrook Townhomes - Premier Architecture, Inc. has created a unique Luxury Townhome building. Using an offset garage technique, more unit frontage is achieved in a narrow module. This enabled the first floor Luxurious Master Bedroom/Master Bath Suite and Den/Office on the 2 story “Hamilton” unit – rarely seen in Townhomes. The spacious Great Room has a standard fireplace and vaulted ceiling with overlook from the second level. The two upper bedrooms have a shared full bathroom. The “Cortland” offers single level living with two Bedrooms, Den/Office, 2 full baths, luxury Kitchen, spacious Great Room with standard fireplace and lots of natural light. A grand Master Bedroom/Master Bath top off the abundant features of this home. Also a “Handicap Friendly” version with universal design features is available. Both units are “Key Award Winners”!!!
J. Lawrence Homes began its residential construction operations and has been a proud member of the HBAGC since 2006. Our company focus continues to be residential construction in the City of Chicago and in suburban infill locations. Our current projects include three City of Chicago knockdown homes and plans underway to build apartments in Highland Park and Winnetka. Closer to our Wheaton, IL office, J. Lawrence has been actively involved in existing home remodeling, mid-rise and new home communities. Projects completed over recent months include townhomes in Winnetka and seven penthouses on Randolph in Chicago. Jim Chittaro and John Wozniak (the principals) remain committed to the Chicago land area, the HBAGC and the communities we serve. Congratulations to the HBAGC for 75 years of successful support for its members!
Do you have a project you would like to share? Submit your projects for the next issue of Greater Chicago Building News to advertise@hbagc.com
H O M E
B U I LD E R
COALITION ST CHICAGO ORDINANCE IMPOSING
AND MANDATES ON MULTI-FAM
BUILDERS SEEK CARROT, NOT STICK, TO CREATE AFFORDABLE HOUSING A coalition of real estate groups led by the Chicago City Chapter of the Home Builders Association of Greater Chicago was successful in deferring action on an Affordable Requirements Ordinance (ARO) to allow more time to correct flaws that could hurt future development. With an eye on the upcoming February 24, 2015 Primary Election, Chicago elected officials were rushing to pass the flawed ARO ordinance on January 21, 2015, but faced with a united front of developers, contractors, REALTORS®, building owners and managers who demanded changes, the City Council decided to defer action until at least March to enable further negotiations. The call to defer the ordinance was led by Alderman Carrie Austin, who chairs the Budget Committee and her co-chair Alderman Brendan Reilly, whose ward includes the north side of Downtown Chicago. Austin and Reilly explained their concerns to the Chicago Sun-Times on January 21, 2015: “Every construction crane you see downtown has 800-to-1,400 construction jobs associated with it and millions in annual property tax revenue for the city,” Reilly wrote. “We simply want this delay to allow for other fee structures and revenue ideas to be fully considered and vetted. It’s an important issue, and we need to get it right because thousands of jobs and tens of millions in revenue are at stake.” Austin said she, too, is concerned the dramatically higher fees could have a chilling effect on development. “I believe in affordable housing, but we have to protect our tax base as well. And if we continue on with affordables, then where will we get additional revenue? I would like to look at it some more before we rush into it,” Austin said. “It will stifle development. And with a lot of us that are struggling to try to develop, [it could have a negative effect.] I have affordable. I welcome affordable. But if I don’t get some market-rate [housing], what 34 WINTER 2015 | HBAGC.COM
good would that do me? I have a lot of vacant land. I can’t build all affordables. That’s my biggest concern.” Alan Lev, president and CEO of the Belgravia Realty Group, and leader of the HBAGC lobbying effort, applauded the City Council for taking the go-slow approach. ”This is important legislation and we need to ensure it is done smartly and without unintended consequences that would put a stop to the momentum of new residential development in our city. We look forward to working with the city on a revised ordinance that will save jobs, increase affordable-housing options, and keep our city’s economy growing,” Lev said in a statement. To fight the ordinance, HBAGC formed a coalition that included the Chicago Association of REALTORS®, the Chicagoland Apartment Association and other real estate groups. Plus, a special ARO Working Group was created, chaired by former HBAGC President Alan Lev. The ARO Working Group compiled a list of needed changes and will be meeting with members of the Chicago City Council and the Mayor’s Office over the next few weeks to seek reduction and phase-in of fees plus expansion of incentives to encourage creation of more affordable housing in higher income areas of Chicago without stopping new development. The ARO impacts multi-family developments in Chicago with 10 or more residential units that require a zoning change or receive City financial assistance such as Tax Increment Financing (TIF), loans or grants. Developments seeking a zoning change are required to include 10% affordable units or pay an “in lieu” fee per unit not built. Developments using TIF or other City financial assistance are required to include 20% affordable units or pay fee. The City’s proposal called for raising ARO “in lieu” fees from the current $100,000 per unit to as high as $225,000 per unit for new condo buildings in Downtown Chicago. It also mandated inclusion of a minimum of 25% of the required ARO units on-site. Together, these
TALLS G HIGHER FEES
MILY HOUSING
requirements would have substantially raised costs and lowered returns, which could cause cancellation of unfinanceable projects. The HBAGC Coalition pushed for proven incentives such as density bonuses that work well in Los Angeles, property tax breaks used effectively in New York and “Linked Development” programs from California that allow affordable units to be built off-site in nearby neighborhoods. The HBAGC Coalition also sought reduction and phasein of higher fees to give the market time to adjust. There are numerous other flaws in the ARO ordinance that are addressed in an alternative ARO proposal from the HBAGC Working Group. Hopefully, these flaws can be corrected or minimized during negotiations to create a more effective and improved ARO, endorsed by HBAGC, that can be presented to the Chicago City Council for approval later this spring. — Paul Colgan
Paul Colgan is the former CEO of the Attainable Housing Alliance and is a consultant to HBAGC on Housing Policy issues.
BEST KITCHEN PRODUCT
Best Kitchen Product: Bosch Benchmark Wall Oven by Bosch Home Appliances
THE BEST “ THE 2015 WINNERS REPRESENT THE BEST AND MOST INNOVATIVE PRODUCTS ON THE MARKET ”
The NAHB named the winning products in its third annual Best of IBS Awards held during the 2015 International Builders’ Show (IBS) in Las Vegas. The awards were presented during the Best of IBS Awards ceremony on the final day of the show.
BOSCH BENCHMARK® WALL OVENS These 30-inch ovens boast a “universal cutout design” for easy installation. They also offer SideOpening doors that remind me of a typical microwave door more than a traditional oven door. AutoProbes will let you know when your food reaches the desired temp. There’s also an EcoChef feature that “recycles” heat already inside the oven to finish the cooking process. The price of the single wall oven ranges from $2,899 to $3,199, and the price of the double wall oven ranges from Best Bath Product: Center Redi Trench® by Tile Redi USA
$4,399 to $4,949.
BEST BATH PRODUCT
CENTER REDI TRENCH® Redi Trench® single curb Shower Pan with Plank Pitch®, molded-in trench, and integrated linear drain, curb and splash walls. Pre-pitched. Ready-to-Tile™. No mud setting or hot mopping. UL Listed. Depth measured from the front of the curb to the outside of the back splash wall. PURE GENIUS® SMART FLOORS Pure Genius retains the natural beauty and appearance of your fine
36 WINTER 2015 | HBAGC.COM
THIS YEAR’S BEST OF IBS AWARDS RECEIVED 400 AWARD ENTRIES, SUBMITTED BY NEARLY 200 EXHIBITORS. DECIDED BY A PANEL OF INDEPENDENT JUDGES MADE UP OF ATTENDING REPORTERS AND BUILDING PROFESSIONALS, THE AWARDS WERE GIVEN IN EIGHT CATEGORIES, PLUS AN OVERALL BEST IN SHOW AWARD.
BEST GREEN PRODUCT
OF hardwood flooring while making your living space cleaner, safer and healthier.
Best Green Building Product: Pure Genius® Smart Floor by Lauzon Distinctive Hardwood Flooring
OVERALL BEST IN SHOW Best Indoor Living Product:
HAIKU® 52 WITH SENSEME ™
SnapRays Guidelight by SnapPower
rankings for ceiling fans. Spanning 60-inches (1.51m) in diameter, Haiku is ideal for rooms of any size, like entryways, living rooms, patios and man caves. Made of sustainably harvested Moso bamboo or durable matrix composite, Haiku delivers silent air circulation with award-winning style. THE SNAPRAYS GUIDELIGHT The SnapRays Guidelight, is a plug-and-play replacement for the standard plug-in night light and the hardwired guide lights found on the market today. It installs within seconds and requires no wires or batteries. It is designed to look like
BEST INDOOR LIVING PRODUCT
Haiku® isn’t just efficient – it holds the top ENERGY STAR®
BEST HOME TECHNOLOGY PRODUCT
AWARDS WERE GIVEN TO EXHIBITORS WITH A PRODUCT OR LINE THAT SHOWS THE BEST COMBINATION OF DESIGN, FUNCTIONALITY AND INNOVATION, AS WELL AS ITS USEFULNESS TO CONSUMERS AND/OR HOME BUILDERS.
Best Home Technology Product: Haiku® 52 with SenseMe ™ by Big Ass Fans
and replace the standard electrical outlet cover plate, the SnapRays
ONE∙TOUCH ELECTRIC STAIRWAY BY MARWIN
Guidelight is equipped with LEDs to provide illumination in the
One•Touch is a fully electronically controlled electric attic stairway. At
dark while keeping both outlets available for use at all times. For
the press of a button its advanced circuit board allows the electronic
convenience, the Guidelight includes a light sensor that automatically
unlatching of the panel, then allows the controlled extension of the
turns the LEDs on in the dark and off in the light.
multiple stair sections safely and securely to the floor. Depressing the same push button allows retracting of the One•Touch stair sections, the closure of the panel, and it’s automatic re-latching. For high reliability and safety of operation, One•Touch has no position sensors.
FROST FREE HOUSE HYDRANT BY AQUOR WATER SYSTEMS The one-way valve in every Aquor outlet automatically starts water flow when the connector is inserted. When you’re done, simply unplug the connector and the water stops. That’s it! Easily swap hoses, nozzles, sprinklers, or other accessories without returning to the tap to turn water off.
NEXT GENERATION ULTIMATE DOUBLE HUNG WINDOW BY Marvin’s Next Generation Ultimate Double Hung Window is a classic reinvented. With its innovative keeperless hardware system, multipoint locking system, lockable vent mode and other performance and aesthetic-enhancing improvements, this window seamlessly combines state-of-the-art technology with Marvin’s legendary craftsmanship without sacrificing the traditional double-hung look.
Most Innovative Building Product: One ∙Touch Electric Stairway by Marwin
MARVIN WINDOWS AND DOORS
MOST INNOVATIVE PRODUCT 38 WINTER 2015 | HBAGC.COM
Regis Verliedfe - HBAGC Board of Directors, Treasurer IBS Exhibit - Warmup, Inc. Susanne Tauke - HBAGC Member, New American Homes, Inc. Beth Tauke - Center for Inclusive Design and Environmental Access (IDEA) The Big 3 in UD - Universal Design IBS Education Course
MEMBER SPOTLIGHT Earl Bowers - HBAGC Member IBS Exhibit - PRO-TECT Associates, Inc.
BEST OF AMERICAN LIVING AWARDS
HBAGC Member, MAW Chicago was honored with a Gold Best of American Living Award (BALA) for a Remodeling Addition, Outdoor $150,000 & Over. HBAGC President, Pat Coveny accepted the award on behalf of MAW Chicago.
2015TOP
THREE
REMODELER’S COUNCIL
SCOTT WALBRIDGE - PRESIDENT MARVIN WINDOWS AND DOORS
WINDOW AND DOOR TRENDS
MULTI-SLIDE DOOR
FROM STUNNINGLY LARGE WINDOWS AND DOORS, TO “PASSIVE” SOLUTIONS – HERE ARE THREE TRENDS TO WATCH IN THE COMING YEAR. Significant trends are emerging in the window and door industries – and the savvy builders who take notice now can get a leg up on the competition. 1. BRINGING THE OUTSIDE IN – More people than ever are seeking ways to open up their space and bring the outdoors in, which has created an increased demand for large doors that can open up a wall and expand living space. Companies such as Marvin Windows and Doors, are creating product lines designed to meet this need – even in enormous, wide-open spaces. Watch for the new Ultimate Multi-Slide Door that will make its debut this summer. The Multi-Slide Door is available in a vast array of configurations and large sizes with standard widths up to 50 feet tall and 12 feet wide. It’s a great option for use in remodeling and new construction projects. This trend can also be seen in consumers window preferences as homeowners opt for large casement windows or direct-glaze options such as picture units, which offer large panes of glass and unobstructed views. Others are seeking large sliding windows that can serve as a great passthrough from a kitchen to an outdoor entertaining space. 2. CONTEMPORARY DESIGN ELEMENTS – The trend towards a more contemporary design doesn’t seem to be slowing down, and we expect that number of homeowners gravitating towards more contemporary products will continue in 2015. When it comes to windows and doors, homeowners will continue to seek out larger windows and doors with clean sight lines and more metallic or industrial looking finishes. In 2015, you can expect even more demand for pearlescent exterior finishes, including copper and silver colors, as well as beautiful ebony exteriors. Another way to deliver a contemporary look is to install windows with “square sticking,” which include a clean, squared-off transition where the window’s glass meets wood, creating the minimal detailing emblematic of contemporary design. 3. PASSIVE HOMES – With an ever-increasing emphasis on energy efficiency, more homeowners are gravitating toward “passive” building practices, whose requirements are designed to maintain temperatures with incredibly minimal heating and cooling systems. Using highly efficient windows can play a key role in attaining the rigorous passive standards, and Marvin is currently the only major American window manufacturer to offer Passive House Institute US-certified options in the U.S. 40 WINTER 2015 | HBAGC.COM
MONTHLY
TechTime
COLDWELL BANKER RESIDENTIAL BROKERAGE JOURNAL OF
Dick’s News & Views INFORMATION
TECHNOLOGY
Dick Greenwood Builder-Broker-Explorer Director, Builder Marketing
January 26, 2015
Coldwell Banker Residential Brokerage 2215 Sanders Road, Ste. 300 Northbrook, IL 60062
Newsletter Spotlight
630-605-5808 Dick.Greenwood@cbexchange.com
According to Zillow, the 3rd best market for first time buyers is
Chicago, IL
What’s Going to Happen to Housing in 2015? Bloomberg did a survey of 25 economists and market analysts and came to this conclusion about 2015. The U.S. housing market will resume its recovery in 2015 after a “disappointing“ 2014 as sales accelerate, construction increases and mortgage credit eases. New home sales will jump 16% to 510,000 and sales of existing homes will climb 5% to 5.21 million. Housing starts which include apartments will increase 15% to 1.15 million units. Starts last surpassed 1 million in 2007. All these numbers point to a good year in housing.
Fannie Mae Chief Economist, Douglas Duncan, had this comment; “Our 2015 outlook
Buy Now. Buy New.
points to a broad-based but measured housing recovery amid improving consumer sentiment and income growth, slowly easing lending standards and continued historically low mortgage rates. Mr. Duncan hit on the major factor that will feed the housing market in 2015; jobs and consumer confidence. Since 2010, Chicagoland has reported a net job increase per Metrostudy research. According to the University of Michigan Survey in December 2014, consumer sentiment is the highest in eight years. They attribute this to job growth, wage gains and the decline in gas prices.
Another great indication of strong consumer confidence is in the research done by Gal-
lup. They reported that the average daily spending in December 2014 was $98, the highest since 2008. In November, that figure was $95 per day. Those with an income of $90,000 plus, the average daily spending was $177. All this leads Bloomberg to declare “The American Consumer is Back.”
After reading what seems like hundreds of economic reports, I found some of Zillow’s pre-
dictions to be very encouraging. Zillow predicts that 2015 will be a break-through year for First-Time Buyers! 2015 may give young first time buyers their best shot in years at finding a home. We all know that the first time buyer has stayed out of the market either for demographic economic reasons or because they just couldn't find the right entry home.
Zillow’s 2015 predictions are based on “housing data that shows rents continuing to skyrocket while the for-sale market levels off. That economic reality, along with increased inventory and millennials getting married and having children after delaying those choices, will give buyers more negotiating power.” Questions? Comments?
Email me at dick.greenwood@cbexchange.com
or 847–313-6522. If you do not wish to receive any further
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42 WINTER 2015 | HBAGC.COM
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CELEBRATING 75 YEARS AS AN ASSOCIATION | WWW.HBAGC.COM | WINTER 2015
Ultimate Sliding French Door (IZ rated), Pine Interior, Ashley Norton Satin Nickel handle sets, Ultimate Casement Awning (IZ rated), Pine Interior, Custom windows created by Marvin Signature Services
Builder: Michael K. Walker & Associates Inc. Architect: Sweet Sparkman Architects
TRUST IS A BEAUTIFUL THING. ALMOST AS BEAUTIFUL AS OUR WINDOWS. Our knowledgeable dealers provide personal attention and individual solutions for each of your projects, because we know that every job counts. This level of service, combined with four generations of product innovation, and high-quality windows and doors, means peace of mind at every stage in your project. Experience the Marvin difference at MARVINWINDOWS.COM To explore creative solutions for your next project, contact your local, independent Marvin dealer today. M A RV I N D E S I G N G A L L E RY by Estates Windows, LTD. 930 North Shore Dr. Lake Bluff, IL 60044 847-615-1003 MarvinByEstates.com
Ashland Millwork, Inc. 5 Messner Dr. Wheeling, IL 60090 847-465-8101 AshlandMillwork.com Auburn Corp. 10490 W 164th Place Orland Park, IL 60467 877-978-2606 | 708-349-7676 x16 AuburnCorp.com
Blue Ribbon Millwork Woodstock - 815-338-8900 Algonquin - 847-658-9998 BlueRibbonMillwork.com Creative Millwork 3700 Illinois Ave. St. Charles, IL 60174 630-762-0002 CreativeMillworkLLC.com Door & Window Super Store Downers Grove - 630-969-7454 Orland Park - 708-349-0405 Sycamore - 815-899-3667 DoorWindowSuperStore.com Evanston Lumber Company 1001 Sherman Ave. Evanston, IL 60202 847-864-7700 EvanstonLumber.com
Lee Lumber & Building Materials Chicago North – 773-509-6700 Chicago South – 773-927-8282 Merrillville, IN – 219-736-2055 LeeLumber.com
Midwest Window & Supply 800 Hicks Dr. Elburn, IL 60119 630-365-5772 MidwestWindow.com
Lee Lumber’s Spaces and Views Highland Park – 847-681-0300 SpacesAndViews.com
Searls Windows and Doors, Inc. 16261 S Frontage Rd. Plainfield, IL 60544 815-436-3196 SearlsWindows.com
Maher Lumber 301 W Irving Park Rd. Wood Dale, IL 60191 630-766-8440 MaherLumber.com Midwest Window and Door 1001 Aucutt Rd. Montgomery, IL 60538 630-966-1071 MidwestWindowAndDoor.net
Woodland Windows & Doors 25 W 355 Lake St. Roselle, IL 60172 866-838-3667 WoodlandWindows.com
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