2017 @report: Development Market Outlook

REPORT

Chicago is on the move and we have a front row seat.

Watch this video to see the new construction market in action, then dive into the 2017 @report.

table of contents introduction................................................................................................................................................................................2 the chicago economy and housing market............................................................................................................... 4 gold coast................................................................................................................................................................................... 6 design: planning for success............................................................................................................................................14 river north.................................................................................................................................................................................. 17 streeterville..............................................................................................................................................................................26 building marketing momentum in a digital world................................................................................................34 the loop..................................................................................................................................................................................... 37 south loop................................................................................................................................................................................46 west loop..................................................................................................................................................................................54 virtual reality: a real opportunity...................................................................................................................................62 lincoln park...............................................................................................................................................................................65 lakeview..................................................................................................................................................................................... 74 represented developments..............................................................................................................................................82 about @properties...............................................................................................................................................................84 contact.......................................................................................................................................................................................85

@ report 2017 ¡ 1

introduction

introduction

Welcome to the 2017 @report.

Competition is really heating up in the newconstruction market. This year Chicago will have two 300-plus-unit condo towers

Differentiation – in product, marketing,

selling simultaneously for the first time in a

sales and service – is more important

long time. In River North, half a dozen new

than ever. Fortunately, we’re honored to

projects are competing for buyers within a

have a number of guest contributors for

few blocks of each other. Interest rates are

this year's @report who ply the trade of

moving up, and stocks are eight years in to

differentiation as well as anybody in real

the current bull market.

estate. They include: • Transparent House – a Bay Area creative agency that, among other services, develops virtual reality applications. VR has moved from the big screen to the videogame console to the smartphone, and Transparent House writes about how practical and accessible this seemingly futuristic technology actually is for real estate.

• SoMe – a digital marketing agency

Whether it’s VR, video, advertising or design,

As always, we are incredibly grateful for your

harnessing the power of technology and

innovation is one of the key themes running

business, your referrals and your support. We

data to deliver advertising that is richer,

through this year’s @report, and it’s one of

hope you find this year’s @report useful, and

more targeted and more relevant to your

the key themes at @properties as well.

we look forward to working with you on your

customers, no matter where or how they access information online. SoMe principal, Aalap Shah, writes about five digital marketing trends you need to be following.

Innovation led us to establish our own video team last year, which now includes

Yours truly,

a full-time videographer and two full-time

Thad Wong & Mike Golden

editors. It also spurred a complete redesign

Co-founders, @properties

• Kara Mann – one of the most sought

of the @properties website, performed

after interior designers among real estate

100% by in-house designers and program-

developers, not only because of her sophis-

mers. Innovation is driving growth (over

ticated style, but also her ability to solve

$8 billion in sales in 2016), and growth is

problems and create value. Kara, who is

driving us out of our original Fulton Street

overseeing the interiors program for the

headquarters, and into a brand new space

new 1000M condominium tower on South

in River West, next to Goose Island.

Michigan Avenue, discusses a number of floor plan hacks and design trends that will set your project apart from the crowd.

And innovation was proudly celebrated last year when @properties earned the Merrick Momentum Award from the

• Dr. Geoffrey J.D. Hewings – director emeri-

Chicago Entrepreneurship Center and

tus of the Regional Economics Applications

1871. The award, which is usually given to

Laboratory at the University of Illinois at

tech startups, reinforced our view that

Urbana-Champaign. Leading things off

marketing and technology are the way

this year, Dr. Hewings’ economic overview

forward in local real estate.

points out some of the headwinds and open lanes developers may encounter in the year ahead, and provides some added context to our 2017 @report data.

next development project.

next

the chicago what's

economy and housing market

the chicago economy and housing market: prospects for 2017

Chicago Housing Market Performance – 2016 Median home prices in 2016 showed moderate growth in both Illinois and the Chicago PMSA (Primary Metropolitan Statistical Area).

In Illinois, annual growth rates for each month varied between 3.9% and 10.1%. The comparative range for the Chicago PMSA was between 4.0% and 10.5%. This has been the fourth con-

dr. geoffrey j.d. hewings, university of illinois

secutive year with a positive annual growth rate for each month since 2013.

Unit sales in 2016 presented mixed annual growth. The growth rates of sales were be-

Dr. Geoffrey J.D. Hewings is director of

tween -5.4% and 10.3% for Illinois and between

the Regional Economic Applications

-6.1% and 11.2% for the Chicago PMSA. During

Laboratory at the University of Illinois at

the first six months of 2016, the annual growth

Urbana-Champaign (REAL). Dr. Hewings

rates were positive. In contrast, the second half

and his team of researchers focus on the

of year witnessed several months of negative

development and use of analytical mod-

annual growth rates. This was likely related to

els for urban and regional forecasting and

uncertainties from international affairs, increases

economic development. REAL publishes

in the interest rates and the presidential election.

a variety of reports and studies including the Chicago Business Activity Index, Illinois Economic Review Report, Illinois Job Index, and various impact studies.

Furthermore, the changes of sales in the Chicago PMSA are composed of overall positive growth in regular sales and decreases in foreclosed sales.

According to the Freddie Mac MiMi index, among the four perspectives this index assesses, the employment situation and portion of on-time mortgages were in the state’s long-run normal ranges, while the other two perspectives measuring home purchase applications and payment-to-income ratios are still weaker than their historically stable levels.

Forecasts for the Chicago Housing Market 2017 Median prices are forecast to continuously grow in 2017 within a narrower and slightly smaller range compared with 2016. On a year-over-year basis, these gains will range from 3.8% to 8.4% for the Chicago PMSA. By December 2017, the median price of homes in the Chicago PMSA is forecast to be 4.8% higher on an annual basis.

As a complement to the median housing price index (HPI), the REAL HPI1 forecasts indicate a similar growth trend for the Chicago PMSA in the months ahead. The REAL HPI (Jan 2008=1) is forecast to experience a growth rate between 2.5% to 8.3% for the Chicago PMSA. The REAL HPI takes housing characteristics into account and constructs comparable “baskets” of homes for each month.

As for sales, they are forecast to experience overall positive gains in 2017, led by growth of regular (non-foreclosed) sales in the Chicago area. The annual growth in monthly sales is forecast to be in the range from 10.5% to -2.4% in the Chicago PMSA. Evaluation Mortgage rates are still historically very low, but the housing stock offered for sale

+4.8%

HPI EXPECTED GROWTH RATE FOR THE CHICAGO PMSA BY 12/2017

10.5% to -2.4%

EXPECTED 2017 ANNUAL GROWTH IN MONTHLY SALES FOR THE CHICAGO PMSA

remains very limited, creating a drag on sales activity. While time on the market has recovered to pre-recession levels, the volume and variety of properties offered for sale has been well below long-term trends.

Looking further into the future, demographic changes are likely to alter the type and location of properties in demand. By 2030, 20% of Chicago’s population will be over 65 years of age. Evidence seems to be accumulating that retirees who do not migrate to warmer climates are relocating in central cities, including Chicago. At the same time, Millennials also seem to prefer central city locations. These two factors seem to point to strong long-term growth prospects for the city housing market.

1

REAL HPI was developed by the Regional Economics Applications Laboratory.

20%

PERCENTAGE OF POPULATION THAT WILL BE 65 OR OLDER BY 2020

@ report 2017 · 5

gold coast

Coast

GOLD

overview The Gold Coast didn’t see as many headline-grabbing sales in 2016 as it

price/square foot (condos)

did the year before, when a Park Tower penthouse traded for $18.75 million and a unit at the Waldorf Astoria went for $16 million (both in off-market

1 YEAR CHANGE

8.7%

3 YEAR CHANGE

10.7%

5 YEAR CHANGE

13.2%

deals). What it did see was a much wider base of multi-million-dollar transactions, led by a small but mighty wave of new-

$498 IN 2016

construction deliveries.

The Gold Coast’s biggest sale of 2016, $11.7 million for a high-floor unit at the Waldorf, was more than $7 million below 2015’s chart topper. However, the neighborhood saw double the amount of transactions

market dynamics

over $3 million: 44 vs. 22.

Likewise, closings in the $1,000+ PSF (per square foot) category were way up over 2015, with 25 units trading hands above

125

average number of days on market

the four-figure mark vs. only six the year before. These transactions occurred in eight different buildings, only one of which (4 East Elm), was new-construction, supporting the argument that the luxury base is expanding outward.

The new-construction segment is driving price growth in the Gold Coast.

95.2%

average sold price vs. original list price

The average PSF for all Gold Coast condos rose 8.7% to $498 PSF vs. $458 in 2015. But it was new-construction, up 28.4%, that really gave that number a kick. Excluding new construction, PSF was up only 1.1%.

The 33 new-construction sales in the MLS last year clocked in at

4

average months supply of inventory

an average of $998 PSF. And it’s worth noting that the two highest transactions on a PSF basis – penthouses at The Ritz-Carlton Residences and 4 East Elm – were sold as raw space. @ report 2017 · 7

North Avenue project, where sales to date have not met expectations.

Indeed, the tight market may tempt developers to consider riskier projects – “B” locations, non-traditional mixed-use compositions, aggressive pricing models, etc.

These conditions should not necessarily deter development. However, they do intensify the need to focus on value creation.

Projects where this is a fundamental focus at the programming level will reward developers with incremental revenue and timely absorption. However, failing to adequately address key programming factors will reveal just how price-sensitive the Gold Coast market can be.

outlook In 2017, the overall multi-million-dollar market will continue to expand upward and outward with the closeout of 4 East Elm, first deliveries at 9 West Walton, and various high-end resales.

At Walton alone, 70 closings will occur over the next two years, many of which will top the $5 million mark. As of the end of 2016, the top five pending Gold Coast sales in the MLS were all are located at No. 9 Walton, and all are priced over $5.5 million gross and $1,185 PSF. Beyond the handful of remaining units at Walton, however, the Gold Coast’s new-construction pipeline is thin. The only new development likely to kick off a sales program in the next 12 months is the 50-unit high-rise planned for the site of the Ruth Page Center for the Arts in the 1000 block of North Dearborn. That building will join the 30-unit 101

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$458

914

$498

932

8.7%

2%

1 BR

$331

363

$327

334

-1%

-8%

2 BR

$429

321

$422

350

-2%

9%

3+ BR

$531

230

$612

248

15%

8%

Attached New - Summary

$777

7

$998

33

28%

371%

1 BR

N/A

0

$594

2

N/A

N/A

2 BR

$777

7

$845

9

9%

29%

3+ BR

N/A

0

$1042

22

N/A

N/A

Attached Resale - Summary

$454

907

$459

899

1%

-1%

1 BR

$331

363

$325

332

-2%

-9%

2 BR

$413

314

$404

341

-2%

9%

3+ BR

$531

230

$554

226

4%

-2%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$1770

$1432

$1250

$1239

$1216

6610 SF

6028 SF

4000 SF

5400 SF

3486 SF

11 E. WALTON #5200

118 E. ERIE PH 1

11 E. WALTON #4002

4 E. ELM PH 23

4 E. ELM 20S

$11.7 mil

$8.632 mil

$8.0 mil

$6.692 mil

$5.0 mil

6610 SF

6028 SF

7880 SF

5400 SF

4000 SF

11 E. WALTON #5200

118 E. ERIE PH 1

159 E. WALTON PH

4 E. ELM PH 23

11 E. WALTON #4002

@ report 2017 · 9

gold coast months supply of inventory

+0.04

+1.18%

+0.95

+27.08%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

8

7

6

MONTHS

5

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL 2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

gold coast median price

+28.6%

-0.4%

+10.8%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

600

500

$ (IN THOUSANDS)

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 11

gold coast sold price vs. original list price

+0.07

+0.07%

+1.53

+1.62%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

gold coast # of units

-11.6%

-28.9%

-5.2%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

600

500

# UNITS

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 13

next

design: planning for success what's design: planning for success

kara mann, kara mann design

Kara Mann is founder and creative director

Heightened developer expectations for

of Kara Mann Design, which has offices in

pricing levels in new construction require an

Chicago and Manhattan. Mann works with

equally heightened focus on the space itself.

an international roster of discerning clients

At $1,000 PSF in Chicago, or double or triple

and industry leaders on both residential and

that amount in Manhattan, homebuyers want

commercial projects. The New York Times

to understand how a space functions and

describes her signature style as “interiors

how that functionality justifies the cost. At

with a subversive side.� Mann is also the cre-

the same time, the confines of high-rise new

ator of the Kara Mann collection, for Baker

construction mandate maximum efficiency,

Furniture’s Milling Road brand.

and this makes programming more important than ever.

The following three floor plan concepts demonstrate examples of efficient programming for luxury condominiums. By suggesting specific uses through design features and furniture plans, we can help homebuyers envision themselves in a space and confirm their perception of value.

Concept One: Wet Room

A Full-height pocket doors allow the kitchen to be

Today’s “jewel box” trend is an essential shift away from the large, ineffi-

open to the dining and living rooms or closed off for privacy.

cient spaces that passed for luxury in the McMansion era. In this case our challenge was to program a luxury master bath within a limited footprint.

B The walls that receive the doors create al-

Our solution is this “Wet Room,” which features a full-sized shower and

coves that become functional spaces: niches

soaking tub grouped within a dedicated space.

for eating, reading or relaxing.

A Matching floor and wall tile and a glass partition

C Secondary access points improve traffic flow

in lieu of a shower door blur the lines between the

and allow the doors to remain closed while serving.

Wet Room and sink area, creating the impression of B

D Thrown open, the pocket doors provide

more expansive space.

dramatic sightlines to and from the kitchen.

B The tub and shower borrow open space from one another, making both feel larger and more luxurious.

A

C The efficient layout preserves the 5-piece master bath with dual vanity, an important feature in luxury condos.

LIVING ROOM

D Privacy is maintained with a separate commode area.

E The efficient master bath footprint frees up square

D

DINING ROOM

footage for other in-demand space, such as larger E

closets in the master suite.

A B

B KITCHEN LOUNGE

C

C

FOYER

Concept Two: Flex Kitchen Luxury kitchens are showpieces, and homeowners are eager

KITCHEN

to put them on display with open plans that create a “heartENTRY

of-the-home” feel. But this type of layout doesn’t allow for privacy when preparing a large meal or catering a dinner party. A flexible solution is very much in keeping with the

OUTDOOR TERRACE

casual luxury that defines many contemporary lifestyles. @ report 2017 · 15

Concept Three: Zoned In Open floor plans are desirable in high-rise living because they give the impression

ON TREND FOR 2017

of larger space. But homebuyers often have difficulty envisioning how they will live

Materials, furnishings and finishes can give your

in such space. Using lifestyle as a starting point, we can zone specific uses through

interiors a designer look that will differentiate your

subtle, often inexpensive, elements that make the entire space feel more custom

development from the competition. Here are three

and finished.

design trends we see making a strong impact on the luxury residential market.

A A full-height, non-load-bearing wall zones off an alcove creating an office.

1 Burnished Metals:

B A wall unit features sliding panels that conceal a bar. Modularized panels such

Light-colored stones are

as these can be pre-fabricated and walked in, a cost-saving way to dial up design.

in for kitchens and baths.

C A credenza in front of the bar creates a natural hallway. The credenza and bar work

But the high contrast of

together to define a formal dining space without constructing walls.

darker, burnished metals in plumbing fittings,

D The furniture plan in the lounge interacts with the building’s architecture to add

inlays and other accents creates an even more

character and definition to a space that is hard to delineate.

upscale look that is gaining popularity.

2 Quartzite: This natural stone is stronger than marble, with LAUNDRY

veining properties that are

KITCHEN

more interesting and richer looking than granite.

WC

3 Updated Classicism:

B WINE ROOM

OUTDOOR TERRACE DINING ROOM

ENTRY FOYER

Drawing on classic design and architecture from

BAR

LOUNGE

the 1930s and ‘40s, updated classicism marries clean contemporary lines with natural materials

LIVING ROOM

and textures, creating an D

overall scheme that supports the current notion

OFFICE

A

of the home as a place of relaxation and wellness.

river north

North

RIVER

overview

price/square foot (condos)

Despite a healthy market for downtown condos, slowing price growth

1 YEAR CHANGE

0.5%

– and even price regression – has beset a number of neighborhoods where little or no new construction has been delivered of late. River North finds itself in this category. However, the tide will turn in 2017 with the

$394

3 YEAR CHANGE

7.7%

5 YEAR CHANGE

33.6%

IN 2016

completion of at least two new buildings and hopefully groundbreakings on several more.

The average price per square foot for River North condos slid for the second consecutive year, this time by a mere 0.5% to $394. Unit volume was basically

market dynamics

unchanged at 894 transactions.

Luxury sales were neither as plentiful nor as grand compared to 2015, a condition of the downtown market in general. The two

67

average number of days on market

highest condo sales in River North in 2015 were both over $4 million. But, last year’s top two sales were $3.57 and $3.1 million respectively. The number of sales above $600 per square foot was lower by 25%,

98.5%

average sold price vs. original list price

down to 30 units from 40 in 2015. Ditto for sales of $1,000+ PSF (three vs. four).

It’s worth noting that over the last few years, most activity above $600 PSF in River North has occurred at Trump Tower. It just so happens that those 10 fewer sales noted above equals the decline in transaction activity at Trump year over year. But the building is also a market unto itself.

A truer picture of the River North luxury market is emerging now.

2.9

average months supply of inventory

For example, slow sales of a 3,400 SF plan at Renelle on the River prompted Belgravia Group to create two smaller alternate plans. The ability (and willingness) to take feedback from the market and shift on the fly is essential.

Further west, competition is heating up, as six new projects representing about 200 units are underway or planned within a two-by-four-block rectangle. While a lot of that product looks similar in terms of unit sizing and pricing, there are some significant programming differences: from the type of construction to finishes to amenities. So we are keeping an eye on this little swatch of River North to see how this product is received. It’s the closest thing to a controlled experiment in today’s city market.

outlook Roughly a dozen new condo projects are at various stages in the River North pipeline, ranging from four units up to 70. While the first of those communities, the value-focused “SL,” began deliveries in late ’16, the projects delivering this year and beyond will establish new benchmarks for luxury pricing (Trump excepted), while providing some key data points for future development.

One situation we’re watching closely is the push-pull between PSF and chunk pricing.

In luxury markets, the mantra over the last few years has been “bigger is better.” In the Gold Coast, for example, plans of 3,000 to 5,000 SF have dominated the unit mix and the $1,000 PSF market. River North developers had some early success with big plans.

Half the product at 400 West Huron was over 3,000 square feet and sold quickly in the $700 PSF range. But there’s some indication now that demand for these huge units isn’t as deep as PSF pushes into the $800s, driving chunk prices well past $2 million. @ report 2017 · 19

under the microscope

Seven developments within a 2x4 block area share many similarities in terms of unit sizes, pricing and location.

New River North Condos: LaSalle to Kingsbury and Superior to Erie Address

Developer

Units

Type

Avg. PSF

Sales Status

Delivering

400 W. Huron

Smithfield

25

Mid-Rise/New Constr.

$685

Sold out

2017

676 N. Kingsbury

LG/Marc

41

Mid-Rise/Adaptive Reuse/New Constr.

$750

75%

2017

351 W. Huron

Regency

4

Low Rise/New Constr.

$550-$600

25%

2018

360 W. Erie

Belgravia

38

Mid-Rise/New Constr.

$750

10%

2018

312 W. Huron

JFJ

71

High-Rise/New Constr.

$725-$750

Now selling

2018/19

146 W. Erie

Sedgwick

31

Mid-Rise/New Constr.

$735

Now selling

2018/19

360 W. Superior

Ascend

34

Mid-Rise/New Constr.

$725-$750

TBD

TBD

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$396

884

$394

894

-1%

1%

1 BR

$375

377

$377

427

1%

13%

2 BR

$408

390

$405

387

-1%

-1%

3+ BR

$398

117

$396

80

-1%

-32%

Attached New - Summary

$285

33

$358

22

26%

-33%

1 BR

N/A

0

$221

4

N/A

N/A

2 BR

N/A

0

$357

6

N/A

N/A

3+ BR

$285

33

$373

12

31%

-64%

Attached Resale - Summary

$407

851

$395

872

-3%

2%

1 BR

$375

377

$379

423

1%

12%

2 BR

$408

390

$405

381

-1%

-2%

3+ BR

$457

84

$400

68

-12%

-19%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$1236

$1107

$1039

$999

$969

1558 SF

1475 SF

3437 SF

3102 SF

2063 SF

401 N. WABASH #29F

401 N. WABASH #41J

401 N. WABASH #29A

401 N. WABASH #69E

401 N. WABASH #31K

$3.572 mil

$3.1 mil

$2.275 mil

$2.225 mil

$2.150 mil

3437 SF

3102 SF

3600 SF

2754 SF

2742 SF

401 N. WABASH #29A

401 N. WABASH #69E

500 W. SUPERIOR #2305

401 N. WABASH #43G

401 N. WABASH #38H

@ report 2017 · 21

river north months supply of inventory

+0.03

+1.09%

+0.68

+24.99%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

6

5

MONTHS

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL 2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

river north median price

+13.1%

+6.1%

+7.8%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

500

$ (IN THOUSANDS)

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

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JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 23

river north sold price vs. original list price

0

0%

-0.05

-0.05%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

river north # of units

-17.1%

-27.2%

+9.0%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

350

300

# UNITS

250

200

150

100

50

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

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JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 25

streeterville

Streeterville

overview

price/square foot (condos)

Next year at this time, we might be talking about Streeterville in superlatives. For now, however, watching the Streeterville condo market 1 YEAR CHANGE

is kind of like watching tumbleweeds roll down Ontario Street. The forsale market in this part of town is as quiet as it was last year…and the year before that…and that’s quiet.

$403

4%

3 YEAR CHANGE

0.5%

5 YEAR CHANGE

3.3%

IN 2016

On a per square foot basis, condo pricing fell 4% compared to 2015, to $403. That’s just 0.5% higher than the average price per square foot three years ago and 3.3% higher than in 2011.

The five-year growth figure really jumps out at you, especially when comparing

market dynamics

Streeterville to other mature North Side neighborhoods like the Gold Coast (+13%) and Lincoln Park (+27%).

98

average number of days on market

Among the factors contributing to this malaise are a prolonged absence of forsale new construction and a somewhat dated housing stock that skews toward smaller floor plans. In fact, the larger, luxury floor plans that typically generate higher pricing are increasingly

94%

average sold price vs. original list price

difficult to come by in Streeterville. Closed unit volume for three-bedroom condos in the neighborhood fell 34% in 2016 vs. 2015, and the average PSF on these units fell by 7% (and the market wasn’t that big to begin with).

Other measures of market efficiency were similar year over year…over year, as you can see in the Market Dynamics graphic on this page. However, the

5.7

average months supply of inventory

years-long listlessness could potentially be good news for the handful of new-construction condos now working their way into the market.

@ report 2017 · 27

like 4 East Elm and No. 9 Walton. As mentioned, Belgravia is taking a similar approach at Renelle in River North.

Two other prominent Streeterville sites could see action in the near future. The first is the old Spire site at 400 N. Lake Shore. Related signaled it was beginning to dust off the project when it hired an SOM architect with considerable tall-building experience.

The other site is Tribune Tower, acquired in September by CIM Group and Golub. The redevelopment will involve a mix of uses including luxury condominiums. Construction could get underway in 2018.

While it will be a couple of years before the impact of these projects reverberates through the market, Streeterville’s tumble-

outlook The first of those are located at One Bennett Park, the Robert A.M. Stern-designed mixeduse apartment/condo tower at Grand and Peshtigo. Sales officially started last September with the release of only six of the project’s 69 condominiums. As of this writing, the MLS showed five units pending at an average of $1,117 PSF, and another seven active at $1,153 PSF. Related Midwest was able to leverage another project component (apartments) to start construction at OBP long before achieving a conventional pre-sale requirement. This gives the developer the luxury of selling condos at a measured pace and, best-case, increasing prices through a rising market.

Also notable is the fact that almost 40% of the units at OBP are less than 2,400 square feet. These efficient two- and three-bedroom layouts make chunk prices more approachable and are a reversal of the “big units only” strategy employed by recent developments

weed days are finally coming to an end.

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$421

416

$403

402

-4%

-3%

1 BR

$350

204

$348

204

-1%

0%

2 BR

$427

147

$413

155

-3%

5%

3+ BR

$504

65

$471

43

-7%

-34%

Attached New - Summary

N/A

0

N/A

0

N/A

N/A

1 BR

N/A

0

N/A

0

N/A

N/A

2 BR

N/A

0

N/A

0

N/A

N/A

3+ BR

N/A

0

N/A

0

N/A

N/A

Attached Resale - Summary

$421

416

$403

402

-4%

-3%

1 BR

$350

204

$348

204

-1%

0%

2 BR

$427

147

$413

155

-3%

5%

3+ BR

$504

65

$471

43

-7%

-34%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$781

$713

$709

$669

$648

1546 SF

2124 SF

2540 SF

1747 SF

2547 SF

600 N. FAIRBANKS #3902

600 N. LAKE SHORE #3911

600 N. LAKE SHORE #2805

600 N. FAIRBANKS #1811

600 N. LAKE SHORE #2512

$2.545 mil

$2.05 mil

$1.8 mil

$1.775 mil

$1.75 mil

3893 SF

3500 SF

2540 SF

4000 SF

3200 SF

445 E. NORTH WATER #2601

445 E. NORTH WATER #2606

600 N. LAKE SHORE #2805

441 E. NORTH WATER TH2

550 N. ST. CLAIR #2502

@ report 2017 · 29

streeterville months supply of inventory

+0.03

+0.51%

+0.65

+11.81%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

9

8

7

MONTHS

6

5

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

streeterville median price

+17.2%

-8.4%

-9.9%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

700

600

$ (IN THOUSANDS)

500

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

2015

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 31

streeterville sold price vs. original list price

+0.04

+0.05%

+0.99

+1.07%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN

JUL

2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

streeterville # of units

-4.2%

-12.6%

+13.6%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

900

800

700

# UNITS

600

500

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 33

building marketing momentum in a digital world what's

next

building marketing momentum in a digital world

Here are five important digital marketing trends to consider while planning your marketing for current and future projects.

1. The Mobile Web – There are 31 million people in the U.S. today who access the Internet only through their phones. Consumers are way ahead

aalap shah, some

of business in this area. Companies must start designing and building digital assets (websites, advertising, e-mail), for mobile first. From a real SoMe is a Chicago-based digital market-

estate perspective, while it’s important to have

ing agency established by Aalap Shah and

a beautiful website that reflects your brand or

Madhavi Rao. The firm specializes in Search

project, it’s equally important for that site to be

Engine Optimization, Paid Search, Social

functional and fast on smartphones and tablets.

Media Management and Content Marketing

Tools like responsive design and accelerated

for large corporations and small businesses

mobile pages (AMPs) are now essential. But we

in a variety of industries, including consumer

must push beyond the basics, exploring new

brands, healthcare, education, e-commerce

ways to bring real estate to life on mobile.

and real estate.

2. Video Advertising – At SoMe, we’re data When Apple sold its first iPhone 10 years ago,

junkies, but one of our chief creative tenets is

no one imagined the influence smartphones

“put the story first.” And video is one of the

would have over nearly every aspect of con-

greatest storytelling enhancements available

sumer behavior, including real estate. Yet here

through digital marketing. If you’re running dig-

we are with over 30% of all visitors to real estate

ital ads, video should be in the mix, not only be-

websites originating from mobile and tablet

cause it’s engaging, but also because websites

devices, a number that is growing exponentially

and social networks are prioritizing this form of

and converging with other trends in the rapidly

advertising. Facebook’s new Canvas ad units are

changing digital world.

a great example of how rich media can create powerful brand experiences on mobile. Google it to see some examples, and then imagine how your project could live in this format.

3. Hyper Targeting – If you have e-mail ad-

the marketing mix and if they are taking the

thinking about the metrics that are important

dresses of clients who have bought a home

desired action (walking into the sales center,

to your business. In other words, don’t just do

from you, then you have the ability to advert-

giving us their information, or clicking “buy.”)

digital for the sake of doing digital. Do it be-

ise to potential buyers just like them. After all,

Today, companies are investing significant

cause it helps you achieve defined objectives

who’s more likely to buy a home in your dev-

dollars in digital marketing because the per-

more efficiently and effectively. With the right

elopment? That’s hyper-targeting. Basically

ception is it’s the right thing to do. But even

marketing plan and proper analysis, you’ll

the idea is to use customer data and behav-

more important is taking a step back and

stay ahead of the competition.

ior to tailor marketing to your most qualified audiences. There are many ways to hypertarget, including by demographics and online behavior. And the more data and feedback you receive from this type of marketing, the

Mobile search will soon dominate consumers’ online real estate interactions. Making sure your digital marketing program is mobile-friendly is absolutely vital.

better you can target in the future.

4. Voice search – Typing search terms into your smartphone or computer? That’s so 2016! Talking to the Internet is the wave of the future. Voice search has huge potential, fueled by the growth of the mobile web and the rising popularity of voice-control systems like Amazon Echo (Alexa), Google

27%

58%

45%

found their homes through a mobile app

of American adults own a smartphone

have clicked on real estate ads from midnight to 6 AM

Home and Apple’s Siri. But people don’t talk the same way they write. So marketers need to adapt their approach to SEO. Brands that can harness this technology early – with content that anticipates idiomatic interactions, and websites that deliver fast, accurate results – will be in a position to dominate the new world of voice search.

5. Data – We always come back to data, be-

36%

34%

31%

growth in mobile searches about open houses

use mobile or tablet websites or apps

use mobile or tablet search engines

cause data tells us stories about how people are interacting with different elements of

source: leadscon.com

@ report 2017 · 35

developers . atproperties . com

the loop

Loop

THE

overview

price/square foot (condos)

The big price increases we have seen in the Loop over the last couple of years slowed in 2016, and again the issue appears to be supply-related as opposed to any systemic weakness.

Average PSF was down 6% to $450, and the average sales price for closed units was down 8.6%.

1 YEAR CHANGE

6.3%

$450 IN 2016

3 YEAR CHANGE

The total number of closed transactions ticked up ever-so-slightly, but the more revealing stat is that closings of million-dollar condos were down about 25% year over year. Similarly, sales of three-bedroom units were 25% lower.

A shortage of larger condominiums definitely contributed to lower prices.

We examined aggregate closed sales for five luxury buildings in the Loop –

market dynamics

Aqua, 340 E. Randolph, The Heritage, The Legacy, and 65 E. Monroe – and found that average square footage was 7% lower and PSF was 6% lower in 2016 vs. 2015.

Despite a lack of inventory, the luxury market still packed a punch in 2016.

100

average number of days on market

Last year brought the largest residential transaction ever south of the Chicago River, the $6.2 million sale of the entire 71st floor at The Legacy.

The relatively low PSF ($653) reflected a rather basic spec level and some uninspired décor.

We also sold five 2,400-square foot condos above the 60th floor at The

96.8%

average sold price vs. original list price

Legacy in 2016. PSF ranged from the mid $700s to $821 in spite of “last generation” finishes for units that were completed in 2010.

But the big story in the Loop last year was the kickoff of Vista Tower in Lake Shore East. Launched in April, Vista now has approximately 135 condos (about 30% of the total) under contract at an average of just over $1,000 PSF. That gave developers Dalian Wanda and Magellan assurance enough to selffund construction while they finalize a loan.

3.7

average months supply of inventory

5.9%

That sounds daunting, but a year’s worth of results at Vista is thus far encouraging.

Let’s also keep in mind that while average pricing may be at or near $1,000 PSF, not all units are priced at this level nor do all carry the $3-, $4- and $5-million price tags that have been attached to new construction on the Near North Side.

Still, no one is taking anything for granted.

As is the case at Vista, the sales presentation at 1000M will be prodigious.

Vista Tower at a Glance

outlook Vista is one of four major high-rise construction projects that will add more than 2,000

Units under contract

122

Average PSF

$1006

PSF Range

$572-$1700

Gross Price Range

$935,850$10,261,020

61% of contracted units at Vista Tower are priced under $1,000 PSF. source: Midwest Real Estate Data 12/31/16

combined apartment and condo units and upwards of 3,500 new residents, to the neighborhood over the next four years. The other three – the 76-story One Grant Park, Oxford Capital’s 808 South Michigan, and the 72-story Helmut Jahn-designed 1000M – will remake the southern end of Grant Park, bookending a downtown renaissance that began 15 years ago with the opening of Millennium Park.

These projects will also provide a key test for luxury real estate in the neighborhood.

With the 400 high-end condos at Vista and another 325 at 1000 South Michigan (which @properties will start selling this summer), the Loop could have more condo inventory above $1,000 PSF than the rest of downtown Chicago combined.

@ report 2017 · 39

luxury transactions in the loop The Loop saw fewer seven-figure sales in 2016, largely because so little high-end inventory is available.

Loop Closed Transactions: $1,000,000+ Price Range

2015

2016

$3MM+

2

2

$2MM-$2.99MM

12

4

$1MM-$1.99MM

56

48

Total

70

54

source: Midwest Real Estate Data

Despite tightening inventory levels, closed sales above $500 PSF in 2016 were similar to 2015 numbers.

Loop Closed Transactions: $500 PSF+ PSF Range

2015

2016

$1000+

6

3

$900-$999

3

2

$800-$899

4

6

$700-$799

15

11

$600-$699

31

36

$500-$599

56

55

Total over $500 PSF

115

113

source: Midwest Real Estate Data

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$480

499

$450

515

-6%

3%

1 BR

$372

190

$365

217

-2%

14%

2 BR

$425

229

$436

238

3%

4%

3+ BR

$655

80

$590

60

-10%

-25%

Attached New - Summary

$665

31

$631

16

-5%

-48%

1 BR

$616

1

N/A

0

N/A

-100%

2 BR

$603

16

$555

8

-8%

-50%

3+ BR

$722

14

$685

8

-5%

-43%

Attached Resale - Summary

$460

468

$441

499

-4%

7%

1 BR

$369

189

$365

217

-1%

15%

2 BR

$406

213

$432

230

6%

8%

3+ BR

$642

66

$577

52

-10%

-21%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$1139

$1069

$1021

$944

$925

2064 SF

1567 SF

1567 SF

1567 SF

2064 SF

225 N. COLUMBUS #8105

340 E. RANDOLPH #4303

340 E. RANDOLPH #3303

340 E. RANDOLPH #2103

225 N. COLUMBUS #7505

$6.2 mil

$3.45 mil

$2.925 mil

$2.85 mil

$2.35 mil

9500 SF

5000 SF

4000 SF

4500 SF

2064 SF

60 E. MONROE #7101-2

450 E. WATERSIDE #2801

65 E. MONROE #4101

420 E. WATERSIDE #4310

225 N. COLUMBUS #8105

@ report 2017 · 41

the loop months supply of inventory

-0.04

-0.63%

-0.83

-14.55%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

12

10

MONTHS

8

6

4

2

0

JAN

FEB

MAR

APR

MAY

JUN

JUL 2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

the loop median price

+29.1%

+10.3%

-16.7%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

1,600

1,400

$ (IN THOUSANDS)

1,200

1,000

800

600

400

200

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 43

the loop sold price vs. original list price

+0.03

+0.03%

+0.66

+0.69%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN

JUL

2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

the loop # of units

+5.2%

+32.3%

+23.7%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

350

300

# UNITS

250

200

150

100

50

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 45

south loop

Loop

SOUTH

overview

price/square foot (condos)

The average price per square foot for South Loop condos was down slight1 YEAR CHANGE

ly in 2016, clocking in at $330 PSF vs. $332 in 2015. Other price measures, including average sales price and median price, were also about 1% to 2% lower, year over year. This follows another pedestrian year appreciation-wise: +2% in 2015. However, PSF is up 41.6% since 2011.

$330

0.6%

3 YEAR CHANGE

9.3%

5 YEAR CHANGE

41.6%

IN 2016

Other indicators point to a healthy market.

Inventory remains tight, with supply lower vs. the prior year in every month of 2016 except January and February. Months’ Supply of Inventory fell from an already-low average of 3.4 months for 2015 to 3.0

market dynamics

months last year. And the average market time of 64 days for sold condos was third fastest among @report neighborhoods, trailing only the West Loop and Lincoln

64

average number of days on market

Park. Condos sold for almost 98% of their original asking price.

To reconcile these two trends – price inertia and tight supply – we have to look at the product that’s out there…or not out there. The South Loop has had very little new-construction activity throughout the recovery, and some

97.7%

average sold price vs. original list price

of the neighborhood’s existing housing stock is starting to show its age.

Much of it was built for the entry level, and some of it – even the mid-range product – wasn’t very well designed. This is an opportunity.

There is also very little in the way of luxury product among the South Loop’s current inventory. The neighborhood has logged fewer than 30

3

average months supply of inventory

closings above $1 million in each of the last two years. And closings above $500 per square foot went from 29 in 2015 to just 19 last year.

@ report 2017 · 47

The predominance of townhomes is one reason why the price per square foot for new construction is artificially low. Most of this product is in the mid $300s PSF with the choicest units hitting the high $300s.

On the condo front, the only potential new-construction sales activity looks to be in Riverline, the big mixed-use project along the river, north of Roosevelt. No info is public yet regarding a sales program or pricing for Phase I. One other nascent trend in response to the South Loop’s lack of luxury condos is the “rehab and flip” maneuver that has been popular in some Near North Side buildings. An investor split a full floor at 1201 S. Prairie into two units, and sold the first one last June for a record $3.2 million, or $692

outlook

per foot. The second unit, which is larger, is on the market at $3.995 million. It’s a bold move, but if it pays off, we may see a handful

There is one segment of the South Loop attached market that is sizzling, and that’s townhomes.

At Prairie Court by Sandz Development (18th and Prairie), @properties opened a sales trailer last March and sold 70% of the project’s 55 townhomes in a year…raising prices as we went. The average price is over $1 million.

One block east, at 18th and Calumet, a seven-unit luxury townhome project is sold out at prices ranging from $1.09 to $1.85 million. The units range up to 4,700 square feet, and larger plans include an elevator.

Banking on demand for high-end townhomes, developer Seamus Murnin announced in November that he would build 12 townhomes at the corner of Prairie and Cullerton, starting at $1.2 million. He will have no problem finding buyers.

of similar deals to address luxury demand.

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$332

839

$330

860

-1%

3%

1 BR

$299

232

$302

258

1%

11%

2 BR

$326

475

$327

489

0%

3%

3+ BR

$363

132

$356

113

-2%

-14%

Attached New - Summary

$406

143

$347

37

-15%

-74%

1 BR

$353

28

$338

10

-4%

-64%

2 BR

$395

80

$354

26

-10%

-68%

3+ BR

$436

35

$324

1

-26%

-97%

Attached Resale - Summary

$311

696

$329

823

6%

18%

1 BR

$291

204

$301

248

3%

22%

2 BR

$309

395

$326

463

6%

17%

3+ BR

$332

97

$357

112

8%

15%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$692

$649

$597

$595

$587

4623 SF

2920 SF

2197 SF

1639 SF

2920 SF

1201 S. PRAIRIE #2302

1211 S. PRAIRIE #6201

1211 S. PRAIRIE #3502

1201 S. PRAIRIE #5105

1211 S. PRAIRIE #3401

$3.2 mil

$1.895 mil

$1.75 mil

$1.715 mil

$1.71 mil

4623 SF

2920 SF

4000 SF

2920 SF

2920 SF

1201 S. PRAIRIE #2302

1211 S. PRAIRIE #6201

1335 S. PRAIRIE #1501

1211 S. PRAIRIE #3401

1211 S. PRAIRIE #4701

@ report 2017 · 49

south loop months supply of inventory

+0.02

+0.64%

+0.44

+14.64%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

6

5

MONTHS

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL 2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

south loop median price

+17.8%

+6.5%

+3.8%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

$ (IN THOUSANDS)

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 51

south loop sold price vs. original list price

120%

-0.05

-0.05%

-1.07

-1.08%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

south loop # of units

-17.0%

-23.3%

+5.8%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

450

400

350

300

# UNITS

250

200

150

100

50

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

2015

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 53

west loop

Loop

W EST

overview

price/square foot (condos)

Several numbers jump out at you when looking at the West Loop condo market of 2016.

The first is 33. That’s the average days on market for West Loop condos in 2016. It’s roughly half the market time of the next fastest selling neighborhood

$335

1 YEAR CHANGE

4.4%

3 YEAR CHANGE

23.2%

5 YEAR CHANGE

43.2%

IN 2016

in the @report, Lincoln Park (63), and three times faster than condos sold in River North (105).

The second is 99.3%. That’s the average Selling Price : Original Listing Price ratio for condos in the neighborhood. Once again, the West Loop outperformed all other

market dynamics

@report locales. In fact, last year about half the condos in the West Loop sold for 100% of original list price – or more.

The third number is 1.9. That’s how many

33

average number of days on market

months, on average, it would have taken throughout 2016 to absorb all of the condos for sale in the neighborhood. Four to six months is considered a balanced market, and only one other neighborhood, River

99.3%

average sold price vs. original list price

North, had an average MSI under three.

And there’s one more number. Zero. That’s the number of new-construction condo deliveries in the West Loop last year.

Fortunately about 100 condo units will be completed in the West Loop in 2017,

1.9

average months supply of inventory

and a similar amount will be completed next year. Still, the West Loop is probably the most under-supplied neighborhood in downtown Chicago relative to condo demand. @ report 2017 · 55

We’re also seeing a handful of smaller layouts in the luxury mix; however, one key feature of these units is expansive outdoor space. In fact, of the top five pending sales in the neighborhood on a PSF basis (ranging from about 1,500 to 2,800 SF), all have spectacular terraces.

We’re as bullish as ever on the West Loop, however, we still urge developers to keep precedent in mind. That sounds obvious, but some heady numbers are being penciled into pro formas; and as hard as it is to believe, the next West Loop

outlook

development to average $500 PSF upon

While West Loop buyers slug it out for available condos, developers in the enviable

Despite frenetic demand and positive

position of owning land are suddenly facing a new challenge: what to build.

growth, the luxury condo market in the

sellout will be the first!

West Loop needs to walk before it runs.

Basically only one type of condo product has been delivered in this neighborhood for the last several years: three-bedroom midrise. Now, for-sale new construction is starting to diversify – in size, configuration, finish and price.

New-construction offerings now range up to $750 PSF, chunk prices go up to about $2.5 million, and a handful of floor plans are as large as 5,000 square feet.

So what’s the winning formula? How do developers capitalize on the hot market and maximize revenue based on key programming factors? The answers aren’t as clear-cut as one might expect given the West Loop’s halcyon mood, but some clues are starting to emerge.

For starters, while the 2,000-square-foot three-bedroom layout still dominates, luxury plans are getting larger. We’re now seeing floor plans of 2,500 to 2,800 square feet capturing prices above $600 and, in rare cases, $700 PSF. This is driving chunk prices to around $1.5 million, a level luxury buyers in the West Loop seem comfortable with.

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$321

847

$335

763

4%

-10%

1 BR

$304

295

$320

292

5%

-1%

2 BR

$310

405

$331

369

7%

-9%

3+ BR

$350

147

$356

102

2%

-31%

Attached New - Summary

$359

48

N/A

0

N/A

-100%

1 BR

N/A

0

N/A

0

N/A

N/A

2 BR

N/A

0

N/A

0

N/A

N/A

3+ BR

$359

48

N/A

0

N/A

-100%

Attached Resale - Summary

$316

799

$335

763

6%

-5%

1 BR

$304

295

$320

292

5%

-1%

2 BR

$310

405

$331

369

7%

-9%

3+ BR

$344

99

$356

102

3%

3%

2016 top 5 closed sales (price/square foot)

2016 top 5 closed sales (gross sales price)

$553

$512

$507

$500

$491

1900 SF

1300 SF

1900 SF

2360 SF

2360 SF

16 N. CARPENTER #PH-N

910 W. MADISION #904E

18 N. CARPENTER #PH-S

850 W. ADAMS #T

850 W. ADAMS #2C

$1.705 mil

$1.651 mil

$1.525 mil

$1.325 mil

$1.25 mil

3700 SF

4055 SF

3700 SF

2855 SF

2725 SF

333 N. CANAL #2205

1121 W. MONROE #A43

333 N. CANAL #2405

333 N. CANAL #3501

100 S. SANGAMON #1N

@ report 2017 · 57

west loop months supply of inventory

+0.02

+1.16%

+0.49

+27.87%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

4

MONTHS

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL 2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

west loop median price

+26.1%

+12.67%

+2.05%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

500

$ (IN THOUSANDS)

400

300

200

100

0

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 59

west loop sold price vs. original list price

+0.01

+0.01%

+0.18

+0.18%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

120%

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

west loop # of units

-9.4%

-24.6%

-13.3%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

350

300

# UNITS

250

200

150

100

50

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 61

virtual reality: a real opportunity

what's

next

virtual reality a real opportunity

Developers have always had to solve the problem of how to get homebuyers to envision a new project before it's built. Over the years there have been a number of innovative solutions, but the Virtual Reality technology emerging now represents perhaps the biggest leap forward in real estate marketing ever.

denis krylov and david scott, transparent house

Virtual Reality (VR) is a cutting-edge visual technology that allows a user to experience and interact with a physical space through a digitally constructed 3D model.

With offices in San Francisco, L.A., Moscow

The difference between VR and the 2D tech-

and Berlin, Transparent House is a next-gen

nology we see in most marketing today (ren-

creative studio that excels at the intersection

derings, photography, video, etc.), is that VR

of technology and ideas. The firm offers vi-

lets users “step inside” a space by donning a

sualization and branding services for archi-

headset or goggles, offering a completely

tecture, marketing and advertising, special-

immersive, photo-realistic experience; a 360-

izing in the creation of stunning 3D assets,

degree spatial understanding that simply can-

animation and interactive experiences for

not be matched by any other technology.

future-looking brands. For more information, visit transparenthouse.com

VR is here now, and it’s here to stay. The biggest names in tech, including Facebook, Google, Microsoft and Samsung, have invested billions of dollars in R&D, acquisitions, production, and marketing.

And while many people still associate VR with video games, the technology is quickly establishing a foothold in real estate. On the West Coast, where Transparent House is headquartered, it’s increasingly common to find VR headsets in residential sales centers and at marketing/launch events.

VR benefits for developers VR is mobile: Almost any smartphone can be paired with an inexpensive (and brand-able) cardboard or plastic viewer to become an immersive VR player. VR presentations can be deployed from the Apple App Store or Google Play, as well as other outlets, allowing users to step inside your project from almost anywhere in the world.

VR is boundless: A full-scale model is great, but Virtual Reality can go many steps beyond, offering views from any floor or exposure,

Virtual Reality is succeeding for a number of reasons –

giving buyers the ability to tour multiple units, or allowing a developer

most importantly because the evolution of the technology

to easily change or update interior elements.

has brought us to a place where VR finally looks as real as high-resolution photography. From within a headset, you can walk a space, pick up objects, watch content on virtual TV

VR is an analytics tool: Something a physical model can’t do is

screens, and change components such as finishes and furni-

give real-time data on buyer preferences and behaviors. VR can. The

ture. The experiences are lifelike today, and as the technology

software can track the user through the app, and the data can be

advances in the coming years, the interactivity of the experi-

used to optimize future presentations.

ence will know no bounds.

VR is a marketing campaign within a marketing campaign: The technology itself is ripe for buzz-generating events, PR, and social media. VR is a complementary marketing tool that has multiplicative effects.

VR is accessible: Utilizing some of the same elements you would create for traditional print and digital marketing, such as photos and renderings, you can deploy a VR experience in support of your overall campaign. VR presentations can also be viewed in 2D on laptops, monitors and tablets.

@ report 2017 ¡ 63

The “Owl” app features a unique, semi-permanent VR kiosk, reminiscent of the old coin-operated public binoculars, showing two geo-referenced, 360-degree panoramas that tell the story of the neighborhood’s evolution from a war-time shipyard to a modern mixeduse neighborhood.

The second app is a fully stereoscopic, 3D, VR tour set in a luxury, to-be-built home at The Shipyard. Users can virtually step inside the home and move from room to room and even out onto the balcony to enjoy views of the community and San Francisco Bay. The app is available at Google Play or the App Store for a fully mobile experience.

case study: the san francisco shipyard

These apps have been instrumental in effectively communicating the vision of The SF Shipyard for residential, commercial and community audiences. They demonstrate how game engines and other technologies can engage potential

The San Francisco Shipyard is a new master-planned development located

buyers in ways that build very strong percep-

on the waterfront at Hunters Point, a site that has been a vital piece of San

tions, both locally and internationally.

Francisco history for 150 years.

Five Point and Lennar Urban hired Transparent House to create a variety of interactive marketing tools to support The Shipyard’s sales efforts. The centerpieces are two photorealistic, interactive VR apps – one designed for use with a special Owlized viewer and the other for use with Oculus Rift, Samsung Gear and Google Cardboard viewers.

lincoln park

Park

LINCOLN

overview

price/square foot (condos)

What’s significant about the $15.5 million single-family home currently on the market in Lincoln Park? For starters, it’s only the second highest-priced listing in the neighborhood. You’d need to come up with another $34.5 million to meet the seller’s price for the most expensive home, a mansion on Burling Street. It’s also one of five active single-family listings in Lincoln Park with an

$344

1 YEAR CHANGE

2%

3 YEAR CHANGE

8.9%

5 YEAR CHANGE

27.4%

IN 2016

asking price over $1,000 per square foot.

It’s fair to say some interesting storylines are developing for 2017, but first let’s take a look at what happened in Lincoln Park last year.

Despite strong market dynamics, condo prices were somewhat held in check last

market dynamics (condos)

year, rising 2% on a per square foot basis to $344 PSF. Condo unit volume was down 4%; however, more than twice as many new-construction condo deliveries occurred in 2016

63

average number of days on market

vs. 2015 – all of them low-rise. No development featured more than 14 units.

In 2015, there were five new-construction condo closings over $500 PSF. Last year there were 24, including four above $600 PSF and two above $700 PSF. Meanwhile, single-family unit volume was nearly identical year over year, even

97.1%

average sold price vs. original list price

across various price ranges, e.g. $1 to $2 million, $2 to $3 million, etc.

Unlike in 2015, Lincoln Park did not register a sale above $10 million last year. Still, our Lincoln Park brokers do not sense that ultra-luxury demand is waning. In support of this sentiment, more single-family homes closed above $5 million in 2016 vs. 2015, more homes (new and resale combined) closed above $700 PSF, and the median single-family sales price (for new and resale combined) increased from $1.665 million to $1.8 million, an 8.1% move.

3.1

average months supply of inventory

Meanwhile, new single-family homes in east Lincoln Park continue to push the envelope on account of expensive land and a fondness among luxury buyers for double-lot (and larger) home sites. The $15.5 million custom build we referenced earlier sits on a 100’ wide lot.

But the bulk of Lincoln Park new construction today still takes place in the $2.0$3.5 million price range. Over the last 12 months, we have seen more supply for product in this price range in every month vs. the year-earlier period. Inventory levels definitely bear watching as single-family developers look to take down lots for

outlook

future development.

Some long-awaited condo deliveries will finally hit in 2017. The completion of Webster Square and of 1615 N. Burling adds more than 100 units to the neighborhood, helping to redefine the new-construction market west of the park.

Most of this new product is in the $500 - $600 PSF range, but penthouse units and/or units with impressive outdoor spaces have topped $900 PSF at Burling, which started closings early in ’17. The most expensive product at Webster is in the $700s PSF. Another boutique project, 2035 N. Orleans, kicked off sales last fall and is currently reporting four of 10 units under contract ranging from the $590s to $780s PSF. A penthouse is listed at $811 PSF. We have seen big price gains among low-rise new construction over the last few years.

Consider that in 2014, the average PSF for new-construction condos (excluding 2550 N. Lakeview), was $374. Two years ago it was $409 and last year it jumped to $485. With the arrival of mid-rise product, 2017 should easily cross the $500 mark, and that still looks like a bargain relative to other new-construction/adaptive re-use on the Near North Side. @ report 2017 ¡ 67

SFH pricing and transactions

Lincoln Park Most Expensive SFH Sales of 2016 (Sales Price) Address

Sales Price

PSF

2026 N. Mohawk

$8,350,000

$759

1944 N. Howe

$8,300,000

$790

1829 N. Orchard

$6,100,000

$678

1922 N. Howe

$5,500,000

$764

1804 N. Mohawk

$4,950,000

$773

source: Midwest Real Estate Data

Single-family unit volume was nearly identical throughout various pricing strata, although the median sales price increased 8.1%, from 1.665 million in 2015 to $1.8 million in 2016.

Lincoln Park SFH Sales Over $1 Million Price Range

2015

2016

$1.0 - $1.99 million

85

87

$2.0 - $2.99 million

44

39

$3.0 - $3.99 million

19

19

$4.0 - $4.99 million

3

5

$5.0+ million

3

4

Total Over $2MM

154

154

source: Midwest Real Estate Data

condo pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$337

1229

$344

1171

2%

-5%

1 BR

$323

269

$306

272

-5%

1%

2 BR

$323

533

$334

503

3%

-6%

3+ BR

$351

427

$357

396

2%

-7%

Attached New - Summary

$409

68

$485

59

19%

-13%

1 BR

N/A

6

N/A

0

N/A

N/A

2 BR

$433

19

$519

25

20%

32%

3+ BR

$401

43

$472

34

18%

-21%

Attached Resale - Summary

$334

1161

$330

1112

-1%

-4%

1 BR

$323

263

$306

272

-5%

3%

2 BR

$319

514

$319

478

0%

-7%

3+ BR

$347

384

$342

362

-1%

-6%

2016 top 5 closed condo sales (price/square foot)

2016 top 5 closed condo sales (gross sales price)

$1117

$951

$894

$796

$763

2843 SF

3679 SF

2008 SF

2606 SF

4333 SF

2550 N. LAKEVIEW #S2401

2550 N. LAKEVIEW #S3003

2550 N. LAKEVIEW #N804

2550 N. LAKEVIEW #N705

328 W. WISCONSIN #4S

$3.5 mil

$3.306 mil

$3.2 mil

$3.175 mil

$2.660 mil

3679 SF

4333 SF

5600 SF

2843 SF

3801 SF

2550 N. LAKEVIEW #S3003

328 W. WISCONSIN #4S

2430 N. LAKEVIEW #7-8S

2550 N. LAKEVIEW #S2401

328 W. WISCONSIN #3N

@ report 2017 · 69

lincoln park months supply of inventory

+0.04

+1.61%

+0.98

+37.0%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

5

MONTHS

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

2015

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

lincoln park median price

+29.7%

+9.0%

+7.0%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

700

600

$ (IN THOUSANDS)

500

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

2015

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 71

lincoln park sold price vs. original list price

+0.06

+0.06%

+1.34

+1.40%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

lincoln park # of units

-6.1%

-28.3%

-2.5%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

700

600

500

# UNITS

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 73

lakeview

Lakeview

overview Last year, we noted the proliferation of new high-end product in the Lakeview

price/square foot (condos)

market, as developers placed bets on stepped-up demand for larger, richer homes, including both condos and detached single-families. For the most part, those bets paid off, but not without some nail-biting.

For new-construction condos, unit volume rocketed from 43 closings in 2015 to 70 last year. Sixteen of those sales were for $1 million or more, compared

$277

1 YEAR CHANGE

6.9%

3 YEAR CHANGE

12.8%

5 YEAR CHANGE

24.8%

IN 2016

with just three such sales in 2015. The median price for new construction attached units jumped 12% to $742,000.

At 2,143 square feet, the average new-construction condo in Lakeview was 22% larger than its 2015 counterpart. This was due to the introduction of a number of new simplex floor

market dynamics (condos)

plans in the 2,500- to 3,000-square-foot range and duplexes of 4,000 square feet or more.

Taking a quantum leap in size and price was not without its challenges. Market

71

average number of days on market

times for new condos increased 31% year over year to 97 days. And despite the big increase in chunk price, the average PSF increased less than 3% vs. 2015.

96.8%

average sold price vs. original list price

In the single-family camp, some developers grappled with what brokers described as an uncomfortable level of inventory. Again, they made it through, but the data indicates some adversity. New single-family homes sat on the market an average of 81 days longer in 2016 vs. the year earlier, an increase of 78%.

The median sales price fell from $2.3 million to $2.11 million (-8%), and sales of

3

average months supply of inventory

homes in the $2-million-plus category declined by 44%, from 25 units in 2015 to 14 last year. As a result, some developers resorted to commission incentives – typically offering an extra 0.5%, which is $10,000 on a $2 million listing. @ report 2017 ¡ 75

There are currently 45 active newconstruction condo units in the MLS with a median asking price of $920,000. That’s 24% higher than last year’s median sold price. The average PSF on these units is $476 vs. $399 for closed new-construction condos in 2016. There are also a handful of units priced between $700 and $900 PSF, something we’ve never seen in Lakeview.

And five new condos are listed above $2 million. Only one unit – a 5,500-square-foot resale – reached that plateau last year.

So the stakes are high. But the city’s luxury condo market is also as strong as ever, and Lakeview is a relative value. In addition, the new luxury product in Lakeview is unique; there aren’t many places in the city where buyers can find 3,000 or 4,000 square feet

outlook

of brand new construction, on one level, so

Some of the conditions that put a drag on the single-family market in 2016 are still in play,

Will it play? TBD. But you can bet we’re

but there are some promising early signs in 2017.

watching closely.

Among detached homes $1.5 million and up, Months’ Supply of Inventory had fallen in November, December and January, compared to the year-earlier period. Now, we are entering the season when single-family home buyers are most active, and rising interest rates should further encourage fence-sitters to make a move this year.

We continue to see co-op commission incentives on some listings, and the median price on active new construction is actually slightly below the median sold price of 2016, indicating some caution on the part of single-family developers.

Condo developers, on the other hand, seem to be doubling down, encouraged by sales of big luxury units in 2016.

close to the lake and good public schools.

pricing and transactions 2015

2016

2015 vs. 2016

PSF

# Trans

PSF

# Trans

% Change PSF

% Change # Trans

Attached All - Summary

$259

1835

$277

1786

7%

-3%

1 BR

$226

503

$232

520

3%

3%

2 BR

$260

850

$272

801

5%

-6%

3+ BR

$269

482

$297

465

10%

-4%

Attached New - Summary

$388

40

$399

73

3%

83%

1 BR

N/A

0

$340

2

N/A

N/A

2 BR

$430

18

$423

17

-2%

-6%

3+ BR

$363

22

$396

54

9%

145%

Attached Resale - Summary

$256

1795

$264

1713

3%

-5%

1 BR

$226

503

$230

518

2%

3%

2 BR

$257

832

$266

784

4%

-6%

3+ BR

$267

460

$276

411

3%

-11%

2016 top 5 closed condo sales (price/square foot)

2016 top 5 closed condo sales (gross sales price)

$548

$523

$519

$516

$515

3338 SF

1300 SF

2755 SF

2808 SF

1300 SF

731 W. MELROSE #PH

3315 N. KENMORE #3

731 W. MELROSE #3

731 W. MELROSE #2

3336 N. KENMORE #3

$2.04 mil

$1.85 mil

$1.83 mil

$1.75 mil

$1.559 mil

5500 SF

4577 SF

3338 SF

3900 SF

3200 SF

3400 N. LAKE SHORE #2BC

731 W. MELROSE #1

731 W. MELROSE #PH

3438 N. ELAINE #3

3300 N. LAKE SHORE #17DE

@ report 2017 · 77

lakeview months supply of inventory

+0.03

+0.96%

+0.64

+22.15%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

5

MONTHS

4

3

2

1

0 JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 MSI

2016 MSI

NOV

DEC

lakeview median price

+15.1%

+0.2%

+2.5%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

500

$ (IN THOUSANDS)

400

300

200

100

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

2015

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 79

lakeview sold price vs. original list price

+0.04

+0.04%

+0.81

+0.85%

MONTHLY CHANGE

MONTHLY PERCENT

TOTAL CHANGE

TOTAL PERCENT CHANGE

100%

PERCENT

80%

60%

40%

20%

0% JAN

FEB

MAR

APR

MAY

JUN 2015

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

2016

2015 SP/OP

2016 SP/OP

NOV

DEC

lakeview # of units

-24.3%

-36.3%

-5.9%

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

TOTAL PERCENT CHANGE

1000

# UNITS

800

600

400

200

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

2015

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016

FOR SALE

UNDER CONTRACT

SOLD

@ report 2017 · 81

represented developments @properties represented developments RIVER NORTH

THE LOOP

• 61 West Erie

• The Legacy at Millennium Park

• 400 West Huron

• 6 North Michigan

• Erie on the Park

• 8 West Randolph (Joffrey Tower)

• Kingsbury on the Park

• 20 North State

• 2 East Erie

• 5 North Wabash

• City Club at Kingsbury Park

• 1000 Michigan

• 351 West Huron • Park Place

SOUTH LOOP

• Superior 110

• Prairie Court Townhomes

• 101 West Superior

• Wells Street Tower • Michigan Avenue Towers

GOLD COAST

• 2001 South Calumet

• 4 East Elm

• Vision on State

• The Ritz-Carlton Residences, Chicago

• Opera Lofts

• 10 East Delaware • 30 West Oak • 850 North Lake Shore Drive (Apartments) • The Waldorf Astoria (formerly Elysian Private Residences) • 1025 North Dearborn • La Schola

WEST LOOP

LINCOLN PARK / LAKEVIEW

• Residences on Racine

• Webster Square

• 565 West Quincy

• SoNo

• R+D 659

• The Vue

• 770 Lofts

• The Helena

• Lofthaus

• The Francisco

• Metro

• Ambiance

• Westgate Terrace • The Edge

SUBURBAN / RESORT

• 23 on Green

• Kelmscott Park, Lake Forest

• Platinum Tower

• River Glen, Libertyville • 1850 Amberley, Lake Forest

BUCKTOWN / WICKER PARK/UKRAINIAN VILLAGE

• Estates of Montefiori, Lemont

• The Row Townhomes

• The Promenade, River Forest

• Bucktown Commons

• The Residences at The Grove, Forest Park

• Stampworks

• Floral Avenue, Skokie

• Churchill Row

• Mallinckrodt on the Park, Wilmette

• Bucktown View

• Port Clinton Place, Vernon Hills

• Willow Court Townhomes

• The Peninsula at New Buffalo, New Buffalo, MI

• Robey Square Townhomes

• Beachwalk, Michigan City, IN

• 469 North Paulina

@ report 2017 · 83

about @properties

about @properties @properties was founded in 2000 by top-producing real estate brokers, Thad Wong and Mike Golden, as a boutique sales and marketing firm serving developers of residential new construction and condominium conversions.

Wong and Golden remain two of the most trust-

Over the past 17 years, the company has

ed advisers to developers of new-construction

grown into Chicago’s largest residential bro-

and condo-conversion projects in the Chicago

kerage firm, the largest independent broker-

area. They take an active role in all facets of

age firm in Illinois, and one of the top residen-

their clients’ developments, working closely with

tial brokers in the country by sales volume.

developers, architects, lenders and strategic partners to address feasibility, product design, promotion and sales. Developers also benefit from @properties’ award-winning, in-house marketing team, offering professional, agency-quality services, including graphic design, digital marketing, advertising and public relations.

Notable @properties-represented developments include: 4 East Elm, 10 East Delaware, 30 West Oak, The Waldorf Astoria Residences, The Legacy at Millennium Park, 400 West Huron, Webster Square, Prairie Court Townhomes, R+D659, and The Residences on Racine.

contact

@properties and its founders have earned numerous honors including the Merrick Momentum Award from the Chicago Entrepreneurship Center and 1871; the Ernst & Young Entrepreneur of the Year Award – Midwest; the Lincoln Park Builders Impact Award; Inc. Magazine’s Inc. 500/5000; Crain’s Chicago Business’ Fast 50 and 40 Under 40; and Chicago Tribune’s Top Workplaces. @properties has more than 2,200 licensed brokers and 22 offices throughout Chicago, surrounding suburbs, Southwest Michigan and Southeast Wisconsin.

For more information, visit developers.atproperties.com

thad wong, co-founder thadwong@atproperties.com

312.491.0200 · 773.251.6600

mike golden, co-founder mikegolden@atproperties.com

312.491.0200 · 773.251.6611