Chicago Real Estate Daily had a positive story yesterday in regard to real estate as the condo inventory has shrunk:
This has been an ongoing story in our neighborhood as numerous condo buildings converted to rentals. Most recently Lexington Park (Michigan and Cermak) converted to rental, but there must be at least 10 other projects in the South Loop that followed this trend.
The article specifically cites Astoria Towers (9th and State) recent conversion as a prime example of this trend.
(Image from Chicago Real Estate Daily)
1. The article makes the point that some investors are buy condos in bulk for heavy discounts and renting them out. The overhang of apartments that are really condos will be with us for quite some time--when the price rises, they will convert back to condos, continuing to keep down prices.
ReplyDelete2. The article referred to downtown condos, not South Loop condos. Although highly publicized, downtown condos were never built at the level that South Loop condos were. South Loop was the hot neighborhood just before the crash: the overhang here will be correspondingly greater.
I suspect the South Loop will become a more interesting place precisely because the housing boom has gone away. It won't be the playground for demi-monde fifty-somethings with a monotonous row of dry cleaners and fancy eateries: it will be a bit funkier and more lively than that. And that's a good thing.
does anyone have any news on Lexington Park? I was hoping they would be pushing to finish the inside so they could rent during the summer. Im kinda tired of staring at an empty building (ha like our retail space in the sloop!)
ReplyDelete@anon at 8:18 am .... the way this firm defines "downtown" seems to be bordered by North Avenue to Cermak to 90/94 at least according a 2009 report referring to the "greater downtown area." And the Crain's story also cites a development in the West Loop, so I think this is a larger area beyond the Loop being talked about. But the South Loop definitely saw the biggest boom in downtown condo development so we have the biggest hangover, as it were. ... and hopefully the South Loop will become funkier and livelier.
ReplyDelete"I suspect the South Loop will become a more interesting place precisely because the housing boom has gone away. It won't be the playground for demi-monde fifty-somethings with a monotonous row of dry cleaners and fancy eateries: it will be a bit funkier and more lively than that. And that's a good thing."
ReplyDeleteI couldn't agree more. Even if I'm closer to the fifty something mark, I'd love to see the South Loop become more vibrant with a funky atmosphere!