A South Loop Condo-Market Revival on the Way?
In a great article from Crain’s Chicago Business, it appears there will be a new attempt to revive the struggling South Loop condo market-a segment that was arguably hit the hardest during the recent housing crash. Related Midwest, a division of Related Companies of New York, has acquired nearly 500 unsold condominium units in three separate South Loop high-rises in an attempt to re-market and jump start condo sales in the neighborhood once again.
But what seems most intriguing about the latest plan from Related Midwest is that renting out some of these condos doesn’t appear to be an option. As stated in the Crain’s article, Curt Bailey, President of Related Midwest, believes that occupying a building with both owners and renters can create unnecessary conflict, and with One Museum Park, 1600 Museum Park, and Museum Park Place South already housing so many owners, leasing these unsold units fails to make the most sense.
With Chicago’s rental market on fire and so many developers resorting to some type of leasing strategy to ride out the down buyer’s market, the risk to such a plan is very apparent. With annual new construction condo sales averaging around 2,700 since 1990, 2011 saw only 770 new condo sales in all. However, with a sizable reduction in condo inventory due to the lack of development and condo conversions to apartments, Related Midwest certainly feels a strong recovery coming on soon. In addition, the plan to enhance demand for these South Loop condos also involves adding luxury finishes, improving common areas, and adding desirable building amenities such as dog grooming and dog walkers-which should play a key role considering the popularity of dog-friendly real estate in Chicago.
For more information of South Loop real estate for sale and dog-friendly real estate for sale, contact Ted Guarnero at (312) 810-6693.
Ted Guarnero, REALTOR® is a full-time real estate agent with over 1000 homes sold and $400 million in sales. Working with Compass real estate offering professional and effective real estate services to help you succeed in the local real estate market. Visit www.seeChicagorealestate.com for information on downtown Chicago real estate and to get in touch with an expert in the Chicago real estate market. Before you hire your next Realtor call Ted Guarnero 855-See-Chicago, it's on the House !