Monday, December 07, 2015

Rare new construction house to be built on busy West Foster Avenue, Lincoln Square

A small frame single family home at 2234 W Foster was torn down last week to make way for new development.
You know the real estate market is good when you see a new single family home being built on busy West Foster Avenue. 2234 W Foster was a single family home bought as a foreclosure for $190,000 cash in 2013 by a capital group based in Michigan.  A construction permit was issued to build the new house with an estimated project cost of $165,000 ($165,000 seems pretty low).

Three flat condo buildings built next to a converted single family home and an original single family house across.
The property is currently zoned RS-3 for single family homes and two-flats. It is more common to see an application and a variance granted for a multi-unit along this area of West Foster Avenue.  Single family homes are in high demand in Lincoln Square, however, and I don't think there will be any problem selling a house for great profit at this location considering the low $190,000 acquisition price. There has been a huge price jump for Bowmanville houses over the past 3 years.

We've discussed the steady construction activity along this stretch of Foster Ave near the Lincoln Square and Andersonville retail and entertainment districts.    The block is also a few steps from Winnemac Park and plenty of every day services (grocery, cleaners, buses etc...).  The last large, fully gutted single family home to sell on West Foster between 1800 West to 2400 West is 1912 W Foster Ave , Chicago, Illinois 60640 for $640,000 in 2012 (comparable to new construction). A well finished home at 2234 W Foster should catch up to $800,000 or more in today's market. It would cost more than $165,000.

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