Saturday, February 27, 2016

Lincoln Park multi-unit surprising surge, unit sales up 94%

While pricing a client's building we noted a surprising surge in Lincoln Park Multi-Unit (2-4 unit building) sales year to year. According to MLS data, in 2014 there were 35 (2-4 unit) sales with a dollar value of $31,277,300. That number of sales nearly doubled or 94% increase in 2015 to 69 sales with a dollar value of $72,950,284. Dollar value increase year over year up over 133%.

The median price of 2-4 unit building in Lincoln Park is about $980,000.  For example 2019 N Racine sold in July 2015 for $980,000.  The brick two-flat on a standard city lot (25'x125') had updated facade and move-in ready 3 bedrooms, 1 bath units. However, it has been demolished and is in development for a new high-end three unit condo building. The standard lots are more prone to condo development while wider lots (30' or more) tend to be high-end single family house developments.

Sales data also showed a slightly longer market time from, on average, 36 days to 41 days.

We're a bit surprised by significant increased unit sales partly due to relatively low inventory Chicago's best neighborhoods over the past couple years. Many, many multi-units have already been converted to single family homes or torn down for new developments over the past 10 years with some controversy in Lincoln Park (i.e. loss of rental units, loss of density in exchange for high-end single family homes).  It was a little surprising to see so many remaining multi-units change hands.
We mentioned 738 W Schubert purchased last year for over $1 million and torn down for development.
Secondly, rising prices for a few year run often temper unit sales numbers even in good markets.  No such issue in Lincoln Park where developers and consumers are still buying big and sellers are happily making property available.

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