Monday, August 15, 2016

North Center multi-unit sales in 2016: Steady sales and conversions continue

This two-flat on North Oakley in North Center might need a little TLC but it's full of character.  We can only hope that we hang on to more original homes when possible.
I spent several hours over the weekend showing a relatively low priced rental condo ($1,700 / month one bedroom+den with heat and laundry included) in North Center.  We had about eight showing requests for the first weekend and secured a tenant. Many of the potential tenants expressed their landlords were "selling their current building".  Demand is high for older, cheaper rental units in North Center as the original multi-unit stock gets sold and demolished for new construction developments.

North Center multi-unit (2-4 units) sales January 1st to August 12th, 2016
50 multi-unit buildings have closed on thus far with a median price for the category at $630,000. 
  • 31 of the sales are two-flat buildings with a median price of $630,000. 
  • 14 of the sales are three-flats with a median price just over $700,000.  
  • 5 buildings are four-flat sales with a median price of $830,000. 
55 small multi-units sold over the same period in 2015 with a median price of $645,000.
54 of these buildings sold in 2014 for a median price of $600,000.

Compare those consistent numbers with 2012 with 53 small multi-units sold and a median price of just $480,000.

A new construction building replaces an old frame multi-unit on West Addison Street in North Center.

The more controversial issue surrounding small multi-units is they are regularly demolished or renovated to become single family homes (or pricey new condos).  In some cases attractive brick and stone two-flats in nice shape have been completely torn down to build a new house... often eliminating cherished Chicago neighborhood character and architecture. The redevelopment is legal and, of course, not all bad. 

The issues become lack of affordable renting stock, less available homes and lower population density that leaves many citizens no choice but to move to another location.  A great way to research demolition, conversion and renovation permits on properties is the web site Chicago Cityscape.

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