New Northwest Side "preservation ordinance" hurts small multi-unit owners

 

A Logan Square preservation ordinance along "The 606" elevated park trail on the North Side has inspired similar ordinances in adjacent areas. Photo Eric Rojas, Broker, Kale Realty 

The new "Northwest Side housing preservation ordinance" is problematic to me. This was rushed through the city council with little public debate. I don't know why Alderman continue increase taxes and regulations on small business and property owners. Do they think owning real estate and business in the city is a walk in the park? We're all greedy? My biggest issues are:

1. A tenant right to first refusal to purchase a multi-unit building when an owner wants to sell. The tenant buyers can force a contract with the owner BUT do not have to prove financial ability to purchase nor have to deposit more than 5% of the purchase price. The process can hold up sales for minimum but in effect much longer.

2. The tenant right of first refusal may be assigned to a 3rd party, further complicating sales for property owners.

Here's a summary of these issues in the ordinance:

Notice Timeframe & Right Of First Refusal Timeframe: 1-2 Units: 30 day notice required prior to sale, 15 day right of first refusal 3-4 Units: 30 day notice required prior to sale, 30 day right of first refusal 5+ units: 60 day notice required prior to sale, 90 day right of first refusal Timeframe to close if tenant ROFR is exercised: 5+ units: 120 days to exercise right of first refusal 1-4 units: 60 days to exercise right of first refusal.

"If purchaser purchases a rental property AND USES ANY PUBLIC FUNDS IN THE PURCHASE, then the rental property shall be maintained as affordable housing for no less than 30 years".

Financial assurances; deposit. The owner may not require the tenant association to prove financial ability to perform as a prerequisite to entering into a contract. The owner shall not require the tenant association or tenant(s) under Section 5-11-070060(b)(3), to pay a deposit of more than 5 percent of the contract sales price in order to make a contract. The owner must refund the deposit in the event of a good faith failure of the tenant association or tenant(s) to perform under the contract.

View the area and major points below. In my opinion there should be exemptions AT LEAST for owners with fewer than a dozen units... or some sort of compromise. These are often live-in owners or they invested and lived in a building than moved on to another home while keeping the rental building.

Chicago CityScape

WTTW also reports

Lincoln Park CVS Pharmacy torn down for condos

A hot location in Lincoln Park will trade a CVS for a six unit condo building with retail. Housing demand remains high on the North Side as Chicago continues to build multi-units in replace of one story retail. All photos Eric Rojas, Broker, Kale Realty

The Lincoln Park CVS building at 401 West Armitage, Chicago IL 60614 has been torn down and cleared to make way for condos.  I walked by the site at West Armitage and North Lincoln Avenue in eastern Lincoln Park last week and then read the story by Chicago Yimby. According to the report the new building with feature four stories, six residential condo units and two ground floor retail units. 

Attached condo/ townhouse sales in Lincoln Park

-The median price for a sold two bedrooms condo over the last 12 months is $500,000. 
-Bump up to three beds and the median sold price sky rockets to $835,000. 
-A four beds or more attached unit (condo and townhouse) has a median price of  $1,1750,000.

Feel free to reach out to me to find or sell your North Side property in Lincoln Park, Wicker Park, Bucktown and many other Chicago neighborhoods. Median prices are up year to year... do you know what your property is worth to sell or rent? My team has an expert for you. 

Eric Rojas, Broker, Kale Realty - erojas@kalerealty.com 

Median rent for a two bedrooms apartment in Lincoln Park, Chicago is $3,000/ month

Lincoln Common in Lincoln Park (shown here on Monday of this week) is a sexy rental and retail development on the former Children's Memorial site.  All photos Eric Rojas, Broker, Kale Realty

The median monthly rent for a two beds apartment in Lincoln Park over the last twelve months is $3,000. A three bedrooms apartment has a median rent of $4,200.

I was in Lincoln Park this past week looking at relatively higher-end rentals for a client moving to the city. We passed the Lincoln Common Apartments entrance at 2345 N Lincoln Avenue, Chicago IL 60614. Rents at Lincoln Common Apartments are listed from $2,600 to $12,500 a month on Apartment.com. Affordable apartments are also offered to qualified candidates based on income and other factors.

I've written about the Lincoln Common development several times in the past. It was built on the former Children's Memorial site. The old Children's Hospital and location is near and dear to our hearts... my wife has worked with Children's (and now currently named Lurie Hospital)  for over 22 years. My old office was around the corner.  We loved our time in Lincoln Park.

To buy, sell or rent in Lincoln Park and most Chicago and near suburbs please contact my team at erojas@kalerealty.com  

Visit my business page for recent posts, off market listings and more www.facebook.com/chicagorealestatelocal

Apartment construction finally begins at former Lincoln Square strip mall

40 residential units coming to the 5200 block of North Lincoln Avenue. The units will join another 67 residential units within a couple blocks of each other at this northwest Lincoln Square location. All photos Eric Rojas, Broker, Kale Realty

My tour of new construction multi-unit apartments and condos around Lincoln Square continues! A 40 unit building was proposed for 5214-5224 N Lincoln Avenue back in 2020.  Construction finally began last week.  The building is close to the North Lincoln / West Foster intersection and adjacent to a strip mall with a Dunkin Donuts, orthodontist and a bubble tea place among other storefronts.  To the north is the Diplomat Motel which was bought by the city and will become a transitional shelter for homeless.  Tony's Fresh Market is across the street.

The old strip mall at 5214 N Lincoln just North of West Foster Avenue back in 2023 prior to demolition. 

All told there are at least 107 condo and apartment units in development near the corner of  Lincoln and Foster! The new residents are great for local business, vibrancy and tax revenue.  The buildings make good use of the former one story strip malls and eye-sore properties.

To buy, sell, rent and invest on the North Side of Chicago and near suburbs please reach out erojas@kalerealty.com  I'm happy to answer your questions.

Checking in on Lincoln Square's largest single family home development

A clearing for single family home development remains where Transfiguration Catholic church once stood in Lincoln Square. Ten new homes have been largely completed with space for nine more. The houses shown in the distance face the 2600 block of West Winnemac (All photos Eric Rojas, Broker, Kale Realty)

The largest single family home development in Lincoln Square (possibly the largest ever) is over half-way complete. The planned 19 single family home development replaces the former Transfiguration of Our Lord Catholic Church building and land at 2609 West Carmen Avenue, Chicago IL 60625. That church parish was closed by the Archdiocese of Chicago in 2019 and the building demolished earlier this summer. 

Four completed single family homes one the 2600 block of West Carmen Avenue

The original development called for 24 townhomes but the zoning change needed was not approved.

According to the development web site and MREDLLC.com one home has sold and closed for $1,375,000.  It does not appear that any of the remaining nine homes are under contract (it is possible but it does not show that on the web site or MLS). Prices start at $1,295,000.  I confirmed with the listing agent the developer plans on building nine more homes on the remaining land.  The zoning would also allow for two-flat buildings.

71 single family homes have closed in Lincoln Square this year with a median price of about $1,000,000. 

Remaining land between West Carmen Ave and West Winnemac Avenue  

I will post check-ins on several ongoing developments around Lincoln Square this week (hopefully... no promises lol). Several multi-unit condo and apartment buildings are in various stages of completion. 

Lincoln Square getting more apartments on "booming" Lawrence Avenue

The former furniture store building at 1950 W Lawrence Avenue, Chicago IL 60640 will be redeveloped. FUN FACT: My wife bought a couple kitchen tables for two of our properties in the early 2000s.  (All photos Eric Rojas, Broker, Kale Realty) 

A vacant retail building at 1950-1952 West Lawrence Avenue in Lincoln Square will be demolished to make way for new apartments.  A permit was issued March 21st of this year for a five (5) story building with 12 residential units, ground floor retail and private garage. The building most recently housed a furniture store. 

The property has exchanged hands and features a history of liens and lis pending foreclosures over the past dozen years. That seems to be sorted out. The new building development is permitted "as of right" and won't need any zoning changes nor trigger any public forums.  The new construction will further consolidate a long running series developments from 1800 block of West Lawrence to the 2000 West block of Lawrence in Lincoln Square.

Yummy Falafel across the street from 1950 W Lawrence has recently opened in the former taco restaurant space.

R@A Sourdough on the corner of Lawrence of Winchester is just steps from the new development. Fantastic bagel, bialys and sandwiches. 

The old Sears store redevelopment is only a half block away. It houses DeVry University and 59 rental apartments. 

Falcon's at 1968 W Lawrence has taken over the old Chez Simo space. Sweet Moon Bakery at 1964 W Lawrence has established itself as a popular café in a space that has turned over several times.

 

100s residential units have been added from 1800 West Lawrence to 2400 West Lawrence with more to come.  It is a great site to see all the people and local business regenerating this commercial stretch of Lincoln Square over the past 20yrs. The Damen CTA stop, Western CTA stop and Ravenswood Metra all service the area.  Check out some of the Lawrence and Damen development I've written about HERE

All photos and stats gathered by Eric Rojas, Broker, Kale Realty - 2447 N Ashland Chicago IL 60614 - 312-939-5253. 

New: 167 Lincoln Square apartments rise near Mariano's, Ravenswood Metra

 

One of the new Ravenswood Residence buildings looking west on Lawrence Avenue in Lincoln Square. All photos Eric Rojas, Broker, Kale Realty 

The large apartment development at the corner of West Lawrence and North Wolcott in Lincoln Square has taken full shape.  I first wrote about the Chase Bank re-development plan back in 2016. You can see some photos of the original bank building at the link. The four story mixed-use buildings steps from the Ravenswood Metra and surrounding retail are better use than the old bank and surface parking lot. I was walking home from my own grocery shopping when I decided to check back in on the project.

The two four story buildings compromise studio, one and two bedrooms apartment rentals.  

According to Harlem and Irving Companies web site the finished development will feature 167 units.

"Located at 4733 N. Wolcott Ave., The Raven Residences (opening Fall 2022) will feature (two) four-story stylish brick facade buildings. The eastern building fronting Ravenswood will feature 55 luxury studio one-bedroom apartments. The western building will be comprised of 112 opulent studios, one-bedroom units, and two-bedroom units."

You can view the site plan HERE

The new (smaller) Chase Bank branch just to the east has been open for several years ahead of the residential development. The Ravenswood Metra station also sits just west of the development.

Lincoln Square rental apartments

Other nearby newer construction rental apartments have rented quickly for hefty prices.  The 1900 W Lawrence building (Sears redevelopment) has had two bedrooms, two bathrooms rental units lease for $2,500- $3,200 per month over the last 6 months. 

-The highest priced one bedroom rented in the last six months is $2,300/ month at 4540 N Ravenswood.

-The highest rental price achieved in the last 6 months for a two bedrooms, two bathrooms rental apartment is $3,325 at 4700 N Western Ave.

-The highest priced apartment rental  in the last six months is $4,950 at 4540 N Ravenswood, Unit 8, Chicago IL 60640

Lincoln Square former convent may be converted to apartments

 

4927 North Claremont is a former convent on the St Matthias Parish campus. The building was most recently used for early education programs, Scout meetings and various school and church activities. All photos Eric Rojas, Broker, Kale Realty

A plan has been submitted to convert a former Lincoln Square convent to 12 or more apartments.  The 4927 N Claremont building is for sale by the Chicago Archdiocese. The current purchase contract is contingent on the buyer/ developer receiving zoning change to preserve the building and convert apartments. The purchaser stated in the community meeting if they do not receive the zoning change they will not purchase the building. Currently the parcel (and block) is zoned for residential single family or two-flat development. The structure may also be bought and used for a religious organization. 

 You can view the Notice of Intent and the recorded community meeting on the project at the links. The public community review has been completed and the 40th Ward Alderman office is in general support of the proposal. The project will not alter the footprint of the building and will provide for the required number of affordable units (at least two). Next step for the zoning change applicant would be committee approval in the city council and then full council adoption read into the record. 

The Chicago Dioceses just sold a parking lot on the same block that is now being developed into family homes "as of right" per the current zoning.

Looking north down Claremont

The convent building is adjacent to the St. Matthias church building (also closed).

The property is not listed for sale on the Chicago Diocese website while other properties for sale are listed with asking prices. Often organizations will hire a Brokerage to market the property "more privately" to local or large investor/ developers. I can make an educated guess on the asking price range of the property... but I'm not going to do that here 😀

We have helped our clients make zoning application decisions based on the market value of their property and the overall marketing plan. Please reach out to us if you have questions concerning the value of your property or if you wish to purchase or sell property in the Chicago area. 

North Center, Lincoln Square high-end developer turns to condo projects

 

1800 West Berenice gets zoning approval in the 4th Ward. Luxury house builder Landrosh Development has a few higher-end multi-unit developments in the the works in Lincoln Square and North Center. Image from Alderman Matt Martin 47th Ward site www.aldermanmartin.com/development 

A North Center 44 unit development received zoning approval in the 47th Ward. Landrosh Development paid $1,925,000 for the 12,825 sq/ft property according to the Cook County Recorder of Deeds.

This one caught my eye for a couple reasons: First, it's another example of building large mixed use multi-unit on original one and two story commercial buildings. Chicago developers (with the blessing of city planners and council members) have been aggressively building up on underused commercial lots near transit over the past five years. The boost is partly due to the 2013 Transit Orientated Development ordinance and expansions. This sits less than three blocks from the Irving Park Brown Line stop. 

More interestingly the local developer - better known for getting some of the highest sale prices for speculation homes in Lincoln Square - has a few condo developments in the works.  I mentioned this 14 unit development in Lincoln Square and the company is trying to get THIS North Center development approved... with some million dollar asking prices.

There seems to be no shortage of demand in Lincoln Square and North Center for higher-end condos and single family homes.

40th Ward Alderman introduces ordinance to "down zone" Lincoln Square development

Fifth Third Bank property in Lincoln Square at the corner of Lawrence and Western. An ordinance has been introduced to "down-zone" the property.

40th Ward Alderman Andre Vasquez quietly introduced an ordinance yesterday to down zone the Fifth Third Bank property (4800 North Western). My real estate data partner Chicago Cityscape tweeted the ordinance to me due to my posts/ tweet on the potential retail development.  My past post HERE. This is effectively an effort to stop a planned "as of right' development.  As of this writing there is no public statement concerning this unusual step on the 40th Ward website, Facebook site or personal accounts.

The zoning reclassification ordinance can be read here

I'm not supportive of attempts of a single alderman to unilaterally "spot zone" properties to prevent as of right development. One similar attempt to down zone an individual property in Logan Square failed to stop a 60 unit development.

I have no direct financial stake in the re-development plans for the Fifth Third bank properties. This is not an endorsement of this particular development. I am opposed to introducing an ordinance, in this manner, to change zoning classification in an attempt to prevent as of right development by private property owners. 

"Down-zoning" can be good policy if done as broader, more inclusive process like any legislation. Crain's Chicago Business has a good article explaining the practice of ad hoc down-zoning HERE 

 

Three big Lincoln Square things going on now

 

Several large housing and infrastructure developments at the center of Lincoln Square are being discussed, debated and even facing opposition. Check out three big things affecting the neighborhood now:

Western Avenue Corridor Study 

You may join a meeting to discuss the possibilities for the portion of North Western Avenue that passes through Lincoln Square (basically Montrose to Bryn Mawr). The meeting is led by Department of Planning and Development (DPD) and the Chicago Department of Transportation (CDOT)

From the web site: The study will examine the land uses, development patterns, and circulation along this heavily traveled and diverse corridor. The study seeks to analyze the potential to:

• Increase density
• Promote a greater mix of land uses
• Improve how development relates to the surrounding, lower-scaled residential areas
• Enhance pedestrian safety through a forward-thinking design and planning process.

City owned parking lot at North Western and West Leland

Lot 70 at Leland and Western  image 47th Ward Facebook site.

The 47th Ward has offered a survey and presentation discussing possibilities for the city-owned parking lot at West Leland and North Western Avenue adjacent Lincoln Avenue retail. Local business owners and some neighbors were up in arms about an earlier proposal to build 100% affordable housing on the site ("save the parking lot!" 😂 ). The lot currently services local business (across from another lot) and is used during the many Lincoln Square fests. 

New Grocery Store at Western and Lawrence

A developer plans to bring a large national grocery retailer to the Fifth Third Bank building at 4800 North Western Ave without the need for community input. 

I wrote about the proposal to bring a grocery store to Western and Lincoln a few weeks ago. The developer may redevelop the property "as of right" without triggering the zoning process. The plan is drawing opposition due to the developer's lack of transparency and lack of community input. Local businesses fear a "Whole Foods" would muscle them out. The 40th and 47th Ward are hosting a "visioning session" January 28th.

   

Under contract! Lincoln Square four-unit building sold (vacant lot still available)

 

5138 N Claremont, Chicago IL 60625 (Photo Eric Rojas, Broker, Kale Realty and VHT.com)

We recently listed and secured a contract for 5138 N Claremont, Chicago IL 60625 in the Lincoln Square neighborhood after one week on the market.  The contract is expected to close before the end of the year. We listed the building for $849,900. 

Take a look at more photos and listing information HERE

5130 N Claremont, Chicago IL 60625 asking $399,900.

For sale: 5130 N Claremont Chicago IL 60625 asking $399,900. Our vacant corner lot listing (standard size 25' x 125') adjacent the south side of the building is available. Build your dream home near Winnemac Park and in the boundaries of 1+ rated Chappell and Amundsen school districts.   More info HERE  

If you are interested in buying or selling small multi-unit buildings, houses or condos in and around Lincoln Square or other Chicago neighborhoods please contact us at erojas@kalerealty.com 

Large new grocery development coming to Lincoln Square

The Fifth-Third Bank building at 4800 N Western in Lincoln Square. All photos Eric Rojas, Broker, Kaler Realty

The Fifth-Third Bank property on the northwest corner of North Western Avenue and West Lawrence Avenue in Lincoln Square will be redeveloped with a grocery store tenant. Rumors I've heard were confirmed by a post this week from the 40th Ward Alderman's office. The zoning allows for the re-development of the property "as of right". There would be no need for the community approval or zoning process. The developer of the project has not disclosed the specific grocery store tenant that will lease the space.

A bank drive-through and two bank parking lots are adjacent to the west of the building.

Lincoln Square has become one of the most desirable neighborhoods in Chicago (if home sale numbers, restaurants, schools, new development and sale prices mean anything). But the high profile corner of Lawrence and Western still has a bit of a gritty underused feel. An old Walgreens with pigeon soiled plaza, a vacant Mattress Firm storefront, the over-sized drabby bank building and vacant adjacent commercial building... and parking lots.  In fact there is a Burger King with a large, barely used surface parking lot across the street from the bank parking lots.  

Looking east over the parking lots.

Looking northeast down West Lawrence Ave.

The property has large underused parking lots in a prime location near the popular shops, restaurants and CTA Western stop of Lincoln Square. 

A legitimate concern is the affect a large chain grocery store may have on local business.  Even with several grocery options within 4 to 6 blocks of this location I feel a quality grocer would not be detrimental to local stores. Harvest Time and Gene's Sausage Shop (closest, local owned shops) have specialty products and service that keep loyal patrons coming back. Tony's Fresh Market serves a large diverse area six blocks north. The Mariano's is six blocks straight east could be affected. However it is a large corporate chain in which most people I talk to feel the quality has gone down since it was purchased by Kroger.

The new development would be just steps away from "downtown" Lincoln Square shops and restaurants.

Just a few stores of many in the main shopping plaza of Lincoln Square.

Washed up! Lincoln Square laundromat building near Winnemac Park looking to redevelop

 

4939 North Damen is currently an operating M&M Coin Laundromat

The laundromat building owner has put in a zoning change application and proposal with the 40th Ward. The redevelopment of the one story retail building would feature 12 residential units and ground floor retail. Here's a rendering of the project:

A community zoning meeting will take place today, Wednesday December 9th at 5PM

Looking north down North Damen Avenue

Popular Over Easy Cafe breakfast place building is adjacent to the north of the proposed development (separate building). 

I would like to see this development happen. I'm all for more density along North Damen Avenue to support more business and services near Winnemac Park. We've seen one or two development projects a year from 4800 North Damen to 5200 North Damen over the past decade.

Sold for $505,000 Lincoln Square two-flat demolished

4854 North Damen in Lincoln Square was sold this year for $505,000 in a private sale. The vintage two-flat was torn down last week. I liked the subtle detail of this particular building. No permit yet for what will be built but we can guess it will be a three of four unit building. 

The property sits between Chui's Food Store to the south and an existing three unit condo building with ground floor retail to the north.  

Here's a view looking south at the building before the demolition. 

4856 North Damen is a nice, well established condo building adjacent to the tear down.  The top floor unit sold earlier this year for $437,000.

Bricks from the demolition are packaged up for reuse. 

Former Le Colonial property in Gold Coast torn down

 

937 N Rush Street was torn down last week. Modern two story retail is to be built in its place. All photos Eric Rojas, Broker, Kale Realty unless otherwise noted. 

An older, quirky two-story retail building at 937 N Rush Street in Gold Coast has been torn down. The former home of Le Colonial had some interesting history... not to mention mechanics liens I noticed.  I did not see a recent or near recent sale price documented with the Recorder of Deeds. It appears to be a redevelopment by the long time owner/ landlord. 

The original property at 937 N Rush St. Google.com image.

The beat goes on in Gold Coast despite this year's pressure on commercial spaces due to coronavirus outbreaks. It remains to be seen how premium locations like Gold Coast will be affected into the next two years. The residential real estate market near the Loop has softened.  This is directly due to in-town owners and tenants opting out of downtown due to COVID19 and civil unrest in response to social justice issues.  Commercial retail locations near downtown in return have little foot traffic and operational restrictions. 

This perennial top shelf location supported by luxury condos and apartment dwellers is seeing a double whammy this year due to our new COVID19 realities and civil unrest. 

Lincoln Park vintage building in Arlington-Deming Historic District to be demolished

A vintage two-flat with a coach house located in the charming Arlington-Deming Historic District of Lincoln Park will be demolished. My business partner Bob resides in Lincoln Park near this block and noticed the fencing yesterday at 516-518 West Arlington Place, Chicago IL 60614. A quick check at my www.Chicagocityscape.com account shows a demo permit had been issued September 25th, 2020. The RM-6 zoning means a taller building with more units is permitted on the lot.

A small vintage multi-unit building and coach house at 516-518 West Arlington Place (All photos Bob DePalma, Eric Rojas, Brokers, Kale Realty)

The building has some history with zoning and development struggles. Back in 2006 the owner at the time tried to redevelopment the parcel despite the down-zoning of the block in 2002. The plans were rejected by the 43rd Ward alderman and Chicago Plan Commission at the time. That same owner purchased the building in 1996 for $340,000 and recently sold the parcel this year for $2,900,000 (sale was recorded in January of this year, source Cook County Recorder of Deeds). Not bad!

No permits have been issued for new construction on the site as of yet and I have not seen a proposal on  the 43rd Ward alderman site.

Check out more posts around the Arlington-Deming area of Lincoln Park HERE

"Blue collar" Gold Coast corner demolished, apartments coming to State and Divison

The corner at 1200 N State Street and several other addresses in Gold Coast under re-development. The new development address would be 1212 N State and feature around 90 apartments. 

A rather pedestrian corner in high-end Gold Coast is being developed. It seems like a lifetime ago we captured a few photos of demolition in progress at State and Division. Many bars and shops have graced the corner. A Chase Bank branch too.  Here's a great post about what was there. I hope to pass by there again soon and check on the progress. According to reports the corner properties were purchased for $20 million.

I may have wandered in and out of the pubs along this stretch of State Street in simpler times.

Looking eastward on West Division Street.

A rendering of what is to come and construction updates at the 2nd Ward web site.