- Project will be delivered in summer 2017, when minimal new supply is expected in Lincoln Park.
- Rents at the development will exceed $3 a square foot.
- There are apparently no more starter condos in Chicago.
This month Chicago-based Baker Development Corp. will begin demolition work on a Lincoln Park development site that in previous cycles would house a condo project.
Baker will instead construct a 191-unit luxury apartment tower that will feature units, amenities, services and finishes similar to condo developments.
The project’s numerous luxurious features, along with a unit mix that is skewed toward two- and three-bedroom units and penthouses, make this development a candidate for a condo conversion further down the road.
Initially the project will be leased and delivered as a rental property, according to Aaron Galvin, the manager broker/owner of the exclusive leasing brokerage for the project – Luxury Living Chicago Realty.
Galvin admitted that the project’s focus on larger units makes it a greater candidate for a future conversion.
He also said the project will be delivered at a time, summer 2017, when minimal new product will be coming online in Lincoln Park. The development’s competition from a leasing standpoint will stem from new luxury deliveries in River North.
Rents at the development, dubbed ELEVATE, are expected to be on par with the newly-built high rises in downtown Chicago, well above $3 a square foot.
Demand for the project will come from people that want new high-end condos, but can’t afford or find them.
According to Galvin, a minimal number of condo priced in the $500,000 to $800,000 range are being delivered in the metro.
“In past cycles people would buy starter condos. There aren’t anymore starter condos in Chicago,” he said.
ELEVATE will also feature 16,3000 square feet of retail space adjacent to renovated Apollo Theater. The property is located near iconic neighborhood entertainment venues and is two blocks from the Fullerton Avenue train station.
Luxury Living Chicago Realty is currently pre-leasing a 120-unit rental property in Logan Square. The project is being developed by Property Markets Group out of Miami and will be a keyless building, with also locks and doors controlled by smart devices.