Roszak/ADC
On the horizon
Buyers flock to downtown Evanston to be near urban amenities
Chicago Tribune
04/20/2007
Jane Adler |
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It may not top every traveler's wish list, but downtown Evanston is almost a must-see for condominium buyers.
Take, for example, Michael and Mandy Gutwaks. They were out walking in downtown Evanston when, for fun, they stopped in at the sales office at Sherman Plaza, a new 25-story mixed-use high-rise on Davis Street.
They had been thinking about buying a place and Michael Gutwaks always liked Evanston because he had spent time there as a teenager visiting his mother.
So they took a tour of an available unit at Sherman Plaza and liked what they saw. But, being prudent, they didn't want to buy the first place they looked at without checking out other places.
They considered a condo in Chicago's Rogers Park neighborhood that had a lower price tag and lower property taxes than the Evanston condo. The Rogers Park unit was also twice as big as the snug 730-square-foot unit at Sherman Plaza.
But the Evanston building eventually won out.
"The location is why we picked this place," said Michael Gutwaks, who helps run a family-owned business, Maya Romanoff, a manufacturer and importer of wall coverings.
Now that they've settled in, the couple has an easy walk to the train, restaurants and stores. And they like the urban feel of the downtown.
A bonus: sunrises over the lake.
"This is the environment we wanted," said Michael Gutwaks.
While condominium sales have slowed in Evanston just as they have elsewhere, buyers continue to show interest in the latest crop of downtown buildings. Buyers like the convenient location in the burgeoning urban hub with its multiplying list of hip restaurants and shops.
Proximity to Lake Michigan and Northwestern University are big pluses too.
And because Evanston has become a desirable address, with a push from the city, developers have continued to build. A handful of new high-rises are under way, and several more are on the drawing board.
Even so, no one seems concerned about a glut of new units, especially when compared to nearby Chicago where fears are real about too many condos hitting the market.
So far, unit prices in Evanston have remained stable, and developers say sales have picked up since winter. However, most new buildings are offering some incentives to lure buyers into the market.
"Pricing is still strong," said Gail Lissner, vice president at Appraisal Research Counselors, Chicago.
New units in Evanston are priced in the $300 to $400 per square foot range, she figures. By comparison, new units in downtown Chicago start at about $300 per square foot, and units in luxury buildings at $500 per square foot.
"Evanston is a great condo location," Lissner added.
Developer Tom Roszak, whose company has built about 500 units in Evanston, says 2006 was a slow year and sales were about half the typical number. But condo sales have recently picked up at Sienna, Roszak's big downtown project, built around a one-acre garden plaza.
Located at 1720 Oak Street, Sienna's first phase is sold out and about 70 percent of the units in a second phase are spoken for, Roszak said.
Sales just started at a third building. Unit prices range from about $250,000 to more than $1 million.
Since Sienna first opened for sales two years ago, prices have increased by 10 to 30 percent, depending on the particular unit, though Roszak said prices were stagnant in 2006.
"We are back to normal absorption levels," said Roszak, president of Roszak/ADC, Evanston. He's currently offering several incentives to kick off pre-construction sales in the third building, and in his words, "to help get people in the door."
The menu of incentives includes financing help, several months of free assessments, or interior finish upgrades.
Sales of existing condos in Evanston have slowed, according to Mary Summerville, broker/owner at Prairie Shore Properties in the suburb.
Sales of one-bedroom condos fell to 133 units last year, from about 200 units in 2005.
Vintage units have taken the biggest hit, Summerville said.
Unless a building has a total gut rehab, people are not interested because they can choose a new building.
"It's definitely a challenge," she said. "Pricing is key."
Agent Jack Lewitz writes an Internet blog about Evanston real estate. He thinks the condo market is relatively stable, but the inventory has inched up. There's currently about a 6.7 month supply of condos for sale, compared to a historical norm of about a four-month supply.
"It's little bit of a buyer's market," said Lewitz, broker associate at Weichert Realtors-Lakeshore Partners, Evanston.
That's good news for buyers like Tracy Moses, who is somewhat typical of the recent wave of condo buyers in Evanston.
Moses, along with her husband and teenage daughter, selected a unit at 900 Chicago Avenue, a building that opened last year on the southern edge of downtown.
The family was looking for a more urban lifestyle after having lived in Texas for the last few years. Moses' husband was no longer tied to Texas for his job and Tracy Moses wanted to move back to Chicago where she had lived, and her mother currently resides.
So the family moved from a 4,100-square-foot house with a swimming pool in suburban Dallas to a 1,500-square-foot condo.
"It was a shock for us," said Moses, who was tired of suburban life. "But the house we had was too big and we were really ready for a change."
What Moses likes most is the fact that they can walk most places, and that Evanston is an up-and-coming spot.
"We had three cars in Texas and now we don't even drive the car we have that much," said Moses.
In 1989, the City of Evanston set out to create more residential units in the city's hub.
"We wanted a 24/7 downtown so we needed more people living downtown," said James Wolinski, director of community development for the City of Evanston.
Early projects were big rental buildings. But since 2000, about 1,100 new condominiums have been added to the downtown core area, according to city numbers.
By comparison, about 675 new units outside the downtown area were added.
Two new downtown developments have been approved. Grand Bend@Green Bay, with 70 units, is now under way at Green Bay Road and Emerson Street.
Winthrop Club will break ground in the next month or so at 1567 Maple Street. Another project, with 152 condos, has been proposed at 1890 Maple Street in the area called Research Park.
The 15-story Winthrop Club will have 99 units, according to Nancy Arient, a sales representative at the building. Unit prices range from the low $300,000s to about $1.4 million, though a penthouse sold for $1.8 million.
Arient said buyer incentives are not being offered, and that unit prices will probably be raised when constructions begins.
"We are including a lot in our homes," she said. Units come with granite countertops, hardwood flooring, crown molding and floor-to-ceiling tile in the bathroom. A parking place is included in the price.
Gail Kaitis plans to move to the new Winthrop Club building when it's finished, probably sometime in November of 2008. She's buying a $500,000 two-bedroom unit.
Kaitis currently has a two-bedroom condo on the 10th floor at Optima Towers, 1580 Sherman Ave., a newer mid-rise building downtown.
"My view has been ruined," she said.
Before Sherman Plaza, now the city's tallest building, was built, she was able to see the lake, and, to the north, the Baha'i Temple in Wilmette.
"The view may not be a reason that most people would move," said Kaitis. "But my view is very important to me."
The view problem is a common one in Chicago, but it's becoming an issue in Evanston too, as more high-rises are built.
"We are running out of places to redevelop," said the city's Wolinski.
An 18-story building proposed by developer Optima at Davis Street and Chicago Avenue was voted down about six months ago by the City Council. It was too close to low-rise, vintage buildings, said Wolinski.
"I think that spot will be redeveloped, but the height of the project will be greatly reduced," he said.
Wolinski figures about 25 downtown buildings are under review for landmarking by the Evanston Historic Preservation Commission. Those sites could be landmarked and preserved, or, if not landmarked, then redeveloped.
"But we would like to maintain our traditional districts," he noted, adding that certain streets with low-rise buildings would not be appropriate spots for new high-rises.
For now, Wolinski said, "the City Council is taking a pause and catching their breath." And his department is updating its downtown plan.
"Fifteen years ago, we were looking for developers, now they come here. The city can be selective," he said.
At the same time, developers are looking for spots to build on the fringe of downtown. At the southeast corner of Main Street and Chicago Avenue, a new 71-unit building will get under way this summer.
Mainstreet Station recently opened sales, according to Prairie Shore's Summerville, who handles sales for the new building.
"We've had 80 requests for information from potential buyers," said Summerville, noting that business is picking up. "That's pretty good." |
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