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| Downtown Evanston: a hot alternative for home buyers
Crain's Chicago Business 09/24/2001 |
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| Chicago isn't the only city awash in a wave of residential construction. Evanston has undergone a building boom of its own, attracting new residents, retail shops and commercial ventures. Along with the boom has come a rise in property values and prices, making Evanston perhaps a more desirable place, but also a more expensive place to live. Laury Franks is fairly typical of the new breed of home buyer in Evanston, the city adjacent to Chicago's north border. A longtime Chicagoan, Ms. Franks had recently been living in San Diego. When she decided to move back to the Chicago area, she considered buying a place in the northern suburbs where she had once lived. Downtown Chicago was another possibility. "Evanston is a nice mix of the urban and suburban," says Ms. Franks, who bought a condominium at Church Street Station, a new building now underway in downtown Evanston. She figures the location keeps her close to friends in the northern suburbs, but she's near Chicago, too. Ms. Franks also likes the fact that Evanston is a college town, home of Northwestern University. "Evanston is upscale, yet it's casual," she says, admitting that it didn't hurt that Evanston has better restaurants than other towns. In the last five years, about $800 million worth of new development has been undertaken in Evanston, according to figures from Evanston CHamber of Commerce. This recent round of development includes major building projects by Northwestern University and Evanston Hospital, two of the city's major employers. But about $400 million of the new development, most of it downtown, has been initiated by the private sector. New projects included retail space, movie theaters and a Hilton Hotel. Condominiums compromise the largest category of new buildings. Some of the big new condominium buildings include:
"The concept is really a response to poor traffic conditions," says Jonathan Perman, executive director at the Evanston Chamber of Commerce. "Developers are looking at communities close to Chicago that also have good transportation." He adds that Evanston has two train lines and the commute to Chicago is about a 20-minute ride. Transportation-oriented development also tends to concentrate the population in one area, near the transit hub, which has the effect of encouraging retail growth. "I can walk everywhere," says Urszula Fabiszak, an Evanston resident and consultant who works at Chicago-based Accenture. "I am 1-1/2 blocks from the train and 3 blocks from the lake." Already an Evanston resident, Ms. Fabiszak recently bought a condominium at Optima Towers. She expects to move there next spring. "I shopped for a long time before buying this condominium. But I liked the location and Optima is a good builder," she says. Developers report that condominium sales have been strong, a fact supported by recent statistics. In 1999, 317 existing and new condominiums in Evanston were sold, according to figures from the Evanston office of Koenig & Strey GMAC. In 2000, 454 condominiums were sold, a 43% increase in sales. "That's phenomenal," says Rose Thomas , managing broker at Koenig & Strey GMAC in Evanston. So far this year, 40 new condominium units are under contract, compared to 32 new units sold during 2000. The popularity of the Optima Towers project shows just how strong the Evanston market for new condominiums has been. Sales began last February and 93 of the 105 condominiums have already been sold. Eager to repeat its success, Glencoe-based Optima Inc. has announced plans to build a 28-story building, Optima Views, at 1720 Maple Ave., directly west of a new movie theater complex. Says Optima vice president Tod Desmarais: "We like downtown Evanston." So do a lot of other people. New residents tend to be singles or professional couples without children. Other condominium buyers are empty-nesters downsizing from big houses along the North Shore. While seeking an urban environment that isn't too congested, new residents also say they are trying to get more real estate for their money. Many are refugees from Chicago, turned off by the high prices and small rooms in city developments. Two years ago, Harvey Wolf bought a new Evanston condominium with about 1,800 square feet of living space. His apartment has a big kitchen and two bedrooms. He converted the third bedroom into a formal library. " I got everything," says Mr. Wolf, a medical psychologist who works in Arlington Heights. Mr. Wolf paid $281,000 for the unit plus an extra $54,000 to upgrade the interior finishes. Like a lot of Evanston home buyers, Mr. Wolf figures a similar place in Chicago would have cost much more. Developers say Evanston condominiums cost about 15-20% less than comparable places in Chicago. Some of that savings is being put back into the units, though. At Evanston Galleria, the former Marshall Field's building, all buyers have opted to pay for upgraded finishes, such as hardwood floors and stainless steel appliances. "It was a surprise," says developer Bob Horner at Evanston Galleria Investors, LLC, Evanston. "The level of finishes that buyers want is higher than we expected it to be." So far, 80% of the units in the building are sold. Mr. Horner thinks sales will be complete by February. Prices for the remaining units range from $206,000 to $409,000. In general, Evanston condominium prices are moving up. Average prices last year for new condominiums increased 29% from $175,900 to $226,980, according to Ms. Thomas at Koenig & Strey GMAC. This year, the average selling price of a new condominium unit is $246,700, a 9% increase over 2000. Some units are quite expensive, one selling for $833,000. Ms. Thomas says: "We have a whole new market of condo buyers." Thomas Roszak developed Chicago Avenue Place, a building with high-priced units. "Evanston is a very diverse market," says Mr. Roszak, president at Roszak/ADC LLC, Evanston. His building not only has a few units that cost more than $800,000, but also units that start at $150,000. "We have units at every price point." The first building at Chicago Avenue Place opens this October. The four-building development will be complete in the spring of 2003. About half of the 156 units in the complex have been sold. Church Street Station has five two-story penthouses priced from $675,000 to $929,000. Three of the units have already been sold. The expensive units are being purchased by empty-nesters downsizing from big houses, according to developer Timothy Anderson, president of Focus Development Inc., Northfield. "Evanston really needed some big units," he says. |
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| Roszak/ADC 1415 Sherman Avenue Suite 101 Evanston, IL 60201 Main 847-425-7555 Sales 847-328-8200 Fax 847-425-7540 email inquiries: info@roszakadc.com copyright© 2003 Roszak/ADC. All rights reserved. |
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