“Bargain” is not the first word that pops to mind in a discussion of North Shore real estate. But “more affordable” is coming into play, thanks to a recent surge in condominium construction.
Forget the historic, million-dollar mansions with their wrought-iron fences and park-sized front lawns along Sheridan Road. Rather, check out the sleek, new multifamily developments with cutting-edge amenities in Evanston, Wilmette, Winnetka, Highland Park, Lake Forest and elsewhere along the lake.
A prestigious North Shore address can be purchased for a bit more than $100,000.
“Condos are the cheapest way for younger buyers to get on the North Shore,” said Edwin Mills, professor of real estate and finance at Northwestern University.
Dean Kepraios, 24, would agree. He is buying a 1,200-square-foot, two-bedroom unit at The Edmundton, a 20-condomium structure being built at 1319 Chicago Ave. in Evanston by Cyrus Homes. Preconstruction prices range from $130,000 to $350,000 for one-, two- or three-bedroom residences with 900 to more than 2,100 square feet.
“I looked in Chicago but picked Evanston because it is a blend of urban and suburban living, with the university drawing a mix of people of varying backgrounds,” said Kepraios, who is an actuary at Towers Perrin in downtown Chicago.
He selected The Edmundton because of its convenient location close to the heart of Evanston, near transportation, shopping and the lake. The four-story, 25,000-square-foot structure is being built on a site formerly occupied by two old homes. Completion is expected next spring.
Ronald Fleckman, president of Cyrus Homes, maintains there is a strong demand for new construction on the North Shore. “Older homes are becoming obsolete because of advances in technology. To meet the demands of telecommunications–computers, fax machines, etc.–we put in six phone lines for each residence,” he said.
While up-to-date inside, The Edmunton will sport a traditional facade. “The exterior will blend into the surrounding neighborhood, with Evanston’s classic architecture that has stood the test of time,” said Walter Kihm, president of Cyrus Realtors.
The Edmundton is targeted at two widely different buyers–moveups and movedowns, the young and the old.
Farther up the North Shore, the emphasis seems to be more on the mature market.
“We didn’t need 5,000 square feet anymore,” said Fred Hickman, who soon will move with his wife, Katherine, into Hedge Row, a 40-unit condominium nearing completion at 360-380 Green Bay Rd. in Winnetka.
A project of Optima Inc., based in Glencoe, Hedge Row offers residences with 1,600 to 2,930 square feet, priced from about $319,000 to $621,000.
The Hickmans will downsize to a layout that is almost 3,000 square feet on one floor.
“We looked downtown, but this was the first one that fit our needs, including a living room large enough for a grand piano,” he said.
David Hovey, president of Optima, noted that “North Shore communities have an ample supply of good, old homes to raise a family, but there are not enough smaller residences that don’t require maintaining a large property.”
His firm works to fill that niche.
The Hedge Row site formerly was occupied by commercial buildings and rundown single-family homes, according to Hovey.
Just getting under way is another condominium in Winnetka–the 812 Oak Street Residences by Northfield-based Focus Development Inc.
The mixed-use structure will include 8,500 square feet of offices on the first floor, with three floors of condos (12 units) on the three floors above. They will be priced from $380,000 to $590,000 and have from 1,770 to 2,677 square feet.
“The key is that older buyers want larger units. They are empty-nesters downsizing from a large house, and they want to stay in town because their friends and country clubs are here,” said Tim Anderson, president of Focus Development.
Prof. Mills agrees that many older North Shore homeowners might be tempted by new, maintenance-free condos.
“People 50 and above have seen the light; they have learned that big lawns are highly overrated,” he said. “Some older homes may not even have central air conditioning, while new condos have all the amenities.”
To meet that demand, developers have been searching the North Shore for suitable sites for new multifamily projects. Creating “new” land usually means tearing down existing structures.
“This is not a preservation issue,” said Chris Wonders, general planner with the City of Evanston. “The buildings that are being demolished are usually under-utilized properties that are not architecturally significant.”
Wonders added that the construction of higher-density multifamily residences is an energizing trend that has gained momentum in the last five years in Evanston.
“Scarcity has created a demand for elevator condos on the North Shore,” said Steve Hovany, president of Strategy Planning Associates, a Schaumburg-based consulting firm for developers.
“A lot of elevator condos were built in the early 1970s, but much fewer since then. These buildings have a high risk because all the residences come on the market at the same time; if a downturn in the economy should occur, many units could be left unsold.”
But since about 1992, condos have returned to favor with bankers and developers.
“The population is aging into this type of unit; the average buyers are in their late 50s or early 60s,” said Hovany. He cautioned, though, that while elevator condos are successful now, the potential market is thin.
Another expert agrees.
“It’s a boomlet with a strong initial surge, but the number of affluent buyers is limited,” said Tracy Cross, president of Tracy Cross & Associates, a Schaumburg-based real estate consulting firm.
Cross said the secret to success is that the price of a new condo must be at least 25 percent less than the median resale price of single-family homes in the community.
“By looking favorably on new condo construction, North Shore governments are taking care of their own, providing housing for move-down buyers,” said Cross.
In Wilmette, new downtown condo buildings with retail on the ground floor are more than welcome.
“These buildings will help maintain a viable, vibrant downtown,” said John Houseal, senior planner with the Village of Wilmette.
“The apartments and stores will increase foot traffic and prevent this from being just a 9-to-5 downtown,” Houseal added.
Additionally, this type of residential development aimed at empty-nesters is not seen as increasing the school population.
Two projects will be built in Wilmette next year.
Cyrus Homes plans to demolish three buildings this month to make way for the Verona, a four-story, 23-unit condominium building at 1107 Greenleaf. It will include 9,000 square feet of retail space.
Prices for the one-, two- and three-bedoom units will range from $250,000 to $400,000. Each unit will feature a private terrace and two indoor parking spaces.
Optima Inc. will construct the four-story, 54-unit Optima Center Wilmette at 1100 Central St. Prices will range from about $160,500 to $332,000 for one-, two- and three-bedroom units with 900 to 1,870 square feet.
The structure, with an indoor lap pool, rooftop terrace and underground parking, will include 18,000 square feet of retail on the first floor.
Another Evanston location is being sought by Cyrus Homes for 100 more condos. Now a car dealership on Chicago Avenue, the property will have to be rezoned for residential development.
The hot action in Evanston also includes Northlight Condominiums, a project by Focus Development that is just getting under way at 811 Chicago Ave., south of Main Street. The 62 units will be priced to appeal to younger buyers–in the $106,000 to $235,000 range.
An old insurance building once stood on the site, according to Anderson.
Highland Park has been another active suburb for condo construction. Pontarelli Builders, based in Park Ridge, recently completed Highland Park Place, a development of two five-story buildings with 70 units at Green Bay Road and Laurel Avenue near downtown.
“Highland Park’s comprehensive plan designates areas around the central business distict for multifamily, and now we’re seeing development occurring,” said Ellen Berkelhamer, planner with the City of Highland Park.
She said another condo project has been approved for a section of the Highland Park Country Club, which the city purchased at auction to preserve open space. The city then sold 21 acres of the 18-hole golf course to Pontarelli.
Planned are two three-story buildings with 39 units each, according to Wilene Dennison of Dennison Edwards Real Estate in Highland Park, the sales and marketing agent for the new project.
Dennison said construction should start next spring with completion in 1998. Prices are expected to range from the mid-$200,000s to the low-$400,000s.
