January 5, 2013 – Renters at one West Loop development are looking for a new place to live. According to Crain’s, Bill Senne, the developer of Emerald, has stopped renewing leases at his two eco-friendly 12 story towers on 123 South Green Street.
So why would Mr. Senne boot out paying renters? Because he has evidently found some paying buyers for these Chicago condos. There are 212 condos in this Chicago real estate project, which the article says was completed in 2008. The developer still had around 92 unsold condos by the end of 2009, according to Appraisal Research Counselors. He didn’t want to cut prices so he offered all kinds of buyer incentives like electric scooters and free parking.
But when the condo slump continued, Mr. Senne did what a lot of other Chicago real estate developers did, which was rent out units to generate some income. But the article states that
six units went under contract and two others closed at Emerald in the third quarter of last year (2012), and so with just 22 unsold units, the developer isn’t opting to renew leases amid this flurry of new sales activity.
Current prices at Emerald run about $378 per square foot. That’s a bit higher than what the condos were priced at in 2006, which was then $367 per square foot.
The article also says that leases at One Place Condominiums in the South Loop also weren’t renewed and 12 condos were sold during the third quarter of last year (2012) as well.
There are still plenty of North Shore Chicago condos available for sale and for rent. Just remember that if you’re leasing in a building that wasn’t originally a rental tower and the developer is only renting a few units, you may not be able to renew your lease at some point if buyers continue to come back into the market.