Condo living comes of age Published: Chicago Tribune Online In downtown Chicago, condominium living isn't just about having a place to hang your hat and rest your weary head at night. It now entails a luxury lifestyle all its own. "In the past few decades, condo living was really more like apartment living," said Alan Lev, president of Belgravia Group, a Chicago-based condominium development company. "For many, it has now become a luxury lifestyle. The size of the units has increased, the ceilings are higher and the level of finishes has improved dramatically. It's really gotten to be more semi-custom living than just converting an old apartment and calling it a condo." "What's changed in recent years is the emphasis on technology and the lifestyle that's being offered," added Laura Molk, senior vice president of LR Development Company, another Chicago-area developer of landmark residential and commercial properties. With so many options in today's luxury condominium market to choose from, developers are going the extra mile to make their properties stand out in the ever-growing crowd. "There's so much more competition now for buyers," said Dorrie Freiman, director of sales for Waterview Tower, a new luxury high rise taking shape at 111 W. Wacker Drive. "To succeed, you have to put a better product out there than your competitor." High-rise living Many of those competitors are shooting for the stars with a whole new breed of high-rise condo buildings cropping up on the Chicago skyline. High-rise living puts residents on top of the world, and judging by the size and scope of some of the domiciles within, those worlds are anything but small. Many standard real estate definitions describe a high-rise as a building that is at least six stories tall, but many current versions downtown soar 10 times that high. "High rises take many different shapes," said David Pisor, CEO and president of Elysian Development Group. "In Washington, D.C., a seven-story building is considered a high rise, whereas in Chicago, it might be 40 or 50 stories." "It's really a zoning issue," said Don DeBat of DeBat Media, a residential real estate media consulting firm. "In certain areas of the West Loop, you can't build anything that's higher than nine stories. However, that doesn't apply in the South Loop, so you'll tend to find many more high rises there." DeBat said high rise development comes about via one of two processes: new construction or adaptive reuse of older buildings such as former warehouses or office spaces. For example, the former North American Building at 8 W. Monroe St., and the previous headquarters of Evans Furs, is now enjoying a residential reinvention as The Metropolis. The 21-story historic high rise is now opening its doors to 169 one- and two-bedroom luxury condos. "You've got these nice old office buildings from the 1920s and earlier that still have beautiful terra cotta and solid construction," DeBat said. "They may have been run down at one time, but developers are fixing them up and their popularity is coming back, big time." Beyond offering residents a sense of history and nostalgia, these older buildings are often situated in prime locations. For some new condo developments, there's only one way to go--up. Clocking in at a whopping 85 stories, the new Waterview Tower will be the fourth-tallest building in Chicago upon its estimated completion in 2007. "It's really going to change the skyline of the city," Freiman said. The view from the top is sweet, too. Waterview Tower will offer residents the opportunity to take in prime water views of either the Chicago River or Lake Michigan, or both. Floors 63 to 85 feature full-floor penthouses with unobstructed 360-degree vistas of the bustling city below. Getting back to the simple life For people who may be trying to simplify their hectic lives, life in a luxury condo can be the answer. "With today's frenetic lifestyles, free time is so precious," said Michael Golden, Realtor and co-founder of @properties, a Chicago-based residential real estate brokerage firm. "When you live in a condo, you don't have to waste time worrying about things like fixing leaks in the bathroom or mowing the yard. "It's really all about having a low-maintenance lifestyle. Also, condos are convenient for people who prefer to live and have everything all on one floor. You're able to use the square footage much more efficiently that way." "Luxury condos are perfect for people who travel a lot," Freiman said. "You've got a concierge to hold your mail and to make your dinner and travel reservations. And from a security standpoint, you've got a doorman to meet you, no matter what time of day or night you come in. It's like having your very own private staff." What buyers want As far as in-demand condo features go, luxurious materials and decorative touches rank high on the list of must-haves for many buyers. "Condo buyers are looking for gracious entertaining spaces, eat-in kitchens, closet space, large bathrooms and good ceiling heights," Freiman said. It all comes down to a matter of how much money you want to spend on customizing. "In terms of interior features, finishes have really come a long way in the past five or 10 years, especially with new construction," Golden said. "The standard package 10 years ago was laminate countertops and ceramic tile in the bathrooms. Today, it may be cherry or walnut flooring and marble or granite countertops. All the things that used to be add-ons are now standard in the higher-end markets." "In the lower condo price range, we provide wood floors in the living areas, marble in the bathrooms, granite countertops and stainless steel appliances, but it's not customized," Lev explained. "There are still plenty of opportunities for upgrades, but there have to be some basic ground rules as to what you can provide and at what cost. When you get into the high-end ranges, there's much more room for customizing. The sky's really the limit at that point." The layout and design of the condo itself is another factor that money can buy. A lot of money, that is. "Certainly, a 2,000-square-foot condo in one building is not going to look the same as 2,000-square-feet in another building," Lev continued. "Certain architects have a knack for laying out space in the higher-end properties." To get away from the boxy parking-garage-type feel, condominium architects are stretching their imaginations to come up with designs that create building exteriors that are as visually appealing as the inner condo units themselves. "The design of newer buildings is much more contemporary," DeBat said. "The buildings are designed with an outward feel, so residents can easily look out the window and feel like they're outdoors, as well as actually be outside." The popularity of outdoor space is another condo feature that has also grown by leaps and bounds in recent years. "Outdoor terraces and living spaces have become much larger," Golden said. "While it's still not the same as having a yard, now you can put a table and chairs out there and have plenty of room to entertain. It's definitely better than having just a small balcony where there's only enough room to store your grill." To please tech-savvy residents, high-speed Internet connections and smart-home technology are also being incorporated into many new construction condos. Amenities abound In keeping with overall condo lifestyle trends, developers and real estate marketers of today's condo buildings have raised the bar when it comes to amenities. For instance, 340 on the Park, an LR Development luxury property, includes what Molk refers to as the "function floor," a 25th-floor amenities spread that offers a fitness center with a 25-yard lap pool, hot tub, club room and a spacious winter garden for residents to enjoy. The Waterview Tower will also include a 25th floor dedicated to residential common amenities, including an 8,000-square-foot roof garden with sun deck, water features and a dog run for exercising residents' pets. "The best thing that developers can do is build lifestyle features into the overall package," Molk said. "Those features then become a part of the value of the home and not an ongoing cost. We're making a commitment on the front end to offering residents something that will permanently enhance their homes, and their lives." In downtown Chicago, parking can be another big issue for condo dwellers, and developers are paying much more attention to it now than in years past. "Developers didn't use to offer residents deeded parking in the past; now they are selling parking spaces in conjunction with the condos," said Freiman. Some condo buildings, especially high rises, may offer opportunities for retailers to literally get in on the ground floor of development. Properties may include restaurants, drug stores and retail shops that can be accessed without even leaving the building, making it nearly self-contained living. Hotel-condo combos Another growing trend in the condominium market is the condo-hotel. The concept of combining a hotel with condominiums is something that has proven popular in resort areas like Aspen and Miami, and is quickly catching on in other destination cities across the country. The Elysian offers a unique twist on high-rise condo living as one of two condo-hotels coming into the Chicago market, (the other being the Trump International Hotel and Towers). "We basically took a huge 50-unit condo building and set it right on top of our hotel," said David Pisor, CEO and President of Elysian Development Group. "The Elysian will be remarkable in every way? a spectacular place to live, use as an in-town second home or frequent as a hotel guest." The Elysian offers two condo units per floor, as well as a selection of furnished one-bedroom hotel suites. Similar to a time-share, owners of these suites can opt to place them in the hotel's rental program while not in personal use--a perfect arrangement for frequent travelers or those looking for a place downtown to use on the weekends. Because of the hotel-condo arrangement, all residents reap the added benefits of access to the hotel's spa and health club, housekeeping, concierge, laundry service and 24-hour room service. "At the Elysian, we try to focus on our residents' and guests' experiences more than services or amenities--what you feel when you arrive or leave our property and how that affects you," Pisor said. "We strive to create a sense of intimacy through scale, such as having one doorman who knows you by name, and our own car to pick up people at the airport." Hot properties It's no great surprise that, even more than the features and amenities, the most important consideration for many buyers continues to be location. With so much to see and do in downtown Chicago, today's condo buyers and owners want to be right in the heart of all the action. "People love Chicago," Freiman said. "They get tired of the commute, the kids are away at college and they want to be able to be downtown and enjoy the city." "Location is really the primary reason most people choose to live or own property downtown in the first place," Golden said. "It's within proximity to work for many buyers. Plus you're right there among all the amenities of downtown--the lake, restaurants, theaters, arts and culture, attractions. You can simply walk out your front door and go to a four-star restaurant, go to the theater or go shopping on Michigan Avenue." Although buyers are continuing to snatch up condos all over downtown, certain areas are emerging as luxury market hotspots. "Central downtown is definitely the hottest location," Molk stated. "Millennium Park has really become the epicenter, with everything radiating out from there." "For high-end properties, Streeterville and the South Loop are premier sites," Lev said. "Any sites with lake frontage or lake views are premier areas, but there are still plenty of luxury buildings to choose from just a little further inland, as well." Golden says that the Gold Coast and Lincoln Park remain two of the most expensive and prestigious addresses in town, but Uptown has plenty to offer in the way of luxury condos, as does River North, the South Loop and the lakefront. Who's buying? According to Appraisal Research Counselors' "Downtown Chicago Residential Benchmark Report," overall condominium sales in the second quarter of 2004 were stronger than in any quarter since the first three months of 2001. "The general buying market for downtown condos consists of empty nesters who are selling their houses in the suburbs and are attracted to downtown for the culture and the entertainment," DeBat said. "Sometimes, they'll buy a small place downtown to come to on the weekends and keep their homes in the suburbs while one of the kids finishes school. Then they might sell both properties and buy a bigger place downtown after the last kid leaves home." At the impressive 50 East Chestnut building, "We've seen quite a few empty nesters in their 50s who have raised their families and are ready to move into a luxury maintenance-free home with upscale amenities and a great address," said Jody Williams, vice president of marketing for Jameson Realty Group. This exclusive 39-story building contains one residence per floor with 3,550 to 3,905 square feet of posh living space and two outdoor terraces per home. "This property is perfect for people who may be selling a big house in the suburbs and want to buy another big house in the sky," said DeBat. Young professionals and singles make up another significant chunk of downtown condo buyers. "They might buy smaller one-bedroom units or even studios, but they still want all the luxury features and finishes," DeBat continued. "There's also a huge market of buyers who are single women of all ages. The condo lifestyle is attractive for them because of the added security it provides." Whether buyers are looking for a condo to use as a primary residence or a second home, the downtown Chicago market is ready to accommodate. "I have seen more second-home condo purchases in last several years as baby boomers become empty nesters, or as they become more affluent," said Lev. "I would think that when you're buying a secondary residence, location will probably be your primary consideration," Golden said. "People who are looking for a downtown place to use on the weekends probably aren't going to be as concerned with the size of the space as much as the location."