Not sure there's anything new in here, but it provides an overview of K Station.
Building exec looks to the future of market
http://www.suntimes.com/classifieds/homes/homelife/197946,HOF-News-digest05c.article
January 5, 2007
BY BILL CUNNIFF Real Estate Reporter
In the residential real estate industry, the lag time from project inception to completion is about two years, and the time frame is even longer for larger developments. So builders have to anticipate the future of the market.
Steven Fifield, chairman of Fifield Companies, a national developer of high-rise condominiums and rental apartments, has developed a forecast for the new year.
Here are six trends he predicts will shape the market in 2007:
The over/under on supply
Industry experts agree that the positive market conditions and abundance of available credit two years ago resulted in the current oversupply of housing in most markets. In fact, in October the national housing inventory reached its highest level since 1993.
Fifield said that this oversupply will cause many developers to limit construction starts in the new year. But his company instead is planning to ramp up in 2007 to take advantage of what he predicts will be the resulting undersupplied market by 2009.
"It's easy to exaggerate the state of the housing market by comparing quarter to quarter and year to year. But construction is a long process, and we have to look farther out," Fifield said.
"With so many builders canceling or postponing projects in reaction to the current oversupply, we see the pendulum swinging the other way to low inventory in the next two or three years -- at which time we'll just be delivering on the projects we begin today," he said.
The urban village
While the majority of residential growth in past decades has been in suburban areas, Fifield said many of today's home buyers want to simplify their busy lives by purchasing in an "urban village" where they can reside, wor play.
"We'll continue to see significant population growth in major cities as buyers embrace the convenience of having shopping, restaurants and the arts at their fingertips," he said.
Fifield noted his company is focusing on high-density urban developments that combine the elements buyers want in their homes as well as the surrounding neighborhood.
"Over the next five years, we'll be developing an 8-acre master-planned community in downtown Chicago that will include 2,400 residential units, a new city park, a grocery store and other retail businesses, as well as a location near public transportation and a major expressway," he said. "It's a great model of the lifestyle today's buyers want."
Cream of the housing crop
In today's more restrained real estate market, Fifield predicts developers who focus on the ultra-luxury condominium niche in 2007 will continue to prosper.
"While there may be an overall downturn in the market, buildings that attract wealthy buyers who are more concerned about lifestyle than mortgage rates and price will continue to do well," he said.
A new lease on luxury
The luxury rental market is another area of opportunity for developers in 2007, according to Fifield, with recent data from the National Association of Homebuilders showing demand for upscale rental units reached its highest level on record in 2006.
"Rental occupancy levels are at 98 percent in downtown Chicago, so there's a growing need for additional rental units," he said.
Fifield Companies recently completed construction at Left Bank at K Station, a 37-story apartment building at 300 N. Canal in the West Loop. First occupancies began in November. Near North Properties is overseeing leasing for the high-rise.
The apartment tower has 451 units. Monthly rents range from $990 to $2,724. Eighteen floor plans include studio, 1-, 2- and 3-bedroom layouts. Sizes range from 442 to 1,738 square feet. Units have 1 to 3 baths. Parking for 360 cars is in an adjoining six-story structure. The building also includes a club room, a business center, a fitness center and a terrace.
"Left Bank at K Station anchors the east end of a fast-emerging neighborhood north of the Fulton River District, near the bend of the Chicago River," Fifield said.
The high-rise is
the company's second of seven planned apartment high-rises just west of the Loop.
It's the
first of six buildings Fifield Companies is developing within a new 2,400-unit master-planned development.
"Many Left Bank residents are people who can afford to purchase a condo, but they prefer the lifestyle, amenities and flexibility of living in a high-end rental property," said Rick Cavenaugh, president of Fifield Companies.
Fifield's first apartment high-rise in the neighborhood was 180 N. Jefferson, which was completed in 2005. Its third rental high-rise in the area will be the
39-story Allure at K Station, which recently broke ground.
Hotel-style amenities
In the high-end luxury market, Fifield said home buyers are searching for a lifestyle as much as they are a dwelling. The result is a trend toward condos offering hotel-style amenities that free up time and add convenience to busy lives.
Renewed focus on design
As home buyers have more choices available to them in the current market, Fifield predicts architecture and design will become a key point of differentiation among high-end developments. "With so many homes on the market, luxury buyers can afford to be choosy," he said. "The most successful new developments will be those buildings that become modern-day landmarks and the most sought-after addresses in their respective markets."
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That was the best account of a Landmarks Commission meeting I've ever read! But in real life, they're even more hilarious. I really recommend going some day, if you haven't been, especially when it's controversial and Natarus is going to speak. It's free and funnier than Second City.
This will be looking straight east down the main branch where the 3 branches of the river converge. With that parcel and Wolf Point it would be amazing.
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