Near South Side will keep rising
DON DeBAT
The economy may be gloomy and the next real estate boom likely is a few years away, but the emerging Near South Side is on a path to be a high-demand Chicago neighborhood, urban planners say.
“When the recession ends and new high-rise apartments, condos and homes are developed over the next decade, the new Near South Side eventually will generate millions of dollars of real estate tax revenue for the city,” predicted real estate investor Howard Weitzman of Weitzman Realty Associates, LLC.
It’s likely that much of the city’s future lakefront housing will be developed between now and 2020 in the South Loop and Near South Side, surrounding McCormick Place, planners say.
Over the past decade, a condominium building boom brought new restaurants and entertainment to the South Loop and Near South Side, and the population has skyrocketed 75 percent to nearly 16,700 residents from 9,500 residents in 2000 in the area bounded by Roosevelt Road, Lake Michigan, the Chicago River and 26th Street.
The lakefront location and proximity to downtown jobs also attracted young professionals to the neighborhood.
More white-collar jobs could be coming to the Near South Side if the city’s plans move ahead for a technology park on the recently cleared 37-acre former Michael Reese Hospital site near 29th Street and Ellis Avenue.
If you add the $80 million the city spent to acquire the Michael Reese site, Chicago has already invested $100 million into the neighborhood during the current real estate recession.
New harbors, boat slips, parks and beaches are on the drawing board or underway, including the planned 31st Street Harbor and the new Burnham Park Beach and beach house at 40th Street and the lakefront.
The city also plans to install infrastructure improvements between 26th and 31st streets along Cottage Grove Avenue. A tax increment financing district is already in place, and long-range South Side plans call for construction of a light rail commuter system from McCormick Place to 63rd Street along Cottage Grove.
Real estate appraiser Gail Lissner of Appraisal Research Counselors Ltd. noted that there is greater value for home buyers on the South Side of Chicago than on the North Side.
“You certainly can get significantly more for your money on the South Side,” said Lissner. “If you are shopping for a home on the North Side of Chicago, you’re probably paying 50 percent more.”
One example is Lake Park Crescent, a new lakefront residential community at 4060 S. Oakenwald Ave. in the North Kenwood-Oakland neighborhood.
“Lake Park Crescent has something for everyone, all at a tremendous value,” said Robbi Davis, sales manager at the 68-unit condominium and row-home community being developed by Draper and Kramer.
One-bedroom condos begin at $169,800, while three-bedroom City Homes start at $269,800 and four-bedroom Row Homes are priced from $439,800. “The Row Homes might command a price of $1 million or more on the North Side,” Davis said.
