Residential Developers Now Looking For Opportunities Outside Once-Hot Downtowns
The coronavirus pandemic initially shut down Chicago’s condo market, and even though sales returned to many outlying neighborhoods and suburbs, the downtown is still threatened because once-dependable buyers such as affluent empty nesters continue to stay away.
“Right now, they’re not moving into the city,” Belgravia Group Chairman Alan Lev said during Bisnow’s Multifamily Annual Conference Dec. 3. “If you want to move into the city, it’s for theater and restaurants, and you can’t do any of those things.”
The company recently finished developing two downtown condo buildings, he added, and it has had trouble selling the last few remaining units.
“Fortunately, the loans are paid off and the equity returned,” Lev said.
He expects the downtown condo market is likely to pick up again when the crisis subsides, but even if it doesn’t fully return to where it had been, the outlying neighborhoods still present developers with plenty of opportunities. A chief reason is that these developments tend to appeal to a…
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