(To read more on the multifamily market, click here.)
CHICAGO-The value of a city-owned lot went up more than 60% during 2005, while a multifamily developer was negotiating a deal. However, Center Construction Corp. is getting a significant discount that more than makes up for the increased value of the 16,085-sf site at 4200 S. Indiana Ave.
Center Construction Corp. plans to build 24 condominiums with indoor parking in a three-story building, and has a letter of intent from American Charter Bank to finance construction of the $5.2-million project. It also will get the site for $200,000, or just 31% of its most recent appraised value under a deal endorsed this week by the community development commission.
The city got an appraisal in May 2005, which suggested the property was worth $400,000, according to Department of Planning and Development project manager Audrey Mathis. Meanwhile, Center Construction Corp. made changes to its plans. A new appraisal in December came in at $645,000, she adds, or $40 per sf.
Center Construction Corp. is getting the $445,000 land write-down in exchange for selling three units at prices deemed affordable for households earning less than the area median income. The two-bedroom affordable units will be priced at $182,500, while the market rate for similar units will likely sell for $225,000. Three-bedroom units in the three-story brick building will likely hit the market at $266,500.
Center Construction Corp. has built more than 100 units in the Grand Boulevard and surrounding neighborhoods, Mathis notes.
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