(To read more on the multifamily market, click here.)
CHICAGO-Neumann Homes Inc. thinks the time is right to build duplex and condominium units approaching $400,000 on the Near West Side, as well as sell some single-family homes for $500,000. The national homebuilder plans a 245-unit, $45-million development on 6.3 acres at 2500 W. Roosevelt Rd., where two warehouse buildings now stand.
The project was endorsed by the city's plan commission, but not before the price of the units raised some eyebrows. "These are fairly high price points," says plan commission member Allison Davis.
However, the market may already be where Neumann projects it. "They're in the immediate area where similar projects are being built at comparable prices," counters 28th Ward Alderman Ed Smith. "This will be a great asset for our ward. It will embellish prices all over the city."
The unit mix for Neumann Homes' first project in the city will be determined by the market, says department of planning and development project manager Erik Glass. The buildings will include duplexes, three-flats and six-flats, he says, as well as single-family homes. While the ground-floor units will likely range from $250,000, upper-level units will be priced from $350,000, he adds. "The proposed development will offer market-rate housing in an area that needs this type of housing to attract a market-rate or mixed community," Glass says.
Now zoned C3-2, Neumann Homes is seeking a zoning change to RM-4.5, which reduced the allowed density on the property. However, the company's plan calls for 360,000 sf to be built, 24% less than allowed under the new zoning.
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