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Investor Goes for 2 Condos in River North

By Bill Cunniff, Real Estate Reporter
Chicago Sun-Times
Friday, September 30, 2005

CHICAGO - Brian Schmucker, president of an investment management firm, bought two condos -- one for himself and another for an investment -- at Grand Plaza, a condo conversion at 545 N. Dearborn.

He purchased a 1-bedroom for himself, and a convertible to rent out. He already found a renter for the convertible.

"I think that it is a very marketable building that sells itself, due in great part to top-notch amenities," Schmucker said. "I was attracted to Grand Plaza in part by the weight room/workout facility and the outdoor pool." His investment company is Pinnacle Fund Management Inc.

A portion of the building, the West Tower, recently was bought by Terrapin Properties and is being converted into condominiums. The 37-story story West Tower has 283 units. The styles of condos include studios and convertibles as well as 1-, 2- and 3-bedroom plans.

Convertibles start at $258,000. One-bedroom plans begin at $289,000. Two-bedrooms start at $463,000. Penthouse units begin at $1.1 million. Sizes range from 690 to 2,566 square feet. Parking leases are $220 per month.

The club floor hosts a fitness center, pool, sun deck, basketball court, running track, men's and women's saunas, putting greens, a business center, billiards tables and a cyber cafe lounge. Wireless Internet access is available, too.

"The units themselves have newer appliances, and each unit has a washer and drier," he said. "I was quite surprised by the quietness of the units. You don't realize there are that many units. The walls are totally soundproof."

Schmucker appreciates Grand Plaza's neighborhood, too. "It's very easy to get around," he said. "There are L stops everywhere, and it has a good vibe, lots of energy, and a community feel." The building's 56-story East Tower will remain as rental apartments.

Eric Metz was living in the East Tower, but he jumped at the opportunity to buy when Terrapin acquired the West Tower for conversion. He chose a 1-bedroom unit.

"Location was the first thing I looked at, amenities were the second," Metz said. "The health club, including the gym, locker room, pool, everything is extremely useful and convenient," Metz said.

Sales for current tenants began in June. Public sales recently began.

Four decorated models are open.

Grand Plaza, 545 N. Dearborn, Chicago. Terrapin Properties, (312) 644-9200.

STREETERVILLE

Construction is under way at 600 N. Lake Shore Drive, a high-rise development in Streeterville. The site will have two buildings.

Base prices range from $379,000 to $1.73 million. Sizes range from 1,032 to 2,552 square feet. Condos have 1 to 3 bedrooms and 1-1/2 to 3-1/2 baths.

First occupancies are scheduled for summer 2007. All units will have balconies.

Several years ago, the City of Chicago approved a proposal from another developer for one taller building on the site. "But the site and the neighborhood deserve something better, so we came up with a two-building concept, with both set back from Lake Shore Drive," said David (Buzz) Ruttenberg, chairman of Belgravia Group, co-developer along with Sandz Development.

"To reduce late-afternoon shadows on Ohio Street Beach, the two buildings will have almost 60 feet of space between them. The space between the buildings, along with the setback and the reduced building height, will help preserve views for other buildings in the area, including 530 North Lake Shore Drive, which we also developed."

The north building, now under construction, will be 40 floors, including nine floors of parking. Sizes range from 1,032 to 2,552 square feet. About 60 percent of the 154 units in the first building have been sold.

Monthly assessments for the first building are estimated to range from $310 to $770. Garage parking spaces are $42,000 to $58,000.

The south building will be 46 stories, including parking. Construction on the south building is scheduled to begin in the middle of 2007.

600 N. Lake Shore Drive, Chicago. A sales center is open at 540 N. Lake Shore Drive. Belgravia Group and Sandz Development, (312) 832-0060.

EDGEBROOK. Sixty-four single-family homes are planned at Edgebrook Glen, a development on the Northwest Side.

"The site of our proposed Edgebrook Glen adjoins the western border of the Indian Woods Forest Preserve, at the edge of the Edgebrook and Forest Glen neighborhoods," said Paul Bertsche, of C.A. Development.

"We hope to have City Council approval by early 2006. We plan to start construction next spring," he said.

Preconstruction prices are expected to range from the $600,000s to the $900,000s, according to Garrison Partners, the marketing agent. Sizes range from 3,257 to 4,655 square feet. Houses have 4 to 6 bedrooms, 3-1/2 to 41/2 baths and attached 2-car garages.

Edgebrook Glen is planned on the former site of the Armstrong Tool Co., 5200 W. Armstrong. Demolition of the 60-year-old building is almost complete, Bertsche said.

Edgebrook Glen, 5200 W. Armstrong, Chicago. C.A. Development, (773) 631-9225.