South Shore Chicago – Rent Price Trend

Jackson Park Highlands – Hidden Gem in Chicago

Jackson Park Highlands is a hidden gem on the south side of Chicago.
It sits inside of the larger south shore neighborhood.
The homes in this small neighborhood are absolutely amazing!

A Jackson Park Highlands block in early Autumn

The Jackson Park Highlands District is a historic district
in the South Shore community area of Chicago, Illinois.
The district was built in 1905 by various architects.
It was designated a Chicago Landmark on October 25, 1989.

It is often regarded as one of three South Side
upper-middle to upper-class neighborhoods, the other two
being Hyde Park to the direct north and Beverly, a little
ways southwest.

Boundaries

The neighborhood is roughly bounded by East 67th Street to
the north, East 71st Street to the south, Cregier
(Named for former Chicago mayor) to the west and Euclid
(named for the famed mathematician) to the east.

Directly north of the neighborhood lies the 18-hole Jackson
Park Golf Course, a part of the Chicago Park District’s
Jackson Park, the third largest park in the city and home
of the 1893 Columbian World Exposition.

To the south lies the former Illinois Central Railroad tracks,
now operated by Metra rail’s Electric Line of trains. To the
east lies Jeffrey Boulevard and across that is the larger
neighborhood of South Shore.

HISTORY

The neighborhood was commissioned in the early 20th century.
Its initial purpose was as a collection of model homes that
would overlook the prized Jackson Park, which had hosted the
World’s Fair less than a decade prior. The neighborhood
featured (and is still present) some of the most innovative
concepts of the time, including large front yard setbacks,
50-foot lot widths, underground utilities, and no alleys.

When Chicago annexed Hyde Park just in time for the 1890 census
(to beat out Philadelphia as the second largest metro-area in
the nation), the Highlands were left under governorship of the
South Shore area.

At the time of the Second World War, the neighborhood saw huge
loss in residence and a destruction of the area was suggested.
With the arrival of the 1970s, the neighborhood again began
to rise as a major thoroughfare of South Side luxury.

It was designated a Chicago Landmark on October 25, 1989.
Houses now range from the $200,00 mark upwards to about $1.5 million.

REAL ESTATE VALUES IN JACKSON PARK HIGHLANDS (CHICAGO)

As of January 22, 2017 there is 1 single family homes on the market
in the Jackson Park Highlands neighborhood. The asking price
is $499,900. The average asking price per square foot is about $106.

JACKSON PARK HIGHLANDS MAP

Jackson Park Highlands - Chicago - Map

If you have any questions regarding real estate in the Jackson Park Highlands,
please let me know!

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Some of the above information was taken from
the Wikipedia page on Jackson Park Highlands.
For the original Wikipedia article, visit:

http://en.wikipedia.org/wiki/Jackson_Park_Highlands_District

South Shore Chicago – Real Estate Analysis – 2016

Here is an analysis of the South Shore neighborhood in Chicago.
As you can see, the South Shore market is doing really well compared to the previous year.
Total Sales Volume is up by about 27%!
I expect this trend to continue in 2017.
If you have any questions about South Shore Real Estate, please let me know!

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

World Class Golf Course coming to South Shore Chicago

The news just keeps getting better for the South Shore Chicago neighborhood.
Tiger Woods has agreed to design a golf mecca on the south side of Chicago.
The goal is to have professional televised golf tournaments played there.
That is a lofty goal indeed!

I read that President Obama called Tiger Woods and asked him to design
this new course as a personal favor.
I am sure Mayor Rahm Emanuel made some moves behind the scenes as well.
(For instance, there was no public vote or input on the matter)

Tiger Woods and President Obama discussing the South Shore Golf course.

It sounds like it will extend from Jackson Park near 67th and Stony Island
all the way to the South Shore Cultural Center on 71st Street and South Shore drive.
This is a very beautiful stretch of real estate. It has stunning views
of the Lake to the east and the Chicago skyline to the north.

The total project is expected to cost around $30 Million dollars!
80% of that is expected to come from private investors.
The project will start in mid 2017 and it will take about 3 years to complete.
Combine the new golf course with the new Presidential Library, and I think
we are about to see a chain reaction of commercial investment in South Shore Chicago.

This is really great news for the South side of Chicago and the city in general.
It will definitely have a positive impact on local real estate values.
I think South Shore is a great place for real estate investments.

Several real estate investors have asked me about the South Shore neighborhood recently.
If you are thinking about picking up an investment property or two,
South Shore should definitely be on your radar.

Prices are still reasonable and the long term outlook is great.
If you have any questions about buying South Shore Chicago real estate,
please let me know!

South Shore Real Estate Listings

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

South Shore Chicago Cap Rates

I just did a quick analysis of closed transactions for South Shore Chicago.
I focused on Multi-Family Apartment Buildings only.
This was for sales that took place in 2016.
About 20 transactions closed on the MLS this year.
The estimated median Cap Rate in South Shore was 10.9%

I estimated the Cap Rate by looking at the Gross Income.
I then assumed 50% expenses to get the Net Income.
I like doing this because some sellers may play with the expenses
to make them look lower than they really are.
Many feel that the 50% rule is a pretty good estimate of expenses.
Then I divided the estimated Net Income by the Selling price.
So I arrived at a median Cap Rate was 10.9%
So this should give you a good idea of where Cap Rates are in the
South Shore neighborhood.
If you have any questions about buying or selling investment
properties in South Shore, you can send me a text (or call)
Mark Killion 773-354-6693.
You can also send me an email: mark@markkillion.com

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Office: 312-939-5253
Cell: 773-354-6693

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Let’s take a quick look at real estate values in the
Jackson Park Highlands Chicago neighborhood.
Jackson Park Highlands sits within the larger South Shore neighborhood.
For the purpose of this analysis, I am using the following boundaries.
6700 South to 7100 South;
1700 East to 1900 East .
I am only going to look at single family homes.

I love the homes and architecture in the Jackson Park Highlands.
You can find huge mini-mansions in this neighborhood.
These lavish homes often sit on large double lots.
You definitely feel like you are in the suburbs.

This area overlooks the Jackson Park golf course.
This neighborhood was created in the early 1900s.
Houses now range from the $150,00 mark upwards to about $1.5 million.

MEDIAN VALUES FOR THE 12 MONTH PERIOD ENDING AUG 12 2012

7 Single Family Homes were sold.
The median selling price was $220,000.
Selling prices ranged from $160,000 up to $400,000.
The average price per square foot was about $120/sqft.

As of 08/12/2012 there are 9 single family homes on the market for sale.
The asking prices range from $189,000 to 1.5 million.
The median asking price is $330,000.

If you have any questions about the Jackson Park Highlands real estate
market, please let me know.

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

A short-sale is a type of distressed property sale.
It is not a traditional re-sale of a property.
In a short-sale, a lender agrees to accept a payoff
that is less than what they are owed.
In this type of transaction, the lender comes up short
(hence the term short-sale).

Ironically, short-sales usually take a lot longer than
a traditional sale. Some real estate professionals
joke that they should have been named “long-sales”.
It is not unusual for a short-sale to take up to
3 months AFTER an offer has been accepted by the seller.

The reason that it takes so long is because the sale
requires 3rd party approval from the lender(s). If a
property only has one lien on it, it makes the short-sale
process much easier. This is because you only have to deal
with one lien holder.

Often times, there are multiple liens on the property.
So, you have to get written approval from each lien holder involved.
These types of short-sales are more difficult (but not impossible).
All short-sale properties have a 1st lien, which is usually the
primary mortgage. Some properties also have a 2nd lien that was
a home equity line of credit (HELOC). In these types of scenarios,
you have to negotiate with the 2nd lien holder as well.
On the bright side, many 2nd lien holders will settle for as
little as 6% of the debt.

If you are considering purchasing a short-sale property, I would
recommend researching how many liens are currently on the property.
Your real estate agent will be able to do this research for you.

If a property has multiple liens on it, the short-sale process will
probably take longer. So the name of the game is patience.
There are pros and cons with pursuing a short-sale property as a buyer.
The main downside is that the process takes a long time and it can be
frustrating. The main benefit to purchasing a short-sale is that your
patience will usually be rewarded with a great deal.
Short-sales typically sell for 10% to 20% below market value!

Benefits for a Seller:

A successful short-sale is really a win-win situation for all parties
involved. The seller gets to avoid having a foreclosure on their
credit report for the next 7 to 10 years. In many cases, the lender
may also forgive the deficiency debt. There was actually a law that
passed that made sure that the forgiven debt was not counted as
income for tax purposes. But this law is set to expire at the end of 2012.

FYI: The Mortgage Forgiveness Debt Relief Act Expires in 2012

If you are thinking about selling your primary residence,
and you are upside-down in your mortgage, do it in 2012
or forever hold your peace?after this act expires, the
forgiven debt will be viewed as taxable income (doh!)

Benefits for a Buyer:

If a buyer is patient, they can pick up a great home at a
nice discount. Generally speaking, short-sale homes are
in better condition than your average foreclosure.

Foreclosures have usually sat vacant for many months.
They may have been vandalized too. However, the short-sale
process can be frustrating. The bank can take a long time
to make a decision. And many times, the bank will ask for
more money from the buyer, seller, or both to make the deal
work. However, it will all be worth it in the end when
you get a home at 10% to 20% below market value.

Benefits for a Lender:

Although a lender would rather not accept less than what
they are owed, a short-sale beats a foreclosure any day.
Today’s unsold short-sales are tomorrow’s foreclosures.

The lender knows that if the property goes to foreclosure,
they will have to sell the property at a steeper discount
when they put it back on the market. Also, the time value
of money is important. Every month that a lender holds
a property in its portfolio, they are losing money.

2011 Sales Analysis for Short-sales in Bronzeville Chicago

We can gain a better understanding of short-sales by analyzing
transactions that successfully closed. I did a custom data analysis
of the Bronzeville neighborhood in Chicago, Illinois for 2011.

According to the MRED MLS system, there were 59 short-sale transactions
for the 12 month period ending 12/25/2011. That is an average of five
closed short-sale transactions per month! This number will probably increase in 2012.

Here are a few things that jump out at me:

* Most of the short-sales are happening with Bronzeville condos.
I expect this trend to continue.

* The biggest discounts are being realized with Single Family Homes.

* The amount of time it takes to get the short-sale approved is pretty
consistent across all property types. It takes about 3 months for
the bank to approve the average short sale. And this is AFTER a
written offer has been submitted by a qualified buyer.

If you would like a FREE evaluation of your specific situation,
please contact me. I have experience with short-sales,
and I have helped distressed homeowners avoid foreclosure.

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Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

The Chicago magazine recently featured an interesting article
on Chicago Real Estate values. They compared today’s property
values to property values from 1994. The results were mixed.
Thanks to the Great Recession, 1 in 6 neighborhoods actually
lost value.

But, on the bright side, that means 5 out of 6 neighborhoods
increased in value. So, it appears that real estate is still
a great LONG TERM investment.

Below you will find a snapshot of this report.

______________________________________________

REPORT FOR SINGLE FAMILY HOMES

______________________________________________

HYDE PARK

Average Sales Price JUN 2010–JUN 2011

$744,133

Change in Sales Price since 1994

231%

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KENWOOD

Average Sales Price JUN 2010–JUN 2011

$689,958

Change in Sales Price since 1994

346%

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GRAND BOULEVARD (aka BRONZEVILLE)

Average Sales Price JUN 2010–JUN 2011

$173,962

Change in Sales Price since 1994

222%

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MORGAN PARK

Average Sales Price JUN 2010–JUN 2011

$121,092

Change in Sales Price since 1994

20%
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SOUTH SHORE

Average Sales Price JUN 2010–JUN 2011

$111,351

Change in Sales Price since 1994

46%

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CHATHAM

Average Sales Price JUN 2010–JUN 2011

$91,453

Change in Sales Price since 1994

11%

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If you are interested in stats for a different neighborhood,
or a suburb, just send me a note!
–===========================================

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

Now let’s take a look at Chicago’s South Shore neighborhood.
Like everywhere else, the real estate meltdown has really hit
South Shore hard.
In my opinion, South Shore is very undervalued right now.
Buying real estate in South Shore should be a great long term value play.

This neighborhood has a lot going for it. For one, it is very close to the lake.
So this is lakefront property selling at prices from 15 years ago.

Also, there are big development plans in the works for this neighborhood.
A whole new lakefront community is being planned. It will be near 83rd and South Shore Dr.
It may take 10 to 15 years for it all to come to fruition though (see an artist rendition below).

This neighborhood has plenty of shopping and it is close to the
Metra Train and public transportation.

It is important to note that two distinct markets have emerged in most of Chicago.
A low-end market, and a high-end market.

Low-end market: Also known as distressed sales. These include foreclosures and
short-sales. These properties usually need extensive repairs.
These are priced very low, usually under $50K.

High-end market: Recently rehabbed properties. These properties have granite counters,
hardwood floors, custom cabinets, stainless steel appliances, etc.
These are priced much higher, usually starting at $150K.

Also, the availability of financing is a major influence on selling prices. If a property can
not be financed, the selling price will generally be much lower than its financed counterpart.
You see this a lot with all of the low priced condos out there. Condos are very difficult to finance
right now. If the current association is underfunded, you can’t get financing. This phenomenon is reflected in
the depressed selling prices for condos (see below).

But that’s enough of the small talk and real estate ‘mumbo jumbo’, let’s get down to the numbers.

This analysis is based on MLS Data for the 6 month period ending SEP-23-2011

SOUTH SHORE SINGLE FAMILY HOMES:

2 BEDROOMS: 2 homes sold. Average price = $20K

3 BEDROOMS: 17 homes sold. Average price = $94K

4 BEDROOMS: 17 homes sold. Average price = $109K

5+ BEDROOMS: 4 homes sold. Average price = $194K

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SOUTH SHORE CONDOS:

1 BEDROOM: 6 condos sold. Average price = $35K

2 BEDROOMS: 19 condos sold. Average price = $36K

3 BEDROOMS: 20 condos sold. Average price = $33K

4 BEDROOMS: 19 condos sold. Average price = $27K

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SOUTH SHORE MULTI-UNIT:

2 FLATS: 13 properties sold. Average price = $95K

3 FLATS: 10 properties sold. Average price = $86K

4 FLATS: 2 properties sold. Average price = $37K

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SOUTH SHORE MULTI-FAMILY 5+ Units:

6 unit building: 3 sold. Average price = $109K

9 unit building: 1 sold. Average price = $100K

10 unit building: 1 sold at $40K (Needed total rehab)

20 unit building: 1 sold at $300K (NOI = 68K)

68 unit: 1 sold at $400K (Needed total rehab)

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SOUTH SHORE RENTALS:

Studio…. 6 rented… Average Rent = $534

1 Bedroom…. 22 rented… Average Rent = $669

2 Bedroom…. 22 rented… Average Rent = $948

3 Bedroom…. 18 rented… Average Rent = $1,158

4 Bedroom…. 5 rented… Average Rent = $1,380

5 Bedroom…. 18 rented… Average Rent = $1,479

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Well, there you have it. Another informative analysis done by yours truly.
If you are thinking about buying, renting, or selling in the South Shore
neighborhood, this should give you a good idea of current market values.
If you have any questions, or need advice, please feel free to contact me.

Until the next time,

Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY