The Parkline residential building in the Chicago Loop is making a major change to its inventory, scrapping all condos after selling none over the past year.
The mixed residential building was launched in February with 189 apartments, which the developer says is 98 percent rented. But condo sales launched almost a year before the start of leasing and not a single sale has been recorded, according to Crain’s.
The 26-story building at 60 East Randolph Street had 24 condos on the top four floors of the building. The asking price for the condos started at $1.5 million before being reduced to $1.42 million, still without any takers.
Renting is perceived as a better option than buying right now as the city tries to navigate the Delta variant and the prospects of a post-pandemic future, increasing peoples’ reluctance to make long-term commitments.
Another factor may have been the high costs for the new building. The condos were priced at an average of $711 per square foot. Other Loop condos sold in the past year valued at $1.5 million or higher were priced at an average of $637 per square foot.
The former condos will now be marketed as high-end rentals. They will feature a dedicated private entrance from the lobby and a private, shared amenity floor. Rents for the high-end penthouse collection will start at $9,000.
While the Parkline problem is less than ideal, the downtown condo market has shown signs of life recently, owing to a lifting of pandemic restrictions and people being priced out of homes in the suburbs.
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[Crain’s] — Holden Walter-Warner