Tax Assessments Soar in Chicago Area’s Priciest Enclave

Fifteen lakefront properties in Chicago’s North Shore are assessed at more than $16 million this year, a dramatic rise from just two in 2022, according to figures from the Cook County Assessor’s Office reported by Crain’s.

The properties, located along a 6-mile stretch of Sheridan Road from Wilmette to Glencoe, carry assessed market values ranging from $16 million to nearly $35 million.

The sharp increases follow Cook County’s triennial reassessment of New Trier Township, where the median single-family home value has rissen 28 percent since 2022 to roughly $1.19 million.

The most dramatic jump came on a property along Michigan Avenue in Wilmette, where the assessment of an under-construction 11,000-square-foot home soared 1,160 percent, from $1.32 million in 2022 to $16.3 million this year. The property had sold as vacant land for $8 million in 2020 through a land trust that obscured its ownership.

Of the 15 properties assessed at $16 million or more, only one has actually sold for that amount in recent years: a $16 million mansion purchased in 2022 by billionaire Justin Ishbia to round out a four-parcel estate where he is now building a $44 million home.

Critics argue the assessor’s office is overreaching.

“The assessor is grasping here, putting out speculative values that have not been proven by the market,” said Andrea Raila, a senior tax analyst and former Board of Review staffer.

Attorney Dan Pikarski added that “most people see these values as unattainable” and said his firm has been inundated with appeal inquiries ahead of the June 5 deadline.

Cook County Assessor Fritz Kaegi’s office defended the methodology, saying lakefront access, beach conditions and other granular factors informed each valuation. Steep-slope ordinances in Winnetka that limit buildable land were considered when applicable, with unbuildable land assessed at a discounted rate, a spokesperson said.

Lakefront land is a premium commodity. Some teardown lots have fetched over $12 million, but few real estate agents believe the current assessments reflect realistic resale values.

“The market has been very, very good for these homes, but it’s not that high,” said @properties Christie’s agent Jena Radnay. “We’re not Bel Air.”

— Judah Duke