A news article published by the Chicago Tribune investigates the real estate purchases of the so-called “1%”. Kane Property Management, who manage condominiums, agree that the multi-million dollar market is fascinating.
The Chicago Tribune reports on the details of the superluxury real estate market, where buyers pay about 50 percent cash. The wealthy often purchase their homes with specific wish lists in mind, often requiring a lot of space and customizations.
“The wealthy like one-of-a-kind spaces. They will not buy a residence with a cookie-cutter floor plan,” says Sara Benson, president of Chicago’s Benson Stanley Realty.
Buyers from old money tend to gravitate to buildings with established reputations, she says. New money buyers, meanwhile, want more flash. Chicago’s highest condos are part of Trump International Hotel & Tower, says the article. It’s 92 stories high, with 486 condos on 62 floors.
Trump Tower’s 89th-floor penthouse boasts 6,800 square feet and a 360-degree view of the city and Lake Michigan. Its asking price is $32 million. One can also choose to occupy only a half-floor penthouse, which costs $7.5 million. Derrick Rose of the Chicago Bulls lives on Trump Tower’s 84th floor in a 3,102-square-foot unit, which he purchased for $2.8 million.
Special building features are an additional lure for the super-rich. Examples include the Japanese garden featured in the penthouse on the 14th floor of the Contemporaine condominium building. Its terrace is described as “a miniforest with trees, boulders, a waterfall and shallow pools.” The penthouse is priced at just under $3 million.
Though their properties are not quite as high-end, Kane Property Management still understands the allure of these multi-million dollar condominiums. People wealthy enough to purchase these places can afford to have everything their heart desires in a home. It’s understandable, says Kane Property Management, that those that constitute the middle class and below would be fascinated by the things that the 1% can afford.
The article continues to detail the mansion market, which is thriving in Chicago’s suburbs. Many large estates border Lake Michigan.
Deborah Fischer, a sales associate at Koenig & Strey in Lake Forest, says, “Some upscale buyers want classic old houses that have been elegantly restored. On the North Shore, incredible lake views sell. The lake is in a class by itself as a premier location for magnificent estates,” she said.
Fischer also notes that nine houses above $5 million were sold in the Chicago region in the last year, and three of them were on the North Shore in Glencoe, Highland Park and Lake Forest. Prices have dropped about 30 percent in the last five years, and the luxury home market is just as value-driven as the market for average real estate, if not more so.
Nancy Nagy, president and chief executive of Koenig & Strey, explains this principle: “Luxury buyers are the savviest buyers because they are smart business people.”
Kane Property Management provides accounting, site management, and administration services to Chicago area condominiums. Its president and owner, Dennis R. Kane, has over thirty years’ experience in property management.