(Some) Suburbanites relocating to Downtown Chicago

2/3 of the units sold in some downtown condominium buildings are being bought by residents of Chicago's suburbs, according to tthe article"Reverse Migration: High-rise communities and mid-rise developments entice a new wave of home buyers and renters," from Multi-Housing News.

In thinking about the value of public assets, such as the proximity to great parks and the subsequent increase in demand for living close by (and the fact that the value capture goes for the most part to private developers...), from the article:

A small number of buyers in Chicago are maintaining their primary residence in the suburbs and buying second homes for weekends or special events in the city. However, most buyers, who are either empty nesters or baby boomers, are just moving back. The third-highest number of buyers in Chicago, behind the baby boomers and empty nesters, are the city's young professionals. Other condo buyers are migrating from the Southeast, Northeast and West Coast as well as a small percentage from outside the U.S.

Unlike typical high-rise living, in which the residential building is isolated from the surrounding neighborhood, homebuyers and renters are increasingly seeking "a community within a community," says Joel Carlins, co-CEO of Magellan Development. "Lakeshore East is entirely different than buying a unit at a single building. I think we're attracting a buyer looking for a community rather than a building or a condo conversion. People are also attracted to this because it's near the water and has plenty of green space."

Situated on a corner of land where Lake Michigan meets the Chicago River, Lakeshore East spans 28 acres, in what is believed to be the largest parcel of downtown land under development in a major U.S. city. Located steps from Michigan Avenue and the acclaimed Millennium Park, the development encompasses several high rises with 4,950 residences and 1,500 hotel rooms; a six-acre public park; a planned charter elementary school; 2.2 million square feet of commercial space and 400,000 square feet of retail space.

Chicago Tribune graphic.