For Immediate Release
September 20, 2006
For More Information:
Larry Schaffel/PR Director: 312/642-8869
Tricia Van Horn/VP Sales & Marketing
312/540-9891
A solution to the rent-or-buy dilemma facing qualified recent college graduates is available at Lakeshore East, Chicago’s hottest new neighborhood.
While the latest data from the U.S. Census Bureau for the year 2000 reports that only 12 percent of people under the age of 34 are home owners, Chicago’s first RentBUY program is helping skew those proportions upward at the blossoming development where the Chicago River meets Lake Michigan.
According to Robin Berger, president of NNP Residential, co-developer of Lakeshore East and the leasing/management firm for The Shoreham, the community’s first rental building, more than half the tenants – many under the age of 34 – have signed up for the program that earmarks part of the rent as a down payment for a condo purchase.
“We expect that RentBUY will have an equally strong following at The Tides, the next rental building that has not yet been built or put on the market,” said Berger.
RentBUY torches the conventional notion that money spent on rent is basically money down the drain and contributes nothing toward home ownership.
Here’s how RentBUY can parley part of rent payment toward the purchase of a new condominium at Lakeshore East, the most ambitious mixed-use development in any major city downtown in the country.
Renters who sign up, without obligations, can apply as much as 25 percent of their monthly rental payment toward up to 2.5 percent of the purchase price of a new condo at a participating Lakeshore East building. For example, that could translate to $7,500 if purchasing a $300,000 unit.
Of course, financing a purchase is not the only mind-boggling issue confronting recent college graduates.
“In many instances, given today’s wide variety of loan options, the dream of home ownership is not as far-fetched for younger buyers as it once was,” suggested Steve Laner, vice president of Perl Mortgage, L.L.C., one of Chicago’s largest mortgage companies.
“These are often savvy young professionals who understand that the way real estate values have been escalating, owning a home is, among other things, a smart investment. It competes favorably with owning stocks or bonds, can produce tax breaks and helps establish good credit ratings.”
So what’s the hang-up?
Explains Berger: “In many instances young people who might qualify financially aren’t sure if they will remain in their present position or might be relocated or aren’t certain if they want to continue living in neighborhood on a long-term basis.”
RentBUY, she says, helps dissolve those nagging questions. At no cost or obligation it sets the stage to enjoy life as a renter while saving toward future home ownership.
“You start building equity simply by paying your rent,” explained Jim Loewenberg, chairman of NNP Residential. “Renters experience life in an exciting new neighborhood bordered by Millennium Park, Lake Michigan and the Chicago River and receive a payback if they become future owners. It’s a great program for people who aren’t certain if they want to rent or buy as well as those who want to own but can’t afford to do so immediately.”
Berger reports that a dozen of the RentBUY applicants at The Shoreham have exercised their option and purchased condo homes at Lakeshore East.
The next opportunity to participate in the program will be at The Tides, which will provide a selection of 604 apartments in the 51-story tower designed by Loewenberg Architects.
The apartment mix at The Tides will include 54 studios with 495 to 645 square feet of living area; 172 convertible with 645 to 760 square feet; 274 one-bedrooms with 685 to 1,216 square feet and 107 two-bedrooms with 1,160 to 1,335 square feet.
Apartments include an in-home laundry with a full-size washer and dryer, state-of-the-art appliances and granite kitchen islands with a choice of finishes.
The inclusive lifestyle of Lakeshore East rentals also provides remarkable amenities, such as high-speed Internet access, premium satellite TV with HBO and Showtime and air conditioning, heat, gas and water all included at no additional cost.
The $4-billion Lakeshore East community received the 2002 National Honor Award for excellence in urban design from the American Institute of Architects (AIA). Incorporating the elements of a traditional Chicago neighborhood, the distinctive Lakeshore East plan allows for the construction of up to 4,950 residences, a magnificent 6-acre public park, 2.2 million gross square feet of commercial space, 1,500 hotel rooms, 770,000 square feet of retail space and a proposed charter elementary school.
More information is available at www.lakeshoreeast.com. For more information about RentBUY please telephone NNP Residential at 312.440-8500 or go to www.nnpchicago.com.