SoNo
May 1st, 2014


Major contract fallout threatened to derail this new-construction condominium high-rise in the Clybourn Corridor. New pricing, marketing and financing programs got it back on track.

Location: 860 W. Blackhawk Street, Lincoln Park/Clybourn Corridor
Developer: Smithfield Properties
Total # of Units: 199
Price Range: $250,000 to $550,000
Current status: Sold Out

Challenge

Almost all of the original buyers at SoNo defaulted when the project began delivering units in early 2009. With a completed building and over 150 unsold units, Smithfield and @properties had to quickly get sales back on track in order to save the project.

Solution

  • Repositioned development through approximate 20% price reduction, targeting absorption of 8 units per month
  • Held a private preview to original buyers who backed out
  • Released new pricing to @properties' internal marketplace
  • Held phased re-launch to prospects and the public
  • Promoted below-market-rate mortgage financing
  • Advertised discounts through print and online media, signage, flyer drops, broker marketing and intensive e-mail marketing

Results

  • Sold 85 units in second half of 2009
  • Achieved $50-per-square-foot premium over comparable units sold at auction
  • Once the project reached 75% sold, we were able to implement price increases on desirable tiers, even as the broader market was depreciating
  • Maintained consistent absorption after the expiration of the homebuyer tax credit
  • Project sold out in early 2011

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