For Immediate Release
July 28, 2006
For More Information:
Larry Schaffel/PR Director: 312 642-8869
Tricia Van Horn/VP Sales & Marketing – Magellan: 312 642-8869
Christina Gaylor/VP Marketing – NNP Residential: 312 440-8500
The dilemma of whether to buy because rents are starting to climb or to rent because escalating mortgage rates are making purchases more difficult is absent at Lakeshore East, the fast-growing new neighborhood where the Chicago River meets Lake Michigan on the New East Side.
“Affordability is not always the reason that people rent instead of purchasing a home,” observed Robin Loewenberg Berger, president of NNP Residential LLC, property leasing and marketing firm and chief marketing officer for Magellan Development Group LLC, developer of the mixed-use complex.
“This is a highly mobile society and sometimes young professionals are not certain whether their climb up a corporate ladder may involve a relocation and older professionals may know it will. In other cases people aren’t certain about settling into a neighborhood and renting vs. buying lets them ‘test the soil,’ so to speak,” she continued.
Magellan has introduced a unique RentBUY program at Lakeshore East rental buildings that reconciles all those situations quite handily.
RentBUY allows renters to parley part of rent payment toward the purchase of a new condominium home at Lakeshore East.
Here’s how it works.
Renters who sign up, without obligation, can apply 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.
But is it working?
“Fabulously,” exclaimed Berger. “We introduced RentBUY at The Shoreham, our first rental building at Lakeshore East and approximately 70 percent of our residents signed up for the plan. Of those, 15 have signed contracts to purchase a home in one of our condominium buildings either under construction or planned.”
The same program is also being offered to renters at The Tides, the community’s second rental building now under construction.
The 51-story tower The Tides designed by Loewenberg Architects will contain 607 luxury apartments, a garage with space for 388 vehicles and nearly 5,000 square feet of retail space.
“Simply put, RentBUY provides extra leverage for people who might qualify financially but 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 the neighborhood on a long-term basis,” Berger pointed out.
Renters start building equity simply by paying their rent.
“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,” said Berger.
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 The Shoreham at 312.540-0400 or go to www.nnpresidential.com.