M2 Condos Change the Downtown Champaign Landscape....Again

By
Real Estate Agent with Keller Williams Realty

M2 Condos Are Changing the Downtown Champaign Condo Market…Again

 

In early May I had the chance to sit in on a presentation on the M2 condo development at 312 N. Neil Street in Downtown Champaign. It was presented by the developers and staff from One Main Development and answered a lot of questions (and created a few more) on the status and plans for this new landmark in downtown Champaign.

 

A (very) brief history on the downtown, luxury condo market;

In 2005, One Main Development finished construction on the “One Main” building in downtown Champaign. It features retail, office and condo space over 5 floors. There are 24 condos in the building that have ranged in price from $150,000 to around $400,000. Since the building has been completed there have been 6 re-sales with an average increase in value of 4%. (That is a pretty solid number given some of the relatively flat price charts around Champaign).

This development was a big change for downtown Champaign and opened the door for a number of smaller scale, high-end condo conversions.

M2 Condos – 301 North Neil, Champaign, IL

According to local legend and news releases from M2, this is the largest construction project to be undertaken in downtown Champaign.

The development will feature the following:

  • 9 Total Stories
    • 1st Floor is all retail, approx 70% leased
    • 4 floors of office space, approx 40% leased
    • Top 4 floors are residential condos, 25% pre-sold
  • Price Ranges from the $170's to $428k
  • Sizes vary from 680sqft to 1900sqft
  • The condo fees for a 2br unit are expected to run around $360/month and include heat/AC/water/sewer/trash/building insurance and more. (Residents will have to pay for the electricity to run the heat pump which circulates the cool/warm air but that is a fraction of normal heating and cooling costs
  • Parking…. There are no parking spaces being sold or reserved with the condos however the City of Champaign is building a large parking garage in an adjoining structure. 24/7 permits are available and it sounds like availability will NOT be an issue for residents.
  • Click for City of Champaign Parking Deck info.

The developers have leases with the following companies that plan to occupy the 1st Floor and more on the way

  • Destihl Brew Works

  • An Unidentified Salon/Spa occupying a large portion of the space (approx 11,000sqft over 2 floors). The exact identity wasn't disclosed at the meeting...

  • BankChampaign

 

How Will This Affect the Local Real Estate Market?

My immediate response is that it will be a real positive for that section of the Champaign real estate market. The One Main condo project has already had a positive impact and M2 looks to build on that. The addition of a 2nd upscale condo building in downtown Champaign should also help provide a more predictable level of appreciation for the condos in both buildings. As M2 sells out I think these condos will maintain a solid level of demand if only because there is such a limited supply of these types of properties in Champaign.

Other areas in Downtown Champaign have already experienced a ‘lift’ from these projects with the additions of a number of other high-end condo developments like Uptown on Columbia, The Hickory and The Jewelers Loft apartments.

If I were to try and predict the future I would say that the condos and homes just West of downtown Champaign would also get a big lift from the revitalization of the area and could provide a good opportunity for real estate investment.

Interested in a tour of the building and future condos?  Call, email or post and we'll set something up.

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Comments (5)

Greg Zaccagni
The Federal Savings Bank - Wheaton, IL
Illinois Mortgage Lender

Mark:

are the developers having any financing issues regarding non-warrantable condos?

What is a Non Warrantable Condo?

www.GregZaccagni.com

 

Jul 07, 2008 02:26 AM
Mark Waldhoff
Keller Williams Realty - Champaign, IL
GRI, CRS - Champaign/Urbana, IL

They are non-warrantable condos but so far it seems like there haven't been any big issues on financing.  The biggest one seems to be making sure Buyers are aware that you can't get a 30 year fixed rate mtg. 

I spoke with Dan Marker at Busey Bank in Champaign about this recently and they have a 5/1 ARM package for buyers in this development that Busey will hold rather than sell to the secondary mortgage market.  That is similar to what they did when the neighboring One Main complex was built. 

Are you seeing similar products for similar projects?

 

Jul 07, 2008 04:25 AM
Anonymous
Just wondering...

How are those pre-solds going?

Dec 17, 2008 06:47 AM
#3
Mark Waldhoff
Keller Williams Realty - Champaign, IL
GRI, CRS - Champaign/Urbana, IL

As you might guess, they seem to have really slowed down but I have heard that there have been sales in the past 1-2 months.  Currently they are around 30% pre-sold.  Pretty respectable given the overall market conditions.

The biggest concern seems to be what impacts the fire at the Metropolitan building across the street will have on the M2 projects completion.  It's looking like it will push back the closing dates for many of the pre-solds as they complete inspections and verify that everything is in order.

Dec 18, 2008 02:32 AM
Anonymous
Just wondering...

And what becomes of the Normal project???  I thought they quit on that, but this is from One Main website:

 

One Main Development, LLC, announced Monday that Illinois State University plans to lease over 20,000 total square feet throughout Uptown One, Two and Three, located around the future circular intersection in Uptown. The mixed-use buildings are being developed by One Main Development, a Champaign-based company whose focus is on transformative and sustainable development in core urban areas. Construction is already underway on Uptown One.

Jan 15, 2009 01:45 AM
#5