Category: Chicago

Two-flat owner journal 2: Demolishing the interior

In order to get the two-flat ready for a gut rehab, one has to gut it.

The rehab stage is still months away, as my architect and I continue to develop plans. He does most of the work, but it’s quite collaborative because there are layout, design, and finishing choices that we need to make.

Gutting the house is also necessary for the plans because my architect needs to know what’s behind the walls.

I hired Amplify Property Solutions for the job. APS has a social mission of training and employing young Black men. You can ask me personally how much it cost, but it was between $5,000 and $10,000 (that range includes the cost of six Dumpsters).

I am very happy with the crew’s work and Ron and Ted’s dedication to communication, clarity, and customer service. The work took a week longer than they predicted because of some aspects that I think were next to impossible to know:

  • There were 1-2 “extra” layers of flooring in some places. From top to bottom in the upstairs living room there were carpet, wood, linoleum, wood, and subfloor layers.
  • Because the center beam in the basement has been failing (sagging) for years, the centers of each floor were sinking making the floors unlevel. Platforms were built in each kitchen to raise and level the floor.
  • The house is one of two row houses, so one exterior wall is shared. On this wall, behind the drywall was a 1″ layer of plaster that took awhile to chip away.

The subfloor boards are very wide and old growth and original (so they’re at least 130 years old). I’ve been told that some people find these valuable; if you’re interested in purchasing them, please get in touch!

See more photos below and in the house photo album.

Permitting

With this level of demolition, a permit is required! I pulled an easy permit for this project (which I think cost $375). The Dumpster company obtained their own permits to occupy the street right of way.

Also, as a way for the Chicago Department of Buildings to discourage gut rehabs being permitted with a series of easy permits, when a Standard Plan Review is most likely required, the DOB required that I apply for a renovation/alteration permit and show them in-progress drawings.

Consultants and contractors used so far


First floor kitchen
The demolition exposed the shape of the chimney. The right side was filled in and the wall was flat so we didn’t know how wide the chimney was.
The kitchen platform
The kitchen platform had a level top, but the floor beneath was uneven. The framing underneath the platform had angles cut to ensure the platform was level.

Damn, Metra is expensive

tl;dr: Metra costs nearly twice as much for the same trip

I went to Pullman today for a preservation organization’s task force meeting hosted by Chicago Neighborhood Initiatives. Their office is in this weird US Bank office high-rise surrounded by open space, a golf course, warehouses, and an interstate.

There are many ways to get there. Some people drove their own cars from nearby neighborhoods, others shared a ride hail car, and I and at least one other person rode Metra, the region’s commuter rail service.

The Metra Electric District line has fast service between its downtown terminal at Millennium Station and 111th Street (Pullman), scheduled for a 36 minute run. The MED is Metra’s most regional rail-like service, with several electric train services per hour during some hours.

I rode a Divvy shared bike from the station nearest my office (300 feet away) to Millennium Station – in order to get to the station faster – and boarded the Metra about five minutes before it departed.

Us Bank tower in Pullman

Taking CTA, a separate transit operator in Chicagoland, is also an option. I could have taken CTA from my office at Madison/Wells to CNI’s office in the high-rise with less than 3/5th of a mile walking. Google Maps predicts that this trip would have taken 1:06 (one hour and six minutes). It would have cost $2.75 ($2.50+25 cents transfer)

Metra, on the other hand, excluding the marginal cost of my Divvy ride because I have a $99 annual membership that nets me unlimited free rides of up to 45 minutes, took 56 minutes (5 on bike, 36 on train, 15 on foot) and cost $5.25.

A 14 percent shorter trip via Metra cost me 90 percent more. If I wanted to have saved the 15 minute walking trip and taken a CTA bus, that would have been an extra $2.25. CTA and Metra do not have integrated fares ¯\_(ツ)_/¯

Cook County President Toni Preckwinkle and the Cook County Government is trying to do something about the price differential, and reduce the prices on the faster (and more comfortable) Metra rides. Mayor Lori Lightfoot is blocking it. Go figure.

Update, February 16, 2021:

Chicagoland’s massive parking footprint – as measured on September 16, 2018

Using the footprints of parking lots and garages drawn into OpenStreetMap as a data source, the area of land in Chicagoland occupied by parking lots and garages is 247,539,968 square feet. (The data was exported using HOT Export Tool; you can replicate my export.)

That converts to:

  • 5,682.71 acres
  • 8.88 mi^2 (square miles)
  • 22.99 km^2 (square kilometers)
  • ≈ 0.26 × area of Manhattan (≈ 87 km^2 )
  • 3.9% area of Chicago is parking (Chicago is ~589.56 km^2 )

(I forgot to measure the portion of this within Chicago, and now the data snapshot is gone. I fixed this in the 2019 report.)

Why Jefferson Park residents should allow more housing

Short answer: To provide more shoppers for the local businesses. Read on for the longer answer. 

Over on Chicago Cityscape I added a new feature called “market analysis” which measures the number of people who live within specific walking areas (measured by time) and driving areas (measured by distance). 

I am in favor of removing apartment & condo bans in Chicago, especially in areas where they were previously allowed and near train stations.

Jefferson Park is centered around two co-located train stations, serviced by CTA and Metra respectively. There have been multiple proposals for multi-family housing near the stations (collectively called the Jefferson Park Transit Center) and some have been approved. 

Always, however, there are residents who resist these proposals and the number of originally proposed apartments or condos gets reduced in the final version (classic NIMBYism). 

There’re four reasons – at least – why more housing should be allowed near the Jefferson Park Transit Center:

  • Locally owned businesses require a significant amount of shoppers who live nearby and walk up traffic
  • More people should have the opportunity to live near low-cost transportation
  • It will include more affordable housing, through Chicago’s inclusionary zoning rules (the Affordable Requirements Ordinance, ARO)
  • There will be less driving, and therefore lower household transportation costs and less neighborhood pollution

To support the first reason, I used the “market analysis” tool to see just how many people live in a walkable area centered around Veterans Square, a mixed-use office and retail development adjacent to the train stations. 

Only 9,368 people live within a 10 minute walk to Veterans Square (get the Address Snapshot). 

Comparatively, 19,707 people live within a 10 minute walk to The Crotch, or the center of Wicker Park, at the intersection of Milwaukee/North/Damen (get the Address Snapshot). The Blue Line station is about 75 feet south of the center point.

I would grant the low Veterans Square number a small discount based on the proximity to the Kennedy Expressway, which severely truncates walking areas up and down the northwest side. Still, even with that discount, ending up with less than half the amount as the one in Wicker Park, is disturbing. Wicker Park is hardly characterized by high-density housing. In fact, all of the new high-rises are just outside the 10 minute walk shed!

Don’t ban apartments on this vacant lot if you want more affordable housing – a case study

A vacant lot is for sale near the 606’s Bloomingdale Trail, a popular amenity that’s now known to have an effect in increasing home values. It’s zoned RS-3, which means it bans apartments. If the zoning stays the same, then the vacant lot will only allow a rich family to move in here. If the lot’s zoning is changed to allow apartments or condos, then the vacant lot could welcome families that earn median incomes.

You can build multi-family housing on the lot if you can get a zoning change, but you’ll have to pay the city a fee, convince your future neighbors that they shouldn’t oppose it, convince the alder that he should support it, and you’ll have to hire a lawyer.

Let’s say that zoning changes in Chicago were free and frictionless*. What should be built on this lot?

If the lot would allow multi-family housing, we can build several units for less money per unit than if we built a single-family house. That means that three families (let’s stick with three, which requires a zoning change to RM-4.5) could be housed for less money per family than the cost of one family.

How’s that? The sticker price for this lot is $425,000 right now, and if one family is paying for that plus the cost of building a house, then your minimum investment is pretty massive. (I suspect the lot will sell for something closer to $400,000.)

I looked at new construction costs on Chicago Cityscape, as indicated on building permits issued within 1 mile of the vacant lot, took the average, and added it to the cost of land per unit.

Construction costs

The average new construction single-family house, from the 10 most recent permits, is $304,052.78.

The average new construction multi-family housing, from the 10 most recent permits, is $230,192.13 per unit.

Total cost per unit (land + construction)

Add in the land cost per unit ($425,000 for the single-family house and $141,666.67 per unit for the 3-flat) and you end up with the total costs of:

  • $729,052.78 for the single-family house
  • $371,858.80 per unit in the 3-flat

Add in the profit or “cap rate” that a builder wants to make and the price is even higher, but the people who would buy in the multi-family house would be paying much less for their homes.

Takeaways

The city can generate more affordable housing if it “upzones” vacant land and stops banning multi-family housing. (Much of the city’s parcels have been “downzoned” to ban multi-family housing in a process that creates “exclusionary zoning” and allows only – expensive – single-family housing.)

The city and the Chicago Transit Authority will earn more real estate transfer taxes (RPTT) from the sales of the units as condos than from a single-family house.

Three families instead of one would enjoy living to the wonderful amenity that the Bloomingdale Trail and the parks that the 606 offers.

Want this kind of analysis for a property in Chicago? You can order a zoning report from me.

* The City of Chicago charges a zoning change fee of $1,025, and you will most likely have to hire a lawyer, and it will take about 3-6 months, depending on the complexity of the proposal that requires the zoning change. You can use Chicago Cityscape to see actual approval times (excluding the time meeting the alder for the ward of the proposed project).