Downtown condo market seeing rebound









Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory.

It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing.

With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years.

Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors.

Another piece of good news for current condo owners: Of the 65 downtown buildings studied by the firm, the average sales price per square foot of units sold during the second half of last year rose while the number of distressed condo sales in those buildings saw a substantial drop. Distressed sales, which accounted for  28 percent of sales since 2010, fell to 17 percent of sales during the second half of 2012.

In addition, only 1,104 newly constructed condo units remain unsold downtown.

"When we see more transactions occurring, that's a really good indication of demand," said Gail Lissner, a vice president at the firm. "The look of the condo market has changed in terms of unsold inventory."

Lissner's remarks came Tuesday during a lunchtime briefing on the local housing market.

Most of the unsold inventory, more than 500 units, is in the South Loop and the bulk of it is in the newly named and repositioned 500-unit South Loop Luxury by Related.

The three buildings, once called One Museum Park West, 1600 Museum Park and Museum Park Place 2 were taken over by New York-based Related Cos. in July have been renamed the Grant, Adler Place and Harbor View, respectively.


Since December, 40 units there are under contract, according to Related Midwest, which officially launched sales in the project Tuesday.

Other new projects reporting positive sales trends are Park Monroe Phase II, a 48-unit adaptive reuse project with 16 sales and CA3, a 40-unit building with 18 sales.

"These are all great indicators of strong sales," Lissner said. "Price stabilization has occurred in the market. You don't hear people talking about bottoming out. That was so yesterday."

mepodmolik@tribune.com | Twitter @mepodmolik



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Woman dead after falling from SUV; driver arrested after chase




















Police say woman's body found on expressway was pushed from SUV. (WGN - Chicago)




















































Police are investigating the death of a woman who fell from an SUV that kept on traveling down the Bishop Ford Expressway this morning, eluding officers for five miles until it crashed on an exit ramp at 127th Street in Alsip, authorities said.

The driver was taken into custody, and police said they were investigating whether Jennifer Mitchell, 27, was pushed from the SUV around 154th Street in Dolton shortly before 1 a.m., officials said.

Mitchell was struck by a semi as she lay on the road, according to Master Sgt. Jason LoCoco. The truck driver stopped and was not taken into custody. A second vehicle may have also struck the woman, according to the Cook County medical examiner's office.

Minutes later, a state trooper spotted the SUV on the Tri-State Tollway near 159th Street, Master Sgt. Greg Minx said. The trooper signaled for the driver to pull over but he refused, according to police.  The trooper followed the SUV until it crashed on an exit ramp by 127th Street, some five miles away.

The driver, a 28-year-old man, was taken to Advocate Christ Medical Center in Oak Lawn but his injuries were not believed to be life-threatening, LaCoco said. The driver was taken into police custody but has not been charged. Police said he has not been cooperative.


Mitchell's parents are pastors of the Greater Deliverance Church of God in Christ on the South Side.


Kina Curry, 27, said she was best friends with Mitchell since they were freshmen at Hyde Park High School.  "I know everything about her," Curry said. "She was a loving person, a church-going girl."

Mitchell was a nursing student at Chicago State University, Curry said. She used to work at an M&M factory, but recently quit the job to focus on school. Curry said she last saw Mitchell Saturday morning when the two went to view a Park Forest apartment. Curry is in the market for a new place.
Curry said she heard someone else was driving Mitchell's white SUV. "It's shocking because she never let nobody drive her car, never," Curry said. "That's why I know there's something with that."








asege@tribune.com


Twitter: @AdamSege






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Apple CEO calls Einhorn lawsuit a "sideshow"


SAN FRANCISCO (Reuters) - Apple Inc CEO Tim Cook dubbed David Einhorn's lawsuit against his company a "sideshow" but said on Tuesday the board is carefully considering the star hedge fund manager's proposal to issue preferred stock, calling it "creative."


Waving off claims that Apple is clinging to a "Depression-era" mentality, Cook said the board is in "very active discussions" on how to share more of its $137 billion hoard of cash and marketable securities.


David Einhorn is suing Apple as part of a wider effort to get the iPhone maker to share more of its cash pile, one of the largest in the technology industry. Einhorn wants it to issue perpetual preferred shares that pay dividends to existing shareholders, arguing that such a vehicle would be superior to dividends or share buybacks.


His clash with Apple revolves around a proposed change to its charter that would eliminate the company's ability to issue "blank check" preferred stock at its discretion. Apple is recommending shareholders vote in favor of that at their annual meeting on February 27.


The lawsuit, filed in the U.S. District Court of Southern District of New York, objects to how that charter change is bundled together with two other corporate governance-related proposals in "Proposal 2", in the proxy document for the annual meeting.


While Cook gave Einhorn credit for the idea, the usually calm chief executive seemed to become impatient when discussing the topic. He was dismissive of Einhorn's media and legal blitz - which included the lawsuit as well as multiple television and media interviews - terming last week's episode "bizarre".


Cook, who traded in his usual casual jeans attire for a suit jacket - said the more serious issue here was finding ways to return cash.


"This is a waste of shareholder money and a distraction and not a seminal issue for Apple. That said, I support Prop 2. I am personally going to vote for it," Cook told investors at Goldman Sachs' annual technology industry conference in San Francisco.


The conflict over Prop 2 "is a silly sideshow," he added. Cook said he found it "bizarre that we would find ourselves being sued for doing something good for shareholders."


Apple's share price has tumbled in recent months from a high of just over $700 last September. By late morning on Tuesday, the shares were down around 1.8 percent at $471.40.


Apple stock is a mainstay in many fund managers' portfolios, with research outfit eVestment estimating that 75 percent of U.S. large-cap growth managers had invested more than 5 percent of their portfolios in Apple as of the end of the third quarter of 2012.


But that also piles on the pressure on Apple to give away a bigger portion of its cash pile, pressure that is increasing as the share price declines and its outlook grows murkier.


Cook also touched on Apple's acquisition strategy, saying that the company has looked at more than one large acquisition but each time it didn't pass the company's internal test.


But it could do one in the future, if the technology fits.


"We have the management talent and depth to do it," he said. "We don't feel the pressure to go out and acquire revenue."


Cook, who rarely speaks at length in public, also addressed criticism that Apple's pace of innovation has slowed, saying that product innovation is embedded in its culture.


"It's never been stronger," he said. "There is no better place for innovation. Apple is the center of innovation."


Cook said the company was also trying to appeal to cost-conscious customers. Apple has moved to make the iPhone more affordable without introducing a specific cheaper phone by cutting prices of older models.


"We didn't have enough supply of iPhone 4 after we cut the price," he said. "It surprised us the level of demand for it."


(Additional reporting by Jennifer Saba in New York; Editing by Gerald E. McCormick and Claudia Parsons)



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Wrestling body reacts to Olympic rejection


LAUSANNE, Switzerland (AP) — The governing body of wrestling says the IOC's move to drop the sport is an "aberration" against a founding event of the Olympics.


Known by its French initials FILA, the organization says it is "greatly astonished" by the IOC executive board decision.


FILA says it will take "all necessary measures" to convince IOC members to maintain wrestling's Olympic status when they meet in Buenos Aires, Argentina, in September.


Still, FILA President Raphael Martinetti faces criticism when his ruling board meets this weekend in Thailand.


Russian federation leader Mikhail Mamiashvili says FILA is the problem, and Martinetti's tasks include defending "wrestling's place before the IOC."


German official Jannis Zamanduridis says "a piece of the Olympic idea is dying with this decision."


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Pope shows lifetime jobs aren't always for life


The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.


There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.


"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.


Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.


Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.


When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."


One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.


The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."


In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."


"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.


Experts on aging agreed.


"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."


Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.


But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.


"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.


"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.


Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.


In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.


Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.


The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.


Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.


Other leaders who are still working:


—England's Queen Elizabeth, 86.


—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.


—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.


—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.


__


Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Back to New Orleans: Beyonce to perform at Essence


NEW ORLEANS (AP) — Beyonce is coming back to New Orleans and back to the Superdome.


After entertaining a huge television audience in a packed dome during the Super Bowl halftime show, Beyonce is now scheduled to perform at the Essence Festival.


Festival officials said Monday that she will return to the dome to headline one of three night concerts during the festival, which is set for the Fourth of July weekend.


Beyonce joins an Essence musical line-up that also includes Jill Scott, Maxwell, New Edition, Charlie Wilson, Keyshia Cole, LL Cool J, Brandy and others.


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Chicago leads nation in gas-price spikes









Drivers in Chicago are seeing a painful rise in gas prices get even worse this month.

The average price of regular unleaded in the Chicago metro area on Tuesday is $3.93, according to AAA. That's up 12 cents from a week ago. A month ago, the average was $3.42. Statewide, the average is about $3.79, up 8 cents from last week and 46 cents last month.

Prices are rising at pumps across the country, too, but not as dramatically. The national average is $3.60, up about 7 cents from a week ago and 30 cents higher than this time last month.

It's not typical to see gas price spikes at this time of year. Demand is typically low and picks up in the spring before driving season. And in general, gas is cheaper to produce in the winter because refineries can use less expensive blends.

The main reason for the spike is the higher price of crude oil. The price of oil has gone from around $85 a barrel in December to around $97 now because of improving economic certainty as the country moved past the election and the fiscal cliff deadline, according to energy analyst Phil Flynn. It's also being driven by better-than-expected growth in China, the world's second largest economy.

Prices in the Chicago area are typically some the highest in the nation, but the cost of a local fill-up is accelerating at almost double the national rate.

Flynn attributes this to a number of refinery issues in the region. Some scheduled maintenance at refineries -- where gasoline and other products are produced from oil -- occurred earlier than usual, which cut off some supply, affecting prices. Many close at this time of year to start the switchover to lower-emission summer blends of gasoline.

Besides a major overhaul of BP's Whiting refinery, the largest supplier of gasoline to Midwest markets, that's believed to be driving prices higher, a fire temporarily shut down a refinery in northwest Ohio.

AAA, which tracks daily gasoline prices around the country, predicts they will continue their rapid climb as local refinery issues continue into the beginning of peak driving season.

Flynn is more optimistic.

He believes that once the major Whiting refinery overhaul is complete later this year, gas prices will stabilize.

"I'm probably in the minority but I think we are starting to see some light at the end of the tunnel," he said.

sbomkamp@tribune.com | Twitter: @SamWillTravel



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Cardinal George: Pope showing 'great courage' in stepping down









Cardinal Francis George said today that Pope Benedict XVI "placed the will of God for the good of the church before every other consideration" when he decided to step down.


"He has taught with clarity and charity what God has revealed to the world in Christ, he has handed on the apostolic faith, he has loved all of God’s people with all his heart," George said in a statement. "He has now shown great courage in deciding, after prayer and soul-searching, to resign his office at the end of this month.
 
"With the gratitude of sons and daughters in our hearts, we ask the Lord to bless him and give him strength, as we begin to pray now for the one who will succeed him as Bishop of Rome, Successor of Peter and Vicar of Christ."


Joliet Bishop Daniel Conlon said the pope's decision "is consistent with the humble disposition that I have come to recognize in him, both in my brief personal encounters with him and in his deportment generally as earthly shepherd of the church.

"He recognized that he no longer had the physical gifts necessary to carry out an office that becomes increasingly demanding," Conlon said. "He has been a steady and calm presence in the face of tumult in the world.  He has persevered in Blessed John Paul II’s determination to confront the scandal of child abuse in the church."








Pope Benedict shocked the world by saying he no longer had the mental and physical strength to cope with his ministry, in an announcement that left his aides "incredulous" and will make him the first pontiff to step down since the Middle Ages.

The German-born pope, 85, admired as a hero by conservative Roman Catholics and viewed with suspicion by liberals, told cardinals in Latin that his strength had deteriorated recently. He will step down on Feb. 28 and the Vatican expects a new Pope to be chosen by the end of March.


Vatican spokesman Father Federico Lombardi said the pope had not decided to resign because of "difficulties in the papacy" and the move had been a surprise, indicating that even his inner circle was unaware that he was about to quit.

A priest at St. Peter's Church in the Loop said the news is "surprising but not terrifying," saying it will allow the church to continue to renew itself.

“It’s a new beginning and a chance for new energy in the church,” said the Rev. Ed Shea. "This is good news.”

The selection of a new pope will offer the church the chance to continue its emergence into the “the modern light, the modern world,” Shea said. 

It will also provide a chance to choose a pope from Africa or South America, he said, to reflect the growth of the church on those continents.

“I was shocked, like everybody else,” Father Ed Shea said.  “It kind of surprised me that we didn’t know about it ahead of time.”

As worshipers left a morning mass at St. Peter’s this morning, several said the pope’s announcement had caught them completely by surprise.

“I hadn’t read anything leading up to it about that he was failing in health or anything like that,” said Michael Muldoon of La Grange. “I knew he was in his mid-80s, but I didn’t know that it was coming.”

Asked about the selection of Benedict’s successor, Muldoon said he’d like to see a more youthful pope, “someone a little more forward thinking, someone a little more accepting.”

At St. Alphonsus Church, which still offers a Sunday mass in German, parishioners said they were stunned by the resignation.

Errol Kunz, a 65-year-old retiree who lives by the church in Lakeview, said the Rev. Michael O'Connell mentioned the news at the beginning of the 8:30 a.m. Mass.

"I was shocked," Kunz said. "I couldn't believe it."

Others had heard about the resignation when they woke up.

When a news alert flashed on her phone around 7 a.m., Kathleen Falk said she was confused. "I always thought the popes don't retire," said Falk, a 27-year-old nurse who has been attending St. Alphonsus for five years.

"If you can't fulfill the duties to guide the church, then you can't argue with that," Falk added.

Ian McBride, a 29-year-old social worker who has been going to St. Alphonsus for a few years, called it a "measure of humility" that the pope could recognize his health issues and step down.

For the pope's legacy, "time will tell," McBride said. "In the American church, dealing with the abuse and all that — he took that personally. . .He seemed to be very genuine and ashamed of how things happened."


Contributing: Reuters





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Australia to grill Apple, others on pricing


CANBERRA (Reuters) - Apple Inc has been ordered to appear before Australia's parliament with fellow technology giants Microsoft Inc and Adobe Systems Inc to explain why local consumers pay so much for their products, despite the strong Aussie dollar.


Broadening a row between the world's most valuable company and Australian lawmakers over corporate taxes paid on Apple's operations, Apple executives were formally summonsed on Monday to front a parliamentary committee in Canberra on March 22.


"In what's probably the first time anywhere in the world, these IT firms are now being summoned by the Australian parliament to explain why they price their products so much higher in Australia compared to the United States," said ruling Labor government MP Ed Husic, who helped set up the committee.


High local prices and soaring cost-of-living bills for basic services are hurting the popularity of the minority Labor government ahead of a September 14 election it is widely tipped to lose, giving political momentum to the inquiry.


All three companies have so far declined to appear before the special committee set up in May last year to investigate possible price gouging on Australian hardware and software buyers, despite the Australian dollar hovering near record highs above the U.S. currency around A$1.03.


A 16GB WiFi iPad produced by Apple with Retina display sells in Australia for A$539, $40 above the price in the U.S., despite the stronger local currency. Microsoft's latest versions of office 365 home premium cost A$119 in Australia versus $99.99 in the United States.


IT firms and other multinationals have blamed high operating costs in Australia including high local wages and conditions, as well as import costs and the relatively small size of the retail market in the $1.5 trillion economy.


Failure to appear before the committee as ordered could leave all three firms open to contempt of parliament charges, fines or even jail terms.


"For some time consumers and businesses have been trying to work out why they are paying so much more, particularly for software, where if it's downloaded there is no shipping or handling, or much of a labor cost," Husic told Reuters.


Adobe and Microsoft have previously provided separate written statements and submissions to the inquiry. But executives have been reluctant to explain their pricing before a public inquiry.


Apple executives in Australia declined to comment when contacted by Reuters.


"The companies have blamed each other for not appearing. One will say 'we're not going to appear if the other is not going to appear'. So we've cut straight to the chase and said we'll just summons you," Husic said.


Price gouging in IT for hardware and software, Husic said, could be costing Australia's more than 2 million small and medium businesses as much as $10 billion extra.


Husic took aim at Apple last week over local taxes paid by the company, telling parliament that Apple generated A$6 billion in revenue in Australia in 2011, but paid only A$40 million in tax - less than one percent of turnover.


"While they generated A$6 billion in revenue, they apparently racked up from what I understand A$5.5 billion in costs. How?" Husic said. "They do not manufacture here. They have no factories here."


He accused Apple executives of maintaining a "cloak of invisibility", while dodging scrutiny of operations. Apple has been criticized elsewhere for its zealous secrecy.


"Ask anyone who has sought answers from them about their Australian operations and you will hear a common theme. They will not talk," he said.


(Editing by Shri Navaratnam)



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Eagles, QB Vick agree to restructured deal


PHILADELPHIA (AP) — Quarterback Michael Vick, who was slated to earn $16 million next season, has agreed to a restructured deal with the Philadelphia Eagles.


Vick, who was injured and inconsistent last season, eventually giving way to rookie Nick Foles, now has a three-year contract, and will compete with Foles to see who runs new coach Chip Kelly's offense this season.


Vick, who returned to start the season finale vs. the New York Giants in December because Foles was injured, finished the season with 2,362 yards passing, 12 touchdowns and 10 interceptions. The Eagles finished 4-12 and in last place in the NFC East.


Andy Reid was fired as coach the day after the season ended, and Kelly was hired last month. Vick, who will be 33 when next season begins, is still elusive when healthy, and seems equipped to run Kelly's aggressive, up-tempo offense that he is bringing to the Eagles from Oregon.


Either way, Kelly was noncommittal at his opening press conference on Jan. 17 on the quarterback situation.


"I'm going to look at everybody," he said. "If you can throw the ball and run, I'm going to take you out there. We're going to look at everything we can do to put the best product on the field and that's what it's all about. I've followed Michael's career and I understand what a talent he is. But there is nothing that's on the board right now, there's nothing that's off the board right now.


Vick was signed by Philadelphia in 2009, and became the starter in 2010. He led the Eagles that season to an NFC East title, and a memorable 38-31 December win over the Giants in which he rallied the team from a 21-point deficit.


"Our sole focus and goal is that we're going to put an offense on the field that's going to score points," Kelly said. "That's basically what we're going to do and whoever that is, I don't know that. There's nobody ruled in, there's nobody ruled out."


All told, Vick has started 35 games for Philadelphia over the last three seasons. Foles has started six. The Eagles scored just 280 points last season as they endured an eight- and a three-game losing streak. Only Arizona (250) scored fewer in the NFC.


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