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Archive for August, 2009

Pete’s Market Comes To The West Side

Posted by Tom Lang On August - 30 - 2009

Looks like Western and Madison are getting a Pete’s market. Read this recent article from the Chicago Tribune to learn:

Grocery gives sweet taste of victory
Mary Schmich

Andre Perrin drove over to Angelene Johnson’s condo just to tell her the news. She shouted. She cried.

“I thought I blew his eardrum ’cause I hollered so loud,” she said when I called her Thursday.

Not everyone would weep and shout over the coming of a grocery store, but the news that excited Perrin and Johnson and hundreds of other West Siders last week was about more than bananas.

This was the end of a fight, the end of a drought, the beginning of a new age in one of Chicago’s official “food deserts.”

I recently wrote about the neighborhood’s campaign to get its first supermarket in a generation. In the often frustrated, fractured and changing community, the campaign had brought together neighbors of all kinds.

Some were like Johnson. She’s a former public housing resident who moved into a mixed-income development after the demolition of Henry Horner Homes, where she raised three children.

Others were like Andre Perrin. He’s a freelance speechwriter who moved with his girlfriend from hip Wicker Park to buy a home he could afford in a piece of Chicago he wanted to help reshape.

Johnson and Perrin and their allies didn’t want just any grocery store though. No mushy vegetables mummified in plastic, please.

They wanted a Pete’s Fresh Market, and they wanted it not only for the first-rate produce, low prices and spotless aisles but for what a store like that symbolized: respect for the neighborhood.

Finally last week, after years of delays, discussions and pitches from three stores, Ald. Bob Fioretti called a meeting to make the announcement.

As Perrin recounts it, more than 350 people showed up at Phoenix Military Academy.

At the end of a long suspenseful preamble — “true political theater,” said Perrin — Fioretti gave the crowd what they wanted: A Pete’s was coming to the corner of Madison and Western. So was a Giordano’s pizzeria.

The applause, Perrin said, lasted for two minutes.

“One thing it’s going to do,” said Perrin, who led the campaign of e-mails, phone calls and petitions, “is make this a walkable community. Right now, people don’t walk around much because there’s not much to walk to. And it’s not a neighborhood feeling when you don’t see people walking.”

His new neighborhood may never rival Wicker Park, with its abundance of coffeehouses, bookstores, dry cleaners and restaurants. But at least there will be somewhere to go on foot, an incentive to get exercise and more neighbors to greet on the sidewalk.

“To have a grocery store in the heart of the West Side,” Johnson said, “to have one at my doorstep — you know what I’m saying? — it’s a godsend.”

Construction on the store won’t start until June. In the meantime, Perrin and his neighbors will keep building their neighborhood in little ways.

On Sunday mornings this summer, they’ve held their first farmers market, in a long-neglected park. Perrin is planning to give tennis lessons to neighborhood kids. They’re looking for a yoga teacher.

Monday evening, they screened their first film in the park — “Kung Fu Panda” — and passed out free hot dogs.

Afterward, a former public housing resident told Perrin, “Nobody’s ever thought to do that for the kids before.”

In the glow of the grocery store victory, Perrin offers this advice for anyone else looking to improve their neighborhood against the odds: Stick together. Be patient. Be relentless.

Let us know what you think about this article, leave a comment.

10 Properites witin 20 blocks of loop < 2k Month NON CONDO

Posted by Phil Buoscio On August - 28 - 2009

I can find you 10 properties within 20 blocks of Lake and Wacker where you can own a yard, a garage, and not pay assessments and have a tennant and have a 2 bed apartment that you OWN for under $2000 a month all in!

Challenge me!! Challenge us.

-Phil Buoscio

07074363 PCHG AT 44 N Menard A2 CHICAGO $88,995 06/30/10 Phillip Buoscio 8 07264510 PCHG RS 6455 N California Ave 1 CHICAGO $99,000 01/06/10 Phillip Buoscio 9 07264480 PCHG RS 6449 N California Ave 1 CHICAGO $124,899 01/06/10 Phillip Buoscio 10 07266172 PCHG DE 3040 W Cullerton St CHICAGO $129,898 12/25/09 Phillip Buoscio 11 07122428 PCHG AT 44 N Menard A3 CHICAGO $139,895 12/31/09 Phillip Buoscio 12 07243587 PCHG AT 118 S Leavitt St 2 CHICAGO $149,893 12/12/09 Phillip Buoscio 13 07260205 PCHG AT 1900 W Touhy Ave 2D CHICAGO $149,895 01/01/10 Phillip Buoscio 14 07264520 PCHG RS 6459 N California Ave 1 CHICAGO $154,899 01/07/10 Phillip Buoscio 15 07122436 PCHG AT 38 N Menard 3B CHICAGO $164,883 12/31/09 Phillip Buoscio 16 07172020 PCHG AT 862 N Mozart 1R CHICAGO $179,897 09/27/09 Phillip Buoscio 17 07163846 PCHG VL 1627 S Morgan CHICAGO $199,886 10/17/09 Phillip Buoscio 18 07292368 PCHG DE 2026 W 18th St CHICAGO $229,898 12/06/09 Phillip Buoscio 19 07251491 PCHG VL 6815 S Carpenter SKOKIE $229,899 12/17/09 Phillip Buoscio 20 07302130 PCHG AT 862 N Mozart 2F CHICAGO $229,899 07/17/10 Phillip Buoscio 21 07282606 PCHG DE 7716 S Mason Ave BURBANK $239,898 01/27/10 Phillip Buoscio 22 07259970 PCHG DE 6815 S Carpenter Ave SKOKIE $239,899 12/31/09 Phillip Buoscio 23 07251495 PCHG VL 6815 S Carpenter SKOKIE $239,899 12/17/09 Phillip Buoscio 24 07229959 PCHG MU 2345 S Cuyler Ave BERWYN $249,892 11/30/09 Phillip Buoscio 25 07255806 PCHG AT 1529 W 19th St 3 CHICAGO $249,895 09/26/09 Phillip Buoscio 26 07251474 PCHG VL 6815 S Carpenter SKOKIE $249,899 12/17/09 Phillip Buoscio 27 07163879 PCHG DE 7539 W Main St NILES $249,899 09/18/09 Phillip Buoscio 28 07262208 PCHG DE 1746 N Albany Ave CHICAGO $249,900 10/03/09 Phillip Buoscio 29 07247956 PCHG MU 2328 W 23rd St CHICAGO $319,899 12/12/09 Phillip Buoscio 30 07162570 PCHG CO 3638 W Fullerton CHICAGO $329,890 09/16/09 Phillip Buoscio 31 07302019 PCHG MU 1608 S Paulina Ave CHICAGO $339,899 12/16/09 Phillip Buoscio 32 07222021 PCHG VL 913-15 W 19th Pl CHICAGO $349,891 02/20/10 Phillip Buoscio 33 07250338 PCHG MU 3544 W Dickens Ave CHICAGO $379,896 12/31/09 Phillip Buoscio 34 07264371 PCHG AT 1013 W 16th St 2W CHICAGO $439,897 01/06/10 Phillip Buoscio 35 07197177 PCHG MU 235 S La Grange Rd LA GRANGE $499,898 10/23/09 Phillip Buoscio 36 07294760 PCHG DE 235 S La Grange Rd LA GRANGE $499,898 12/31/09 Phillip Buoscio 37 07196806 PCHG CO 2215 S Leavitt St CHICAGO $549,896 10/15/09 Phillip Buoscio 38 07211000 PCHG MU 866 N Hermitage Ave CHICAGO $582,898 11/01/09 Phillip Buoscio 39 07160326 PCHG DE 1822 W Erie St CHICAGO $999,886 10/14/09 Phillip Buoscio 40 07272144 PCHG DE 1363 W Ancona St CHICAGO $1,1

Top commercial servicers

Posted by Phil Buoscio On August - 28 - 2009

The Mortgage Bankers Association (MBA) recently released its midyear rankings of commercial and multifamily mortgage servicers. The top spot on the list is held by Wells Fargo/Wachovia Bank with $476.3 billion in master and primary servicing.

PNC Real Estate/Midland Loan Services is No. 2, with $308.5 billion, followed by Capmark Finance Inc. with $248.7 billion, KeyBank Real Estate Capital with $133.1 billion, Bank of America with $132.2 billion, and GEMSA Loan Services LP with $104.8 billion.

The largest master and primary servicers of commercial/multifamily loans in commercial mortgage-backed securities (CMBS) and collateralized debt obligations (CDOs) are Wells Fargo/Wachovia Bank, PNC/Midland, Capmark, and Bank of America.

PNC/Midland, Wells Fargo/Wachovia Bank, Deutsche Bank, and Capmark are the largest Fannie Mae and Freddie Mac servicers. GEMSA Loan Services, Prudential Asset Resources, PNC/Midland, and Northwestern Mutual are the largest servicers for life companies.

Ranked as the top master and primary servicer of commercial bank and savings institution loans is JP Morgan Chase Bank. Other rankings include GEMSA as the top servicer for credit companies, pension funds, REITs, and investment funds; PNC/Midland the top FHA and Ginnie Mae servicer; Wells Fargo/Wachovia the top for mortgages in warehouse facilities; and Capmark the leading servicer for other investor-type loans.

MBA also asked firms to provide information about CMBS loans on which they are the “named special servicer,” that is, where the firm stands ready to service the loan should special problems develop, such as delinquency. Among the leading special servicers were LNR Partners, Inc.; CWCapital LLC & CWCapital Asset Management; Centerline Servicing Inc.; and PNC Real Estate.

The MBA survey also collected servicing volumes for loans on commercial/multifamily properties located outside the United States. Hatfield Phillips International is ranked as the largest master and primary servicer of non-U.S. commercial/multifamily mortgages, followed by Deutshe Bank and Capmark.

The Big Selloff – Ds News

Posted by Phil Buoscio On August - 28 - 2009

The Great Unwinding: Coast to Coast, Banks Starting Big Selloffs of Residential Debts
08/14/2009 By: Adam Weinstein

Perhaps it’s “government pressure to clean up balance sheets,” or the thawing out of home sales, the need for capital, or the growing pool of players in the mortgage-backed assets market.

Whatever the motivation, more banks are beginning to unwind their positions in toxic residential loans.

Earlier this week DS News reported one such deal, by Milwaukee-based Marshall & Isley, to sell a pool of 800 troubled Arizona mortgages to an undisclosed buyer. The sale cleared $297 million of loans from M & I’s ledger.

Now big banks are joining the selloff, too, hoping that a few

better-than average quarters can help them withstand the write-downs. Wells Fargo unloaded an underperforming pool of $600 million in mortgages to a subsidiary of the hedge fund York Capital Management. According to estimates of other bidders, those loans probably sold for 35 to 40 cents on the dollar.

York is one of many hedge funds and private-equity firms that are entering the mortgage market, looking for distressed debt that can be bought for a song and might yield profits as loans continue to be modified. Many firms are raising investment capital for those purchases by making initial public offerings of stock, as DS News recently reported.

Other players in the buyers’ market read like a who’s who of hedges and capital firms: DellaCamera Capital Management; BlackRock and Highfields; Jacobs; Marathon; Starwood and Apollo.

If this trend becomes a full-fledged movement, who will be the real winners? “Borrowers, who have had a tough time modifying their existing loans with large banks,” the New York Times DealBook blog said today.

For the first time since the credit crunch became a full-on crisis, the owners of those borrowers’ debts might be willing to do some workouts with real benefits.
Banks are about to unload inventory… and flood the market as much as they can…

Author: Adam Weinstein • Date: 08/14/2009 • Tags: Starwood Property Trust Inc., Wells Fargo • Category: Loss Mitigation, Mark

Poised for Comeback – Natl focus

Posted by Phil Buoscio On August - 28 - 2009

MONEYANDMARKETS»

Friday, August 28, 2009
YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON’T GET FROM WALL STREET
[«] Money and Markets 2009 Archive View This Issue On Our Website [»]
Housing Market Stabilization on Track
by Mike Larson

Dear Subscriber,
Mike Larson

Almost four months ago, I made one of the most dramatic shifts in my investment outlook ever. After warning — in advance — that we would experience a devastating housing and mortgage market crash … and after repeatedly refuting all the early — and wrong — bottom callers during the four-year collapse, I wrote the following in my Money and Markets column four months ago:

“It’s time to signal another important shift in my thoughts on the housing market. Namely, that the nexus of the real estate downturn is shifting and that the residential market is poised to stabilize in the coming quarters.”

I went on to say the market wouldn’t turn on a dime. My forecast: Home prices would continue to fall, but at a more gradual pace, while sales would gradually stabilize and inventory for sale would gradually come down.

So where do things stand? Do I deserve a passing grade?

Sales … Starts … Home Builder Sentiment?
It’s All Telling the Same Story …

Here’s a brief recap:

* New home sales rose 9.6 percent in July to a seasonally adjusted annual rate (SAAR) of 433,000. There were gains in three out of four regions in the country. Meanwhile, the raw number of homes for sale dropped to 271,000 — the lowest level going all the way back to 1993. And yet, median home prices were STILL down 11.5 percent year-over-year.

* What about the existing, or “used,” home market? Sales gained 7.2 percent to a 5.24 million SAAR. That was the highest since August 2007. The number of homes on the market is still way too high, but it did fall almost 11 percent from a year ago. Prices were off 15.1 percent.

Construction of single-family homes is trending upwards.
Construction of single-family homes is trending upwards.

* S&P/Case-Shiller home price index? Prices are down 15.4 percent from a year earlier in June. But that was an improvement from the 19 percent rate of decline seen a few months ago.

* Housing construction? Everybody flipped over the fact that “headline” housing starts missed expectations in July. But the weakness was all in the multifamily (apartment, condo, etc.) segment. Construction of “core” single-family homes rose for the fifth month in a row, while permit activity shot up by almost 6 percent.

* Home builder sentiment? Another good number. The National Association of Home Builders index rose another point to 18 in August, the highest since June 2008. We saw gains in three out of four regions of the country.

I’d call that a pretty decent fit with my May 8 forecast. Most importantly, for investors like you, I said you simply had to get out of the way if you were “short” the sector. The easy money, as they say, had been made.

The Philadelphia Housing Index (HGX), which consists of 19 home builders, construction suppliers, and mortgage-services firms, closed at 93.97 the day my piece was published. It’s up about 16 percent since then.

Home Values Rise

Posted by Tom Lang On August - 25 - 2009

Are we at the bottom of falling home prices? We don’t know for sure, but there are some signs of light at the end of the tunnel. Check out this article from the Chicago Sun Times:

Chicago home prices rise in June
BY FRANCINE KNOWLES fknowles@suntimes.com
Chicago home prices rise in June

Tue, 25 Aug 2009 04:00
BY FRANCINE KNOWLES fknowles@suntimes.com

Home prices in the Chicago metropolitan area rose 1.1 percent in June over May, but were down 16.7 percent from a year earlier according to the latest Standard & Poor’s Case-Shiller home price index.

Nationally, prices rose 2.9 percent in the second quarter from the first quarter, the first quarter-over-quarter improvement in three years. But prices were down 14.9 percent from a year earlier.

“For the second month in a row, we’re seeing some positive signs,” David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement. “There are hints of an upward turn from a bottom.”

The 10-city and 20-city composite indexes were each up 1.4 percent in June over May, their second consecutive monthly increases. But they reported annual declines of 15.1 percent and 15.4 percent respectively. Still, that was down from recent record losses of 19.4 percent and 19.1 percent. Eighteen of the 20 metropolitan areas saw improvement in their annual returns compared to those over May and the same 18 showed positive month-over-month returns.

But in spite of the recent positive data, overall numbers remain weak. Fifteen of the 20 metropolitan areas reported double digit annual declines, and Las Vegas and Detroit continued to struggle severely. They were the only two markets that fell in June and that saw deterioration in their annual rates of return, according to the report.

Let us know what you think where the market is at, leave a comment :)

70% Chance Tax Credit Will Extend, 20% It Will Grow In Scale

Posted by Phil Buoscio On August - 24 - 2009

First-Time Home Buyers in Limbo As Congress Weighs Credit Extension

By Kenneth R. Harney
Saturday, August 22, 2009

It’s one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let this year’s $8,000 tax credit for first-time buyers expire as scheduled 14 weeks from now? Or will the credit get a second life and be extended for another six to 12 months, taking pressure off buyers, realty agents and settlement companies?

That’s an especially urgent matter if you’re a buyer just starting to shop and you see entry-level prices bottoming out or rebounding in many local markets and you want to take advantage of the credit, which is more generous than last year’s in that it doesn’t have to be repaid. The tax-credit law requires buyers to close on their purchases — not just be under contract — no later than Nov. 30. This doesn’t leave a lot of leeway for people who haven’t yet decided on a house and who haven’t nailed down mortgage financing.

The whole process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months — or a lot longer if things get off track. Given the rapidly approaching deadline, what’s the likelihood that Congress will blow the whistle and allow at least a little extra time? Here’s a quick overview: Though Congress technically is on its summer break, most members of the Senate and House use part of the August recess to meet with and listen to constituents in their home districts.

This year, the two biggest housing trade groups — the 1.2 million-member National Association of Realtors and the National Association of Home Builders — are spending the month mounting unusually intense grass-roots lobbying campaigns to make the case for extending the credit, and maybe even expanding it. The effort is targeted first at the districts of members of the two tax-writing bodies, the House Ways and Means and Senate Finance committees, but is expected to cover most other members of Congress as well, according to officials of the two groups.

Delegations of home builders and realty brokers already have begun descending on district offices, delivering what Jerry Howard, president and chief executive of the builders association, calls “the hard economic facts.” They are the numbers of houses sold in each congressman’s district that are attributable to the tax credit; the economic ripple effects on local businesses, manufacturers and service industries; the number of new jobs and income generated; plus the additional tax revenue that all this activity will help produce for local governments.

On a national basis, according to economists at the National Association of Realtors, anywhere from 300,000 to 350,000 additional sales of houses will be stimulated this year by the credit. Each home sale generates about $63,000 in downstream “ripple effects” elsewhere in the economy, they say. That includes sales of furnishings, appliances, lawn mowers, landscaping and renovation materials, plus moving expenses.

If you accept the numbers — and some analysts consider them a stretch — this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration’s 2009 stimulus legislation would cost jobs, economic growth and tax revenues, the housing groups argue.

There are some early signs Congress may be getting their message. Bills already are pending in both houses to extend the credit for another year. Senate Majority Leader Harry M. Reid (D-Nev.), whose state has been among the worst hit by the housing bust, reportedly now favors an extension of the credit. He was quoted to that effect by the Las Vegas Sun on Aug. 5, adding, “It’s something we can get done.”

Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Banking, Housing and Urban Affairs Committee and in a tight race for reelection next year, is co-sponsor of a bill with Georgia Republican Johnny Isakson that would raise the credit amount to a maximum of $15,000. Meanwhile, the Realtors and the builders are pushing not only for extension of the credit, but for broadening it to cover all home purchases in 2010.

But can any of this happen before the Nov. 30 deadline? The key complicating factor here is Congress’s heavy load of higher-profile, pressing issues that will get attention before anything else in September and October. That includes health-care reform, climate change and energy, financial system regulatory reform and a new Consumer Financial Protection Agency, among others. On top of that, a tax-credit extension would cost billions in lost revenue — a big negative when the federal budget deficit is already wallowing in a record amount of red ink.

In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don’t bank on a bigger credit, however, or on a broadening of the concept to cover all buyers next year.

Michael Reese Hospital Article

Posted by Tom Lang On August - 13 - 2009

Check out this article on the debate over preserving parts of Michael Reese hospital for the 2016 Olympic games if they come to Chicago:

Push to preserve Michael Reese Hospital buildings
REAL ESTATE | Chicago 2016 panel has talked about plans that would preserve some Gropius structures

Comments
August 12, 2009
DAVID ROEDER droeder@suntimes.com

Preservationists’ quest to save parts of the former Michael Reese Hospital campus seemed improbable at first. But it’s beginning to look like a serious challenge to Mayor Daley’s desire for demolition for the sake of the 2016 Summer Olympics.
Two independent sources said Tuesday that the Chicago 2016 organizing committee has held discussions over plans that would preserve some structures on the campus. One proposal is expected to be submitted within days and will come from preservation activists. Another, the sources said, is being drafted by Chicago architectural firm DeStefano & Partners.

Both would try to blend the Olympics-turned-private housing idea with some Reese structures, especially those attributed to architect Walter Gropius. Landmarks groups have protested Daley’s planned wholesale demolition on the grounds that the Gropius buildings are significant in the history of post-World War II architecture. They also argue that tearing them down would make Chicago look backward just when it’s trying to invite the world to its lakefront.

James DeStefano and Joseph Gonzalez, principals at the DeStefano firm, did not return calls. Jaclyn Valrose, spokeswoman for Chicago 2016, said it “has bounced around ideas with architects and other groups” concerning the Reese site. But she said it possesses no proposals that call for saving buildings.

Last week, pro-Gropius entreaties from Landmarks Illinois, Preservation Chicago and an ad hoc group called the Gropius in Chicago Coalition drew a sympathetic ear from the Daley-appointed Commission on Chicago Landmarks. The panel refused to endorse federal landmarking of the entire 37-acre Reese site, but it informally concurred that some of the structures are worth saving. Research found that eight of the 29 Reese buildings can be traced to Gropius, founder of the Bauhaus School of modern architecture.

Chicago is expected to hear on Oct. 2 whether the International Olympic Committee will award it the 2016 Summer Games. If the Games go elsewhere, preserving the buildings will become the best option. If Chicago gets the games, Daley may find that Gropius, 40 years after his death, will improve the look of his Olympic Village.

$1 Land in Brozeville For Affordable Housing

Posted by Tom Lang On August - 13 - 2009

Check out this recent article in the Sun Times about developing about 80 parcels of vacant land for affordable housing:

$1 parcels to go for affordable housing
REAL ESTATE | City close to sealing deal on the 80 South Side lots, most homes would have a base price of $195,000

August 5, 2009
DAVID ROEDER droeder@suntimes.com
City officials are closing in on a deal to turn over more than 80 South Side parcels at a dollar each to seven builders. Each builder, in turn, has pledged to make the vacant lots the sites of new single-family homes, with most of them priced to meet a legal definition of affordability.
It’s part of a program for “green homes” as crafted by the city’s Department of Community Development. The builders commit to environmentally friendly practices in design, construction and selection of appliances.

Molly Sullivan, spokeswoman for the department, said most of the homes would be base priced at $195,000, which by the federal government’s rules is affordable based on median incomes in Chicago. For a four-person family, that means an annual income cap of $75,400. All homes would be two stories and have at least three bedrooms, she said.

The parcels are generally on Calumet from 3900 to 4900 south, Prairie from 4400 to 4800 south, the 400 block of east 46th Place and the 5200 and 5300 blocks of South Emerald. In legal notices about the proposed sales, the city set an Aug. 31 deadline for alternative offers. If none is received, the sales would then be approved.

One of the seven builders, Benjamin Van Horne, president of Greenline Development Inc., said he expects demand for the affordable units despite the moribund housing market. Market-rate homes will take awhile, he said, estimating they would be priced at $350,000.

Other builders in the program are Barron Development LLC, Bronze Key LLC, Click Development LLC, the Green House Association, Habitat Development South and Johnson Development Group LLC.

Chicago Arts District Article

Posted by Tom Lang On August - 13 - 2009

Check out this article from the Chicago Reader:

ROBIN M. RIOS
Aug 13th, 2009

Six years ago, when Robin Monique Rios opened the 4Art Inc gallery in a large, glassy, two-story space at 1932 S. Halsted in east Pilsen, her landlord welcomed her as exactly the right kind of tenant for the neighborhood he’d newly dubbed the Chicago Arts District. John Podmajersky III—whose family had lived in east Pilsen since 1914, and whose parents began buying property and creating an artists’ community there a half century ago—was looking for what he called “artist-entrepreneurs” to replace the street-level studios along Halsted from about 16th to Canalport with galleries and art-related businesses. “We want our storefronts to be vital commercial spaces in the context of an art community,” he told me then. 4Art, a start-up offering framing, art classes, and graphic design along with the work of about 20 mostly local artists, was a perfect fit.

This week Rios is closing her space in preparation for a move to Bridgeport, eager to escape the ghost town that the Chicago Arts District has become even as the sprawling University Village development has taken shape just a few blocks away. Most of the storefronts between 18th and 20th on Halsted now stand empty; on the east side of the 1800 block, one after another of the live-work spaces—beautiful bi-levels opening to the street in front and to Podville’s famous hidden gardens in the back—are vacant. Even in this economy, it’s hard to imagine why. Maybe Podmajersky can explain, but he didn’t return calls for this story.

At 4Art, the huge windows that flooded the gallery with light are broken and boarded up. The damage, apparently a random act of vandalism, occurred about a month ago, Rios says. It’ll be fixed when her insurance company processes the claim, but in the meantime it’s a pretty good symbol for the current vibe in the neighborhood. According to Rios, the Chicago Arts District seemed to be progressing until about two years ago. “We were doing well, a lot of the storefronts and studios were full.” Then, almost imperceptibly, things took a turn, and “now its gone completely downhill. Everybody’s leaving. There’s no more community here.”

A “digital painter” and sculptor, Rios started 4Art with a small-business loan and a partner, painter-photographer Jerod Schmidt. He bailed after two years, and she’s run it on her own since, earning enough to pay off debts and bills but not enough to pay herself a real salary. A Chicago native, Rios was fresh out of college with a BFA and a “can-do” spirit when the gallery opened in 2003. But by last winter, she was ready to give it up. “I had decided I would close,” she says, when “somebody from the Zhou brothers”—artist-entrepreneurs with an art building at 1029 W. 35th in Bridgeport—”called me and said they thought that I’d do well there. They rolled the red carpet out for me.” She’ll have a one-day closing show at the current location August 14, then celebrate the opening of her 1,800-square-foot space (1,000 square feet smaller than on Halsted) at the Zhou B Art Center on September 18.

What went wrong? Rios says Podmajersky management “never bothered” her, but, “I felt like there wasn’t enough support. . . . They weren’t keeping the artists.” Podville’s been a “revolving door,” Rios says. “People would come, stay a year, and then leave.” She says she and Schmidt started the Chicago Arts District’s tradition of Second Friday open studios to bring people into the area. “I don’t know what will happen once we leave,” she says, but “I can’t continue to push a wagon by myself.”

The list of 4Art’s former neighbors includes Dubhe Carreño, who’s reopening her eponymous gallery September 11 at 118 N. Peoria in the West Loop, where the Peter Miller and Rhona Hoffman galleries are also tenants. Carreño—who ran her ceramics-centric business from 1841 S. Halsted for four years, closing in June 2008—says that in the old location there was a constant turnover among resident artists and a puzzling persistence of empty spaces despite what she thought were reasonable rents. While the Second Friday events had “energy,” they were more of a party than a source of clients for her. Meanwhile, she notes, her former space is still empty more than a year after she left it.

Jhonmar Castillo, who moved his Moka Gallery from 1825 S. Halsted to 2112 W. Belmont two and a half years ago, says he battled with Podmajersky III over things like asbestos floor tiles and electricity that was so wonky that “if you turned on the microwave, the lights went out.” It’s too bad, he says. “It was a beautiful concept his dad had.”

Married painter-illustrators Bridget Bolger and Scott Multer moved into the former Moka space in March. It doubles as their studio and as South Halsted Gallery (current show: a Bolger retrospective), with hours by appointment and whenever they happen to be there. Right now, Bolger concedes, there’s very little foot traffic. But with University Village and two new restaurants—Nightwood and Simone’s—nearby, she says the area’s poised to pick up. “I’d love to see other artists come down and join us.”

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