3/14/03 - What is Urban Pioneering

Friday, March 14, 2003
What is "Urban Pioneering"?
Developer offers his take on ambiguous term

As more and more first- and second-time homebuyers rediscover the advantages of city living, "urban pioneering" has become a buzz phrase to describe the phenomenon of homebuyers settling in overlooked areas of the city and helping transform them into strong residential neighborhoods.

But as a developer who specializes in building townhomes and condominiums in emerging Chicago neighborhoods, David Dubin is well-acquainted with both the myths and the reality of urban pioneering.

"I have mixed feelings about the term 'urban pioneering,' " said Dubin, president of Chicago-based Dubin Residential. "On the one hand, it captures the spirit and excitement of becoming a new homeowner in an up-and-coming neighborhood. On the other hand, the term is so casually thrown around that it has come to mean different things to different people."

In offering his definition of urban pioneering, Dubin first explained what he believes it isn't, by refuting some common misperceptions about the phrase. He said that urban pioneering does not mean buying "cheap" property, living in an unsafe area or moving into an out-of-the-way neighborhood.

"True urban pioneering is about investing in value - buying a quality home at an affordable price and in a neighborhood with the potential to quickly mature into a highly desirable location," Dubin said.

He said urban pioneering is most attractive to buyers who enjoy living near the heart of the city, but who cannot afford to own within the most popular neighborhoods. Such buyers are often either renters wishing to become first-time homeowners or second-time buyers looking for a larger residence, such as a townhome or single-family home. Other pioneers simply prefer living in less densely developed areas.

Bucktown and Wicker Park are textbook examples of Chicago neighborhoods transformed by urban pioneers, Dubin said. Both were once declining neighborhoods with under-appreciated stocks of turn-of-the-20th-century Victorian, Queen Anne and Second Empire homes and early 20th century three-flats and condominiums. But as these homes were bought and renovated in the 1990s, the neighborhoods soon transformed into popular districts known for their restaurants, art galleries and nightlife.

According to Dubin, Chicago neighborhoods currently attracting urban pioneers include Rogers Park and Albany Park on the far North Side. Northwest of downtown, with Bucktown fairly well built out, urban pioneers have pushed beyond Western Avenue into the West Bucktown section of Humboldt Park. On the South Side, the fingers of South Loop redevelopment have begun to reach into Bronzeville and Bridgeport.

Common to all urban pioneers is a desire to buy an affordably priced home with strong appreciation potential, Dubin said. But the key is figuring out which areas are positioned to become strong, attractive residential neighborhoods.

One strategy, he said, is to watch where developers specializing in emerging neighborhoods are building. Another is to identify areas just beyond the current edge of the building boom that are affordable for the average first- and second-time homebuyer.

Then ask if there are strong reasons to live in this neighborhood, Dubin said. Are there good public transportation links? Is the development close to expressways? Are there attractive parks, entertainment districts, and shopping areas nearby? Also consider what the surrounding housing stock is like. Are there many single-family homes and three flats, and are they owned by responsible neighbors with a long-term commitment to the neighborhood?

"The more of these questions you can answer affirmatively, the better," he said. "But judge every location on its own merits. Some neighborhoods with few parks or single-family homes can still prove an excellent investment. Look at the West Loop."

Until the late 1990s, the West Loop was a warehouse district. But attracted by its location, urban pioneers began moving into loft condominiums there that had been converted from underused commercial buildings. Soon after, new-construction lofts, high-rises and townhomes began to sprout, which in turn attracted many new restaurants and retail outlets and supported strong home-value appreciation, he said.

However, while making a wise investment is important to every homebuyer, Dubin cautioned against focusing solely on a home's appreciation potential.

"Buyers should not forget that a property's ultimate worth springs from its value as a warm, comfortable home. If a neighborhood is nothing more than a community of investors instead of a community of committed homeowners, then it will take that much longer for the area to develop into a strong and lasting neighborhood," he said.

Building condominiums and townhomes in Chicago since the early 1990s, Dubin Residential has earned a reputation for quality and value. The company is currently developing more than 500 residences, including at Arcadia Place in the West Loop, Ainslie Row in West Albany Park, Emerson Point in Rogers Park, Welbourn Row in Lake View, Kilbourn Court in the Kilbourn Park neighborhood, and The Courts of Evanston.

For more information, contact 773-427-2400 or visit www.dubinresidential.com.

Prices subject to change.