Lincoln Park, Chicago, has a higher density than Bridgeport, which we studied last week. Properties with the highest density yield between 40 and 50 units. In this study, we found six properties that allowed more than 40 units and currently have less than 5,000 SF.
These properties have at least an 8X development multiple. How to combine the Chicago Zoning Map with Census data for site selection?
We used the zoning information to identify properties with the most favorable development criteria. Next, we looked at the six properties’ census tract demographic trends. These include employment percentage, household income, median rent, and total population.
The blue tract has a higher employment rate than the others. It also has the highest median rent and second-largest population. Since three development properties are in the blue tract, I would start there and see if any are for sale.
Can we see the existing building conditions?
Using the Deepblocks software, we can instantly see the street view of any selected parcel. Combining zoning, demographics, and real-life images of the properties speeds up site selection, conservatively 10X of the conventional methods.
Looking at the street view, we can see which buildings might be historical jewels and which ones can probably be demolished if the result is more and better housing.
How do we test-fit a development project on the site?
Using the Deepblocks software, you can also test fit the development project. To maximize the total allowable units, we had to make the average unit size 410 SF. Units this size will be tiny one-bedrooms or small studios.
Having the zoning rules at your fingertips is crucial when doing a test-fit exercise. In this case, the height limitations and setbacks did not allow for maximizing the units and making them a reasonable size.
Zoning is invaluable for text-fit exercises.
More will be revealed,
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Olivia Ramos is the CEO of Deepblocks, an AI-powered software that automates the site selection process for developers and investors.
See how quickly you can find your next development site here (our record is 3 minutes).