North Lawndale empty lot purchases

[Marc Binger]

I have a relative who has had a tremendous amount of success with investment properties in the city.  He is a firm believer that North Lawndale is going to be gentrified because of its proximity to downtown.  He has been acquiring empty lots in the area.  My understanding of the area is that it is unsafe and unlikely to change anytime soon.  Thoughts? 

[Matthew Olszak]

I don't see North Lawndale becoming anything anytime "soon" besides what it is. Its separated on all sides from growth: To the east, the railroad tracks and industrial area create a physical barrier, to the south, the BNSF tracks do the same, to the north is 290, and to the West is more tracks and industrial area. All growth overflow from other areas is blocked off, so it'll have to come from within, which is EXTREMELY difficult. The area has no commercial offerings (no reason for outsiders to go there), no parks (besides Douglas which is on the extreme Eastern edge), and no better access for commuting in comparison to other areas of the city. The vast majority of new construction and rehabs in the past 10 years have been out-of-state investors who didn't know better and lost big $$$, or gov't sponsored projects that otherwise would have never happened. I'm sure there are 1-off examples of success, but that's not the norm.

And this isn't to shoot down North Lawndale - there are opportunities to invest in the current market/conditions, but to expect gentrification is a huge gamble.