The Sterling is now 50% sold, with another 10% of the units under contract, says Sharon Rizzo, American Invsco's sales manager for new construction. She told Chicago Real Estate Council groups Wednesday the company hopes to sell out the project by the end of 2002.

The Downtown condominium market ended 2001 with 4,173 unsold units, Appraisal Research Counselors vice president Gail L. Lissner, SRA reported last month, when she also noted a first-quarter uptick in traffic at sales offices.

"We're getting a lot of traffic in the building, and most people are looking at it as a primary residence," Rizzo says. "Since we've closed in January, we've seen increased traffic and sales…We're getting quite an influx from the suburbs, especially the north suburbs."

With American Invsco's Millennium Centre 60-story luxury building at 33 W. Ontario St. 85% more than a year before scheduled completion, chairman Nicholas S. Gouletas was looking for additional product in the River North neighborhood, Rizzo explains. "Our chairman loved this building," Rizzo says. "Maybe it was reminiscent of Lake Point Tower."

A quest for additional product prompted another condominium developer, Ron Shipka Sr.'s Enterprise Companies, to launch the Two River Place loft conversion after One River Place at 619 W. Chicago Ave. was 90% sold. "Years ago, River North was a draw for artists who wanted spacious lofts and an active nightlife," Shipka says. "The neighborhood maintains its unique character but has become much more sophisticated over the past decade."

Designed by Solomon Cordwell Buenz & Associates, the Sterling features rounded edges and two-story balconies. Fourteen floors up, there are outdoor tennis courts and a heated lap swimming pool.

While Millennium Centre units have been selling at $425 per sf, according to Appraisal Research Counselors' recent report, sales prices at The Sterling have averaged $380 per sf. That price does not include parking. The $89-million purchase did not include the adjacent parking garage, which seller Royal Imperial Group retained. However, Sterling condominium buyers have access to one space in the garage at $200 per month, Rizzo says.

Although the condominium market has seen heavy interest from speculators, American Invsco is discouraging that at The Sterling, Rizzo says. "We do not have a lot of people who are flipping, and you must close here," she says, explaining buyers cannot assign their sales contracts.

However, American Invsco has employed two rental agents who will help investors find tenants for their units. Those agents, Rizzo adds, will not be involved in renting out units being held for sale.

Ground-floor retail space will be occupied by a CVS Pharmacy and a Starbucks, Rizzo says, while negotiations continue with 7-11 for a convenience store. Also, a dry cleaners is on board, she adds.