CHICAGO—Related Midwest has just released the model units at The Grant, its luxury condo development at 1201 S. Prairie Ave. in the South Loop, for sale and company officials say that they expect to wrap up the process by June. The quick series of sales should eventually bring in more developers eager to tap into what appears to be an unquenched demand for condos adjacent to downtown.

Related put South Loop Luxury by Related, a collection of 500 condos across three towers, including The Grant, on the market in 2013, and Dave Wolf, president and founder of Related Realty, who manages the development sales for Related, tells GlobeSt.com that the units sold out faster than any other comparable inventory and helped jumpstart the neighborhood's condo market. But once buyers take these last units, the South Loop won't see any new ones coming on line for at least another year.

“It's not a lack of demand and desire for these projects,” he says. The neighborhood has just entered a period, due to the lengthy development cycle, when demand and supply just don't match up. “If we had new construction today, we would have a lot of activity and sales.”

“You're on the lake and near the Museum Campus,” Wolf adds, and with its new retail, well-regarded schools, and network of transportation options, the “the South Loop has become a well-rounded neighborhood.”

He also expects that people looking for new homes will increasingly choose condos over apartments, which have ruled the market ever since the crash. Rents for apartments have increased, closing the gap between buying and renting, and banks are loosening up with loans for homebuyers. “The real challenge is inventory; people are not finding the inventory they want.” Above all, many prospective condos buyers want new construction, and if they don't find it, instead of just going with older product, they'll stick with rentals.

He points to all of the new condos popping up in smaller numbers, and quickly getting sold, throughout outlying residential neighborhoods like Bucktown and Wicker Park. “That shows the demand is there for new product.”

Related's next condo project is 451 E. Grand Ave., although this tower, designed by Robert A.M. Stern Architects and due for completion in 2017, will also allow the company to keep its hand in the hot rental market. The top of the tower will have 100 condos and the rest will hold about 250 apartments managed by Related. “We're long-term owners, so we do like to maintain product in our portfolio where it makes sense.”

At South Loop Luxury, Related is now down to under 30 units left for sale, including less than a dozen at the Grant. And Wolf says it's another sign of the level of demand for condos in the neighborhood that prices at the building have increased significantly since 2013. A two-bedroom, two-bath condo with views north to downtown went for between $370 and $380 per square foot in early 2013, but today an identical space will sell for as much as $557.

“We believe the Grant helped bring value back to the neighborhood,” Wolf adds, “so we're very proud of what we achieved there.”