Meanwhile, Evanston-based Piedmont Group is developing itsnine-story, 70-unit Lofthaus at 321 S. Sangamon St. with amodernist design. Brininstool + Lynch is the architect. Developersof another 166-unit loft condominium project at 111 S. Morgan St.,Evanston-based Winthrop Properties, is offering a free interestrate lock program for as long as 18 months, allowing for a maximumincrease of 1.5 points above current rates. MidAmerica Bank isproviding the financing.

"No one really knows where mortgage rates will be in 18 months,"says Bob Horner, co-principal of Winthrop Properties. "If you lookback 18 months, rates were about 2 percentage points higher thanthey are today. Now, economists are predicting a recovery in 2002,and rates could go up again. That's the dilemma new-constructionbuyers face, but this program offers protection."

Pre-sales at 111 S. Morgan have hit 60% two months aftergroundbreaking, a sign of a continuing strong market.