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CHICAGO-While Downtown condominium conversions are returning tonormal levels, 2006 could be a record year for new multifamilyconstruction, according to Appraisal Research Counselors. Themultifamily sages report marketing efforts have begun on 14projects, involving 3,382 units, through the first four months ofthe year.

Sales also are running at a record pace, with 1,624 units goingunder contract or reserved during the first quarter. It is thelargest number Appraisal Research Counselors has seen since itbegan tracking sales in 1997. "Consistently, the bulk of the salesvelocity tends to fall within the $300 to $399 per sf range, alongwith an increasing trend toward higher prices in very well located,more luxurious buildings," vice presidents Ron De Vries and Gail L.Lissner say in their most recent "Residential Benchmark" report."Newly announced developments with product below $300 per sf wasnon-existent in the market."