A Developer Paid $1.15 Million for an 1894 Lake View House. Now They're Tearing It Down.

The Biggest News Jason Rosenberg

4 minutes ago

7 min read

It's 20 years older than Wrigley Field, a block from the Belmont L, and worth more as dirt than as a building. Here's how to tell if your house is secretly a land deal, too.

The house at 917 W. Fletcher Street in Lake View was built in 1894. Grover Cleveland was president. Wrigley Field wouldn't exist for another 20 years. The house made it through two World Wars, the Blizzard of '67, and every Cubs heartbreak before 2016.

It will not make it through 2026.

On September 21, the City of Chicago issued a new construction permit for the lot. Promised Land Development bought the property through an LLC in August for $1.15 million. They filed to build on August 5 and got the permit 47 days later. The reported construction cost is $1.2 million.

The plan: a four-story, three-unit building with a basement, rear decks, a front deck on the second level, and a rooftop deck with a pergola. The new homes will likely be sold as condos.

So why would anyone spend over a million dollars on a house they plan to knock down? And could the same thing be true about your house?

This isn't a one-off. It's the same block.

In the summer of 2025, a pending permit at 914 W. Fletcher, right across the street, called for another four-story, three-unit building to replace a condo building built in 1886. Promised Land Development was listed as the general contractor there too.

And it's not just Fletcher. Local reporting has tracked a string of similar Lake View teardowns this year, including a home on Henderson Street being replaced with a two-unit building and an 1895 frame house that got its demolition permit in August.

This has been going on for a long time. Research from the Lincoln Institute of Land Policy found that teardowns in Chicago are concentrated in neighborhoods like Lincoln Park, West Town, and Lakeview. Between 1996 and 2003 alone, the city issued 12,236 demolition permits.

The math: why a builder pays $1.15 million for a house they'll destroy

The builder isn't buying the house. They're buying three things:

The land in one of the most in-demand parts of the city.
The right to build more homes on it than are there today.
The location. This lot is one block south of the Belmont Red, Brown, and Purple Line stop, with bus lines on Belmont, Clark, and Halsted.

Here's a rough look at the numbers using only what's been made public:

Cost	Amount
Land (purchase price)	$1,150,000
Construction (reported on the permit)	$1,200,000
Total before anything else	$2,350,000
Per unit (divided by 3)	about $783,000

That $783,000 per unit is just the starting line. It doesn't include demolition, architect fees, permits, loan interest, property taxes during construction, selling costs, or profit. So each new condo likely needs to sell for well above that for the project to make sense.

The takeaway for homeowners: if builders in your area can sell new homes for enough money, your lot has a "land value" that may be higher than what a regular buyer would pay for your house as it stands.

Is your house secretly a land deal? 6 things that decide it

1. Your zoning

Zoning decides how many homes can legally be built on your lot. If your lot is zoned for three units and you have one, a builder sees two "extra" homes they can sell. That's often the single biggest factor.

2. Your lot size

In many Chicago zoning districts, a bigger lot means more units are allowed. An extra few feet of width or depth can change the whole equation.

3. Your location

Near the L, a Metra station, a busy retail street, or a top park? Builders pay more for spots where new homes sell fast.

4. What new construction sells for nearby

If new homes on your block sell for high prices, your land is worth more. If they don't, the teardown math doesn't work.

5. The condition of your house

An older house needing a new roof, electric, plumbing, and windows can be worth more to a builder than to a family. A beautifully updated house usually sells best as a home.

6. The rules that can slow a teardown down

Chicago's Demolition Delay Ordinance puts a hold of up to 90 days on demolition permits for buildings rated "red" or "orange" in the Chicago Historic Resources Survey, so the city can look at ways to save them.
Near The 606 and in Pilsen, the city charges a demolition surcharge of $20,000 per unit or $60,000 per building, and that rule runs through the end of 2029. That changes a builder's math a lot.
Landmark districts and some suburban historic districts need extra approvals before anything comes down.

If your house falls under any of these, builders will factor it into what they offer.

It's not just the city: Chicagoland's suburbs do this too

Teardowns are just as common in many suburbs, especially towns with train stations, strong demand, and almost no empty land left.

Hinsdale is the classic example. One member of the village's historic preservation commission estimates the town has lost about half of its original homes to teardowns since the 1990s, with the number often topping 100 a year. More recently it has slowed, with 26 teardown permits issued in 2023. Hinsdale also requires notice to neighbors within 250 feet and a wait of at least 30 days before a demolition permit can be issued.

Older research on Chicago-area teardowns looked at towns like Winnetka (273 demolition permits between 1996 and 2003), Wilmette, Glencoe, Kenilworth, Park Ridge, and Western Springs. They all shared the same traits: commuter train stations, little or no vacant land, and strong local services.

Every town has its own rules on demolition, historic review, and how big a new house can be. What works in Lake View may not work in Hinsdale, and the other way around.

Two ways to sell a possible teardown

	Sell it as a home	Sell it as land
Who buys	Families and regular buyers	Builders and developers
Repairs and staging	Usually helps the price	Usually doesn't matter
Showings	More of them	Fewer, often quick walk-throughs
How they set their price	Comparable home sales	What they can build and sell
Watch out for	Inspection issues on an older house	Offers that depend on getting zoning or permits

The smartest move is often to market to both groups at once and let them compete. If a family and a builder both want your house, you get the better of the two prices.

And if a builder has already mailed you a letter or knocked on your door? Don't take the first number. That offer is based on their math, not yours.

The honest case for teardowns

Chicago needs more housing, and replacing one older building with newer homes adds supply near transit.
New buildings are safer and more energy efficient than many 130-year-old structures.
For the owner, selling to a builder can mean a strong price with no repairs.

The honest case against

Once a historic building is gone, it's gone. Many neighbors value the look and history of their blocks.
Older two- to four-unit buildings are often some of the more affordable homes in a neighborhood. Chicago's housing commissioner said in 2022 that the city had lost more than 12,000 homes in two- to four-unit buildings since 2013.
New luxury units usually sell for far more than the homes they replace.

Both sides have a point. Whatever you think about teardowns, if you own a home in a high-demand area, it's worth knowing what your land alone might be worth.

If you're thinking about selling

Find out your zoning and how many units your lot allows.
Check whether your house is in a historic district, has a red or orange rating, or sits in the 606 or Pilsen surcharge area.
Look at what new construction has sold for near you.
Get a home value and a land value before you decide how to sell.
Be careful with builder offers that depend on zoning changes or permits. Those can drag on for months.

If you're buying near a teardown

Ask what's zoned next door. A three-story neighbor could become a four-story one.
Expect construction noise and dust for a while if a lot nearby is being redeveloped.
New construction nearby can help your home's value over time, but it can also block light and views.

Is your house worth more as a home or as land?

I'm Jason Rosenberg, a Chicagoland REALTOR® with The Rosenberg Group at Infiniti Properties. I'm ranked in the Top 5% of the Chicago Association of REALTORS®, with over $100 million in sales across Chicago and the suburbs.

I'll tell you what your home is worth to a family and what it may be worth to a builder, and then market it to both so you get the best offer.

My listing commission is 1.25%. On a $1.15 million sale like the one on Fletcher, that's about $14,375. (Commission rates are negotiable and vary by brokerage.) You still get full service: professional photography, 3D Matterport tours, and complete online marketing.

Zero Commission Clause: if you find your own buyer, including a builder who reaches out to you directly, you pay me no commission.
Cancel anytime: no long-term lock-in.

Call or text 312.882.9797 or visit https://www.jasonrosenbergrealestate.com/ for a free home and land valuation.

This post is for general information only and is not legal, zoning, or financial advice. Zoning and demolition rules vary by property and town, so confirm the details for your specific lot.

Sources

Chicago YIMBY, "Permission For Three Units At 917 West Fletcher Street Means Demolition For 1894 Home," September 2026. chicagoyimby.com
Chicago YIMBY, "914 West Fletcher In Lake View Yields To Demolition Permit And Three New Units," July 2025. chicagoyimby.com
Hoodline, "1894 Lake View Home Falls for Three-Unit Building," September 2026 (other Lake View teardowns this year). hoodline.com
City of Chicago, Department of Planning and Development, Demolition Delay. chicago.gov
City of Chicago, Department of Housing, Demolition Surcharge (606 and Pilsen areas). chicago.gov
WTTW, "Effort to Extend Demolition Fee in Pilsen, Along 606 Trail Advances," March 21, 2022 (12,000+ homes in 2-4 unit buildings lost since 2013). news.wttw.com
Lincoln Institute of Land Policy, "Teardowns" (Chicago and suburban demolition permits, 1996-2003). lincolninst.edu
Dwell, "In This Town, Renovating Instead of Tearing Down Puts Money Back in Your Pocket," November 2024 (Hinsdale teardown history). dwell.com
The Schiller Team, "Teardowns and New Builds in Hinsdale," April 2026 (Hinsdale notice and waiting period). theschillerteam.com
Per-unit cost estimate by The Rosenberg Group, based on the publicly reported purchase price and permit cost only.