Chicago Tribune, July 20, 2006

The lure of the penthouse

By Lucinda Hahn, Special to the Tribune

Not since a helicopter delivered renovation materials to Abra Prentice Wilkin's apartment on the top floor of Drake Towers in 1973 -- which required FAA approval and stopped traffic on Lake Shore Drive -- have Chicago penthouses made so much news.

Jennifer Aniston and Vince Vaughn appear to be on the verge of buying the two-story penthouse at the Palmolive Building -- at least if you believe Us Weekly and a host of other celebrity tabloids. News accounts report that Donald Trump has bought the $28 million penthouse at his fledgling Trump Tower. And an $11 million, 8,600-square-foot aerie atop the Park Hyatt ranked fifth on Forbes' 2006 list of most expensive penthouses on the market.

Chicago penthouses are, ahem, in the air again. But selling a multimillion-dollar unit is no easy task, and brokers are wooing buyers with everything from soaring ceilings to private garages to "raw space" -- concrete, unfinished units ready to submit to the architectural and design whims of the new owners. At Trump Tower, potential buyers are welcomed with white wine, cappuccino and Trump bottled water -- but it was the grandeur of the penthouses, with their 13- and 16-foot ceilings outsoaring the standard penthouse height of 10 feet, that helped sales director Tere Proctor close deals on four of them almost immediately.

"They were a real draw, because I don't think any other building in Chicago offers them," she said. "I went to Trump Tower in New York, where Mr. Trump has 16-foot ceilings in his penthouse, to get a sense of them. The sense of space and the views they offer are just spectacular."

When the penthouse units of the opulent Metropolitan Tower at 310 S. Michigan Ave. went on the market in May 2005, the developer had already compiled a waiting list of more than 30 people. The full-floor units, with 360-degree views, were offered as raw expanses of concrete -- no walls, wiring or appliances. The ability to "build out" a space to their own tastes and specifications, said developer Louis D. D'Angelo, "was very important to our buyers."

"This is a very sophisticated buyer," he said. "Two already had contractors and architects on staff before they came here" -- including one new owner who is flying in an architect from Europe. "They want what they want. They don't just want an upgraded version of a luxury apartment."

The demand for the penthouses "pleasantly" surprised D'Angelo. "We went on a first-come, first-served basis, and people were fighting over them -- literally," he said. "One guy came in with the check but not the contract, another guy came in with the contract but not the check, and they were arguing over who should get preference."

The appeal of penthouses is no surprise to Chicago attorney Robert Parrillo who said, "I think successful people are drawn to symbols of success."

He should know; he owns three penthouses: on the 50th floor at 77 W. Wacker Drive, where his firm, Parrillo Weiss & O'Halloran, is based; at 1300 Lake Shore Drive, where his longtime residence spans the 40th through 42nd floors; and the 60th-floor penthouse at the Elysian Hotel, which has yet to break ground at Walton and Rush streets.`

Like Picassos'

"I collect them like Picassos," he joked. More seriously, he explained that retreating to his penthouse on Lake Shore Drive is "like climbing up a mountain road to a cabin -- when you get there, it's quiet, it's serene. Once in a while, we'll walk onto the terrace and say something like, 'Ah, room at the top.'"

Penthouses weren't always the pricey, cachet-laden residences of choice that they are today. The word pent -- an adjective that means confined or shut up -- harkens back to the days when the top floors of residences in Europe served as storage areas.

"In the grand English country houses, they were small, cramped rooms, difficult to get to, with tiny windows," said Jonathan Bell, author of "Penthouse Living." "It made sense to just store stuff there, use it for laundry or, later, have the servants' quarters there."

It wasn't until the elevator created effortless access to the top floors that penthouses began to appear, in the latter half of the 19th Century. The spaces captured the imaginations of architects such as New York City-based McKim, Mead & White, who festooned the tops of buildings with elaborate towers and turrets and created signature spaces inside.

Penthouses found a fertile market in booming commercial centers such as Chicago and New York, where newly monied titans of industry were eager to stake out a place atop society.

"It's obvious they were about lording over their domains," Bell said. "These were self-made people who wanted to put themselves on the map physically."

The extra profit penthouses garner means developers routinely deem not just the top floor as a "penthouse" but sell the several highest floors as "penthouses." The Park Hyatt has "penthouses," for instance, on floors 61 through 66; hedge-fund manager Kenneth Griffin owns the true penthouse, on 66. "Penthouses" are made distinct, and worth the extra price, by their higher ceilings; by virtue of occupying the entire floor; and often by the plus of a private elevator that opens into the apartment. They're also both a challenge and a joy to sell, brokers say.

Laura Rubin of Baird & Warner faced a security challenge when helping sell the Park Hyatt penthouse (now under contract). The owners were still living in it, surrounded by art and expensive furniture. So Rubin had every potential buyer vetted, and only allowed qualified prospects to view the property.

"We want to make sure they're looking for a home," she said, "and not artwork or objects."

Indeed, one inquiry did generate concern. "One gentleman was very suspicious, saying that he was going to be 'picking up his yacht' and 'Where should he park his Mercedes?'" she said. "[Ultimately] he couldn't verify [his ability to afford the penthouse]."

Selling the amenities

Once inside, buyers need to be wowed by both extra-special amenities and the broker's ability to explain them in detail. While selling the Park Hyatt penthouse, for instance, Rubin had to understand and convey the engineering feat of the penthouse's floating walls -- its ceiling-to-floor windows sans baseboards or crown moldings. "It's more like selling couture as opposed to clothing," she said. "People demand a higher level of detail because of the price."

"These buyers can afford anything they want," Proctor said. "Why should they live in your building?"

At Trump Tower, potential buyers are seduced with private garages -- to house penthouse owners' expensive automobiles -- and 24-hour maid and concierge service. ("If you want a rose-petaled bath, they'll come up and give it to you in your home," Proctor said.) At 310 S. Michigan Ave., penthouse owners get exclusive use of two high-speed Mitsubishi elevators -- "They're considered the Cadillac of elevators," D'Angelo enthused -- to whisk them to their aeries.

Sometimes, though, it's the thing money can't buy that's the most irresistible. At 310 S. Michigan Ave., the building's original, intricately carved bronze elevator doors -- circa 1920 -- will open into the penthouses. "Several buyers have actually written into the contract that they get the bronze doors," D'Angelo said. "They really like them and want to make sure [they have one] in their space."

But Proctor said that special contracts and security concerns aside, selling luxury penthouses isn't all that complicated. "These are very sophisticated buyers," she said. "They have homes all over the world. They know what they want, and they either like it or they don't."

Most expensive penthouse According to Forbes.com ("Most Expensive Penthouses 2006"), here are the costliest in 10 U.S. cities.

NEW YORK: The Pierre Hotel, $70 million, nearly 14,000 square feet
MIAMI BEACH: The Continuum, $18 million, about 6,500 square feet
LOS ANGELES: The Wilshire, $14.5 million, close to 8,000 square feet
BOSTON: 51 Commonwealth Avenue, $14 million, 8,650 square feet
CHICAGO: Park (Hyatt) Tower, $11 million, about 8,600 square feet
LAS VEGAS: Turnberry Place, $9 million, more than 9,000 square feet
SAN FRANCISCO: Royal Towers, $6 million, more than 3,200 square feet
ATLANTA: Park Avenue, $4.7 million, about 4,500 square feet
HOUSTON: Villa d'Este, $4.2 million, 6,260 square feet
SEATTLE: 1200 Alki, $3.9 million, 4,279 square feet