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  • Sobeys/FreshCo parent company, Empire reports earnings – MoneySense

    Sobeys/FreshCo parent company, Empire reports earnings – MoneySense

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    Growing grocery delivery business and other opportunities

    The company also said it’s hitting pause on a new fulfilment centre to help save costs in its grocery delivery business Voilà, among other changes. 

    “While the market penetration of Voilà continues to be strong, the size and growth of the Canadian grocery e-commerce market is smaller than anticipated, resulting in higher net earnings dilution than originally estimated,” Empire said in its press release. The company says it’s focusing on driving volume and performance at its three existing centres. 

    Empire also prematurely ended its mutual exclusivity agreement with technology provider Ocado, as part of changes it’s made to lower costs and increase flexibility. The changes “are expected to have a significant, positive impact on Voilà’s profitability in fiscal 2025 and 2026,” Empire said.
    The company says its profit amounted to $0.86 per diluted share for the 13-week period ended Aug. 3.

    The result was down from a profit of $1.03 per diluted share in the same quarter last year when its bottom line was boosted by the sale of 56 gas stations in Western Canada.

    Analyst take on Empire’s quarter

    RBC analyst Irene Nattel said Empire’s operating results came in “a tick above forecast as consumer value-seeking behaviour stabilizes.” She said in a note that the company continues to execute on its strategy to maximize revenue in its full-service stores, despite the broader momentum in discount stores, though she added Empire is also growing its discount presence. Nattel has previously said Empire is overly exposed to the full-service part of the grocery sector compared with its competitors, giving it a relative disadvantage amid heightened price sensitivity. 

    Empire earnings highlights

    Here’s a breakdown of the results this week.

    • Empire Company (EMP/TSX): Earnings per share of $0.63 (versus $0.62 predicted). Revenue of $7.41 billion (meeting the prediction).

    Sales for what was the company’s first quarter totalled $8.14 billion, up from $8.08 billion a year earlier. Same-store sales for the quarter were up 0.5%, while same-store sales, excluding fuel, increased 1%.

    Medline said a year and a half after completing the rollout of loyalty program Scene+ across Canada, the program has more than 15 million members, with those members spending on average 55% more than non-members. “Scene+ has significantly boosted our incremental sales and margin compared to our prior loyalty program,” he said. 

    On an adjusted basis, Empire says it earned $0.90 per share in its latest quarter, up from an adjusted profit of $0.78 per diluted share in the same quarter last year. Shares in Empire closed up 5.6% on the Toronto Stock Exchange at $40.62. 

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    The Canadian Press

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  • Half a house, half a million: A tree-crushed home hits the market in Monrovia

    Half a house, half a million: A tree-crushed home hits the market in Monrovia

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    A few months after being toppled by a towering pine tree, a Monrovia home — or what’s left of it — is up for grabs for $499,999.

    The humble bungalow made headlines when it was crushed by a tree in May with two renters and two dogs inside. None were injured, but the tree took out their car, a fence and most of the roof.

    What’s left of the property looks like a postapocalyptic set piece complete with missing walls, loose wires and no ceilings. Some would call it unsalvageable; listing agent Kevin Wheeler quipped that it’s an “open-concept floor plan.”

    According to the listing, the home holds one bedroom and one bathroom in 645 square feet, but those are based on measurements taken before it was destroyed. Wheeler said the electricity is turned off, but the plumbing still works.

    The back door, which the renters escaped through after the tree came down, still stands.

    Monrovia rules state that demolitions on properties more than 50 years old require a review. But since the house was destroyed by an act of God, a review isn’t required, according to Wheeler. So house-hunters can buy what’s left of the home and fix it up without dealing with some of the red tape typically required during rebuilds.

    “There’s been a lot of interest so far because demand is so high and inventory, especially at this price, is so low,” Wheeler said.

    He added that multiple people tracked down the homeowner with low-ball offers to buy the home days after it was crushed.

    “They were trying to buy it for $250,000 or $300,000,” he said. “But market comparisons for similar properties in Monrovia put the value at $500,000.”

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    Jack Flemming

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  • Why did the stock markets fall? – MoneySense

    Why did the stock markets fall? – MoneySense

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    Anxiety over the U.S. economy

    Despite some signs of cooling, the U.S. economy kept chugging along even with higher rates, outpacing Europe and Asia. Then came last week’s economic reports.

    Weak reports on manufacturing and construction were followed by the government’s monthly report on the job market, which showed a significant slowdown in hiring by U.S. employers. Worries that the U.S. Fed may have kept the brakes on the economy too long spread through the markets.

    Big Tech movements

    A handful of Big Tech stocks drove the market’s double-digit gains into July. But their momentum turned last month on worries investors had taken their prices too high and expectations for their profit gains had grown too difficult to meet—a notion that gained credence when the group’s latest earnings reports were mostly underwhelming.

    Apple fell more than 5% Monday, after Warren Buffett’s Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker. Nvidia lost more than $420 billion in market value Thursday through Monday. Overall, the tech sector of the S&P 500 was the biggest drag on the market Monday.

    Japan’s rollercoaster

    The Nikkei suffered its worst two-day decline ever, dropping 18.2% on Friday and Monday combined. One catalyst for the outsized move has been an interest rate hike by the Bank of Japan last week.

    The BoJ’s rate increase affected what are known as carry trades. That’s when investors borrow money from a country with low interest rates and a relatively weak currency, like Japan, and invest those funds in places that will yield a high return. The higher interest rates, plus a stronger Japanese yen, may have forced investors to sell stocks to repay those loans.

    What should investors do now?

    The prevailing wisdom is: Hold steady. Experts and analysts encourage taking a long view, especially for investors concerned about retirement savings. “More often than not, panic selling on a red day is generally a great way to lose more money than you save,” said Jacob Channel, senior economist for LendingTree, who reminds investors that markets have recovered from worse sell-offs than the current one.

    Bitcoin was back up to $56,490 Monday morning after the price of the world’s largest cryptocurrency fell to just above $54,000 during Monday’s rout. That’s still down from nearly $68,000 one week ago, per data from CoinMarketCap.

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    The Canadian Press

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  • QXY Is Bringing Its Dumplings to Fulton Market

    QXY Is Bringing Its Dumplings to Fulton Market

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    QXY, one of Chicago’s most popular restaurants for Chinese dumplings, is opening a location inside Time Out Market. It is one of three additions to the Fulton Market food hall. 2d Restaurant, known for its mochi doughnuts and comic book-style interior design in Lakeview, will soon arrive. So will Libanais, a Lebanese restaurant in suburban Lincolnwood.

    The dumplings will arrive first, according to a news release. QXY, which stands for Qing Xiang Yuan, will open on Wednesday, July 17. It replaces Avli, the Greek restaurant that plans to open a standalone location in the area. The menu at QXY includes steamed or fried dumplings stuffed with a choice of kurobuta pork and cabbage; shrimp, kurobuta, and pork leek; wagyu beef and black truffle; or chicken and mushroom. Soup dumplings will also be available, as will sides and salads.

    Libanais will follow at the end of the month. Beef and lamb or chicken shawarma with fries; rotisserie beef and lamb with sumac onion wrapped in pita are some of the menu options. It replaces Evette’s.

    2d, which also has a location at the vegan XMarket food hall — off DuSable Lake Shore Drive’s Montrose exit in Uptown‚ will bring its doughnuts, Vietnamese coffee, ube milk, and more to Fulton Market. It replaces Firecakes.

    Food halls have been volatile in recent years since the pandemic. Revival Food Hall recently announced a “closure” — 16” on Center, the company that opened and operated the space, will soon be replaced by an Atlanta company, STHRN Hospitality. The new operators will seemingly retain most of the current vendors and rename the food hall. Urbanspace, near Daley Plaza, has been renamed Washington Hall as the New York company that founded that venue has left the business.

    Time Out Market, which falls under the same umbrella as the publication that covers restaurants in Chicago, opened in 2019. They run food halls all over the world, including in Lisbon, Cape Town, and Montreal. The U.S. cities consist of Boston, New York, and Chicago.

    2453 N Clark St, Chicago, IL 60614
    (773) 666-5277

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    Ashok Selvam

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  • Denver’s housing market feels topsy turvy to buyers and sellers

    Denver’s housing market feels topsy turvy to buyers and sellers

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    Housing in La Alma/Lincoln Park. June 27, 2024.

    Kevin J. Beaty/Denverite

    Let’s say you want to put your home up for sale in the Metro Denver housing market. You know that in recent years, buyers were scooping up houses sight unseen. They were outbidding each other into the stratosphere, driving prices increasingly higher. 

    You want the same perks sellers had just a couple of years back and don’t want to waste time negotiating with greedy buyers. You’re ready to cash in and move on. 

    But nobody’s biting at the price you’re willing to sell. So your home is just sitting there. 

    Or maybe you want to buy a new Denver home. But how can you?

    You’re looking at this new era of stratospheric prices established during the market frenzy. 

    The median price of a stand-alone house is $665,000, up just over 1 percent from this time last year, according to the Denver Metro Association of Realtors Market Trends Report.

    The median price for an attached property like a condo or a duplex is $410,000, down more than 2 percent from this time last year. 

    Add to those costs much higher interest rates, higher than 7 percent as of July 5, according to Realtor.com. Home ownership feels further out of reach than ever.

    Considering all that, you are afraid you’ll drop a big down payment and commit to high interest rates. Then home values could plummet, and your mortgage will be underwater.

    You don’t want to see a housing bubble burst like it did back in 2008 and find yourself broke. So you’re demanding good deals. You want an ideal home and a seller willing to drop the price or add concessions. 

    And unlike buyers over the past few years, you’re willing to wait as long as it takes until you get what you want. 

    Choosy buyers and sellers unwilling to compromise are having an outsized impact on the number of homes available in the Denver housing market. 

    “A once reliable market with a peak selling season in June has taken a detour,” commented realtor Libby Levinson-Katz, chair of the Denver Metro Association of Realtors Market Trends Committee. 

    The June housing market was sluggish. 

    In fact, last month, the number of available homes leaped more than 68 percent, to 10,214, from this time last year — and more than 11.5 percent month over month. That’s largely because homes aren’t selling as fast as they were.

    This trend gives buyers a much wider selection of properties to choose from.

    Sellers can still sell fast if they are willing to negotiate. Those who aren’t could be waiting with their properties on the market for months. 

    They’ll be in good company. Sellers have more homes sitting on the market now than at any time over the past few years, according to DMAR, and that number just keeps climbing.

    “The main culprit of higher interest rates is easy to identify,” explained Levinson-Katz. “Buyers fear a repeat of 2008, sellers hope for a return to 2021 conditions and renters expect interest rates to drop back to three percent.”

    None of these views, she maintains, are true. But they’re helping balance the market.

    All of these changes have some sellers holding off on entering the market. 

    Though properties are staying on the market longer, fewer are being listed. 

    The number of new listings dropped more than 16 percent to 5,825 in June, a month when the market is typically red hot.

    The number of closed sales plummeted more than 17 percent, while the number of pending sales increased by just over 1 percent. 

    “The number of contract terminations is rising,” according to DMAR’s Market Trends Report. “Sellers may need to be more cooperative and solutions-oriented during inspection negotiations to keep their closing on track.” 

    Typically, as summer roles on, fewer properties are listed.

    Sellers hope interest rates will drop in the fall. If that happens, they may be more likely to list. After all, lower interest rates make the prospect of taking on a mortgage easier for buyers to swallow. 

    “It is possible that we are simply experiencing a calm before the storm,” Levinson-Katz said. “Many consumers are holding off until the fall to align with the projection of lower mortgage rates. While the market typically slows down ahead of a presidential election, we may find ourselves in the throes of a bustling market this election cycle.” 

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  • Oakley founder James Jannard sells Malibu mansion for $210 million — a California record

    Oakley founder James Jannard sells Malibu mansion for $210 million — a California record

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    In a historic deal, Oakley founder James Jannard has sold his Malibu mansion for $210 million. It’s the priciest home sale in California history.

    The blockbuster sale, which The Times is reporting exclusively and based on real estate records, ups the ante on what a house can fetch in the Golden State. At $210 million, it takes the crown from Jay-Z and Beyoncé, who paid $200 million for a concrete compound in Malibu last year.

    It’s a massive profit for Jannard, who paid $75 million for the oceanfront estate in 2012. He bought it from billionaire investor Howard Marks, who bought it from Herbalife co-founder Mark Hughes for $31 million in 2002.

    The deal was done quietly, as the house never officially hit the market. The buyer is unclear; records show it was purchased by a Delaware-based limited liability company.

    In terms of size and scale, the estate is nearly unrivaled — even in a market as affluent as Malibu. It spans 9.5 acres and includes a rare 300 feet of ocean frontage near El Pescador State Beach.

    Built by Ferguson & Shamamian Architects, the Palladio-style main house spans more than 15,000 square feet with eight bedrooms and 14 bathrooms.

    Michael S. Smith, the designer who remodeled the Oval Office in the White House, handled the interiors, which showcase ornate columns, beamed ceilings and steel-and-glass windows across formal living spaces.

    The front of the property features a vast courtyard with a garden. The back holds a flat lawn with a pool overlooking the ocean. Other structures include a gym and a pair of guesthouses.

    Calls to Jannard’s agent, Kurt Rappaport of Westside Estate Agency, were not returned.

    The eyewear mogul has had a busy month. In addition to the record-setting sale, he also put another home on the market: a stone monolith of sorts in Beverly Hills that resembles a supervillain’s lair more than a house.

    Listed at $68 million, the property features a Stonehenge-inspired motor court and curved concrete hallways that lead to Brutalist-style spaces. It holds five bedrooms and 10 bathrooms across 18,000 square feet.

    Listed at $68 million, James Jannard’s Beverly Hills home resembles a supervillain’s lair more than a house.

    (Marc Angeles / Anthony Barcelo)

    Rappaport holds the Beverly Hills listing along with Josh and Matt Altman of Douglas Elliman.

    Malibu now holds the three highest home sales in California history. In addition to Jannard and Jay-Z, venture capitalist Marc Andreessen joined the list after paying $177 million for a sprawling estate in Malibu’s Paradise Cove in 2021.

    Malibu has been leading the way in the reawakening of Southern California’s luxury market, which hit a lull in recent years after a red-hot stretch during the pandemic. Earlier this month, Laurene Powell Jobs, widow of Apple visionary Steve Jobs, paid $94 million for an oceanfront estate in Paradise Cove.

    An L.A. native, Jannard graduated from Alhambra High School and attended USC before dropping out. He founded Oakley, Inc., in 1975 and grew the company into an eyewear and apparel giant before selling it for $2.1 billion in 2007.

    Forbes puts his net worth at $1.3 billion.

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    Jack Flemming

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  • Kurt Rappaport: Real estate agent to the stars

    Kurt Rappaport: Real estate agent to the stars

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    When Jay-Z and Beyoncé broke a California record by dropping $200 million on a Malibu mansion last year, a familiar name was front and center on the deal: Kurt Rappaport.

    The 53-year-old real estate power broker represented both the buyers and the sellers in the historic sale — an accomplishment in itself that likely pocketed him several million dollars in commissions. But at this point, it would be stranger if Rappaport hadn’t been involved in the transaction. He’s handled seven of the 10 most expensive home sales in California history, and the $200-million deal eclipsed the previous high of $177 million, which he had set two years prior.

    Discover the change-makers who are shaping every cultural corner of Los Angeles. This week we bring you The Connectors, who understand that power doesn’t travel in a straight line and know how to connect the dots. Come back each Sunday for another installment.

    Southern California’s real estate scene is one of the most lucrative in the world, and it’s definitely the most public. Millions of people track who’s buying what, where, how much they paid, how many bedrooms, and how big the pool is. In the age of social media, “house porn” is its own industry.

    Rappaport, a Los Angeles native, sits atop it all. In his role as Southern California’s premier real estate agent, he serves as a matchmaker of sorts, taking some of the wealthiest and most famous people on the planet and guiding them to specific properties or neighborhoods.

    He also moves markets. Take Malibu, which Rappaport and his most prolific client, Oracle co-founder Larry Ellison, have transformed into one of the most expensive markets on Earth over the last two decades by buying dozens of properties and developing one-of-a-kind trophy homes that sell for record sums.

    As Southern California’s premier real estate agent, he serves as a matchmaker of sorts.

    Rappaport’s other clients have included David Geffen, Brad Pitt, Ellen DeGeneres, Ryan Seacrest and Tom Brady, among many, many others. Last year at his French-style manor in Brentwood Park, he hosted President Biden for a roundtable meeting with California mega-donors to discuss wars, divisiveness and ways to improve the country.

    Through a constant flow of emails and texts, he has the ear of almost every noteworthy person looking to buy or sell a home around L.A., and he holds plenty of influence over what and where they shop. Billions in sales translates to millions in taxes for local governments, so whether a neighborhood is hot or cold can have a monumental impact.

    Like fine art, a home is only worth what someone will pay for it, and Rappaport helps dictate what that number is. When the next record is set — when a billionaire pays $250 million, $300 million or $500 million for one of Southern California’s finest estates — Rappaport will likely be the one behind the deal.

    More from L.A. Influential

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    Jack Flemming

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  • The ‘Home Alone’ house is on the market — without the booby traps — for $5.25 million

    The ‘Home Alone’ house is on the market — without the booby traps — for $5.25 million

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    The house made famous by the 1990 blockbuster film “Home Alone” has hit the market in Winnetka, Ill., with a $5.25-million asking price.

    The 671 Lincoln Ave. residence, 20 miles north of downtown Chicago, was the site for the Christmastime comedy in which 8-year-old Kevin McCallister (Macaulay Culkin) defends the family home from burglars (Joe Pesci and Daniel Stern) after being left behind when his family leaves on vacation.

    Dawn McKenna Group calls the listing “a rare opportunity to own one of the most iconic movie residences in American pop culture.” Built in 1921 and boasting 9,126 square feet of living space, the abode features full amenities — five bedrooms, six full baths, a home cinema, full gym and an indoor half-court for basketball — minus the movie’s trademark booby traps.

    The current owners bought the home in 2012 for $1.59 million and renovated it in 2018, preserving its exterior and memorable features like the staircase McCallister slides down in numerous scenes, Dawn McKenna Group said online.

    Trip Advisor lists the “Home Alone” property as “#1 of 20 things to do in Winnetka.” While a wrought-iron fence keeps tourists off the property, it’s possible to take a street-view selfie. The owners have not been shy about their famous home: In 2021, they offered up the place for just $25 a night on Airbnb.

    Right next door, at 681 Lincoln Ave., fans will find Old Man Marley’s house from the same movie. It was listed for sale at $3.1 million in 2014, though it’s unclear whether the property ever changed hands. Roberts Blossom, who played Marley in “Home Alone,” died in 2011.

    Don’t have a spare $5.25 million to spend on your “Home Alone” experience? Try the 2006 game released for PlayStation and defend against a home invasion yourself. Or pick up a “Home Alone” Lego set. Created in 2021, the 3,955-piece set includes a Kevin McCallister figurine and a tree-house zip line that can be used to facilitate his escape.

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    Jireh Deng

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  • Buying a home in Southern California? There are now more options

    Buying a home in Southern California? There are now more options

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    For much of the past year, the Southern California housing market has been defined by an extreme shortage of homes for sale.

    The abnormal scarcity — compounded by the region’s long-running underproduction of housing — emerged when homeowners chose not to sell and give up pandemic-era mortgage rates. The so-called seller strike helped pushed home values to new records, despite rising borrowing costs.

    Now the inventory picture might be changing.

    “It’s getting a little bit better,” said Eneida Contreras, a Compass real estate agent who specializes in the San Fernando, Santa Clarita and Antelope valleys.

    In April, the number of homes listed for sale in most Southern California counties rose from the same month a year earlier, according to data from Zillow.

    Los Angeles, Riverside, San Bernardino and Ventura counties turned positive for the first time since the first half of 2023, each recording an increase of at least 5%.

    Orange was the only county to see a decline, while in San Diego, inventory has risen for two consecutive months and is 18% above what it was a year ago.

    To be sure, the availability of homes remains at historically low levels. But as it rises, it opens the possibility that prospective buyers will have an easier time making the largest purchase of their lives.

    Jordan Levine, chief economist with the California Assn. of Realtors, said more homes are coming onto the market because owners are increasingly accepting that the new normal is interest rates in the 6%-7% range.

    As people get married, divorced and have children, the “benefit of the low rate starts to be outweighed by having a house that doesn’t work,” Levine said. “Ultimately, these are people’s homes, too, and they are not just straight-up investments.”

    Levine said he expects inventory levels to increase and home prices to be lower than they would have been if inventory continued to shrink. However, he and other experts said home prices are unlikely to decline. That’s because though more owners are coming to terms with high rates, many will likely choose to keep their sub-4% mortgages — a phenomenon known as the lock-in effect.

    Other factors are at play. The economy is growing, and while most Southern California households can’t afford to buy, there’s a sizable population of techies, Hollywood types and other white-collar workers who can funnel excess cash into large down payments that offset high mortgage rates.

    “The current level of inventory rise — which is a little bit, but not a lot — is likely to slow price appreciation but not turn it negative,” said Mike Simonsen, founder of Altos Research, a real estate data firm.

    The rise in inventory is providing opportunities for buyers with means, but the market is still tough.

    Interest rates are above 7%, and even if home prices rise at a slower pace, they will set records.

    In Los Angeles County, the average home price in April was $890,516, an increase of 1.4% from March and surpassing the previous record, set in June 2022.

    The six-county Southern California region climbed above its 2022 average home price record in March. It set another all-time high last month, reaching $875,388.

    If mortgage rates noticeably decline, the lock-in effect could lessen and bring more homes onto the market. Falling mortgage rates would also immediately make housing more affordable.

    Whether falling rates provide much relief is another question. Lower borrowing costs may bring a flood of additional buyers who quickly gobble up new listings and supercharge price growth.

    “Building more housing is really what is going to break that cycle,” said Nicole Bachaud, a senior economist with Zillow.

    According to the latest forecast from the Mortgage Bankers Assn., rates will remain high but will drop to 6.4% by the end of 2024.

    Carol Otero of Rodeo Realty is among the Los Angeles agents seeing an increase in inventory. She estimated that the number of homes for sale in some San Fernando Valley neighborhoods has at least doubled in the past few weeks.

    Buyers are eager.

    Last Friday, Otero listed a four-bedroom home in Northridge. She said she has received six offers, all above the $869,000 asking price.

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    Andrew Khouri

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  • Art Smith and a Major League Rugby Team Unveil a Fried Chicken Stall in Fulton Market

    Art Smith and a Major League Rugby Team Unveil a Fried Chicken Stall in Fulton Market

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    Art Smith takes a quick look around Time Out Market Chicago and softly asks: “Do you know what chefs do after they’re 60?”

    Smith, the celebrity chef who worked with Oprah Winfrey and has served dignitaries, like President Biden, didn’t expect an answer. Smith posed the question to justify his new rapport with the Chicago Hounds, a professional rugby team founded in 2022 that plays home matches at SeatGeek Stadium in suburban Bridgeview. In February, Smith and the Hounds announced a collaboration in which Smith’s new brand, Sporty Bird, began selling chicken sandwiches and more at the stadium. Over the weekend, Smith also unveiled a Sporty Bird-branded food stall at Time Out Market, the food hall run by the media company.

    Beyond his association with Oprah, Smith is known for restaurants like Table Fifty-Two in Gold Coast, a hit mostly known for its fried chicken. Smith is proud of the restaurant (which was rebranded as Blue Door Kitchen & Garden in 2016) and its alums: “Joe is just killing it here,” Smith says of Joe Flamm, the chef and co-owner of Rose Mary, right down the street from Time Out Market.

    Chef Art Smith swears he can cook more than chicken.
    Sporty Bird/Kim Kovacik

    Last year, Smith opened Reunion at Navy Pier and he maintains a residence in Hyde Park. But he still travels. He talked about an upcoming trip to India and meeting esteemed chef Francis Mallmann earlier this year during a visit to an island in Patagonia. Even though he joked about his age, Smith’s star continues to shine, passing through open doors closed to most food hall tenants. Most food halls brand themselves as incubators, taking chances on relatively unproven talent. Smith is the opposite.

    Still, the venture with the Hounds is a risk. He touts himself as the only professional chef who owns a professional sports team in America. It’s a claim that’s hard to verify. For example, is a burger cook who works at an Applebee’s and has shares in the publicly-owned Green Bay Packers, considered an owner of a pro team?

    Smith wants to bring energy to Time Out (“I want to throw a party,” he says) and sees potential — even as the food hall goes through changes. Smith praised chef Jorge Kaum, the chef behind Gutenburg, a food hall burger stall. Kaum is also a chocolatier and made chocolate-shaped rugby balls in honor of Smith’s opening.

    Avli is set to leave the market at the end of the month — they’re going to open a stand-alone location in the area. Evette’s left earlier this year. Of the original lineup from 2019, only chef Bill Kim (Urbanbelly) remains. A few of the restaurants had problems with management and didn’t like the terms of their contracts. Food halls have struggled during the pandemic. Two closed in the West Loop/Fulton Market — Politan Row and Fulton Galley. In March, Time Out brought in a new general manager, Steve Pelissero, to bring in some stability.

    Sporty Bird features chicken (“I do know how to cook more than chicken,” Smith says). The spicy nuggets have heat, at least during an opening event last week. But there’s a worry that too much heat will alienate customers in the area.

    A woman holding a tray.

    Jade Court’s Carol Cheung is working with Sport Bird.
    Sporty Bird/Kim Kovacik

    Unexpectedly, the stall has a familiar face behind the counter. Carol Cheung, the chef and the owner behind Hyde Park’s Jade Court, an acclaimed Cantonese restaurant and longtime member of the Eater Chicago 38, is managing operations. As Smith is a Hyder Parker, he befriended Cheung and wants to find a way to revive Jade Court, which struggled at the University of Chicago’s Harper Court development. Time Out does have spaces available.

    What gave Smith the idea to partner with the hounds? Last year, soccer legend Lionel Messi launched a fried chicken sandwich in Miami with Hard Rock Cafe. Smith saw the sandwich become a viral sensation, yet he was hardly impressed by the sandwich: “I could do better,” Smith says.

    Some vendors have fled, others say they’ve made money at the food hall. Kaum, who also has a stall in Miami, says things are improving in Chicago. Smith is hopeful that Sporty Bird, and perhaps a Jade Court revival, can take advantage. He’s reminded of something his friend Oprah once told him: “You don’t have to be first,” Smith recalls Winfrey saying. “But you do have to be better.”

    Sporty Bird, now open inside Time Out Market Chicago, 916 W. Fulton Market

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    Ashok Selvam

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  • Gov. Newsom seeks faster review of insurance rate hikes. What to know

    Gov. Newsom seeks faster review of insurance rate hikes. What to know

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    With insurers continuing to pull back from the California’s homeowners’ market, Gov. Gavin Newsom wants to speed up the process by which the companies have their requests for rate hikes reviewed.

    The governor said Friday that he is backing a bill that would require the Department of Insurance to complete reviews of proposed premium increases within 60 days to halt any more exits from the market. Here’s what to know:

    What exactly did the governor say?

    Newsom said that immediate steps need to be taken to stabilize the market, which has seen insurers not renew existing policyholders, stop writing new policies or pull out of the market entirely — sending many homeowners to the insurer of last resort, the state’s FAIR Plan, which is now on the hook for more than $300 billion in payouts. Newsom said he was “deeply mindful” of the burdens placed on the plan.

    The governor said he had considered issuing an executive order, but instead is proposing a bill that would require the Insurance Department to speed up its review process of premium rate-hike requests.

    “We need to stabilize this market. We need to send the right signals. We need to move,” he said.

    Isn’t there already an insurance reform package being hashed out in Sacramento?

    Insurance Commissioner Ricardo Lara is holding hearings on his Sustainable Insurance Strategy, a set of comprehensive regulations intended to stabilize rates and make it more attractive for insurers to write homeowners policies, especially in wildfire areas such as hillsides and canyons.

    However, these regulations won’t become law until the end of the year — a deadline sought by the governor, assuming it can be met.

    “It should not take this long for emergency regulations,” Newsom said. “We can’t wait until December.”

    How would this bill fit into the larger set of reforms?

    Lara has reached a grand bargain with the insurance industry to make the market more attractive, though details are still being worked out.

    The plan would allow insurers to include the cost of reinsurance they buy to protect themselves from large fires and other catastrophes into premium costs. It also would allow them to set rates using sophisticated algorithms to predict the risk and cost of future fires, rather than just base them on past events. It’s unclear how an insurer’s application for an expedited rate approval this year would fit into the proposed reforms.

    Has Lara reacted to the governor’s proposal?

    The commissioner tweeted Friday that his department has taken “significant steps forward” to implement his planned reforms but more needs to be done — and that his department is working with the governor and the Legislature “on critical budget language that keeps us on track to get the job done.”

    What do consumer groups have to say?

    Jamie Court, president of Consumer Watchdog, said he didn’t understand the proposal, worrying that it would be a “rubber stamp” on proposed rate increases.

    He noted that Proposition 103, the landmark 1988 initiative that gives the insurance commissioner authority to review rate hikes, already mandates that they are conducted within 60 days except in certain circumstances. Those circumstances include requests for rate increases exceeding 7% for homeowners insurance, which allow consumers to seek a hearing, or the commissioner’s own decision to conduct a hearing.

    What is the insurance industry’s reaction

    Rex Frazier, president of the Personal Insurance Federation of California, a trade group of property and casualty insurers, said despite the promise of 60-day rate reviews under Proposition 103, they are taking longer. He said the Insurance Department will often request that insurers waive their rights to a speedy decision or face an administrative hearing, which can lead to extensive delays. However, Frazier withheld comment on the governor’s proposal until the draft language is released.

    What are the next steps?

    Newsom’s office will release the draft bill, which will be carried by a member of the Legislature and be included in the process for adopting the state budget, which the Legislature must approve by June 15. Newsom made his remarks Friday in outlining plans for a revised $288-billion budget, which calls for a series of cutbacks to close a nearly $45-billion shortfall.

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    Laurence Darmiento

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  • A Guide to Chicago Farmers Market Etiquette

    A Guide to Chicago Farmers Market Etiquette

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    When I was a teen, attempting to sleep in on Saturdays, I’d wake up and see that my father had already made his weekly visit to the farmers market, coming back with a bouquet of flowers for mom and a bounty of vegetables.

    Why would anyone want to waste their precious weekend time outside in the sun, walking around to buy veggies? You can make a run to the Jewels without sacrificing sleep. The stuff at markets isn’t even cooked.

    But as I grew older, I found myself morphing into the old man. I celebrate the start of the market season and mourn the end as a precursor to winter. Perhaps it’s compensating for my general lack of enthusiasm for the lowly Chicago sports season. It’s nice to look forward to something; farmers won’t let you down like team owners looking for tax incentives.

    This new crop of farmers markets looks different from what my dad visited. Chefs and food entrepreneurs use the markets to help establish their brands. You’ll find long lines waiting for grilled cheese, gooey raclette sandwiches, and coffee.

    Who doesn’t love raclette?
    Ashok Selvam/Eater Chicago

    Farmers markets are essential for urban areas, giving city dwellers better access to fresh produce, something that’s not consistent throughout the city. This has an impact on healthcare. Hospitals want healthier patients — they make money if patients have short stays, opening up beds for new customers. Long stays aren’t as lucrative. Many hospitals host farmers in the hopes of establishing healthier habits for their patient base. The markets are also havens for folks with dogs and young children, and pumped-up athleisure-clad visitors who just finished their workouts will have to avoid leashes and bulky strollers for survival.

    With all of this in mind, I’ve compiled a list of tips for farmers market visitors. Some of them are pet peeves. Some of them come from chatting with chefs and vendors. Please enjoy.

    A group of folks on a farmers market path.

    These folks didn’t get to the market early.
    Ashok Selvam/Eater Chicago

    1. Show up early — as early as 7 a.m. for specialty goods. Dad was on to something — markets are easier to navigate with fewer people. It’s a huge time saver. Waking up earlier than the ones who woke up early to work out not only makes you feel better than them, but it allows you to get to items before they sell out. As chef Sarah Stegner says: “If you see something don’t wait to buy it… it might not be there later — we sell out!”
    2. Stegner, the chef behind Prairie Grass Cafe in suburban Northbrook, is the founding member of Green City. She was recently profiled in Crain’s. Her advice? Try to have a conversation with the farmer — ask them what’s in season and when they harvested the items they’re selling. She mentions a recent conversation about multi-color eggs. She learned the colors denote a different breed, and that chickens with access to pasture produce darker yellow yolks (Stegner feels the darker yolks produce a better taste): “Building a relationship with the people that grow our food by consistently supporting them and opening up a conversation that informs the consumer,” Stegner says.
    3. On a lighter note: keep moving. Most farmers markets are held in parks. If you’re on your phone, with your dog, or clogging up the walkways with a stroller, move. Be considerate. There’s usually a grassy patch of ground where those impromptu confabs can take place without being in the way.
    4. As a dad with a toddler, stroller etiquette fascinates me. There are entitled parents who feel they’re invulnerable and have the right to mow down anyone in their way. Then there are the parents in a rush and are literally on your heels trying to push through crowds. If you’re in a rush, then maybe get to the market early instead of acting like a toddler you’re pushing.
    5. That being said, folks without kids should respect the stroller. An “excuse me” goes a long way instead of pretending you’re at a crowded dive bar putting your shoulder down to get to your table. This isn’t a kid-free zone. Kids have more of a right to be in the park than adults. That’s just how society works, pal.
    6. If you’re able, biking to the farmers market is optimal on nice days. And it’s easier to hunt for parking spaces. Investing in a bike pannier is a wise move.
    7. For those who drive, finding parking isn’t easy. At Green City Market Lincoln Park, folks can buy two-hour parking at the Chicago History Museum parking lot. It’s $14 with a validation card available at all market entrances. The real hack? Buy admission to the museum for validation and spend the day indoors learning something new.
    8. Chef Rick Bayless suggests looking at markets as art fairs. Try to ask personable questions — instead of asking “How do you cook this,” Bayless suggests asking “Do you have a favorite way to prepare this” or “Is there anything you’re really excited to prepare this week?” Building relationships over time pays off. Last summer, Bayless says he asked Patrick Mark from Iron Creek Farm what he was excited about “He picked up one variety of tomato and said, ‘this: raw, salt and pepper.’ There’s so much learning in that! He was telling me that that one variety would never be better than that moment. Appreciate what nature has given us.”
    9. The demand for prepared foods increases each year. Soul & Smoke, an Eater Chicago 38 member, has parked its barbecue truck at Logan Square. The wife-and-husband team of Heather Bublick and D’Andre Carter repeated some of the previous tips (they suggest coming hungry). But they also suggest becoming regulars: “Go back often! Harvests change throughout the season. It’s so amazing to watch the progression from spring, to summer, late summer, and into fall.”
    10. Eden, which runs an Avondale restaurant off the Chicago River, is a new vendor at Green City in 2024. Chef Devon Quinn, who grows a garden outside the restaurant, is the operation’s chief culinary officer for Eden and Paramount Events. He suggests that folks should bring their own crates, reusable bags, and baskets. He also says to ask farmers about “seconds” — the ugly fruits and veggies. “They are perfectly suitable for salsas, fillings, or purées,” he says. In addition, he advises that customers shouldn’t insult farmers and try to barter: “If you want a discount on the produce, go to Aldi’s,” he says. “The growing methods and labor are expensive. You are paying for healthy ingredients and supporting our local economy.”
    11. Bonus: Don’t be this guy.

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    Ashok Selvam

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  • Inside Fulton Market’s Flowery French Streetside Bar Where Fondue Rules

    Inside Fulton Market’s Flowery French Streetside Bar Where Fondue Rules

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    For a city that loves bars as much as Chicago, seeing more bars open is not only a sign of warmer weather, but also a sign of pandemic recovery. Bar La Rue, the new venue opening this week on the ground floor of the new 800 Fulton Market tower at the northwest corner of Halsted and Fulton, provides a shining example.

    The entrance lies west of the intersection at the corner of Green and Fulton, around the corner from DineAmic Hospitality Group’s French restaurant, which opened in March — La Serre. But Bar La Rue is a bit more casual. There are huge windows ideal for people watching as characters make their way up and down Fulton. The customer video displays blend into the aesthetic.

    But what sticks out in the decor, meant to evoke a French streetside bar are the flowers. So many faux flowers. They’re hanging from the ceiling. They’re on the wall. Chicago’s climate is far from tropical and flowers aren’t cheap, so it’s understandable. There is a newly planted real tree growing outside the door. Come wintertime, Bar La Rue’s colorful bouquets, real or not, may provide an escape from Chicago’s wintry mix. DineAmic founders David Rekhson and Lucas Stoioff say brunch will also eventually play a big part in the space’s plans.

    Bar La Rue occupies 3,000 square feet.

    Even more remarkable than the botany is another passion for Rekhson — fondue: “When is it not a good time to dip something in cheese?” he says.

    “In the last two years, he’s been very pumped about that,” Stoioff adds.

    Sharing cauldrons of hot and bubbly cheese was another pandemic no-no. DineAmic staffers and Stoioff know how worked up Rekhson can get, talking about how hard the culinary staff has worked on perfecting their cheese blend: “It’s got this perfect, you know, the perfect garlic kind of fragrance that first coats the bowl and a really nice blend of kind of gruyere and sharp cheddar,” Rekhson gushes. “It’s just… it’s creamy.”

    A smattering of plates.

    Fondue is a big deal.

    Four drinks on a tray.

    Patio pounders and classic riffs on French drinks make up the recipe.

    Beyond the fondue, Bar La Rue’s menu sports “bougie chicken tenders.” It comes with a creme fraiche ranch which melds Midwest and French sensibilities with a scoop of caviar. A server wearing white gloves will present the tenders to the table. A smash burger on brioche made with beef from Slagel Family Farms arrives in a bowl of melted cheese for dipping. There are also kale and apple salad with French feta and a champagne vinaigrette. Their version of a Caesar salad comes with British croutons.

    The cocktails are light, a blend of French classics and patio pounders with drinks like a French martini with fresh chamomile and blackberry and a rum punch. Visitors will find a DJ booth, a hallmark of DineAmic’s projects, hidden in plain sight. Late-night food service, perhaps until midnight — is upcoming. They’ll slowly extend hours depending on demand: “As the night goes on, you know being on a very busy corner, we’ll see this cocktail forward, heavy, indoor-outdoor bar space unfold,” Stoioff says.

    Walk through the space below.

    Bar La Rue, 820 W. Fulton Street, opening Thursday, April 18, hours are 11:30 a.m. to midnight on Monday through Thursday; 11:30 am. to 2 a.m. on Friday and Saturday; 5 p.m. on Sunday with weekend brunch coming soon at 11 a.m.

    DineAmic has worked for months on the perfect cheese blend for fondue.

    Not everything comes with melted cheese.

    Yes, that’s a smash burger in a bowl of melted cheese.

    The lobster roll is also meant to be a highlight.

    The French Martini comes with fresh chamomile and blackberry.

    The Rosemary Paloma.

    Rum Punch

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    Ashok Selvam

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  • The year of the ‘mansion tax’: Hundreds of millions raised, but a chill to L.A.’s luxury market

    The year of the ‘mansion tax’: Hundreds of millions raised, but a chill to L.A.’s luxury market

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    One year ago, Los Angeles’ “mansion tax” took effect. It has either been a godsend or an absolute disaster, depending on who you ask.

    The transfer tax, formally known as Measure ULA, levies a 4% charge on all property sales above $5 million and a 5.5% charge on sales above $10 million, with proceeds funding affordable housing and homelessness initiatives.

    When L.A. voters approved the measure in November 2022, it quickly became the dominating storyline in L.A. real estate.

    Proponents say the tax generates crucial funding to address L.A.’s housing crisis, and they’re right. In its first year, Measure ULA has raised roughly $215 million, according to the L.A. Housing Department.

    The L.A. City Council passed a $150-million spending plan for ULA funds in August, and the money has been flowing into six programs: short-term emergency rental assistance, eviction defense, tenant outreach and education, direct cash assistance for low-income seniors and people with disabilities, tenant protections and affordable housing production.

    Critics, including many L.A. real estate professionals, claim the tax has hampered the market — not just luxury home sales, but also multifamily developments and commercial properties, since the tax applies to all property sales above $5 million.

    They’re also right.

    When the tax first took effect on April 1, 2023, it all but froze L.A.’s luxury real estate market, with many sellers pulling their homes off the market at the prospect of paying an extra few hundred thousand in taxes if they sold.

    A year later, the market is still just as icy.

    The striking slowdown is partly due to chilled buying across Southern California, as soaring interest rates keep many prospective buyers out of the house hunt altogether. But in L.A. — the only city affected by the tax — home sales above $5 million have plummeted at twice the rate of other affluent cities, as buyers opt for homes in neighboring areas that aren’t subject to the tax.

    From April 2022 to March 2023, the year before Measure ULA hit, L.A. had 366 single-family home sales of $5 million or more. In the 12 months since, there were just 166 — a drop of roughly 68%.

    Luxury sales in nearby cities have slowed, but not nearly at the same rate, according to data from the Multiple Listing Service.

    In Beverly Hills, single-family sales dropped 24%.

    In Santa Monica, single-family sales dropped 29%.

    In Malibu, single-family sales dropped 28%.

    “My clients are leaving L.A.,” said Jason Oppenheim, a luxury real estate agent who stars in the real estate reality show “Selling Sunset.” “We can’t keep pushing the wealthy out of our city.”

    Oppenheim and his team spent much of the seventh season of the show speaking out against the tax, which they claim pushes prospective buyers out of L.A. and into other affluent areas.

    “This tax has not had the effect that was promised, and it’s time for everyone to put aside their egos and realize this was a mistake,” Oppenheim said.

    The drop-off comes from a few different factors. Many luxury homeowners moved to sell their properties last spring before the tax took effect, including celebrities such as Mark Wahlberg and Brad Pitt.

    Others explored loopholes to avoid paying the tax, such as splitting properties into multiple parts and selling them separately to stay under the $5-million mark.

    As a result, Measure ULA hasn’t raised nearly as much as originally projected.

    Early proponents of Measure ULA estimated the tax would raise roughly $900 million per year. Last March, a report from the City Administrative Office lowered that number to $672 million.

    At $215 million, the total is well short of initial projections, but Greg Good, a senior advisor on policy and external affairs for the L.A. Housing Department, said he expects it to be much higher going forward.

    In the first three months of Measure ULA, the tax raised $15 million, only $5 million per month. But from July 2023 to February 2024, the tax raised roughly $200 million, or $25 million per month. Projections for the city’s fiscal year, which starts on July 1 and ends on June 30, would be around $300 million.

    “Despite litigation, despite the chilled market, despite the wealth defense industry designed to help the rich protect their money from taxes, that’s $300 million for housing and homelessness initiatives,” Good said.

    So far, the city has spent around $28 million in aid to distressed tenants and landlords, $23 million on eviction protection and tenant outreach and $56.8 million on loans to accelerate the development of affordable multifamily housing projects.

    “None of that happens without ULA,” Good said.

    L.A.’s real estate community has fought the tax tooth-and-nail, campaigning against the measure when it was on the ballot in November 2022 and trying to find ways to overturn it after it was passed.

    The latest challenge — a lawsuit claiming the tax was unconstitutional — was shut down in October, when an L.A. County judge dismissed the case, but the plaintiffs are in the process of appealing the decision.

    The next hurdle the measure will face comes in November, when Californians will vote on a statewide ballot initiative called the “Taxpayer Protection Act.” If passed, the act would require special taxes to be approved by two-thirds of the vote instead of a simple majority, applying to all measures adopted after Jan. 1, 2022. Since Measure ULA was adopted in 2023 and only received 57% approval, it could require another vote or potentially be repealed.

    Gov. Gavin Newsom filed an emergency petition to remove the initiative from the ballot, but the status of the petition is unclear.

    “This is a David-vs.-Goliath story. Moneyed interests are trying to stop Angelenos from addressing this existential crisis, but I believe voters will flip the script at the polls and beat it back,” Good said. “We’re going to attack the housing crisis with vigor and zeal for as long as it takes.”

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    Jack Flemming

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  • Asian Grocery Behemoth Ranch 99 Market and Eight More Upcoming Restaurants

    Asian Grocery Behemoth Ranch 99 Market and Eight More Upcoming Restaurants

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    Wondering what’s in the works in the Chicago area for restaurants, bars, and cafes? Look no further than Eater Chicago’s guide to spring 2024’s coming attractions for dining. Did we miss something? Send Eater Chicago a tip at chicago@eater.com.

    March 21

    Jefferson Park: Family-friendly coffee shop and indoor play space Sunny Village Cafe will open in June at 5918 W. Lawrence Avenue, owner Georgena Hurst tells Block Club Chicago. The idea stemmed from a trip that Hurst, her husband Seokhee Burningham, and their two sons took in 2023 to South Korea, where they encountered numerous “kid cafes.” The genre has grown so popular that the Seoul Metropolitan Government aims to open 400 city-run “kid cafes” by the end of 2026. Sunny Village Cafe will include an area for stroller parking, as well as a counter serving coffee, tea, baked goods, and more.

    Jefferson Park: Prohibition-era nostalgia is likely to reach new heights with the debut of Vito’s Vault, a speakeasy-style dinner theater spot that’s aiming for an April debut at 5901 W. Lawrence Avenue, according to Block Club. Owner Mark Forrest Virkler spent nearly two decades working at Tommy Gun’s Garage, a 1920s-themed spot in South Loop. After it closed in the early years of the pandemic, Virkler set out to spin off his iteration in the hope of reviving the popularity that dinner theater once enjoyed. Vito’s patrons can expect a three-course meal (options will include steak, chicken, fish, and pasta) and a 90-minute stage show featuring comedy, songs, and interactive “police raids” that bring the audience into the production.

    Fulton Market: Long-awaited French-Lebanese restaurant Beity, the debut project from chef Ryan Fakih, has applied for a liquor license at 813 W. Fulton Market. Fakih says he’s aiming to open in early summer. First announced in March 2023, Beity was originally slated to open in River North, but plans have changed and it will now replace shuttered wine bar Joe’s Imports.

    Pilsen: Local craft beer maker Monochrome Brewing has applied for a liquor license at 2101 S. Carpenter Street, a space that was once home to shuttered brewery and taproom Lo Rez.

    Streeterville: Chapel Street Cafe, a new Australian restaurant specializing in Aussie staples like Lamington cake, flat whites, and toast with Vegemite, is slated for a November debut at 198 E. Delaware Place on the ground floor of the Hilton Chicago/Magnificent Mile Suites, according to Crain’s. Owner Shawn Uldridge, an Australian who moved to Chicago in 2014, is also behind West Loop’s Publishing House Bed & Breakfast and opened wine bar The Press Room, though he’s no longer involved in the latter.

    Uptown: Chicago Pickle Eatery, an Avondale deli that’s garnered a following with enormous New York City bodega-style sandwiches, is aiming to expand in March into a sister location at 4515 N. Sheridan Road, owner Mohamad Atieh announced on Instagram. Atieh moved to Chicago from New York City three years ago and tells reporters that he observed a gap in his new city’s corner store offerings. He’s working to fill that chasm with a menu of hefty sandwiches like the eponymous Chicago Pickle (pastrami, corned beef, pickles, coleslaw, Swiss, Russian dressing) and the steak and cheese, a riff on famed regional delicacies like Philly cheesesteaks and New York chopped cheese.

    Wicker Park: Trattoria RnB, a new Italian restaurant featuring wood-fired pizzas and fresh pasta, is working toward a debut at 2101 W. North Avenue, the former home of indie pizzeria Knead, according to its website. An opening date is not yet available.

    Evanston: Nearly a year after its closure, Irish pub The Celtic Knot has announced plans to reopen in the former home of Lush restaurant at 2022 Central Street in suburban Evanston, according to Evanston Round Table. Owners Liz and Patrick Breslin say fans can expect a smaller, cozier space and a slimmed-down menu, but promise they hope to recreate the pub’s lively atmosphere with live music and a crew of regulars.

    Naperville: California-born brand Ranch 99 Market, said to be the largest Asian grocery chain in the country, is poised to take over a former Dominick’s grocery store at 1555 N. Aurora Road in suburban Naperville, according to the Tribune. It’s pegged to debut in 2025 and will include a food court called Eat Up. The chain, also called Tawa Supermarket, was founded in 1984 by Roger Chen, a Taiwanese immigrant, and currently operates 54 stores across 10 states. The Naperville location is part of the area’s Riverbrook Shopping Center, which is now owned by Texas-based developer NewQuest Asia-Pacific Retail. In early January, NewQuest reps told reporters that the company plans to transform the center into a hub for Asian restaurants and businesses.

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    Naomi Waxman

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  • Realtor rules just changed dramatically. Here’s what buyers and sellers can expect

    Realtor rules just changed dramatically. Here’s what buyers and sellers can expect

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    So long, 6% commission.

    For decades, real estate commissions have been somewhat standardized, with most home sellers paying 5% to 6% commission to cover both the listing agent and the buyer’s agent.

    On Friday, everything changed.

    A landmark agreement from the National Assn. of Realtors paved the way for a new set of rules that will likely shake up the entire industry, affecting sellers, buyers and the agents tasked with pushing deals across the finish line.

    The most pivotal rule change pertains to how buyers’ agents are paid. Traditionally, home sellers have paid for the commission of both their agent and the buyer’s agent, which critics argue stifled competition and drove up home prices.

    The new rule prohibits most listings from saying how much buyers’ agents are paid, removing the assumption that sellers are on the hook for paying both agents.

    The other new rule requires buyers’ agents to enter into written agreements with their clients, known as buyer brokerage agreements. These agreements outline exactly what services will be provided — and for how much.

    The changes will take effect this July, pending court approval, and will have major implications on how real estate deals are done. Here’s how buyers, sellers and brokers will likely be affected.

    Lower fees for sellers

    The most obvious takeaway is that if buyers end up paying for their real estate agents instead of sellers, sellers are set to save a lot of money.

    In February, the average Southern California home sold for $842,997. Under the old system, where sellers pay both agents 3% commission, they’d shell out $50,580. But if they only have to pay one agent 3%, they’d save $25,290.

    Buyers, then, would be the ones footing the bill for their agent. The added expense might seem pricy, but Michael Copeland, a real estate agent in Palm Springs, said the final numbers might ultimately shake out the same under the new rules.

    “Buyers were often told by their agents that they didn’t have to pay anything and that services were free,” Copeland said. “But that’s not necessarily true.”

    Copeland said when sellers pay 6% commission to split between both agents, they pad that number into the purchase price, so buyers actually end up paying more for the home, and thus, pay for their own agent.

    So under the new system, buyers may end up paying their broker 3% commission, but the price of the home might be cheaper since the seller is only paying for their own agent.

    More flexibility for buyers

    One of the biggest complaints about the previous system was that it left buyers out of the negotiation process. Sellers paid each agent’s brokerage 3% or so, and that was that.

    Lawsuits filed against the National Assn. of Realtors alleged that the practice kept commissions artificially high and incentivized buyers’ agents to “steer” them toward properties that offered them higher commission rates.

    But under the new system, more buyers will be negotiating directly with their own agents — not just how much they’ll pay them, but what services they want the agent to provide. And those expectations will be specifically outlined in the buyer brokerage agreements, which are now required.

    “Some buyers may just hire an attorney and pay a fee to handle the transaction,” Copeland said. “Or they’ll want to hire an agent as a consultant. Someone they can ask questions.”

    In the age of the internet, access to real estate information is at an all-time high. Buyers can know virtually anything about a home on the market: not just bedrooms, bathrooms and square footage, but how much the home previously sold for, and how much similar homes in the area are selling for.

    Buyers can also receive alerts to know exactly when a house in their price range hits the market, so some savvy shoppers might opt for an agent who leaves the touring process to them, but can help them look over an inspection report and file the right paperwork in the closing stages of the deal.

    If a buyer wants a robust, hands-on agent that’s available 24/7, they can offer 3% or even more. If they want an agent who can just handle the more technical elements of the deal, they could offer 1% or 2%.

    Some buyers might try to handle the process themselves and not pay an agent at all.

    “Good agents will be able to show their value,” said Compass agent Michael Khorshidi. “Agents who aren’t able to show their value won’t benefit from this.”

    New dynamics — and roles — for agents

    For many agents, representing buyers can be rewarding since they get to help someone find their dream home, but the process is often more time-intensive. Agents might spend weeks or months setting up tours for clients, and there’s no guarantee that they’ll even buy a property in the end.

    For that reason, many veteran agents prefer to represent sellers. The work is often more efficient — especially in a hot market, where deals can close in days.

    So if the new rules leave less guaranteed money on the table for buyers’ agents, those agents might try to switch sides and only represent sellers. Or if they’re not able to make enough money representing buyers, they might exit the industry altogether — a trend that’s already taking place in Southern California’s cold post-pandemic real estate market.

    Brent Chang, a luxury agent active in San Marino and Pasadena, said the new rules could lead to agents who specialize in specific types of sales.

    “Just as there are agents like me who specialize in selling landmark properties, a new group of agents will emerge who specialize in helping buyers with highly competitive properties,” Chang said.

    He said agents who have a proven track record of winning properties for their clients will be able to demand higher commissions.

    Or their deals can be performance based. For example, an agent could represent you for 3%, and if they get the property for you, it’s another 3%.

    “Ultimately, if the ruling leads to buyers receiving better service from their agents, then it has merit,” he said. “But I suspect it’ll be a while until we understand the consequences of these changes.”

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    Jack Flemming

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  • Peek Inside Stunning La Serre, an Ode to Saint-Tropez in Fulton Market

    Peek Inside Stunning La Serre, an Ode to Saint-Tropez in Fulton Market

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    The owners of Bar Siena, Fioretta, and Lyra are about to open their sixth restaurant in the West Loop and Fulton Market area. La Serre, which should open mid-March, is a French-Mediterranean restaurant from DineAmic Hospitality Group with a unique all-season ledge room and guillotine windows overlooking Fulton Market.

    Ownership describes the menu as coastal French-Mediterranean cuisine, something DineAmic’s team has experience in. Lyra partner Athinagoras Kostakos, the former Top Chef: Greece champion, has cooked in Monaco, home of legendary chef Alain Ducasse. Chef Nikitas Pyrgis has cooked at La Guérite, a restaurant in Cannes, France that’s only accessible via boat.

    “Once we started talking about this, we thought, ‘Wow, you guys have a lot of background in [French cooking], we should do something with that,’” says DineAmic co-founder David Rekhson.

    La Serre will break away from heavier brasserie fare and focus on the south of France, Saint-Tropez, and Provence in particular. Rekhson calls the “the Napa Valley of France” where a bounty of quality ingredients exists. Of course, being DineAmic, Rekhson and fellow DineAmic co-founder Lucas Stoioff blend all these ideas to create a restaurant that they think will appeal to local Chicago customers.

    “Ours is a distinctly coastal French brand and fare, as opposed to a lot of the more inland Parisian classic brasseries that have opened up in the last couple of years,” Stoioff says, referring to a certain restaurant that opened in River North without mentioning its name.

    Stoioff and Rehkson mention several tableside preparations and opportunities to splurge. A 44-ounce, double-cut beef ribeye cote du boeuf is cooked over hardwood charcoal before being trotted out on a tray outfitted with a satellite burner. The steak is sliced tableside while the sauce is prepared and finished Au Poivre or truffle Diane style (Stoioff is a big fan of the latter). An Old Fashioned uses truffle-washed bourbon and served with black truffles shaved tableside. A drink called the Caspian uses dill olive oil and is paired with a bronze bunny statue holding a small bowl of caviar. There are a few others that the duo wants customers to discover at the restaurant and be surprised. A raw bar and a menu of one-bite starters are also served in the French amuse-bouche tradition.

    Located on the second floor of a new building on the corner of Green and Fulton Market, the space is light and airy with the kitchen in the back and a large bar greeting visitors at the front. The terrace, a ledge that flows along Fulton Market, features overhead heaters and the aforementioned windows which open vertically. DineAmic wants diners to feel like they’re in southern France, even when temperatures dip. Stoioff says the space looks like “an old provincial greenhouse that’s been here for 100 years.” The greenhouse design and the resources invested in the HVAC system will allow the restaurant to keep its windows open even on cold fall nights.

    “When you come inside, it feels like it’s summertime in the south of France, and you’re overlooking Fulton market, and our heating, engineering, and capabilities give us the ability to have the windows open a lot longer than we would normally have because of all of our heat we’ve installed,” Stoioff says.

    Not to be forgotten is a companion restaurant that will soon open. Bar La Rue is separate from La Serre. Look for more details in the coming weeks. But for now, take a walk through La Serre before it opens next week and enjoy photos of a few of the food and drink options.

    La Serre, 307 N. Green Street, opening Monday, March 11, reservations available via OpenTable.

    A dining room with a blue wallpapered wall.

    With an open kitchen in back, this is what greets guests as the walk past the host stand and look left.

    The space is modeled off a vintage greenhouse.

    Aquamarine booths with greenery above.

    These booths on the terrace have heaters above as the guillotine-style windows open up to Fulton Market.

    Gnocchi in a plate with pine nuts.

    Gnocchi Parisienne (basil pistou, semi-dried cherry tomato, parmasean, pine nuts)

    Five thin sliced pieces of raw tuna in a broth.

    Tuna Crudo (yuzu, caviar)

    Escargot served with toasted bread.

    Roasted escargot (herb-garlic butter, gruyere, grilled sourdough)

    Steak frites.

    La Serre will seve a variety of steaks using Linz Black Angus beef and cooked on hardwood charcoal.

    Dover Sole Meuniere for two is deboned table side and served with lemon-caper brown butter and brioche croutons.

    The bar will offer several unique cocktails.

    A cocktail served in a bronze bunny dish with caviar.

    The Caspian is part of the “Haute Cocktails” section and served with kaluga caviar.

    A cocktail in a perfume container.

    Smoke & Spice (mezcal, eucalyptus, lemon, black pepper)

    A white pourer pouring a foamy cocktail with hints of pink.

    Bourdeaux Sour (Jefferson’s Very Small Batch, pear, lemon, hibiscus, Bordeaux, egg white)

    A spritzy pink cocktail in a wine glass with rose petals on the glass.

    St. Tropez Spritz (gin, blood orange liqueur, elderflower liqueur, lemon, strawberry, rose petal, Prosecco)

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    Ashok Selvam

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  • Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is

    Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is

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    Recently released government data hammered home what we have known for at least a year: A national housing shortage, not broad-based price increases, is driving inflation.

    Inflation over the past year was 3.1% — far less than in 2021 but still high enough for the Federal Reserve to keep interest rates elevated. However, unlike the inflation we saw soon after the onset of the pandemic, the more recent bout was overwhelmingly driven by the rising cost of what the Consumer Price Index classifies as “shelter” — including rent actually paid and the estimated rent that could be charged for owner-occupied homes.

    Since the start of last year, most prices have risen very slowly or not at all. The price of goods — the tangible things we buy — remained essentially the same, rising just 0.1%. Food inflation, a source of post-pandemic pain for many households, was less than 3%. And other categories of prices actually fell: Household energy prices are down 2.4%, and the price of cars has fallen just over 1%. All told, for everything other than housing, inflation was just 1.5% — low enough that if housing prices had grown at historical rates, the Fed could have declared victory.

    But housing costs have not grown at historical rates: The two-year price increase came in hotter than at any point in the past four decades. This lopsided picture tells us a lot about who is most affected by inflation and how it should be addressed.

    The outsize role of shelter inflation means that homeowners and renters whose leases haven’t changed are experiencing inflation very differently from those who were more exposed to rising housing costs. Indeed, rising housing costs are a double-edged sword, increasing the wealth of homeowners even as they punish many renters. Since the beginning of 2022, housing wealth has added over $2 trillion to homeowners’ balance sheets.

    This trend has important implications across generations. People under 35, with a homeownership rate roughly half that of those of retirement age, are much more likely to suffer from rising housing costs while also missing out on the resulting wealth boom. Retirees, with rising housing wealth and protection from inflation through Social Security and Medicare, are more likely to fare better.

    The remedy for housing-fueled inflation is also different from standard responses to broad-based price growth. One might have expected the Fed’s interest rate hikes — which caused mortgage rates to rise with unprecedented speed — to slow down housing prices. But while prospective homebuyers did pull back from the market, residential listings were in free fall during the pandemic and have yet to recover. That means would-be buyers face tight inventories and higher prices.

    The only effective long-term answer is of course to build and rehabilitate more housing — a lot more. America’s housing crisis is a big problem that requires an equally big solution, with various estimates putting the nationwide shortfall between 1.5 million and 5.5 million units.

    Legislation passed by the House in 2022 would have made meaningful progress by allocating around $40 billion to supply-boosting programs such as the Housing Trust Fund, the Low-Income Housing Tax Credit and HOME Investment Partnerships Program block grants. Unfortunately, the bill fell short in the Senate and is effectively dead until at least the next Congress.

    In the absence of major legislation in Washington, state and federal policymakers have been increasingly focused on incremental responses to the shortfall. The Biden administration recently announced a series of reforms — including grants for low-income seniors and funds to help rehabilitate manufactured homes — that will add tens of thousands of new homes to the market. An array of bills passed in Sacramento in recent years will help expedite new housing in California, where the shortfall of about 1 million units is nearly three times the next-largest state housing deficit. But the data show we still need to do much more to ease and encourage building to tame shelter costs.

    Fed Chair Jerome Powell and the Federal Open Market Committee have made it clear that they will do whatever it takes to fight inflation. That’s an admirable and responsible position. But Congress has yet to help by addressing our national housing shortfall. If it had, pandemic-era inflation might already be behind us.

    Ben Harris is the vice president and director of the Economic Studies Program at the Brookings Institution and was a longtime economic advisor to President Biden.

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    Ben Harris

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  • Billy Dec Returns as Sunda New Asian Opens a Fulton Market Location

    Billy Dec Returns as Sunda New Asian Opens a Fulton Market Location

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    Three years after Billy Dec’s announcement, the second Chicago outpost of Sunda Fulton Market, the former nightlife magnate’s Southeast Asian restaurant, will open tonight — Monday, February 26 — on the ground floor inside the headquarters of prolific developer Sterling Bay.

    It’s been 15 years since Sunda New Asian debuted in River North. Dec and his crew have been quiet about the opening, quietly sinking significant resources into the design, trying to keep pace with other area restaurants, a collection including newcomers like Cocina Tulum and Fioretta. The restaurant presents a return to home turf for Dec, a Chicago native and co-founder of downtown nightlife pioneer Rockit Bar & Grill. With co-owner Brad Young, Dec opened Sunda River North in 2009, where a continent-traversing menu from late Chicago chef Rodelio Aglibot and a lively see-and-be-seen atmosphere made it one of the city’s hottest spots, attracting luminaries like Michelle Obama, Barbara Streisand, and Vanilla Ice.

    In the Philippines, capiz shells were used for window panes before glass became available.
    John Stoffer/Sunda New Asian

    After splitting with Rockit’s co-owner and hanging onto Sunda, Dec and his team have opened Sunda outposts in Nashville and Tampa, Florida, but deep down, “you can’t take [Chicago] out of me,” he says. “To me, [Sunda] is a Chicago-born concept — we’re based in Chicago, it’s a Chicago company and creation… I want to keep reinvesting in the city and being a contributor in some fashion.”

    Sunda fans will recognize much of the Fulton Market menu from executive chef Mike Morales, which touches on dishes from a wide swath of countries including China, Thailand, Japan, Vietnam, and the Philippines, including longtime hits like spicy tuna crispy rice (masago, chives, sriracha, serrano) and truffled chicken siu mai (shiitake, hon-shimeji, hot mustard). It follows the same format as its predecessors, with one-third devoted to Japanese dishes, one-third to Chinese, and the remaining third set aside for options from the Philippines and other nearby countries.

    A table of colorful cocktails.

    Ube espresso martinis add a Filipino boost to the trendy cocktail.
    Sunda New Asian

    A plate of nigiri.

    Former Sushi Wabi chef Ise Matsunobu is back to serve Chicago diners.
    Sunda New Asian

    Dim sum and sushi feature prominently, and through a series of unlikely encounters, Dec managed to track down chef Ise Matsunobu, formerly of longtime Chicago favorite Sushi Wabi, to helm the sushi bar. “When we opened Sunda [in 2009], Sushi Wabi was closed so I looked all over for [Matsunobu] but couldn’t find him,” says Dec, who heard through the grapevine that the Japanese chef had returned to Tokyo. In the meantime, Dec moved to Nashville and was struggling to find the right staff members for his restaurant. “In walks [Matsunobu] on a random Nashville street on a random day — we had a slo-mo run-hug. Now, here we are, he’s back in Fulton Market and we’re so happy to be back where we started.”

    Sunda Fulton Market was initially pegged to launch in spring 2022, but the delay may ultimately prove fortuitous as that exact timeframe saw a surge of Filipino restaurants in Chicago, including Michelin-starred Kasama in West Town and smash-hit Boonie’s Filipino Restaurant in Lincoln Square. Dec, who is Filipino American, is quick to point out that Sunda has always served Filipino cuisine but a heightened spotlight on the country’s food has welcomed more fans into the fold. “I knew once [more people] gave Filipino food a chance, they’d be incredibly excited and mesmerized,” he says.

    The main dining room inside Sunda Fulton Market.

    The island bar seats 26.
    John Stoffer/Sunda New Asian

    Well-regarded Chicago design firm Studio K Creative has woven Dec’s heritage into the design at Sunda Fulton Market, installing a jaw-dropping sculpture made with thousands of pearlescent Filipino capiz shells above the 26-seat island bar where customers can find new cocktails like an ube espresso martini (1800 reposado, coffee liqueur, ube milk) and Low Thai’d (Tanduay Silver, strega, hopped pineapple, Thai basil, white peppercorn). The design team has also layered the walls with traditional woven pamaypay hand fans — a preferred accessory for Dec’s lola, or grandmother — to create a distinctive organic texture. Bamboo wall treatments juxtapose neatly with sleek, contemporary furniture seen throughout the 146-seat main dining room and 18-seat sushi bar.

    Those details contain great meaning for Dec, who recently starred in Food Roots, a documentary film that followed him on a trip through the Philippines in pursuit of his family’s stories and recipes. The film is now making its way through the festival circuit.

    Sunda New Asian Fulton Market, 333 N. Green Street, Open 5 p.m. to 10 p.m. Sunday through Thursday; 5 p.m. to midnight Friday and Saturday.

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    Naomi Waxman

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