By Kerrie Kennedy

Contributing writer

It was once known for the lavish pink stucco hotel that stood out from its perch on Lake Shore Drive and Hollywood like some sort of oversized pink flamingo. But after the extension of Lake Shore Drive past Hollywood cut off the resort’s infamous beachfront boardwalk, guests like Marilyn Monroe and Frank Sinatra stopped coming. In 1967, the Edgewater Beach Hotel was torn down, marking the end of Edgewater’s heyday.

Today, there’s only a tiny piece left of that once-famous pink real estate (the Edgewater Beach Apartments), but the neighborhood of Edgewater—the area bounded by Foster, Devon, the lake and Ravenswood—is as once again the place to be. While you might not see movie stars hanging around, you will find a large entertainment district, a beautiful beach, an amazing variety of ethnic restaurants, plenty of well-priced new construction, and one of the largest GLBT populations in the Midwestern U.S.

“Not only is the Edgewater neighborhood hot, but it’s also diverse and still affordable,” says Ken Goldberg, real estate agent and managing director of Sheldon Good & Company.

The firm is the exclusive marketing and sales agent for Catalpa Gardens Condominiums, a 126-unit mid-rise development at 1122 W. Catalpa in Edgewater neighborhood.

Given the pink stucco hotel the neighborhood was once known for, perhaps it is fitting that the gay community—who started moving into the neighborhood about 15 years ago—is largely responsible for much of Edgewater’s renaissance.

“Whenever the gay community comes into a neighborhood and fixes it up, it’s good for the neighborhood,” says @properties real estate agent and Edgewater resident Suzanne Setterstrom. “What they’ve done for Edgewater has helped it exponentially.”

For people like Setterstrom, who remember the neighborhood when it was plagued with such problems as crime, empty storefronts and absentee landlords, it’s easy to see how much Edgewater has changed. Formerly neglected buildings have gone condo, new businesses have come into the neighborhood and tight-knit community groups now work together to fight crime.

Accordingly, real estate prices in the neighborhood have climbed significantly. According to the Chicago Board of Realtors, the median price of homes, townhomes and condos sold in Edgewater between May and July of 2003 was $158,000. Between May and July of 2004, that price was $200,000—an increase of 26 percent. In 2007, the average sale price for a two-bedroom, two-bath condo in Edgewater is $320,584.

But Edgewater offers plenty of opportunities for first-time buyers, says Coldwell Banker real estate agent Chris Pagano. Many of the 1960s- and 1970s-era high-rises located along Sheridan Road—in an area known as condo canyon—feature one-bedroom units with entry-level prices. Incidentally, one of the buildings in the area, the Thorndale Beach Apartments at 5901 N. Sheridan, was famously Bob and Emily’s home on “The Bob Newhart Show.” Despite the Hollywood connection, many of the one-bedroom units in this area go for a reasonable $125,000-$150,000, according to Pagano.

“You’ll probably pay high assessments, but it’s still a great price point,” Pagano says.

Just west of Sheridan, the quiet tree-lined streets along the popular Kenmore-Winthrop corridor feature single-family homes; two to six-flat buildings; courtyard buildings and mid-rise apartments. Many of the buildings are architecturally significant.

“You feel like you’re walking through history when you go through some of these places,” Setterstrom says. “The architecture is so beautiful in Edgewater, which is why you mainly see rehabs. You have these great, cavernous old apartments.”

Home to a large immigrant population, Edgewater features large concentrations of Southeast Asians, Middle Easterners, Hispanics, Koreans, American Indians, Ethiopians, Nigerians and one of the largest Bosnian populations in the city.

“This area is cosmopolitan yet down to earth,” says Liane Pruchnik, sales associate for Rubloff Residential Properties.

Even Edgewater’s commercial sector is a veritable melting pot, from the Vietnamese and Cambodian restaurants and shops located along Argyle to the neighborhood’s mish-mash of Ethiopian, Italian, Columbian, Greek, French-Vietnamese and Middle Eastern restaurants, including La Fonda, Francesca’s, Pasteur and Mei Shung. In the past few years, 25 new restaurants and 21 antique dealers have moved into Edgewater, including several new establishments located along the Bryn Mawr Avenue Commercial District, which is listed on the National Register of Historic Places.

Despite the fact that Edgewater has a lot to offer, its commercial district is located mostly along the busy four-lane Broadway Avenue, a stark contrast to nearby Andersonville’s charming, pedestrian-friendly business district located along Clark Street from Foster to Bryn Mawr.

Technically, Andersonville—as well as the leafy single-family home enclave of Lakewood-Balmoral—are located within the boundaries of Edgewater. But in the world of real estate, they are considered separate entities, and are generally priced higher as well.

“New-construction condominium prices in the up-and-coming Edgewater community are considerably more affordable than nearby Andersonville or the Lakewood-Balmoral areas,” says Coldwell Banker broker Lois Schwartz. “Condominiums and townhomes here are destined to increase in value. It’s a lakefront neighborhood with all the amenities you could want—entertainment and dining. Savings of up to $100,000 are available when compared with neighborhoods three minutes south.”

Located just 10 minutes from downtown, with a beautiful beach on its eastern border, affordable real estate prices and grand architecture, it’s easy to see why Edgewater, which rose to prominence in 1916, is back on top.