Foreclosures Destroying Comps in Lakeview’s The New York
Foreclosures and short sales are starting to take a toll on The New York, an American Invsco conversion at 3660 N. Lake Shore Drive in Lakeview.
The 49 story building was built in 1987 and converted by American Invsco to condominiums in 2000. There are 595 units in the building ranging from studios to two bedrooms. American Invsco offered the option of an upgrade package to buyers or they could buy “as is.”
In early 2000, after only a few months of sales, they sold several hundred of the units. From The Chicago Sun-Times in 2000:
American Invsco’s record growth was fueled by the runaway success in converting the 593-unit New York apartments at 3660 N. Lake Shore Drive. “We have sold probably 255 units and closed around 200 of those at the New York,” said Nicholas V. Gouletas, vice president of American Invsco.
New York studios start at about $150,000 and 2-bedroom units are in the $300,000 to $400,000 range.
The building sold quickly during the boom but unfortunately the good times haven’t lasted. I am seeing more foreclosures coming from this building in recent weeks. There are also some short sales in the building so more foreclosures will likely be coming in the future.
The most striking price drop in the building is this 2 bedroom, 2 bath which is a foreclosure. It is 45% under its original selling price:
Unit #3713: 2 bedroom, 2 bath, 1150 square feet
- Sold in August 2004 for $452,000
- Currently listed for $249,000 includes the parking
- Area Wide Realty has the listing
The unit is being sold “As-Is”. There are no pictures available. The listing also says: “Great Investment”.
There are two others available in the “13” tier. The first is also a foreclosure. The second is not.
Unit #3513: 2 bedroom, 2 bath
- Sold in April 2004 for $447,700
- Currently listed for $304,900 including the parking
- Assessments of $600 a month
- Amalgamated Real Estate has the listing
The following are pictures for Unit #3913.
Unit #3913: 2 bedroom, 2 bath
- Sold in June 2004 for $440,500
- Currently listed for $439,900 including the parking
- The listing says it is currently leased but there is an “out-clause”
- John Wyman at Coldwell Banker has the listing
Some 2 bedroom units have been selling at or under $300,000 in the building in recent months.
Unit #1913: Sold in November 2007 for $289,000. Prior sale was in March 2004 for $383,500.
Unit #4613: Sold in November 2007 for $304,500. Prior sale was in October 2004 for $454,000.
A studio is going to foreclosure auction this week.
Unit #1016: 570 square foot studio
- Sold in January 2002 for $124,000
- Sold in February 2005 for $143,000
- Currently on the market for $147,500
- Foreclosure auction price of $139,138
Stay tuned on this building. It is rough going for owners who have been paying their mortgages and simply want to move. The comps are being decimated by the foreclosures.
Last year (or a couple of years ago), weren’t plans to build a condo tower onto the vacant lot next to 3660 approved?
anyone know?
It’s scary that this is only the beginning of the downturn. A recession is in the bag, and real estate will continue its nosedive. How hard? I’d say alot further to go in undesirable neighborhoods and undesirable buildings like this one.
I never really liked this building, but I cannot believe how fast some of these prices are falling. The problem for owners is future buyers like myself. I came to this area from the San Francisco Bay Area with a LOT of cash and am currently renting, but why jump in with news like this? I’m renting a unit purchased two years ago for 680,000 for about 2150 a month, and this does not make me want to buy now. Will we see any similar declines in “upper bracket” towers?
Another American Invensco Conversion. Suprise, Suprise. All of American Invesco buildings have the same problems. They are buildings with cookie cutter floorplans with nothing to show for inside. If you want upgrades you will “PAY” an arm and a leg.
This is actually a great Location in Lakeview.
“AMERICAN INVSCO recently announced the purchase and conversion of The New York, located on 3.27 acres of prime lakefront property. With sales topping $60 million dollars in just over one month, The New York is already proving to be the most exciting conversion North Lake Shore Drive has seen in over a decade.”
City Agent: I agree- it IS a good Lakeview location. The building was clearly popular when they first converted it.
Me: Yes, there was a proposal for a new high rise on the land directly in front of The New York (also by Invsco apparently.)
Emporis has a link to it here.
http://www.emporis.com/en/wm/bu/?id=3660northlakeshoredrive-chicago-il-usa
Emporis says it will be 29 stories and also involve townhouses.
Also: from the 46th Ward Alderman’s office:
12/01/2006
Facts of the “original “New York” Residential Planned Development (3660 Lake Shore Drive)
The original New York development (AKA Residential Planned Development No. 266) was approved by the Chicago Plan Commission and the Chicago City Council in 1981. RPD 266 allowed two 48 story towers and a total of 1,200+ rental units.
The first tower (and parking garage) was built by the original developer in mid-1980s as rental housing. This building has become known as the New York at 3660 N. Lake Shore Drive.
Facts of the new Residential Planned Development
The new RPD does not include the original building (3660 N. Lake Shore Drive). It includes all of the currently vacant land to the east of 3660 N. Lake Shore Drive.
A 28-story building with 212 apartments and 16 town homes and 201 parking spaces are in this new plan. The addresses for this RPD are 3638-58 & 3662-64 N. Lake Shore Drive.
Anoninshock: There have been several $1 million foreclosures in 33 W. Ontario in the past few months. But we haven’t yet seen the 40-50% price reductions on those units.
I suspect that we will see distress among some investors in the upper bracket new construction buildings this year. Many won’t be able to rent out the units anywhere near their costs (as we’ve already seen.)
Right now, prices seem pretty firm in the upper brackets but not much is selling.
Do any agents have any observations on that market?
Sabrina-
I’ve been frequently this website for about a month now. Very interesting. Keep up the good work.
I live at the New York building (rent). I chose the building due to the location, dog-friendliness, and great views. I have to say the finishes are low end and some of the floor plans are strange. Haven’t heard much ‘chatter’ yet between owners with regards price reductions, but your post shows that many people in this building are going to be in big trouble in the near future. Looks like I will be asking for a rent REDUCTION when my lease ends.
Park Place at 655 W Irving Park has a lot of inventory/investors as well. They have 88 listings right now on the MLS. 72 Listings are either rentals or resale(the rest parking or outdoor cabana’s)
The building does have a total of 901 units though. So only 7.99% market share in the building is for sale/rent but still enough to notice…
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