“I Guess We’ll See In Five Years”: A 2/2 At 562 W. Arlington In Lincoln Park

We’ve chattered about this 2-bedroom in the 4-unit vintage building at 562 W. Arlington in Lincoln Park twice before.

The building was converted into upscale condos in 2005 with custom finishes.

The kitchen is described as a “gourmet wraparound” with Viking and SubZero appliances.

There is a spa like bath in the master bath, central air, washer dryer in the unit and gated secure parking.

Back in 2008, it was originally listed at $699,000 and many of you thought that was reasonable for the location.

See our February 2008 chatter here.

But G tried to talk some sense into you.

“I’m with you, Tipster. The responses here indicate why some prices will be very sticky on the way down.

But down they will go. Anyone who buys anywhere near 2005 prices will learn this all too well.”

Kenworthey, an early poster on this site, was doubtful that Lincoln Park prices would fall below the 2005 price of $600,000.

“I’m not trying to sound like the NAR here, but there is SOMETHING to be said for the idea that real estate is at least sometimes local. When I think of Chicago’s bubble, I think of downtown and its immediate environs (Streeterville, South Loop, River North, Gold Coast) with a frenzy of overbuilding purchased by speculators. I also think of the sketchier far-out neighborhoods (like Englewood, Rogers Park, Bronzeville, Humbolt Park) being inflated by lax and often fraudulent lending.

In contrast, areas like Lincoln Park and Hyde Park–stable, not particularly overbuilt–were certainly not immune from the bubble, but I do think that they weren’t as inflated. If they didn’t go up as much, they shouldn’t come down as much. Which is why I think a place like this–asking $700K on a street where virtually all of its neighbors are 1.5 million and above–as not an unreasonable price.

I guess we’ll see in five years.”

In June of 2011, it came on the market again, listed at $595,000 but it never sold.

It’s now 5 years later.

The unit came on the market at $559,000, or $66,000 under the 2008 price,  and $41,000 under the 2005 price, and almost immediately went under contract.

Some have e-mailed me and said, “wow, look how hot the market is. This vintage apartment went under contract almost instantly.”

Is it truly “hot” or was it simply finally priced right?

And has G been vindicated in his belief that prices everywhere- even in Lincoln Park- would keep falling?

Mary Ann Genellie at Prudential Rubloff has the listing again. See the pictures here.

Unit #2: 2 bedrooms, 2 baths, no square footage listed

  • Sold in June 2005 for $600,000
  • Was listed in February 2008 for $699,000
  • Sold in August 2008 for $625,000
  • Was listed in June 2011 for $595,000
  • Withdrawn
  • Re-listed in January 2013 at $559,000
  • Under contract within days
  • Assessments still $200 a month
  • Taxes now $9091 (they were $8623 in June 2011)
  • Central Air
  • Washer/Dryer in the unit
  • Gated parking included
  • 2 decks- one on the front and one on the back
  • Bedroom #1: 15×11
  • Bedroom #2: 13×11

 

 

22 Responses to ““I Guess We’ll See In Five Years”: A 2/2 At 562 W. Arlington In Lincoln Park”

  1. A fellow coworker wants to buy a house right now. But he is afraid prices still may come crashing down. This conversation began with ten people over lunch. I am surprised how so many people have adopted the “hedge fund mentality”. Essentially if they are right they keep the profits. If they are wrong then they will let the house go.

    He will buy a house this Spring. He is going to put 3% down (he has good credit). If prices still go up he will keep the house. If prices come down then he will let the house go.

    It doesn’t surprise me though. Banks, hedge funds, General Motors were all too big to fail. The American taxpayer saw how the connected were taken care of and all of a sudden the regular rules of capitalism were suspended. At the same time they are told to play by the rules. May God help our country.

    VA:F [1.9.22_1171]
    Rating: +2 (from 4 votes)
  2. two good things about being the middle floor;
    1. your heating bill is alot smaller
    2. you get used to the noise faster as its more constant as if there are no feet stomping above then you usually have yelling/talking from below

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)
  3. “If prices still go up he will keep the house. If prices come down then he will let the house go. ”

    how long is he planning on living in said home to make this determination? If prices go down immediately, is he going to cut bait and run, or if they remain steady for five to ten years and then another recession hits or something else brings the market down, will he then say “honey, pack up, we’re getting a rental!”

    VA:F [1.9.22_1171]
    Rating: +3 (from 3 votes)
  4. My prediction is that this spring a lot of people will test the market by putting their homes up for sale. Overall they will be priced below Boom era prices but still a tad higher than the market would suggest. Some will make quick corrections, others will either withdrawl or hope for that one buyer who really loves their wainscotted bathroom. Those who can wait a month or two and then put it on the market will have the benefit of being the fresh listing that beats out the stale ones.

    VA:F [1.9.22_1171]
    Rating: +9 (from 9 votes)
  5. “A fellow coworker wants to buy a house right now. But he is afraid prices still may come crashing down.” WHAT? More decreases? It’s already more expensive to rent than to buy—so if prices come down further then the return for investors will be greater. LOVE it.

    Yes, logically many sellers will list in spring–people who have wanted to list over the past few years but couldn’t stomach the loss. The question is — will the new level of listing inventory be +/- buyers who are tired of rent increases and lack of affordable rentals out there?

    VA:F [1.9.22_1171]
    Rating: +2 (from 2 votes)
  6. “My prediction”

    So, Icky, which one describes your strategy? The ‘wait 2 months’, right? Any fear you miss out on the couple-tree motivated buyers potentially interested in youtr building?

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  7. “So, Icky, which one describes your strategy? The ‘wait 2 months’, right? Any fear you miss out on the couple-tree motivated buyers potentially interested in youtr building?”

    The wife and I go back and forth on it almost nightly. Even the most optimistic calculations tell me that I’d still bring too much money to the table, money I don’t really have. And unfortunately the current Real Estate model is ‘put your home on the market and see what happens”, not “lets see if there are buyers interested in your cookie cutter condo in a non-gz hood and introduce you.”

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  8. G is the best poster on the CC site, hd is next.

    VA:F [1.9.22_1171]
    Rating: -3 (from 11 votes)
  9. Icky if/when you rent it out how much will you need to put in (including your own reserves for issues). Do you really want to get the middle of the night calls that a ceiling fan is broke or the call of my sink is leaky and you havent fixed it in a month so i am not going to pay you rent for that month.

    wouldnt it be better to just take the hit and be done with it. you young and kidless your money will come back.

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)
  10. ‘If they are wrong then they will let the house go’

    I’m not understanding this jason. So they just quit paying their mortgage and walk away from the house? Or, do they sell it? Wouldn’t walking away ruin his good credit?

    Walking away was SO common here in southern CA that it became the norm. A friend actually rented out his house while it was going thru the long foreclosure process (over a year), and made money each month he received the rent checks. Now that the market is ‘hot’ here again, flipping is becoming the new norm… from the same people that walked away from their places just a few years ago. Somehow they manage to to get the money and buy again. Yes, god help us all.

    VA:F [1.9.22_1171]
    Rating: +3 (from 3 votes)
  11. “wouldnt it be better to just take the hit and be done with it. you young and kidless your money will come back.”

    Groovy, if you have $25K burning a hole in your bank, I’d be happy to take a no/low interest loan from ya, which I’d gladly pay back Tuesday 2021!

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)
  12. Buy today and walk away is a dumb idea. Nobody is doing that. The default rate on newly seasoned mortgage is something like 0-2% and is basically lower than it’s ever been. The person with whom you were having that conservation was a moron. Just like my clients who are like “I don’t want to have a mortgage escrow because I can pay my own taxes. Why am I going to let the bank make interest off my money?” And then two years later their mortgage payment jumps 100% when the bank finds out that they haven’t been paying their real estate taxes and they go into foreclosure. Stupid and moronic and hard to take people that say that stuff seriously.

    Walking away is the rage, especially if you own a home with deferred maintenance that you paid $300k for and is worth $170k today; and especially if you overpaid for a condo in some sub-par area and the condo has lost 75% of it’s value. That’s happening everywhere, all the time. Everyday in fact.

    VA:F [1.9.22_1171]
    Rating: +5 (from 5 votes)
  13. “Walking away is the rage…especially if you overpaid for a condo in some sub-par area[.] That’s happening everywhere, all the time. Everyday in fact.”

    What’s the walkaway strategy for icky? Can he walk away and buy the sfh of his dreams?

    I think he should either stay where he is for 6-8 years (depending on when he has kids) or suck it up and buy the new house now.

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  14. “two good things about being the middle floor;
    1. your heating bill is alot smaller
    2. you get used to the noise faster as its more constant as if there are no feet stomping above then you usually have yelling/talking from below”

    I can’t believe that people would pay that much money, for a two bedroom (one very small) and really, no dining room, and then have to put up with being sandwiched between two other units and the noise that comes with vintage..no matter what the location.

    I guess I was never ment to be an urban animal!

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  15. “I guess I was never ment to be an urban animal!”

    or your an logical person and would rather rent a place like that for a few years then BUY something that doesnt have those flaws.

    wonder where we would be if logical thought was put to use.

    VA:F [1.9.22_1171]
    Rating: +1 (from 3 votes)
  16. Serious question: Could you get around a foreclosure ruining your credit by buying through a corporation (LLC, sole-proprietorship)? Some friends of mine bought a 4-flat with an LLC and lived in 2 units and rented out the other 2. Is that only possible because it was income earning and not a personal residence? I assume it doesn’t work this way, otherwise it would be SOP…

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  17. “Could you get around a foreclosure ruining your credit by buying through a corporation (LLC, sole-proprietorship)? ”

    Maybe, but you’d have to find a lender that didn’t require any individual guarantee. Which, for a single-asset entity, I believe would be challenging.

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)
  18. “Could you get around a foreclosure ruining your credit by buying through a corporation (LLC, sole-proprietorship)”

    Generally, no, to get a mortgage for an entity like this is going to be a lot harder and the collateral will be far higher. And a sole proprietorship is not a corporation.

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  19. Yeah it’s really hard to buy something without a personal guaranty unless you’re a big corporation with lots of assets. The only way to avoid destroying your credit is to use someone else’s like your wife’s or business partners credit but then they really own the property not you.

    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  20. Baby Boomerette on January 25th, 2013 at 6:28 am

    Not to mention that living in that middle-floor space may clue you in to Too Much Information about the upstairs’ neighbors’ love life. And, a few months’ later, the exact times that the kiddo wakes up for the night feedings.

    VA:F [1.9.22_1171]
    Rating: +2 (from 2 votes)
  21. ” A friend actually rented out his house while it was going thru the long foreclosure process (over a year), and made money each month he received the rent checks”

    I know a guy here who is still doing that I believe. And his sister was doing in too but wanted it over. She went to court and the bank told her they werent ready to take control of her condo yet, so she kept doing it. Not sure where things stand today.

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)
  22. just checked on the guys place. went lis pendens in fall 2010, nothing since. I believe he gets 2k/mo rent and has been paying zero towards mortgage since late 09. messed up.

    VA:F [1.9.22_1171]
    Rating: +1 (from 1 vote)

Leave a Reply


3 × = eighteen