Three Years Later and Trying to Sell at 950 W. Monroe
There was plenty of new construction that closed during the boom years of 2005-2006.
What happens to those who try to sell only a few years later?
The Residences at 950 W. Monroe in the West Loop is a good example. This was the developer’s rendering of the building in 2005 (from the marketing materials).
The midrise “soft-loft” building with 101 units was completed in 2005 with the first closings in August 2005.
The building wasn’t marketed as “luxury” but it has the standard 42-inch cabinets, granite countertops and stainless steel appliances. Most of the bathrooms look to have some kind of whitish/tan tile.
Two and a half years later, some owners are trying to move.
Will they make any profit?
Unit #807: 2 bedrooms, 2 baths, 1337 square feet
- Sold in November 2005 for $381,500
- Currently listed for $399,000 plus $35k for two car tandem parking
- Assessment of $491 a month
- Wish Realty, Inc. has the listing
Unit #903: 2 bedrooms, 2 baths
- Sold in October 2005 for $392,500
- Currently listed for $412,000 (plus $35k for the two car tandem parking)
- Assessment of $479 a month
- Keller Williams Lincoln Park has the listing
Unit #804: 2 bedrooms, 2 baths, 1542 square feet
- Sold in November 2005 for $508,000
- Currently listed for $474,900 (plus $35k for two car tandem parking)
- Assessment of $574 a month
- Century 21 M.B. Real Estate has the listing
Unit #916: 3 bedrooms, 2 baths, 1600 square feet, rooftop balcony
- Sold in November 2005 for $505,500
- Currently listed for $549,000 (plus $35k for two car tandem parking space)
- Assessments of $615 a month
- @Properties has the listing
The most expensive unit to sell in the building in 2007 and 2008 was:
Unit #410:
- Sold in September 2005 for $391,000
- Sold in July 2007 for $422,500
No units have sold in 2008.
The last unit to sell in the building was Unit #509 in September 2007 for $263,000.
I’ve told a co-worker that, if you had 100% financing and were not escrowing taxes, coming to closing with less than 2-3% of your purchase price is a good deal in the current market (if you need to sell). These people trying to make money are asking to be disappointed.
Does anyone actually think that separate pricing for the parking is a good idea? (Yeah, yeah, there are a few buildings where demand for parking outstripped initial supply, but this ain’t one of them.) I still think that this “strategy” is stupid, from a seller’s perspective.
These units look terrible after only a few years. You can get a 1200 SF apartment in the gold coast with a view of the lake and a $500 assessment. Why would you want to live here for the same price? These prices seem $100K to $150 too high in the real world of 2008.
Paulj is right on these prices. During the bubble even less desirable areas were bid up to the same $/sf prices as the Lincoln Park’s and Gold Coasts. Who would honestly want to live in this neighborhood over Lincoln Park at similar prices? Looks here like some sellers are trying to eke out a small gain and would likely be underwater if they had to sell for 2005 prices. Yes walking to work in the loop/west loop is nice but Greektown isn’t near worth these prices.
Too bad for the sellers the bank isn’t just giving any loan to Joe Six Pack with no downpayment but just a job. The fate of the west loop will be similar to the south loop: many of these are going to go into foreclosure and prices are going much lower.
Well, some people have to grow up eventually. Not everyone wants to live in Lincoln Park. The West Loop has a different set of perks, but is probably still shy of the critical mass needed to justify a $500k+ premium.
anon on April 29th, 2008 at 10:43 am
I’ve told a co-worker that, if you had 100% financing
—
Pls give me a name of a mortgage broker that still gives 100% LTV financing.
SITC, anon was refering to the seller. In other words, if you had no equity at purchase you should be happy to bring only 2-3% of the original price to closing in order to sell today. I would have said you should be f***ing ecstatic, but that’s just me.
Bob and Paulj:
Can someone tell me where in Lincoln Park you can buy a 2/2 w/balcony for 412K?
G’s right. Co-worker is selling TH in west/SW suburbs and was bummed about having to show up with extra $$ for tax prorations–I told her that was pretty good, given the market. If more people were willing to list at (or
She is really lucky she found a greater fool. I’m not looking to bail anyone out of their home loan at prices seen within the past five years. If anything I will work with a bank doing foreclosures that just wants to dispose of the asset.
kevspada,
Just look in the MLS. You might not find an exact comparison at the exact same price, but there’s a lot in LP right now going for the same price per square foot or less than the stuff I’ve seen in Wicker Park and the west loop lately. (Sabrina has posted info on several townhouses and condos in Lincoln Park for around 400 – 450K lately.) When I look at the prices in Lakeview and LP right now, I have no idea why someone would buy something in some of the other neighborhoods around the loop where prices are nearly as high. Why put up with a transitional neighborhood when you can get a fully gentrified one for free? Just to avoid yuppies and live in a grittier hood on the fringe of gang territory? If the cost is similar, I’ll take LP and the lakefront and red line access and spoiled sorority girls and land rovers and starbucks and screaming kids any day.
Yes- there definitely ARE some 2/2 with a balcony in LP for a similar price as $412k. They tend to run slightly smaller though (1050-1200 square feet) then they do in the West Loop.
You just have to be patient in LP when looking.
But Kevspada is right that there isn’t a TON of inventory in that price point with the 2/2 and balcony.
kevspada,
Check out 2045 N Larabee #208 – 2bed/2bath with pkg, mo assmt of $236 – $387.5K Oz Park Gardens
Sabrina is right on. Just keep an eye on the LP market.
I can’t say that I agree with everyone who says LP is the better deal with these prices in the West Loop. You’re forgetting that a lot of homeowners enjoy a high rise with a beautiful view of the downtown skyline. Also having a doorman, walking to work, fitness rooms, party rooms, etc etc etc… Different strokes for different folks. LP has a better neighborhood as it’s already “gentrified” as someone already said but that is where it stops for me personally. Not to mention having visitors over in LP is an absolute horror because there is never anywhere to park. Not the case in the West Loop as parking is very easy to find.
Agree with Perry!
Why would anyone want to live in Lincoln Park? It’s so crowded the streets are narrow. You have to commute to work and it’s overpriced. Plus the taxes are crazy…