Biggest Story of 2009: Glut of New Construction Downtown Condos
As we did last year, it’s time to chatter about what new buildings will complete construction and will be closing on units in 2009.
Despite the market conditions, the list is still long.
Loop:
- 55 E. Monroe- 156 units
West Loop:
- 565 W. Quincy- The Quince: 241 units
- 24 S. Morgan- Pure: 67 units
- 659 W. Randolph- R+D659: 237 units (started closings in December 2008)
South Loop:
- 8 E. 9th St.- Astoria Tower: 248 units
- The Roosevelt Collection (lofts)- 342 units
- 2138 S. Indiana- Lexington Park Condos- 333 units
River North:
- 110 W. Superior: 58 units
- 303 W. Ohio- Silver Tower: 225 units
Gold Coast:
- 10 E. Delaware: 121 units
- 11 E. Walton- The Elysian: 239 units
Know of some others? Or perhaps one or two of these is expected to be pushed back into 2010?
Feel free to make suggestions of buildings to add (or delete) from the list.
Here’s last year’s list.
You were right on the money last year, Sabrina!
235 Van Buren should be closing middle of 2009. 714 Units.
that’s an awful lot of condos. wake me up when 2/2s (north of madison) or 3/3s (in s.loop, w.loop) are $250K.
btw, what the heck is up with trump? is he ever going to finish that damn spire?
To be fair, the remaining portion of the spire has to be put in place using a heavy-lift helicopter. It has to be scheduled in advance so that everything is in place and then if the weather isn’t cooperating on that day they have to cancel and reschedule. Chicago winter winds, especially at that altitude, are not usually cooperative.
Trump might lose the building before the spire is finished, but it will be finished. Have patience.
If Trump loses the building… will the name change? It it was called 401 N Wabash it may make the building look better than it is 🙂 Trump is so closely associated with gaudy, I can’t stand it!!!!
“that’s an awful lot of condos. wake me up when 2/2s (north of madison) or 3/3s (in s.loop, w.loop) are $250K.”
Been waiting for that myself… Prices are still unaffordable, when you include the crazy prices with rising assessments and taxes, so i’ll keep renting until the prices get to be in a range that is affordable and won’t make us house poor.
Just a few off the top of my head. Aqua and 235 W van Buren are pretty huge developments moving along quickly. Not sure how accurate my unit number is for 238 wvb.
Aqua in Lakeshore East, (281 units)
One Museum Park West in the South Loop. (may stretch to 2010)
235 West Van Buren, also in the south loop (714 units)
Walton on the Park (maybe 2010 as well)
235 Van Buren should be done in 2009
http://www.235vanburen.com/
Ten East Delaware probably won’t close until early 2010.
Across the street from 10ED and Elysian is “Walton on the Park”, which is also probably a mid-2010 completion.
757 Orleans is currently closing units, I think, so it’s at least partially a 2009 condo delivery.
Aqua in Lakeshore East is probably a late 2009 delivery for the condo units at the top of the tower. Near the “Park Monroe” monstrosity is also the Legacy currently under construction, probably a late 2009 or early 2010 delivery.
Next to One Museum Park is One Museum Park West – despite being under construction for quite some time it is progressing very slowly, I have to assume the developer is intentionally slowing it down to delay delivery. Probably 2010.
235 Van Buren, at Franklin/Van Buren, is progressing pretty quickly and is a monster development at over 700 condo units. I could see closings beginning by the end of 2009, but won’t be complete until 2010.
Depending how broadly you define downtown, one could also include the Parkside of Old Town, which I think is at least a couple hundred condo units out of the mix of condo, rental apartments, and townhouses.
Most of the other stuff going up (and there’s still quite a bit) is rental. But that’s still a lot of condo inventory coming online in the near future.
6 North Michigan has just started closing and will continue in 2009 with 120 units coming available.
1,000 more units to come online in the south loop?!? Prices in that part of town are going to get so low either (1) the new units will start attracting young professionals in their 20’s who are attracted to new construction and otherwise couldn’t afford it – resulting in a lively neighborhood, or (2) the young professionals won’t flood in, nothing will sell, and rent in the area will drop so slow that everything that isn’t new construction will have to go Section 8.
I just did a quick search on my realtor’s website for “New under construction, new will build to suit, new proposed, new ready for occupancy” and it turned up 275 locations near downtown chicago with anywhere from 1-15 properties at each location. This is just on the MLS, most new large condo buildings don’t even list there.
ANY SPECIFICS ON THE RD659? DES PLAINES AND RANDOLPH. ANYONE?
Last year didnt even count the conversions. Plus everything going into foreclosure. End of 2009 I see some 1BR’s hitting 150k.
The Legacy supposedly late summer 2009 – 355 units.
anyone who is thinking of buying a south loop condo should definitely drive down michigan avenue from roosevelt going south at night. The empty, dark buildings might help relieve the urge.
I haven’t heard of anyone actually closing at the RD659 building. From what I’ve been told there are numerous problems with financing. Can anyone confirm this?
Anyone know any specifics about R+D659? Good or bad? It looks nice from the outside but I don’t know anything about pricing. Is it overpriced? Have there been any problems?
T: They are just beginning closings on R-D659 so there really is not much information on the building.
I haven’t been in it yet. Anyone else?
I am a buyer at R+D659 and am having problems closing. A large number of buyers who have bought through the special financing w/ National City and are putting less than 20% down have not been able to get PMI. Because of it, all of these loans are at a hold. Supposedly, the developer, Mesirow, has set up a second mortgage program through Draper and Kramer, in order to get things going. Who knows how long it will take as I was scheduled to close this past Tuesday and have been told different stories by different people as to when I will actually be able to close.
I have done my walkthrough and the building is great. It’s an extremely frustrating situation.
Thanks for the update.
Why are other closings affecting your closing (if you’re not using National City’s financing?)
Just wondering about all the details.
When the buyers can’t get normal mortgages and the developer has to pull a bunch of strings just to get the units financed, that’s a sure sign the buyers are overpaying. Something tells me the units won’t appraise for even close to what the developer wants.
I am getting financed through National City. I would say that about 50-60 units are being financed through National City. First closings, floors 5-8 were supposed to take placein December. Only those who are putting 20% down have been able to close. The frustrated thing for me is that ican get financed elsewhere, but the 1.5% discount on the rate is the only thing keeping me in there. I will look to back out of the contract if I’m in the same position two weeks from today.
I thought I would also add that at one point in my conversation with my loan processor they said something about a 51% requirement for pre-sales or actual completed sales, I can’t remember which one. It has to do with Fannie rules, which I’m sure many on this site are very familiar with.
I am also concerned about what my unit will be appraised for, as Pete pointed out.
National City no longer exists, they had too many bad business practices and soured loans. They were forced into PNC’s arms late last year.
What does that say about the confidence in this building when a financial firm that played such a large role in providing financing almost collapsed?
“The acquisition, which completed on December 31, 2008, was described as a “take-under,” meaning the purchase price was below National City’s market value”
The acquirer received a discount on Nat City’s stock price of under $2. LMAO. Lets see if Nat City is a big enough goat to make the feasting snake (PNC) die as well.
“said something about a 51% requirement for pre-sales or actual completed sales”
Have to be 51% pre- (and/or scheduled) sales, as otherwise there would be an effective prohibition on fannie loans for the first wave of closing in new construction.
It’s possible that someone is currently interpreting a reg that way, but if that is the case, it will be fixed quickly. Now, if there are contracts on less than 50% of the units, there could be a problem.
Back in March the building was supposedly 60% sold. Either those numbers went down or something is up.
Developers typically play the whole “special financing” game out in the burbs, but a few developments tried it here in city. The buyers who went with Nat City because they could get the 1.5% would probably have had a 2% discount with an independent lender/broker had their not been a profit sharing agreement btw Nat City and the developer. The same cost the developer is willing to contribute to buy the rate down would have gotten the buyers a much better deal with a different lender.
You can still get 90% financing on condos with MI with good credit. All the MI companies won’t do it, so unless Nat City is only using one MI company which would be surprising the MI probably isn’t the issue. The building probably is considered “non-warrantable” because of pre-sales, a lawsuit, too many investors, or not being complete enough to satisfy Fannie/Freddie guidelines for higher LTV deals.
If Nat City can’t sell the loans to Fannie/Freddie they are going to take a huge bath on the loans. This is why they won’t close them as the loans have no value.
I have a 718 credit score, which is just below the special number of 720. Still, it’s a strong score and I wonder if I should just go to another lender to complete the deal.
To comply with the 51% rule the developers would close on every unit the same day.
“To comply with the 51% rule the developers would close on every unit the same day.”
Which would account for a delay. And not being able to pin down a clsoing date, as getting that many people scheduled for a single day would take some time.
In addition to the problem of having that many people closing on the same day from a scheduling perspective, the other delay has to do with the developer closing on the contract between them and the servicer on the second mortgages. This will increase time for buyers to apply for that second mortgage as well.
You don’t have to have 51% closed. You have to have 51% sold or under contract. They all wouldn’t close on the same day. Developers will close in blocks though on some larger developments. A lot of times by floor.
Hey FrustratedBuyer,
I am also purchasing at RD659 and am having the same problem as you, I was supposed to close in Jan. The building is not 51% under contract. They are about 9 units short of reaching this, so only people with 20% down have closed so far. It seems like everyday I am told that I will hear something the next day about a contact for Draper and Kramer for the 2nds, but then no info ever comes. I know National City is also becoming very frustrated with the situation.
I have heard that all of the condos so far have appraised at or above their purchase price. You would of probably already heard from Nat. City if yours did not. So I guess that is one bright spot on the situation.
The 2nds that the developer is setting up is actually a very helpful and clever thing to do, but I just wish they would provide some honest and frequent updates on what is going on. The building is great and I hope everything ends up working out.
We should try to contact each other (and others like us) offline somehow to discuss further if you are interested.
Regarding Bobs: “National City no longer exists, they had too many bad business practices and soured loans. They were forced into PNC’s arms late last year.”
Where are you getting your information? PNC is politically connected and received bail out money and National City did not but not for reasons you cite. This put PNC in it’s position. If you want more information contact Dennis Kucinich’s office. I am sure Dennis would be happy to set you straight if you are really interested in fact based data.
KC08,
I am getting my information from my opinions. Yeah we’ll see–politically connected for what? Do you not think Bank of America and Citigroup are politically connected and yet their stock is still single digit midgets.
If you think Geitner & Co are gonna run to the aid of PNC common stockholders any time soon thats a bit delusional. Look at BAC & C — single digit midgets.
I am also a RD659 buyer and am in the exact same boat as Frustratedbuyer. Some here have said only people putting down 20% can close, but I am putting down 30% and using National City can can’t close. So I don’t know if that 20% theory applies?
Frustratedbuyer or any other RD659 buyer who is having trouble closing, feel free to call me at 312/461-9582. We could bounce some ideas off of each other, thanks.
You’re putting 30% down and can’t close!? That doesn’t make any sense.
We also have not been able to close on our unit at RD 659.
I feel baited and switched.
If anybody wants to share information you can contact me at
wejump2@aol.com
Barry (and others)- please keep us updated on the status of RD 659.
Thanks.
Hey rd659 buyers, some of us are meeting up at the bar louie next to the condo this Thursday, Feb 19, at 7pm. Please come by if you can. We all need to meet up and discuss our options moving forward.
We stopped by RD 659 on Saturday to look at the penthouse. The rep told us that the place was 50% sold and that most had closed and moved in.
Just thought you all might want to know.
Unfortunately I cannot meet with everyone TH night since I’m out of town. However, I have spoken and even met with several other RD659 buyers under contract and there are a lot of great ideas bouncing around. I encourage all of us to join up and weight our options so that we can be smart about our money and our investment.
My lawyer’s assisitant said my lawyer will look into wheather I can get out of my contract. But from what I read on the contract and from what his assistant told me, if one was to walk away from the contract, they will probably lose their 5% earnest money. Also, it’s possible they could sue you for the 5% promissory note that is alos on the contract. I will try to be at Bar Louie on Thursday, but I don’t know how many options we have?
Just a note… Discussing options this Thursday doesn’t necessarily mean backing out. It also means discussing ways to work with the developer and what other financing options may be available.
Go to http://www.no-condo.com. I don’t know if the RD659 developers have done any of these things?
I’m an R+D 659 contracted purchaser too. We need to be very concerned about the other condo auction in the W/S loop of 40 condos going forward 3/7/09 which reduces our appraised values. There is no way our condos properly appraise for our purchase prices in light of these auctions and current market conditions. Beware of fraud in the loan underwriting process by these out of state appraisers. Get good attorneys, folks. There is power in numbers among we purchasers. These prices need to come down and they will for others who buy after us or when the loans start to come due for these developers, they will be looking realistically at their options. I am looking realistically at my options now. I have a lawyer and you should get one too. I hope to buy, but not at this contracted price. I have my own plans, but am interested in yours. Please communicate with me here about future meetings.
Having your unit not appraise would be the worst thing that could ever happen to you. That would require you to bring even more money to closing.
The developer is not going to renegotiate with you on price. There is no incentive to do so. If there was mortgage fraud being committed, then we would have all closed with no issues.
I am just as mad as all of you and have actually had a friend who is an attorney review my whole situation. bottom line is that i signed all the proper documents and was made aware that there is no mortgage contingency or appraisal contingency. My unit appraised and I was able to borrow some money from my future parents in law (not my most prideful moment).
Vetro should not be compared to RD. If that were true, we would all have south loop properties on our appraisals.
I do not understand how you would be happy your unit would not appraise. That is just senseless. I have been very upset with this whole deal, but the two lights in this cave have been the fact that I was not defaulted when i could not close and the way my unit looks in the building. I cannot say i have been happy with the mortgage company, but they did not change the way the world lends money: the world did.
I have read all these and you guys all have different reasons why this situation is bad, but the underlying fact is that we bought in a very nice building. It sounds like there is much more going on here instead of feeling wronged. Sorry to be so negative, but I just don’t see it the same way. I made a deal two years ago and that deal has not changed. The outside factors changed, but I and my fiance both have our jobs so we found a way to close and locked in at a great rate. If you have other issues in your life that are preventing you from closing, then you should just ask them to let you out without coming after you for the extra 5%. I doubt that they will do it, but by getting a lawsuit going, you will be out much more money and maybe wait for years before you see a penny or have to give them another 5% on top of your legal fees. meanwhile those of us that did close have to have this stink hanging around.
Good luck on all your personal experiences, fight for what you must, but I can promise you there was nothing wrong done here. Trust me, i checked.
I too am an R + D purchaser, 9th floor. I’m so glad I found everyone on here. I am beyond frustrated with this situation. If I found the site before, I would have met at Bar Louie last week.
We are having the same problems as everyone. We put down 5% and now have had our closing date pushed back twice. They are telling us the same thing, they need 50% of the units closed on before we can take out the second loan. Personally, I am beginning to feel really lied to. A year ago they told us they were at 60% sold through, now not even 50%. What is going on? Second, I know these units are NOT worth what we all agreed to pay 2 years ago. They will not budge on the price, which frankly in this economy is absurd. It is a fact that real estate has dropped 11% in Chicago. They should adjust the prices. Like people were saying above, Power in numbers. I just hate to sign a contract for an amount that I am pretty sure I will see partially flushed down the toilet when I try to resell. Our attorney has tried everything, seller’s concession and getting them to let us walk from the 5%. They will not budge and threatened to go after us for the other 5%. At this point, I am so annoyed I just want to get this closing over with and I want to be situated before pool season!
JF, I am interested in your plans. I would love to have another option and not feel like the seller has all the power. Lillie55@aol.com
A bunch of us are getting together tomorrow morning to discuss our plans and future of RD659. Email me if you’re interested in joining our meeting — Cubsfan823@yahoo.com
Hope to see you tomorrow!
Hi everyone – I am a reporter with Chicago Public Radio working on a story about the downtown condo market. I’m interested in finding out more about the situation for buyers of units at RD659. If you could please contact me, I’d love to speak with you about it. My email is agross@chicagopublicradio.org.
Many thanks –
Ashley
Dear One Den: I’m glad you are happy with your purchase. I am not. The market has changed and the deal I signed has changed with the variety of amendments to the property reports, the most recent version of which was a real estate tax shifting burdenthat adds additional costs to me. Enough is enough. If you want to wait four or more years to recoup your investment, owe your inlaws money and be upside down on your purchase from day one, that may be a fine finanical stragety for you, but it is not for me and people who feel like me (and there are alot of us). We have a right to seek our earnest money on ative misrepresentations and finanical changes to our agreement and I am content to let a court sort it out. You are not a court and have no basis to say what a court would do. Good luck in what is a very nice, and very empty building. Hope it doesn’t go to auction.
“Hi everyone – I am a reporter with Chicago Public Radio working on a story about the downtown condo market. I’m interested in finding out more about the situation for buyers of units at RD659. If you could please contact me, I’d love to speak with you about it. My email is agross@chicagopublicradio.org.”
Thanks Ashley. Can anyone help her out?
Sitting on top of the Kennedy on the downwind side, this building is a public health nightmare. With all the research showing the negative health consequences of living so close to a congested expressway, don’t people get it? Living there will be like sitting in your car inside your garage with the engine running. I’d be more concerned about living in a cancer cluster than owning a depreciating asset.
I am a buyer that has already closed and moved into my condo. I put down 20% and still had a very difficult time with my mortgage underwriter and lender, National City. I am sincerely sorry to hear all of your difficulties and can definitely sympathize. Good luck!
On a brighter note, the building is beautiful! So far, I thoroughly enjoy living there. The door staff is super friendly and the building engineer has been beyond helpful / responsive. Something to hopefully look forward to!
Thanks for all the updates on the financial difficulties facing buyers trying to close in this building.
I guess this leaves me wondering what’s going to happen in some of the other high rises that are nearing closing (or just starting right now) like 110 W. Superior, 65 E. Monroe, The Silver, and the Astoria.
How many buyers will have to come with at least 20% in order to close? How many CAN do that?
I think some of the real victims here are buyers like Buyer J. The small minority of people wanting to own a home over the past few years who are willing and able to put 20% down.
I really hope the government gets something in place soon so this doesn’t happen to too many people because in my opinion if you have 20% down you shouldn’t have any problems getting financing. Hell lenders should be aggressively courting you as you are exactly the kind of customer they need.
20% down is no longer 20% equity if the price of the home is still falling. This is why the financing is being held up. In this economy, nothing should be bought without a financing contingency. I know the contracts in this discussion were signed earlier, but going forward there are no excuses. If you have that contingency and the place won’t appraise out and qualify for a loan, at least you have an out. You should want to get out of the deal if the price is falling in between the time you put in the bid and the time you’re about to close.
Pete is right. If the units are not currently priced right, people will walk away from their 5% deposits. The units are nice, but WAY overpriced right now. Just wait until VERTO goes to auction 3/7. Many of we buyers would rather risk losing 5% down now than endless assessments for unsold units and then await the inevitable auction. 20% down is not 20% down when your unit cannot reach the appraised value without a real stretch. Who wants to wait 4 years to recover their investment? What if a personal emergency forces a sale/forclosure? Buyers now will never recover the closing costs if they have to sell in the next 4-5 years. Mesirow needs to be smart about this and give 15% reductions to everyone under contract and then lower the unit prices for sale to fill it up. Their balance sheet is at stake.
Annon, People are will to lose the 5% deposits but are getting threatened to pay another 5% if they walk away. There was a 5% Promissary note in the contarct.
I recently moved in to R+D659. Just like Buyer J, I put down the 20% and still had problems with National City because they couldn’t get their act together. Wouldn’t you think they’d be chasing after me for my money?
I do need to stress though that the deal on the mortgage rate has made it all worth it. I locked in at 3.5% 30-year fixed. I completely sympathize with everyone that is going through hell right now, but I personally felt that it was worth is. My condo is gorgeous, the location is incredibly convenient, and the deal through National City has kept my mortgage at a low, affordable rate.
I have not read of anyone who backed out getting sued for the additional five percent. Mesirow doesn’t need that reputation and bad press. They would have to sue me to get it and I would counerclaim against them for their misrepresentations. You can’t make major financial decisions based fear when to close could lead to owning a unit that you couldn’t get your money out of for years. Nonthanks
Annon, I agree. Besides, by the time they get you in court they will be ecstatic to take only 20% less to unload their units.
I also have a unit under contract and am among the group playing the waiting game: I can’t put more than 5-10% down (which I realize isn’t the smartest approach, but two years ago it seemed the norm), and therefore I can’t close at this time. And obviously the idea of walking away and losing money isn’t attractive in any way.
For the others in this situation, I just wanted to mention that the developer’s real estate agent at R+D indicated to us that Mesirow is indeed cashing in on the additional 5% promissory note. As of mid-February, there were 3 such cases of contract defaults, so they’re clearly beyond threats.
Based on my dealings with them, I have the distinct impression that Mesirow is mighty undaunted by the notion of negative press attention. On the other hand, I also realize that in their (failed?) attempt to provide 2nd loans to buyers like us makes them appear not so bad.
For those who had 20% down and had troubles with Nat City, did this in any way derive from the appraisal? I’ve received two at this stage, both highly suspect. To give an example, the market in the West Loop is shown as “stable” with a demand/supply ratio that is “in balance.” Which is odd, given that there are 100 units in R+D alone that are unsold.
What a mess this is. I wonder what other buildings are having this same problem? (if they are)
My sympathies.
At least you’re not trying to close on a jumbo unit. ING is requesting 45% down on condo jumbo loans.
Dear FP: You struck the nail on the head when you said that Mesirow just wants its money. It is trying to unload these units that aren’t worth what we’re supposed to be paying and they will threaten all they have to get that done and the units closed.
They may have “tried” to obtain financing for the people who need the additional 10% to close, but while I hear the money is available from some “union” I have not heard of anyone who has obtained this money in order to come up with the additional 10% to close using these additinoal Mesirow funds.
I cannot now get a loan, and instead of compromising in some way with us (by reducing prices moderately eg., 10% so we can close,) they’ve decided to proceed with threatening their buyers. What a great business model. I don’t trust the sales agents at all to tell anyone what’s going on. I guess the lawyers will have to sort it out. I cant move in at this point. Good luck to all of you that can and decide to proceed. I’ll always wonder if I missed out on a good opportunity, but somehow, at least for the next four years or so, I know I’ll feel like I dodged a bullet. I feel sorry for the pentouse purchasers who have an overpriced unit that they have to put 45% down on becuase of the jumbo. What a nightmare for everyone.
annon,
Even if they cut prices by 10% that wouldn’t give you 20% equity. It would just give you (.9*Price) – Original downpayment.
10% of a balance reduced by 10% is now 1/9 instead of 1/10, or 11.1%. If 20% equity is the threshold for financing then they would have to reduce the contracted price of your unit by 50%, which seems unfeasible.
Err 1 – ((.9*Price) – Original downpayment)/(.9*Price))
I don’t know of anyone actually receiving a loan from Mesirow either. Last rumor I heard (since they are so very terrible at communicating), they had the funds secured but no one to administer them, and in fact, they didn’t even know they needed someone who was properly licensed to administer the loans. My confidence in them totally went down the drain when I heard that. How does a company of that size know so little about licensing requirements in city like Chicago where everything requires some form of a rubber stamp?
It seems that at this point, those of us without the full 20% are going to end up out of a lot of cash, especially since the new Fannie Mae rules conveniently make National City our only financing option. I keep trying to tell myself that if I had my money tied up in the stock market instead of in this condo, I would’ve likely lost it just the same, but it’s of little comfort. Best of luck to all!
I’ve had many failed attempts with trying to recover my earnest money from Mesirow. However, I’m now seeking one more try with hopefully a little more force in the tank. If you’re interested in hearing more about what we can do to get out of our contract, please feel free to email me at Cubsfan823@yahoo.com.
***AFTER ALL IS SAID AND DONE THE DEVELOPER AND FINANCE HAS MADE A SOLUTION AVAILABLE TO EVERYONE!*** I RECEIVED A LETTER FROM THE ELUSIVE DOMINIC THAT WAS WAY OVER DUE.
FOR ALL OF YOU WHO HAVE STAYED POSITIVE IN A NEGATIVE SITUATION, THANK YOU.
I HOPE THE BEST FOR EVERYONE AND LOOK FORWARD TO MOVING IN. HAVING NEIGHBORS WHO TRULY APPRECIATE RD (BC WE HAVE ALL BEEN THRU H*!!! AND BACK) IS GOING TO MAKE THIS BUILDING GREAT. PEOPLE KEEP THAT IN MIND, ITS THE PEOPLE WHO WILL MAKE THIS A GREAT PLACE TO LIVE, IM STILL ANGRY THAT WE DID NOT MOVE INTO OUR UNIT IN JANUARY BUT NOW LOOKING AHEAD I HOPE THE MAJORITY OF OWNERS WHO MOVE IN, ARE AS HAPPY AS I AM TO MAKE THIS BUILDING A GREAT PLACE TO LIVE.
& DAN, ILL BE MEETING YOU POOLSIDE FOR THOSE CELEBRATORY REFRESHMENTS
-No longer condo-less
What was the resolution?
Have fun paying off those second mortgages featuring an 8% interest rate and balloon payment after 5 years. Sounds like a bargain. Is that what RD659 was advertising after all these years?
I like the R+D659 units, but their ‘incentive’ deal rubbed me the wrong way. They’ve kept the prices of their units ridiculously high and justified it with the percentage discount on the mortgage rates. This basically just means that buyers have access to cheaper financing and are using it to pay inflated prices. When the time comes to sell the place, the buyers for your unit won’t have access to the same financing deal and won’t be able to pay as high of a price. I’d rather they keep that 1.5% and knock $60k off of the price for starters.
What were the prices of the contract prices in 2007? I’m looking to buy a unit at
R+D659 right now and I was wondering if they brought down the prices at all? Do you know if they are willing to budge off their list prices? Madison
I heard the developer is willing to negotiate on prices now. He was not willing back in 2007. It’s a great building!
Madison,
We offered 20K less than the offer price and it was accepted in early 08.
RD659 is now owned by the bank –
http://chicago.craigslist.org/chc/reo/1196094129.html
I feel sorry for those who closed before this huge price drop. Your value dropped by 70-100k+ over night. But now is a great opportunity to get in to a nice building, good location and affordable price.
the price drops are very exagerated…the listed original prices are inflated
identical units to ours are only 10-20K less…and you will actually be paying more monthly
Still a great deal…come check out the building….
This building interests me on so many levels. There’s mesirow’s creative financing, the philosophy of the buyer forced into a corner (and the resulting Stockholm syndrome), the beautiful shade of red flickered continuously off automobile brake lights. Anybody know anything further about what happened here? I still see their comic-book style adverts around. Catchy.
I really wanted to like this building. The whole process (and god bless this site for evidencing it) struck me as so awful.
“This car is only 500 per month for 36 months – but I’ll sell it to you for 400 for 72 months! Sign here…”
curious how you will pay more monthly even though the price decreased on all the units??
Exaggerated? I knew someone who bought one pre-construction. Put 5% down, 330k for a 1 bd including parking. He couldnt get a loan and walked away and lost his 5%. Now he just got a call for the same unit offering it to him for 243k. Your looking at close to a 80k difference, seems big to me. If anyone paid and closed at those prices, they are royally screwed.
RL on June 1st, 2009 at 4:59 pm
the price drops are very exagerated…the listed original prices are inflated
identical units to ours are only 10-20K less…and you will actually be paying more monthly
Still a great deal…come check out the building….
We bought in pre-construction, almost walked from the 5% down when were having issues getting a loan. They are now selling the units for ALOT less (and free parking which we paid 35k for) you could say we got “screwed” but no one saw the economic downturn coming back in 07. I don’t see us getting “screwed”. I honestly sleep well at night, in a beautiful building, with great neighbors, who are all so happy to be in RD.
Yes we did not buy in when the price was the lowest, but we still love our unit. The building is GREAT; the people are GREAT, the location is GREAT, id still pay what we did to be where we are.
Owners (like myself) who were in pre construction and paid top price, know the value & uniqueness of the building, and are confident on a return in investment in the future.
The building is being sold at an absolute bargain right now. It’s like finding an heirloom diamond in a pile of costume jewelry at a garage sale bargain. IF YOU WILL BE A GOOD NEIGHBOR CHECK OUT THIS BUILDING
“I honestly sleep well at night, in a beautiful building, with great neighbors, who are all so happy to be in RD ”
Not to be misconstrued,
Meant, “have great neighbors”
HA
“Owners (like myself) who were in pre construction and paid top price, know the value & uniqueness of the building, and are confident on a return in investment in the future.”
What is the value of your place today?
Yes it’s understandable that no one knew the collapse of 2007 was going to happening. But depending on your unit and when you purchased you did end up paying 70-100k more for what is they are essentially selling the same unit for. I doubt you would have paid the same amount had you known prices were going to be slashed. If you say you sleep well even though you instantly lost $$$ the day they slashed prices, that’s commendable. There must be many ppl kicking themselves who closed early.
I am saying it is worth the $, and yes now it is a BARGAIN.
Whats having this home worth to me? Chode, u cant answer that question. The price slash stings, but unless you were in my situation, you cant understand how bad. We were in an air tight contract and i believe we are were we should be. My accountant (like yourself) may disagree, but thats your right.
“you could say we got “screwed” but no one saw the economic downturn coming back in 07”
That’s a lie. Heck, it was a theme on this very site in 2007.
Besides, it was clear as day by the time they began closing. It was also clear that a 5% exit fee was cheap. Very cheap.
“Owners (like myself) who were in pre construction and paid top price, know the value & uniqueness of the building, and are confident on a return in investment in the future.”
In real dollars? Never.
I find it funny that one can dismiss the obvious (“no one saw the economic downturn coming back in 07”) while proclaiming the nearly impossible “a return in investment in the future.”
Not much RD owner can do at this point. atleast he is happy with his condo still. That said, I got a steal compared to previous purchasers and am happy to be moving into the building soon. Heck it’s possible they drop prices even more and i’ll be the one with egg on my face but I’ll live with that chance.
the building looks so lonely right now.. every night i count how many lights are on (south side of building) and i think it was a record tonight with 6 @ 10pm. Hopefully all those contracts get completed to pick things up.
I am under contract at RD659 and set to close at the end of July. The slashed prices combined with the parking offer pushed me over the edge and I’m pretty excited about moving in. It sucks for those who bought at or near the original list prices, but I’m happy. $281,000 for a 955sq ft 1br+den on the 11th floor that includes an indoor parking space is a steal, IMO. That’s under $300/sq ft in new construction with a great location (15 min walk to work) and free parking. They were talking of taking parking out of the deal and/or possibly raising prices again because of how quickly they were selling at these price levels, so I doubt the building will be lonely for too much longer.
“That’s a lie.”
“In real dollars? Never.”
“I find it funny that one can dismiss the obvious….”
G,
seriously now, could you possibly just attempt to refrain from making buyers feel stupid or like they made the worst decision in their lives for buying a home when they did at the price they did? Despite what your personal opinions are on the market, (others have the same access to the sales facts as you do, but do not use them to degrade buyers) not everyone views home ownership as an investment and a money making scheme. Is it wise to consider what your money will do for you? OF COURSE, but other factors go into this step of buying. You do not know the personal motivation for buying at all.
As many buyers as there are now, each one makes this decision to do so for their own reasons. You cannot take that away from them. What does not make sense to you, financial or otherwise, may be a huge piece of chocolate cake for them.
While I am not the site owner or a moderator here, can you please put your superior attitude and harsh and mostly unneeded critque on the shelf?
I and so many others appreciate your intelligence and input, but we do not appreciate being made to feel like asses!
Congrats David & RD Owner! Good to see some buyers are having positive feelings about R&D as it is a very unique development.
I do hope the rest of you all have come to acceptable points in your planned purchases. I hope this topic remains up to date here as it will be interesting how it all ends up.
It is a great building even with all the haters for condo’s between the river and highway. believe it or not there is a market for it, i should know.. i am that market! lol My earnest check was submitted yesterday and all that remains is the banks appraisal. I do not expect the same issues as pre-construction contracted purchasers b/c if these do not appraise out for the discounted prices there is REALLY something funky going on lol I’m concentrating more on how big of tv i can get away with buying.
ps – my only issue with the building is figuring out where my dog is going to do her business. not much grass around here minus the highway off ramp. 🙂
and that “dog run” is kinda lame. dont think my dog is going to want to go pooh in a 3ft by 3ft gated cement area. i might be mistaken but i swear during pre-construction they said they were going to have an indoor dog walk that was almost half of a floor. maybe that got scrapped in favor of more units.
I find G’s input very enlightening and logical. Sometimes the truth hurts.
After years of hearing the slogans “buying a home is one of the largest investments of your life” and “renting is throwing your money down the drain”, I am currently seeing a much different spin – “think of homeownership as more than just an investment”.
G’s logical analysis of not readily available sales data is of move value to me than tired, one-line slogans and is a valuable asset to this site.
I have to laugh at the “dog run”. The unit I’m buying looks out over the pool area and I was wondering if that’s what that thing was when I toured the building. It’s just a square piece of cement with a hose and a drain in the middle. Thankfully, there are a lot of nice walks around the area. I’d stick to cats, though, if anything.
“i might be mistaken but i swear during pre-construction they said they were going to have an indoor dog walk that was almost half of a floor. maybe that got scrapped in favor of more units.”
Another reason to avoid preconstruction. You can’t possibly anticipate and stipulate in a contract every conceivable instance where the developer does not live up to their marketing claims.
the park down on adams/desplaines is nice for the dog, which is where i go now as it is so close for me. not that it is far from RD659 but on those cold or rainy nights you need a quick doodie spot lol. I actually have both cat and (small) dog. I’m sure that will irritate my future floor owners! they are both quiet though.
the “dog run” was disappointing but it wasnt a make or break thing obviously, i just won’t be using it.
Prices are falling without a bottom in sight and yet some goofy buyers still think that $285k is a ‘deal’ for a one bed condo. But as G once said, “if you think there are deals today, there will be even better deals tomorrow.”
i didnt buy a 1 bed, but bottom or not i am looking to buy a place and live there for ~10 years. i got a good price on a large 2 br with a 4.5% rate plus a free parking spot. i’m happy. simple as that. you have to live somewhere.
homedelete, I’m not sure if you’re referring to me, but the $281k is for a 1bd+den AND parking AND I’m getting 1.5% off the market mortgage rate. That’s a huge savings. My original good faith estimate rate was 4.5%. Yesterday I got another one after submitting most of my paperwork: 4.25%.
i didnt like how they said market rate since it seemed it was actually national city’s market rate. Which seemed a tad bit higher then the national avg. don’t get me wrong. i’ll take the 4.5% but they should clarify it on those billboards they have near the building.
Yeah, National City’s “market” rate is about the worst “market” rate you can find, but 1.5% off of it is well below anything else out there.
Currently the lowest rate I can find with buying down points is 4.75% on a 30-yr fixed. Thats still 3/8ths higher than the 4.375% it got down to, but I see no reason 4.375% can’t return.
For some reason there seems to be a lot of resistance to the 30yr fixed going below this: even when the 10-yr went to historic lows this past fall the 30yr never went below 4.375%.
There’s a lot more risk of inflation in a 30-year loan than a 10-year loan. We could be seeing double-digit inflation in the coming years given the rate the government is spending borrowed money. They won’t be able to raise taxes enough and other countries are already complaining about our debt.
If the developer wasn’t getting a kick back from Nat City and would pay the same amount of “incentive” which is actually priced into the home to the buyer to any lender, your rate would probably have been 2% below instead of 1.5%. The developer is getting a piece of the financing profits too.
Lexington Park Condos–I signed a contract and made a down payment back in March of 2007, got a letter with a move-in date this past April, but since then have heard from sales staff that they have NO IDEA when we will close. I visited the model condo/office a week ago and saw no lender flyers on the entry table, where in the past there had been lots of info from the preferred lenders. I was told in March I’d move in in April, so I left the apartment I was renting and moved in with a friend. Three months later, with no closing date in sight, I’m still living with my friend.
Does any one know what is going on? Any other LexParkCondo buyers in the same boat? How can I get information on their plans? I can’t wait forever.
Margo I am in the same boat as you. Here is some info that may help:
http://yochicago.com/today/south-loop/whats-up-with-lexington-parks-tower_9149/
Margo,
do you have a contract with a loft or tower unit? i see residents in the loft units, but i dont know if they are renters.
The financing gimmicks here remind me of a car sale. Most Americans think they are getting a deal on a car if they can get favorable, below market financing terms like 2% or 0% over x months.
What they don’t realize is that this has been baked into the price. You can always renegotiate a lower price if paying in cash or using outside financing.
And for owners of these units as with any asset purchase they’d be better off with the cash discount up front–even if their mortgage is assumable.
When it comes time to sell if they haven’t paid the place off yet no buyer will pay a premium for this option if the mortgage is not assumable. Or even if it is assumable the owner will have to sacrifice all equity built up or count on the buyer to bring that much to closing.