Our Favorite River North Terrace Sells…Again: 375 W. Erie
You don’t see many terraces like the one at this penthouse loft unit at 375 W. Erie in River North.
We’ve chattered about it several times as it sold in August 2008 and then returned to the market in March 2010.
See our original January 2008 chatter from the first sale and pictures here.
It has sold again.
The loft unit has 11 foot high ceilings, hardwood floors and skylights.
But it’s the 1000 foot private terrace that is the real attraction of the property.
Le Sigh.
James Faircloth at Prudential Rubloff had the listing.
Unit #610: 2 bedrooms, 2 baths, 1800 square feet
- Sold in May 1998 for $328,500
- Sold in April 2003 for $560,000
- Listed in January 2008 for $680,000 (plus $35,000 for parking)
- Reduced
- Was listed in March 2008 for $655,000 (plus $35k for parking)
- Reduced
- Was listed in July 2008 for $585,000 (plus $35k for parking)
- Sold in August 2008 for $570,000 (included the parking)
- Was listed in March 2010 for $549,500 (plus $35,000 for parking)
- Sold in May 2010 for $550,000 (included the parking)
- Assessments of $521 a month
- Taxes of $6446
- 11 foot high ceilings
- Skylights
- Central Air
- In-Unit Washer/Dryer
Took a $20,000 loss (+ ~$6,000 transaction costs?) for the right to live in this place for 22 months. $1200 + $521 HOA + $537 RE taxes = $2250 per month.
Was it worth it? I’m not too sure of rent prices on penthouses in RN, but it doesn’t seem too far off. Could it be argued this made sense even when taking the loss?
Nevermind, I just realized I completely left the interest portion of the mortgage out of this equation. My figures made the assumption every mortgage payment they made went entirely to the principal which they recouped at selling.
With 20% down you’re looking at a $3000 mortgage, 2/3 of which goes to interest at the beginning of a 30 yr mortgage. Add another $2000 a month to that $2250 for a total of $4240 per month. Not to mention the opportunity cost of tying up your $100,000 down payment…
“~$6,000 transaction costs?”
Hahahahahaha. Ha.
Notwithstanding the oft-noted “everyone cuts their own deal with their realtor” thing, total transaction costs were almost certainly over $20k, and more likely than not over $30k.
was the city transfer tax in effect at that point?
“was the city transfer tax in effect at that point?”
The increase kicked in on April 1, 2008.
but the buyer pays that so yeah…
The buyer pays 3.75 and the seller pays 1.5 of the transfer tax.
The buyer always paid $7.50 per $1000 and seller now pays $3.00 per $1000 for city (April 1, 2008). In addition, the seller pays $1.5 per $1000 for county and state.
I got my info from the city of Chicago website. I don’t know what’s what with the county and state taxes.
Here’s what it says:
A tax is imposed upon the privilege of transferring title to, or beneficial interest in, real property located in the city, whether or not the agreement or contract providing for the transfer is entered into the city. The tax shall be at the rate of $3.75 per $500.00 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property.
In addition, a supplemental tax at the rate of $1.50 per $500.00 of the transfer price, or fraction thereof, shall be imposed on transfers taking place on or after April 1, 2008, for the purpose of providing financial assistance to the Chicago Transit Authority (“CTA”). This supplemental tax shall be referred to as the “CTA portion” of the Chicago Real Property Transfer Tax, and the $3.75 tax shall be referred to as the “City portion.”
Tax Rate: $5.25 per $500.00 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property. In general, The Buyer is responsible for $3.75 and the Seller is responsible for $1.50.
http://egov.cityofchicago.org/city/webportal/portalContentItemAction.do?contenTypeName=COC_EDITORIAL&contentOID=536911200&topChannelName=HomePage
Perhaps sellers are finally realizing that selling at a “loss” is financially more advantageous than continuing to pay mortgage, utilities, insurance, assessments, etc, in hopes that market will improve. “Breaking even” is only one aspect to consider. If you “lose $20,000”, but not spend significantly more for another year of carrying cost.
Renting your house or condo unit in lieu of selling is a poor choice; rental units rarely sell to a homebuyer because dynamics of occupancy is far more complicated, tenants rarely furnish and maintain unit to same degree as homeowner (witness all those unmade beds a bottle collections in MLS listings), and prospective house-tours become a landlord-tenant dispute. Sell at loss is ok if seller “needs to sell” for financial or personal reasons. It’s the mature decision; cut your losses and go.
Sorry for typos, ugh.