Crib Chatter

Apparently, luxury rentals are hot right now as even the rich are finding value in renting versus buying properties in some cities like New York, San Francisco and Chicago

CNBC reported:

So in March he sold the Manhattan apartment he bought in 2008 for about the same price he paid and moved — along with his wife and child — a few steps away into a luxury, two-bedroom rental unit in a brand new building.

Lee wouldn’t disclose what he’s paying, but similar two-bedroom apartments in the building usually rent for $11,000 a month.

“I wanted to protect ourselves from prices going down,” says Lee, who is a managing director at a major bank. “I didn’t want to be an owner anymore.”

In Manhattan, a “luxury” rental usually means over $10,000 a month and up.

In the third quarter of 2010, 200 new leases were signed in that price range compared with just 89 in the third quarter of 2009.

In Chicago, the price which will get you “luxury” is not quite as high.

In Chicago, Aaron Galvin, the broker and owner of rental agency Luxury Living Chicago, says that he has rented 30 percent more luxury apartments in 2010 than last year.

Luxury in Chicago means anything over $3,000 a month, and a building with amenities like granite kitchen counters, stainless steel appliances and washing machines and dryers in the unit, says Galvin.

A recent client sold a multi-million dollar home in the suburbs to move into a rental building, waiting to buy a property until she got a feel for the neighborhood.

“The cachet that came with owning seems to be gone now,” he says.

Here in Chicago, you can rent a 3 bedroom, 3.5 bath nearly 3000 square foot brand new unit on the 60th floor of The Legacy at 60 E. Monroe with lake and park views for $8400 a month (includes two parking spaces.)

See the pictures of Unit #6002 here.

Will we see more luxury properties rented in the coming months?

Rich Americans ditch home ownership for renting [CNBC, Joseph Pisani, November 26, 2010]

It doesn’t get more urban than this 2-bedroom unit in Momo at 8 E. Randolph (or Joffrey Tower, as it’s now called- sorry- I still like the Momo name) in the middle of the Loop.

Located across the street from the old flagship Marshall Field’s building (now the Macys), the southeast facing unit has views from its floor to ceiling windows of the new Legacy high rise as well as hundreds of other buildings looking south.

It also has a sliver of lake view facing east.

Both bedrooms have east facing windows.

There is also a sizeable south facing covered balcony.

The kitchen has the new construction look with granite counter tops and stainless steel appliances.

On the market for 11 months, it has been reduced $49,900.

It is also listed $82,000 under the 2008 purchase price, but that sale might have included a parking space. Parking is now listed as extra.

Is this now priced to sell for the location and size?

Janice Smith at @Properties has the listing. See the pictures here.

Unit #2404: 2 bedrooms, 2 baths, 1365 square feet

• Sold in April 2008 for $532,000 (don’t know if this included the parking)
• Originally listed in January 2010 for $499,900
• Reduced
• Currently listed at $450,000 (parking available but extra)
• Assessments of $798 a month (includes heat, a/c, gas, doorman)
• Taxes are “new”
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 14×12
• Bedroom #2: 12×12

We actually chattered about this 2-bedroom unit in Elm Tower, at 1155 N. Dearborn in the Gold Coast in October 2008.

Back then, it had been reduced $200,000 and was listed well under the 2002 purchase price.

See our prior chatter and pictures here.

But even with the big price cut, no one took the bait.

The unit is now bank owned and is even cheaper.

Originally listed in September 2010 at $399,900, it has been reduced another $50,000 and is now listed about 44% under the 2002 purchase price.

From the pictures, the kitchen and baths look intact.

The kitchen has the standard granite counter tops and stainless steel appliances. There are hardwood floors in the main living area.

It has central air, laundry hook-up in the unit, and parking is available. (I can’t tell if a deeded parking space is included in this sale or not.)

After 2 years on and off the market- is this finally a deal?

James Poulos at REO Plus Inc. has the listing. See the pictures here.

Unit #502: 2 bedrooms, 2 baths, 1487 square feet

• Sold in December 2002 for $621,000
• Originally listed in September 2007 for $699,000
• Reduced several times
• Was listed in October 2008 for $499,000 (parking is $38,000 extra)
• Lis pendens foreclosure filed in January 2009
• Bank owned in August 2010
• Originally listed in September 2010 for $399,900
• Reduced twice
• Currently listed for $349,900 (is parking included or extra???)
• Assessments of $910 a month (includes heat, a/c, doorman)
• Taxes of $8055
• Central Air
• Washer/Dryer hook-up in the unit
• Bedroom #1: 17×16
• Bedroom #2: 11×11

This 4-bedroom Victorian house at 1472 W. Belle Plaine in the Graceland West neighborhood has been on (and off) the market since April 2007.

Since July 2009, it has been reduced $100,500.

The listing says the original wood trim has been restored. It also has a wood burning fire place.

3 out of the 4 bedrooms are on the second floor and the master bedroom is its own large, top floor suite.

The kitchen also has stainless steel appliances.

Built in 1899 on an irregular 46×58 lot, it has a big wrap around patio.

The house has space pak cooling, but it does not have a garage nor any kind of parking other than on the street.

How much does having a garage, or any off-street parking, matter when buying a single family home?

Mario Greco at Prudential Rubloff has the listing. See the pictures here.

1472 W. Belle Plaine: 4 bedrooms, 2 baths, 3400 square feet

• Sold in September 1991 for $229,500
• Sold in February 1997 for $340,000
• Originally listed in April 2007
• On and off the market
• Listed in July 2009 for $724,500
• Reduced several times
• Currently listed for $624,000
• Taxes of $9216
• Space pak cooling
• No garage or parking
• Bedroom #1: 33×14 (third floor)
• Bedroom #2: 13×10 (second floor)
• Bedroom #3: 13×12 (second floor)
• Bedroom #4: 13×11 (second floor)

This 2-bedroom unit in the Malborough at 400 W. Deming in East Lincoln Park has been on the market since June 2009.

It has been reduced $74,000 in that time.

Normally, we don’t comment much on the interior design but this is another property where it says it is Nate Berkus designed so it appears to be marketing the property from that angle.

The listing says it has been converted from a 2-bedroom to a large 1 bedroom.

The Marlborough, built in 1912, is one of the grand dames of East Lincoln Park as it overlooks the park.

This unit has been updated with a modern kitchen with stainless steel appliances, a kitchen island, and granite counter tops.

There is no central air (only window units) and no in-unit washer/dryer. There is fee parking.

Is this finally priced to sell?

Melinda Jakovich at Coldwell Banker has the listing. See the pictures here.

Unit #4K: 2 bedrooms, 1 bath, no square footage listed

• Sold in July 1991 for $182,000
• Sold in July 1997 for $182,000
• Sold in September 2000 for $225,000
• Sold in November 2006 for $325,000
• Originally listed in June 2009 for $439,000
• Reduced
• Currently listed for $365,000
• Assessments of $595 a month (includes gas and heat)
• Taxes of $3744
• No central air – window units only
• No in-unit washer/dryer
• Parking is leased
• Bedroom #1: 11×16
• Bedroom #2: 12×17

Do you dream about pizza at Pequod’s?

Do you wish you had Starbucks, Potbelly’s and a major movie theater all within a block of where you live?

This 2-bedroom duplex up at 2211 N. Clybourn in Lincoln Park is for you.

The unit is in short sale and is listed for $15,000 under the 2007 purchase price.

At 1400 square feet, the living/dining and second bedroom is on the main floor.

It duplexes up into a huge loft like master bedroom with an exposed wood beamed ceiling, exposed brick and a brand new master bathroom.

The kitchen has white cabinets and stainless steel appliances.

There are 2 woodburning fireplaces, including one in the master bedroom, and a private rooftop deck.

It has central air and washer/dryer in the unit, but I don’t see anything in the listing about parking.

Is this even much of a steal at this price?

Thomas Moran at Prudential Rubloff has the listing. See the pictures here.

Unit #3F: 2 bedrooms, 2 baths, 1400 square feet

• Sold in April 2007 for $280,000
• Originally listed in June 2010 for $315,000
• Reduced
• Currently listed as a “short sale” for $265,000
• Assessments of $219 a month
• Taxes of $3318
• Central Air
• Washer/Dryer in the unit
• Private rooftop deck
• No parking
• Bedroom #1: 23×23
• Bedroom #2: 8×15

This 2-bedroom duplex loft at 1442 S. Michigan in the South Loop has been on the market for 21 months.

In that time, it has been reduced $85,000.

The loft is now listed for $170,000 under the 2006 purchase price.

If you’re a loft lover looking for unique features, look no further than this unit.

It has several walls of exposed brick both in the living/dining areas and the bedrooms.

It also has a wall of huge windows overlooking Michigan Avenue.

The listing says it has a private rooftop deck with views of Soldier Field.

The kitchen has stainless steel appliances and granite counter tops.

There are also 2 heated garage parking spaces available for extra cost, the unit has central air and there is in-unit washer/dryer.

Is this a deal for the space?

Martha Jorden at Keller Williams Premiere Properties has the listing. See the pictures here.

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

• Sold in February 2006 for $495,000
• Was listed in February 2009 for $410,000
• Reduced several times
• Currently listed for $325,000 (2 parking spaces extra)
• Assessments of $165 a month
• Taxes of $7200
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 14×12
• Bedroom #2: 14×9

This 2-bedroom unit at 1350 W. Fullerton in Lincoln Park has been on and off the market since July 2009.

In that time, the unit has been reduced $69,910.

It is now listed for $400 above the 2002 purchase price (when the parking space is included.)

The listing says the owner spent $65,000 in upgrades including 2 new bathrooms.

The unit is wired for sound and 3 flat panel televisions.

The kitchen has black appliances (and I can’t tell what kind of counter tops.)

Will this finally sell below even the 2000 purchase price?

Scott Berg at Berg Properties has the listing. See the pictures here.

Unit #410: 2 bedrooms, 2 baths, 1350 square feet

• Sold in May 1998 for $235,000
• Sold in November 2000 for $350,000
• Sold in July 2002 for $389,500
• Originally listed in July 2009 for $419,900
• Reduced several times and then Delisted
• Listed in October 2010 for $359,000
• Reduced
• Currently listed for $349,990 (plus $40,000 for heated garage parking)
• Assessment of $369 a month (includes cable, gas)
• Taxes of $4487
• Central Air
• Washer/Dryer
• Bedroom #1: 16×12
• Bedroom #2: 12×12

This 2-bedroom duplex loft at 720 S. Dearborn in Printers Row has a unique loft layout.

The building is one of the street’s old printing factories and now has been converted into 57 lofts.

The loft has many authentic features including 12 foot high ceilings and exposed brick with a wide open first floor layout.

Both bedrooms are on the second floor.

The kitchen has custom cabinets and stainless steel appliances as well as granite counter tops.

As is common in many of the loft buildings in Printers Row, there is no deeded parking directly with the building. It is available for rent in the neighborhood or you can purchase a spot at 801 S. Plymouth.

The loft does have central air and in-unit washer/dryer, however.

The listing says the seller is motivated.

Tom Feddor at Castle Keepers Realty has the listing. See more pictures and a virtual tour here.

Unit #1006: 2 bedrooms, 1.5 baths, 1700 square feet

• Sold in July 2001 for $265,000
• Sold in December 2004 for $307,500
• Originally listed in June 2010 for $429,900
• Reduced
• Currently listed at $399,990
• Assessments of $923 a month (includes heat and a/c)
• Taxes of $4474
• Central Air
• Washer/Dryer in the unit
• No parking (rental or purchase in the neighborhood)
• Bedroom #1: 12×14
• Bedroom #2: 18×12

As expected given the preliminary numbers we’ve seen from many with access to the MLS, sales in Chicago in October fell off a cliff.

It was the lowest number in the last 4 years.

From the Illinois Association of Realtors:

October home sales were down 39.5 percent to 1,217 sales compared to 2,012 homes sold in October 2009.

The city of Chicago median price in October 2010 was $183,000, down 14.9 percent compared to $215,000 a year ago in October 2009. The year-to-date median sales price for the city of Chicago is down 7.3 percent to $208,500 from $225,000 in 2009.

The statistics for the last 4 years:

1. October 2010: 1217 sales
2. October 2009: 2012 sales (impacted by the first time homebuyers tax credit)
3. October 2008: 1566 sales
4. October 2007: 1959 sales

The Association, trying to spin these numbers, optimistically points out that sales are up 4.6% in the first 9 months of the year to 16,502 from 15,772 in 2009.

Will that hold in the final two months?  

2009 saw a boost in November due to the end of the first time tax credit. We will not be seeing that this year.

“Tightened credit and an increase of distressed assets remain concerns for the city’s housing market,” said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Envision Real Estate LLC, Chicago. “On a positive note, it appears as though the market is stabilizing, with only a 0.7 percent decrease in the October 2010 condo market’s average price over the same period in 2009, and nearly a quarter percent increase, respectively, in the city’s single family homes.”

Unemployment, which was 9.8% in Illinois in October, and foreclosures and delinquencies, both which have been increasing, will continue to impact the market.

“The Midwest continues to feature a housing market that is struggling to recover and the story in both Illinois and Chicago reflects the experience of the broader geographic region,” said Geoffrey J.D. Hewings, the Director of the Regional Economics Applications Laboratory at the University of Illinois. “The uncertainties generated by the foreclosure lawsuit processes may provide some temporary decrease in the number of foreclosed properties entering the market. However, this is likely to be short-lived; moreover, once the legal problems clear a backlog of discounted properties will enter the market.”

Illinois Median Price in October Holds Steady from September; Home Sales Activity Up Year-to-Date [Illinois Association of Realtors, Press Release, November 23, 2010]