13 Months Later and Still Looking for a Buyer: 2620 N. Clybourn
Over a year ago we chattered about some units in the Riverbend Lofts at 2620 N. Clybourn in far west Lincoln Park.
See our prior chatter and pictures here.
In April 2008, Unit #205, a 3-bedroom duplex loft, was on the market and competing with a unit in short sale.
Unit #205 is still on the market and has been reduced by $44,000.
It is now listed only $14,000 over the 2002 purchase price.
Are some parts of Chicago reflecting the Case Shiller March numbers and reverting back to 2002 prices?
Philip Schwartz at Baird and Warner has the listing. See the pictures here.
Unit #205: 3 bedrooms, 2 baths, 1725 square feet
- Sold in October 2002 for $341,000
- Was listed in April 2008 for $399,000 (one parking space included)
- Reduced several times
- Currently listed for $355,000 (includes one parking space)
- Assessments of $325 a month
- Taxes are $4424
- Balcony and roof rights
- Central Air
HHMMMMM…seems to be a very nice unit (other than a few decorating mistakes, easily fixed) and for all the must haves, it is priced about right. Good to see the price reduced, yet still offering the seller a bit of appreciation. I think many times here posters comments indicate that there should be no app/profit at all because of the ‘bubble’ and it’s crash fallout.
Although not a real fan of spiral staircases, there seems to be a bedroom on the first level so it is acceptable for saving sq footage. Love the floors, timber ceilings, use of glass block and the white appliances.
Uh, it’s the market that has determined this one will likely see no appreciation. Is anyone paying 96% of list today on a stale listing?
No profit is already a done deal at the current ask. The 6%+ of transaction costs assure that, if it sells at all.
Location of this development has always been a problem, and now that market is glutted with similar units/pricing it will be difficult to sell. A buyer will no longer compromise on a “loft unit” squeezed between a shopping center parking lot and Aldis and Costco.
I suspect that there are far more units available than potential buyers for the forseeable future. Not only have mortgage requirements become more stringent (or normalized), but far fewer potential buyers will be motivated to buy, secure enough about employment and existing debt-commitments to consider buying, and earning sufficient income to qualify for current (but still falling) housing prices. Note that typical home prices for condos, single-family, and two-flat/three-flat buildings are still way above Chicago’s median income, and for rental buildings, still not at “cash-flow break-even”. Suspect prices will continue to decline until prices align with income. And I’m already noting that higher-quality units also will be need to be priced to match white-collar profession salaries for two-income households, because that is a problem as well.
Note that Chicago has fewer corporate attorneys this year than in 2008, given big lay-offs at downtown law firms and corporate offices, so the high-end real estate market also needs to readjust to a diminishing market pool. There are now far more expensive housing units for sale than there are qualified buyers. Absorption will be long and painful. With lay-offs still occurring and unemployment periods likely to be long, many households affected by white collar unemployment will need to sell their homes, or face foreclosure on their prime-mortgaged homes.
“Uh, it’s the market that has determined this one will likely see no appreciation. Is anyone paying 96% of list today on a stale listing?”
I am not debating this fact, but was rather commenting on past chatter that reveals the average posters’ disdain for owners when they attempt to make a bit of profit, even if that small profit is only to regain at least a small portion of improvements they may have made to their unit.
Don’t you think it is fair G to be able to price and sell a property with the expectation of at least being able to cover closing costs? Is that too much to ask of the nay sayers on this board? In general? F**k the profit margin, just allow an amount to cover some improvement and closing costs…jeesus…
I agree with your analysis Architect, but don’t you think that it is more important, at this stage of the market game that the higher end properties see stabilization before the lower end does? Don’t the more expensive properties in a way set the tone for the entire RE industry? If the upper end props normalize won’t that ‘trickle down’ process set the bar for the ‘mere mortals’ market?
Let me help with the delusions.
(1) You make your money when you buy smart. Buying in the bubble was not smart. Bubble buyers are, rightfully, toast.
(2) The RE market is not set by the upper end. The upper end is dependent on move-up buyers. The upper end is massively over-supplied. The upper end is, rightfully, toast.
Would you pay $2,300 a month to live here?
30 Yr 15 Yr 5/1
Mort. Payment $1,546 $2,191 $1,418
Taxes $369 $369 $369
Insurance $56 $56 $56
Assessments $325 $325 $325
PMI $0 $0 $0
Total Payment $2,296 $2,941 $2,168
Est. Income Req.$84k $107k $79k
“The upper end is, rightfully, toast.”
Delusional sour grapes?
Side note: The IAR just released April sales data. Sales in the Chicago PMSA continue to run around 25% below last year, continuing a 3 year trend. Interestingly though, single family home sales are actually up over last year for the last 2 quarters, while condo sales are way down. I haven’t dug into the data but suspect it’s a lot of the low end homes that have picked up with foreclosures and short sales.
I have updated the history here: http://blog.lucidrealty.com/chicago_real_estate_statistics/
“Bubble buyers are, rightfully, toast.”
You shouldn’t lump all REI together so confidently. My multi-unit investments (out of state) purchased within the last two years are returning 9% per year and when sold should yield several hundred percent ROE. These were negative cf apartments when purchased that are being turned around.
Another one that was on the table a few months ago fell apart – we could not secure a $6M loan.
So is this still considered LP? All kidding a side, this price wouldnt be so bad if the unit was in a far more desireable part of town. its way too industrial and noisy for most people that want to live in that part of the city. good luck to the seller!
“You shouldn’t lump all REI together so confidently.”
It’s a Chicago blog.
“when sold should yield several hundred percent ROE”
“fell apart – we could not secure a $6M loan.”
LMAO. Same would go for your imaginary buyer?
G- so it’s impossible to make money in RE? Chicago or elsewhere?
And it’s only an imaginary buyer to you because it is impossible for someone to purchase a multi-million dollar apartment building, right?
(G = most useless poster on cribchatter)
The ad hominem really enhance your credibility.
I know plenty of wiseguys and ne’er-do-wells who at all times have got a ‘million dollar deal’ they’re trying to put together but it never seems to pan out….can’t get financing, no buyers, investors back out, always some excuse.
HD- The last multi-unit was one out of three that fell apart. The other two are in place and seem to be going well.
And G is just so damned annoying. It’s so hard to converse with him.
” so it’s impossible to make money in RE? Chicago or elsewhere?”
Very possible, as I have experienced personally both here and elsewhere.
It’s not “impossible for someone to purchase a multi-million dollar apartment building” today. But it certainly is for you, obviously.
Those who can finance today do not want to. Perhaps, they know something?
Ummm G, have you noticed that it’s kind of hard to get a loan nowadays?
Not so hard if you have real assets, not imaginary RE assets.
Banks do not lack funds to lend, just worthy borrowers.
It’s a solvency crisis, not a liquidity crisis.
If you only know bubble lending practices, it appears to be tough now. Truth is, this is more normal and the bubble was the anomaly.
Those who got in the game during the bubble never seemed to consider the ramifications of this simple fact.
I think this is fairly priced and will sell near ask. Its 1,700, a 3/2 and includes parking, central air, balcony and roof rights.
Err 1,700sf, sizeable (for a condo) by my standards.
Isn’t this in the COSTCO parking lot? Hilariously bad. But at least you’re close to TACO BELL latenight.
“Don’t you think it is fair G to be able to price and sell a property with the expectation of at least being able to cover closing costs?”
Not if you got caught in the bubble and overpaid for the property when you purchased it. Essentially, you are asking the new buyer to pay for your mistake.
Bob, in the last post for this condo you said,
“This is going to sell quick. Can’t wait for these short sales to start setting the new comps.”
well Bob why didnt it sell quick?
I can’t speak for Bob- but I think his comment in the prior post was referring to the unit in short sale selling quick (not the unit that is in this post and still on the market.)
My client bought a 1 bedroom+den with patio and parking space in the larger building here (2614) last fall as a foreclosure for $216k. I think he got a pretty good deal, comps had it at around $250-260k. We pretty much screwed the building, but oh well. His plans are to live in it for a few years (its his first place) and then rent it out and buy something else. Aside from the immediate neighbors of grocery stores and Costco, the location is actually pretty nice, especially for car commuter because it’s central to Bucktown, Roscoe Village, and Lincoln Park, and is walkable to the Metra and a quick drive to the expressways. That being said, I think $355,000 is a very reasonable asking price for a unit of this size.
Sabrina, good point my apologies to bob
For this post I meant #205 (the non-short sale unit). Its above #105 and only a few k more.
Why didn’t it sell quick, Stephen? Because its only been at 355k for a brief period of time. Give it three months.
“walkable to the Metra”
Sure it *is* walkable, but it’s about a mile, and the highlight of that particular path is (probably) the Wendy’s. While strictly true, it’s only slightly further to the Brown Line, and I don’t think anyone would claim this location has easy el access.