2-Story Vintage Gem Still Available 21 Months Later: 421 W. Melrose in Lakeview
This 4-bedroom unit in The Eddystone at 421 W. Melrose in Lakeview, was built in 1928, during the final hey-day of lake front construction in Chicago before the Great Depression ground everything to a halt.
It has amazing vintage details from wood paneled walls, plaster ceilings, leaded glass, and original moldings.
They don’t build them like this anymore.
We last chattered about it in November 2008. See our prior chatter and pictures here.
At that time, there were no pictures of the kitchen in the listing because it was “in progress” of being renovated.
The current listing shows the new kitchen which now sports stainless steel appliances and granite counter tops.
This unit does not have central air and does not have parking (but that is available for lease next door.)
It has also been reduced $891,000 since 2008.
Is this a steal now?
Millie Rosenbloom at Baird & Warner now has the listing. See the pictures here.
Unit #14-15C: 4 bedrooms, 4 baths, no square footage listed
- Sold in February 1999 for $450,000
- Was listed in November 2008 for $1.89 million
- Reduced
- Withdrawn
- Re-listed in July 2010 for $1.1 million
- Reduced
- Currently listed at $999,000
- Taxes of $11,417
- Assessments of $2,726 a month
- No central air
- Fireplace
- Parking is leased next door for $200 a month
- Washer/Dryer now in the unit
- Bedroom #1: 18×13 (second floor)
- Bedroom #2: 15×10 (second floor)
- Bedroom #3: 15×13 (second floor)
- Bedroom #4: 15×13 (main floor)
Another delusional flipper jumping from star realtor to realtor blaming them for their lack of ability to find a greater sucker to bail them out. Epic fail even under $1MM. With those taxes and assessments this thing should basically be free.
Bruce Wayne please
Is that actually better than providing plans and a credit with a contractor lined up, too? I’d much rather pick out the kitchen finishes myself, certainly as compared to that. Seems like a waste of $$.
How could assessments be so high? Is it a co-op where taxes are included in the assessments, and a portion of it is tax deductible to the owner?
Ah once again we will find out if people will spend a million dollars on a place without air conditioning in the middle of august
@dave
-ownership type is listed as condo, plus it has an individual pin xxxx-1053. If it was a co-op then it would be an undivided pin xxx-0000.
Assessments are high (in-part) b/c its 2 combined units, and becauses its a very-old building with elevators, doorman, & heat included-which are budget busters.
Those these seems even extra high factoring that in, perhaps a long-term special is included due to some major maintenance issue. Major maintenance issue go hand-and0hand with old buildings.
1928: wood panels, plaster ceilings, built-in, marble fireplaces.
2005: cinderblock, duplex-down, bland McCondos with vent-less fake fireplaces and MDF trim.
I guess that’s progess. Same.
The pictures of the kitchen and living room look like they are two different condos.
I sort of love the living room, but it’s a bit much. It looks like the lobby at Medieval Times or something.
Heartbreaking Beauty
and assesments
That kitchen is a tragedy. I think it should realy have matched the period of the rest of the place. I commented on this place last time around, but should change my name. I’m sidelined no more.
OK – you guys rip on me for “bashing” neighborhoods and looking down on people. Please read and re-read the posts regarding this absolutely beautiful property (as well as all of the other properties). The lookin the the dictionary under word “hypocrit” and see your pictures!!!
What is even sadder is that none of you could probably could even afford a place like this – which probably further fuels your negativity.
“Please read and re-read the posts regarding this absolutely beautiful property”
So…I take it you *love* the kitchen and think it’s absolutely perfect for the unit? And that a/c is not something you expect at this price point.
There are 10 comments, 3 with bad things to say about the kitchen, 4 commenting on the assessments, 2 commenting on the price, 1 with something bad to say about the unit apart from the kitchen, with some overlap. So, the complaints are about (1) the Kitchen and (2) lacking a/c on a $1mm condo.
“What is even sadder is that none of you could probably could even afford a place like this – which probably further fuels your negativity.”
Sounds like that’s actually a problem for the owner of this place, no? IE: insufficient number of people who COULD afford this place that WILL afford it? Eh? haha.
@clio,
I know that I can’t afford this place. Probably never will and I’m fine with that. I like my house, even though its not the greater, and I like my neighborhoods, eventhough its not the greatest. If only people taht could afford a specific home comments, then it would be rather boring here. Think if only people who had a change of running for a specific elected office were allowed to comment on the personmance of that said elected official. Rather boring, the crazies are always the most entertaining.
I personally think this apartment is gorgeous. And lot of other individuals’ comments have been positive (overall) on this unit. Of course the high assessments and taxes are negatives. No one wants to pay more money.
I can’t imagine that you are defending the kitchen in this unit. It does not fit the caliber and style of this vintage beauty. It detracts. Certainly, a person of your station would agree with that.
“I can’t imagine that you are defending the kitchen in this unit. It does not fit the caliber and style of this vintage beauty. It detracts. Certainly, a person of your station would agree with that.”
Of course I don’t like the kitchen – and obviously the price reflects that fact (ie, the owners know that renovations need to be completed).
I know that people think the price is extremely high, but look at what you are getting. This type of unit is extremely rare – on ESLD it would be in the 5-6 million dollar range. Even in L.P. it would be in the 3-4 million range. Sorry folks, the price is NOT that high.
Hey Jon –
I am actually one of the only people on here who IS consistent. In one breath, most of you complain about people about being snotty and mean etc. but then turn right around and bash people and properties left and right. Furthermore, why can’t a person be “suburban royalty” AND also feel for the “underprivileged family”. Those 2 things are not mutually exclusive – and furthermore, it shows compassion that everyone on this site seems to think I lack.
“Of course I don’t like the kitchen – and obviously the price reflects that fact (ie, the owners know that renovations need to be completed). ”
Dude, re-read the post–that’s the kitchen that the owners *JUST*PUT*IN*. It’s what they decided to install to try to get the place sold.
And I think it’s worse than an empty space with a credit to install a new one to the buyer’s liking before closing (with hard earnest $$ equal to the cost put up, to prevent backing out).
“most of you complain about people about being snotty and mean etc.”
You need some remedial math, my friend.
Gorgeous! Kitchen of course is awful… that vessel sink? Augh!I wonder why no other pics of the place?
I am very familiar with this building. It’s one of my faves, but it is a MAINTENANCE NIGHTMARE with some of the highest HOA fees around. Always has been, thanks to a 24-hour desk and other payroll bloat. I am eyeballing a 2nd floor 2 bed in this place for $159K and wondering why it lingers on the market so long at this price, but it’s easy to understand with the HOA costs. Another large 1 bed (comparable in size to a 2 bed) has been reduced to $174K. These are great prices for Lakeview even for a maintenance fright like this place. I wonder if a special assessment is on the horizon.
This place really is gorgeous, but even were it reduced to, say, 40% above the 1999 price- and it really isn’t worth more than $700K- it is a very expensive proposition. It will cost you $4000 a month to live here even if you pay cash, and those costs will only rise. You really need a secure income of $300K a year or more to be really comfortable with all the costs of living in a unit like this, and many people who can afford it will balk at the lack of amenities like parking and central air. A cool pak will add a lot to the cost.
“You really need a secure income of $300K a year or more to be really comfortable with all the costs of living in a unit like this”
I take it you mean “if someone gave it to you for free”, b/c you’d want to be at about $300k for afford the asking price w/o the high assessments.
And, yes, the seller really “cheaped out” on the kitchen- should have just left it alone and let the ultimate buyer (someone buying to have a home) renovate it to taste.
The only way that kitchen makes sense is if they don’t care about the finishes since only the help will see it, right? I mean, it has to be.
Yes, anon. you’re correct. But I was figuring a cash buyer with a secure income (meaning trust fund, not an “executive” job where you can be out the door tomorrow)with an income of $300K.
My reasoning is if you have to borrow the money, you might want to think a long time about buying something like this. I remember having many conversations with an old Lake Forest real estate agent, a guy who had been in the biz for nearly 30 years at that time, back in the late 80s. He said you could not get financed for anything over $500K without at least a 50% downpayment, because high income jobs were so difficult to replace once lost. It’s not like trying to replace a $50K a year job.
So if you don’t have the cash to just buy this place outright, no financing, you should have an income of about $500K, pretty rarified territory, and really difficult to replace if you lose your job. I know, I once talked to a man who had lost a $400K a year job, went jobless for 2 years while hanging onto his Lake Forest palace and running through his assets to maintain his lifestyle… because the next good job was “right around the corner”. Well, after two miserable years and finally losing everything, he got a job for less than $50K and was damn glad to get it.
I believe the old lending standards, complete with 20% down payments for “ordinary” properties and 50% for super-expensive ones for which there is a tiny market, need to be reinstated.. and never more so than now, for I believe that we are going through an epochal economic shift, a real game changer that is going to create an entirely different set of winners and losers….. and that things are changing so fundamentally in so many ways that it is impossible to tell how things are going to settle up. If ever there were a time to be careful, this is it, yet our financial firms seem to be getting crazier, not saner.
Instead, the FHA is financing NYC apts that cost as much as $3M with 3.5% down payments. Anything to reinflate the bubble and set us up for ANOTHER blowup!! We are crazy, just insane.
Personally, I’m very averse to high assessments, and if I contemplate a building with high HOAs, the first thing I consider is if anything could be done to reduce them. Oftentimes, a new boiler will do it. You’d be surprised how many old vintage high rises in this city have converted coal burners that get 15% efficiency at best- this means the building is paying about 6X as much for heat as it needs to. You replace the thing, spend the $50K it costs, and it pays for itself 3X the following winter, so why do people live with ancient heating equipment that was outdated in 1950?
And why do these buildings have so many specials? That tells me that they are not maintaining sufficient reserves. Once I bought into such a place, I would work vigorously to change that, and insist on a bigger allocation from the assessments to be put into the reserve fund. But these places don’t want to raise the fees because it depresses prices…. so let the problems pile up and leave that deferred maintenance for another generation of owners a couple of decades out, who will get hit with the bill for 40 years of neglect.
Another thing is the payroll. That tends to be inflexible and you are stuck with it, because most of the owners want the really high level of service. Personally, I can do without a 24 hour desk and I’m not willing to pay for this.
Laura, I agree that is crazy about the boiler and one needs to check into that. Also agree one needs to figure in the cost of the special in the asking or offer price; I’ve been in a couple of almost-purchases now and both times the seller agreed to pay a pending special upfront or it came off the offer price once I found out about it. But regardless, resale has to be a concern if you buy something like this. People looking into this place are in a minority of purchasers. People do not mind the lack of crown moulding and herringbone floors nearly as much as they mind lack of a/c; I’m just the opposite. But to each her own … thanks again for the great “tour” of Chi vintage!!
Where is the source for this information: “Instead, the FHA is financing NYC apts that cost as much as $3M with 3.5% down payments.”
The FHA website has a limit of $729,750 in Kings County, NY for one family properties. Four flats are a limit of $1,403,400.
ALT, I’m with you. I’d MUCH rather have herringbone parquet floors, fine millwork, high ceilings, and beautifully proportioned rooms than things like AC and in-unit washers and dryers, or parking. I’ll happily do with window units, or install a cool pak, and roll a portable washer/dryer from a closet to the kitchen sink, especially in a place with such roomy kitchens.
But the high maintenance on that particular bldg is a real obstacle, I must admit. A couple hundred less makes a big diff, and for that I can surely do without a doorman. I love that place, but the maintenance puts it out of my range even for the cheaper unit, for with the appropriate downpayment, the HOA, insurance, and mortgage, plus a potential special, take it up to nearly $2K a month.
Little did I realize what an incredibly good deal I was getting back in the days when I rented places like this.
To Jay Huhlman: Jay, I wouldn’t have believed the FHA financing for hyper-expensive NYC apts. myself had I not read it on Bloomberg.
Now, Sabrina, I know you don’t like posting links, but plese let me do it this once, because incredulous readers need to hear about this from a reputable source, so here is the link:
http://www.socialnews.biz/RealEstateResidential/FHA_To_Loan_Money_on_Million_Dollar_Apartments_in_New_York_City
Laura,
The article noted that the 730K limit is still in place for FHA mortgages in NYC but that the mortgages were available at the Tempo building and a few other expensive buildings.
Digging around a little more, “Bay Area Real Estate Trends” by Greg Fielding has a post ‘No, The FHA Isn’t Giving $3 Million Mortgages’:
‘A recent Bloomberg article suggested that the FHA had made a special arrangement to offer mortgages of up to $3 million on luxury Manhattan condos. This is not true. FHA loan limits of $729,750 are still in place.’
From the (Bloomberg) article:
“The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development, known as Tempo. That enables buyers to make a down payment of as little as 3.5 percent in a building where apartments are listed at $820,000 to $3 million.”
From Greg Fielding again:
‘Sure, they could put down that little, in theory, if they could negotiate that $820,000 down to $755,000 or so. Or, they could put $1M down on a $1,729,750 unit. But the FHA loan limits are not changing to accommodate NYC luxury condos.’
If the FHA were really granting $2.95 million mortgages, I’d suspect we would have heard far more about the change than one article in Bloomberg which appears to be copied across the web. Also real estate agents in fancy areas, like Greg Fielding, would be turning handsprings.
I’ll bet the people of Iowa love subsidizing $1 million mortgages for city dwellers who can’t live within their means.
Lovely building (I’ve seen three units here) but note the stalled construction site across the street.
Not directly across the street, but yes.
“I’ll bet the people of Iowa love subsidizing $1 million mortgages for city dwellers who can’t live within their means.”
With farm subsidies and corn price supports being what they are, I’d wager there are far more city dwellers subsidizing Iowans than vice versa.
FHA Insuring Mortages For Luxury Developments
Sunday, August 15, 2010, by Bilal Khan
1 In a somewhat unusual move, the FHA is insuring mortgages for upscale luxury apartment buildings in Manhattan. New buyers are able to buy in these relatively expensive apartment buildings with as little as a 3.5% down. The reasons cited for needing this aid is the ever vague “market conditions”. The president of the National Condo Advisers Board says “I can’t say it’s been magical, but it’s allowed developers to close on apartments they otherwise might not have been able to in the current marketplace”. This might not be the most popular move, as it’s bound to come off as helping those who probably don’t need FHA aid.
Click for a list of all the FHA backed developments
-Tempo Condominium, 300 E. 23rd St.
-Be @ William Condominium, 90 William St.
-Griffin Court Condominium, 800 Tenth Ave.
-The 505 Condominium, 505 W. 47th St.
-One Rector Park, 333 Rector Place
-Whitehouse, 67 Hudson St.
-220 Third Avenue Condominium, 220 Third Ave.
-The Kips Bay Towers, 330 E. 33rd St.
….and another link to an article discussing this topic:
“http://www.ourbroker.com/mortgages/should-the-fha-insure-luxury-condo-loans/”
Laura,
are you really serious regarding your list of priorities? You would rather pay for the priviledge of having these cosmetic items in favor of AC, a W&D and parking?
Not to knock you at all, but why on earth would this be the case for you? I don’t understand how you could enjoy the aesthetics of such cosmetic items while you are sweating in the middle of August after lugging your laundry up and down stairs or in an elevator….that is if the presence of an elevator is a requirement for you?
We all have our own requirements for our ‘dream house’, but reading your posts in this thread provided first a real laugh of the day for me…as you are usually VERY sensible and knowledable in your writings.
Sorry, I just can’t agree with your comments and I think a good portion of CC readers would agree with me. Just a very odd outlook I suppose and if you had the cash to do so, why not, right?
“With farm subsidies and corn price supports being what they are, I’d wager there are far more city dwellers subsidizing Iowans than vice versa.”
Thank you and I wholeheartedly agree!
While not disputing the importance of government farm aid, the cost of assisting a few NYC residents obtain what is the upper level norm here in the city would be miniscule and most likely the $$$ would be paid back in a timely fashion. I am all in favor of this occuring in my city. NOthing at all wrong with it if the loans are given to responsible and serious buyers.
Back to this listing though, I think it is absolutely spectacular! It reminds me of many UWS coops…beautiful and I would be willing to buy it and do a quick (not neccessarily needed) kitchen remodel. That would run around $50-80k, less if you would simply reface the cab doors which seems to be the biggest detriment to the place.
If you are looking at places at this price point, it would def be a serious contender…for me anyway. In any building of this caliber and age of course there is going to be a large special reserve fund that SHOULD have been established over the years.
Not an issue for me, but I would have some serious input at the condo board meetings! Seems like a huge lack of decision making with the current board if this whole story is true.
“Furthermore, why can’t a person be “SURBABAN ROYALTY” AND also feel for the “underprivileged family”. Those 2 things are not mutually exclusive – and furthermore, it shows compassion that everyone on this site seems to think I lack.”
LOL OMG how did I miss this latest gem from the mind of our resident Bill Gates!?!?!?!?! This has to be on the top 5 most outrageous things you have said!!
YOU have compassion for underprivledged families? LOk OK whatever you say Prince clio!! LOL
I usually lurk, but wow, what a beautiful unit and wow, what an after-thought of a kitchen. In a 300k 2/1, the kitchen would be fine, but in this place, it’s just a crying shame. I think the money they put into the kitchen would have been far better spent on installing a SpacePak. Lovely place – they just don’t build them like this anymore.
Clio : ““Furthermore, why can’t a person be “SURBABAN ROYALTY” AND also feel for the “underprivileged family”
westloopelo: “This has to be on the top 5 most outrageous things you have said!!”
Although I hate doing this, I have to back up Clio on this one. Westloopelo, there was a post on here earlier that must have been deleted by the administrator that referred to Clio as suburban royalty and such. I think he was just responding to that post. But on that topic, Clio did post a resignation from this site but I can’t seem to find it. Maybe he reconsidered and retracted his “resignation” LOL!!!
Clio is a guy? I figgered West Loop Leo was.
How come I can’t find the post where clio was talking about his place in St. Charles? the 5 acres, with the stable for his horses? Anybody got that?
Here’s the first one, I think.
clio on August 11th, 2010 at 9:22 am
“The building is NOT for the buy and rent investor as the condo association requires the unit to be held I think for at least 12 months (might be 16) before it can be rented. That kills probably 99% of any financial models you plug that into.”
It seems like the best investments in real estate right now are land (no landlord responsibilities, upkeep, etc.). If you have extra cash and don’t mind waiting 5-6 years, I truly believe the greatest returns will be in land investments. Below is a 15 acre parcel in St. Charles, surrounded on 3 sides by million dollar homes on postage-stamp sized lots. The land is zoned R1 (40,000 sq. ft lots) and can be subdivided. It is a great investment for a builder or someone wanting to just sit on it for a few years.
http://www.redfin.com/IL/Saint-Charles/3N645-Ponderosa-Dr-60175/home/17970713
Sent the whole comment, but it’s in moderation.
Here’s the thread
http://cribchatter.com/?p=9121#comments
clio on August 11th, 2010 at 9:22 am
“The building is NOT for the buy and rent investor as the condo association requires the unit to be held I think for at least 12 months (might be 16) before it can be rented. That kills probably 99% of any financial models you plug that into.”
It seems like the best investments in real estate right now are land (no landlord responsibilities, upkeep, etc.). If you have extra cash and don’t mind waiting 5-6 years, I truly believe the greatest returns will be in land investments. Below is a 15 acre parcel in St. Charles, surrounded on 3 sides by million dollar homes on postage-stamp sized lots. The land is zoned R1 (40,000 sq. ft lots) and can be subdivided. It is a great investment for a builder or someone wanting to just sit on it for a few years.
http://www.redfin.com/IL/Saint-Charles/3N645-Ponderosa-Dr-60175/home/17970713
“How come I can’t find the post where clio was talking about his place in St. Charles?”
I’d guess Sabrina deleted it, either at request or just b/c that’s the sort of thing she does. Additional evidence he was who he said he was (or that he was consistently posing as that person)–easy enough to track down a name from the property.
I kind of figured as much. I mean, REALLY. I’ve posted lots and lots of clues as to where I live, what I do, and so forth, but I don’t think I’d ever just post my PIN or home address online. That’s an invitation for any wackjob to know way too much.
And, maybe I am a bit of a wackjob, but I was curious to see how much info might be out there on “clio”, and I did look up that listing he willingly posted, which took me on a bit of an internet adventure. There’s a lot of info out there, people, free for the taking. Be careful out there with how much detail you divulge.
Especially if that rich person in St. C wasn’t clio, which is more than likely the case. They’d wind up being hassled due to the alternate reality fantasies clio has in his head.
“Laura,
are you really serious regarding your list of priorities? You would rather pay for the priviledge of having these cosmetic items in favor of AC, a W&D and parking?
Not to knock you at all, but why on earth would this be the case for you? I don’t understand how you could enjoy the aesthetics of such cosmetic items while you are sweating in the middle of August after lugging your laundry up and down stairs or in an elevator….that is if the presence of an elevator is a requirement for you?”
Because aesthetics and not having a bland home take priority over being a simpering wimp, to me at least.
It’s not as black and white as I say, but having window units or installing a space pak or hauling laundry up a flight or two of stairs is hardly the end of the world. Harden up a bit!