3145 N. Cambridge in Lakeview is Back On the Market and Reduced Another $20K
We last chattered about this top floor 2-bedroom in The Cambridge at 3145 N. Cambridge in Lakeview in December 2010.
See our prior chatter here.
We have been watching this unit for many months. It has been on and off the market for over 2 years.
It recently returned to the market with another $20,000 reduction.
The unit is now listed $61,000 under the 2007 purchase price at $279,000.
Back in December, some of you were surprised it hadn’t sold in the $300,000s.
If you recall, it has 9-foot ceilings, a decorative fireplace and crown moldings.
The kitchen has been updated with 42 inch maple cabinets, granite counter tops and stainless steel appliances.
There is an in-unit washer/dryer but no central air and no parking.
What will it take to sell this property?
Jeff Lowe at Prudential Rubloff again has the listing. See more pictures here.
Unit #3: 2 bedrooms, 2 baths, 1300 square feet
- Sold in March 1992 for $147,000
- Sold in February 2007 for $340,000
- Originally listed in April 2009
- Withdrawn
- Re-listed for $329,000 in February 2010
- Reduced
- Was listed in July 2010 for $319,000
- Reduced
- Was listed in December 2010 for $299,000
- Withdrawn
- Re-listed at $279,000
- Assessments of $397 a month (includes heat)
- Taxes of $3757
- No central air- window units
- In-unit washer/dryer
- No Parking
- Bedroom #1: 14×12
- Bedroom #2: 13×8
- Dining room: 13×17
There’s no parking and that’s hard to overlook for most buyers interested in this area.
At $275k and 80% LTV, you’re looking at $1,857.71 for mortgage, taxes, and assessments. At $250k and 80% LTV, it’s $1,753.38. Without looking up recent rentals of 2BD/2BA units in the area, it seems like it will sell within the $250k-275k range. But the parking is really a killer for this place and I don’t know if most people want to commit to a place without a dedicated spot. And, that aside, I do think people are becoming aware of the inherent risks of condos in today’s market and are increasingly shying away from them.
Chris M – I disagree that people are shying away from ALL condos. They are shying away from condos that do not have good location, amenities, parking or the possibility for long-term residence. Basically, people are shying away from condos that are no better than rentals apart from the fact you can paint and do what you want with them. Large condos (2000+ sq. foot) in downtown buildings with full amenities (amenities are attractive to a certain crowd that prefers service over a back yard) that are large enough to stay in for 7+ years and are unique (good architecture, finishings, view…) and are not equavalent to units you can rent, are still attractive to many. Your lumping all “condos” in to the same market is overly simplistic.
“They are shying away from condos that do not have good location, amenities, parking or the possibility for long-term residence.”
local – I agree with your points. The condos that are doing OK in this market are unique or are reasonably suited for families. I would say, however, that *most* condos I come across on the MLS don’t meet this criteria.
That’s true…very few of the “good” condos are on the market. I have had two agents approach me to inquire if I would consider selling my condo (3000+ sq foot). The problem is their buyers think they can get the same discount (30-35%)off as these smaller, less appealing units. That’s just not the case. People who own these can ride out the downturn b/c they are prime or are large enough to grow into and don’t need to sell at steep losses. The few large/prime units that hit the market are either developer units (and riskly b/c the building is not fully sold..hence they should be purchased at a discount) and/or are owned by people who must sell because they need relocate to other cities.
I think the folks who will hurt the most are those who bought condos with their eye on moving up in 3-4 years and who have know out grown them. Seniors in large houses that no longer meet their needs (i.e. the need to downsize to condos but can’t sell their mansions/SFHs) are also hurting, particularly on the North Shore.
I don’t think its lack of amenities, I think people are holding back on properties around this price point where the amenity to Association fees are out of whack.
Buildings like this do not justify a $400 Association fee. They just don’t. Added with taxes you are paying an extra 60% on top of your mortgage. It just doesn’t make sense financially at this level. And what do you get out of it? Doesn’t look like much.
Look, if you like doormen and living on the 30th floor and not leaving your building for a swim or a workout…then feel comfortable with a higher assessment. In walkup or similar it just isn’t worth the high fees. I ignore places like this with Association fees higher than $275, but thats just how I see it.
“I thought you loved the bus and disdained the special status of “close to el” locations?”
Yeah ‘cept you can get properties close to a bus stop that goes directly downtown, also without central air conditioning and parking, also without a view of the lake but a little further away to avoid lake effect snow for far less.
“I ignore places like this with Association fees higher than $275, but thats just how I see it.”
Heat is a big component of energy costs, but I still don’t see how that equates to $400/mo. Maybe if it included cable with HBO/Showtime & internet also. But it doesn’t.
“I ignore places like this with Association fees higher than $275”
Even (or perhaps especially) when it includes heat?
$400 a month has got to include some sort of special assessment in it, or refunding of a reserve that has been depleted due to some sort of major problem
“Even (or perhaps especially) when it includes heat?”
Depends on the kind of building. If its an energy inefficient building I’d consider ignoring my rule.
It is really hard to have assessments less than $250 in a building. As buildings age, the maintenance increases. Additionally, you also need to build a reserve fund as well so you aren’t constantly slapping the owners with special assessments.
““I thought you loved the bus and disdained the special status of “close to el” locations?”
Yeah ‘cept you can get properties close to a bus stop that goes directly downtown, also without central air conditioning and parking, also without a view of the lake but a little further away to avoid lake effect snow for far less.”
???
The assessments are big factor in my decision on a place too. I don’t watch TV and don’t feel like paying 50-70$ a month for folks to watch HBO. I have issues with the heating and cooling too. Often times the parking garages are so hot in the winter that it is uncomfortable to carry stuff back and forth and in summer the corridors are freezing. In fact, most of the time when I am out of the pool coming to our unit, I shiver. I think many of these building will tremendously help their sale prices if they had more value conscious boards who actively tried to keep the assessments low.
nevermind; prior thread in response to:
“For mass transit this thing additionally is not right near any major corridor to get downtown. You’re locked into the LSDE bus? No deeded parking + reliance on bus to get downtown. LOL no thanks.”
“very few of the “good” condos are on the market”
This is not by accident…. Both “good” and “bad” condos have gone into foreclosure. However, banks have kept the valuable condos hidden on their “shadow inventory” list to keep their value up…
who would pay 250,000 for a standard 2b/ba when there are a ton of 1600-2500sq ft condos in foreclosure? With banks keeping the higher end houses in the shadows, they are able to over value both the low end units they have released, as well as the higher end units when they do release them…
only problem is that the housing market is still in a decline, and with the ending of the bubble that the government blew last few years, it will get worse. Until banks mark to market, don’t expect many people to buy, especially with the insane number of condos that have been built in the last decade… surplus city.. banks need to purge all of the toxic assets at once, let the market determine their worth, so we can move on. until then, the picture will remain bleak
” I think many of these building will tremendously help their sale prices if they had more value conscious boards who actively tried to keep the assessments low.”
CHURCH. I see many places on the MLS that have been on the market for a long time and a reasonable price, and then I see the size of the assessment and it all becomes clear.
I love this building, but this apt. looks like it has been excessively “clean-walled” and has had its charm compromised.
Nice place still, but the lack of parking will kill it. Even though people around there take the buses and trains downtown, like any sensible person, they still own cars and need places for them to sleep.
$250K-$275K, especially since 3300 N Lake Shore Dr. has two units rather larger listed at $249K and $299K, each of which listing was recently renewed again, that have been on the market about a year now.
$400 sounds like a very reasonable association fee if it includes the heat. Every single older courtyard I’ve looked at in Rogers Park, W. Rogers Park, Edgewater, or Lakeview had a comparable fee for the same amount of space and inclusions.
If I see a fee cheaper than this, I am suspicious that the place doesn’t maintain a reserve and that usually turns out to be the case. A healthy reserve is essential, especially in buildings occupied by the non-rich, so that people know ahead what their expenses will be; and can count on them remaining fairly level and increasing in small increments; and not be blindsided by a massive special assessment when a major element of the building needs work.
Taxes look reasonable.
My building offers a doorman, elevator, workout room, cable, and TV for a mere ~$320 a month (~1250 sq ft 2/2) (no heat). Very healthy reserves as well. Only ~$700 in special assessments over the last six years.
My building offers insurance, doorman, heated garage (though not excessively heated) elevators, community room/party room, workout room, onsite management, all utilities (except phone) and full cable including full HBO for $475-500 for most 2 bedrooms (ranging from 1000 – 1300). Assessment depends on size, view/exposure and whether the unit has outdoor space. One special assessment for $1200 in the last 5 years. The building has regular reserve studies.
Unless a courtyard building has A LOT of units, I think it is hard to compare thier assessments to a highrise building. When there are hundreds of units, the assessments are lower as the costs are spread out over more people than in a vintage 6-20+ unit building.
what are the real consequences if a bldg has a big special assesment and an owner can’t pay/won’t finance either?
I believe that the association can get a lien against the non-paying owner’s unit and/or force the owner to sell.
thank you Laura… Guess where I was thinking was along the lines of people having little, to negative, equity in so many condos across the country. Wonder where HOA stands as a creditor or forcing a shorr sale. Seems complicated.
Gringo, the association can also file for eviction and take over the unit and rent it to collect the past due assessments. Oftentimes, I believe this process is easier than a lien and more relaible since association liens are secondary to the banks and as we know, the banks are having a hard enough time collecting. Too bad for the association in many cases although IL recently passed a law requiring those that buy condos from banks to pay up to six months of back assessments if the association has begun the collections process.
“Guess where I was thinking was along the lines of people having little, to negative, equity in so many condos across the country. Wonder where HOA stands as a creditor or forcing a shorr sale. Seems complicated.”
Backdoor way to de-condo a building, if a few owners partner with existing mortgage lenders. Probably a RICO violation, tho.
benjamon.. Thank you very much for the reply. Renting it definitely gives some recourse.
Anon.. RICO.. Where do i sign up. Possibly the 4 scarriest letters in the alphabet.
Ze:
That was special for you. Glad you enjoyed it.