3br Condos Still Available Under $400k: 1111 S. Wabash
We last chattered about 1111 S. Wabash in the South Loop in January 2008. The building started closing on units in 2004.
In January, there were 2 three-bedroom units on the market and one was priced under $400k.
They aren’t large, only 1200 square feet, but they’re still 3 bedrooms. Here are the room sizes for Unit #1708:
- Bedroom #1: 14 x 10
- Bedroom #2: 13 x 10
- Bedroom #3: 14 x 10
- Living room: 14 x 15
- Kitchen: 11 x 8
Unit #1608 has sold since we chattered about it.
But surprisingly, it has sold TWICE since January.
Here’s the info on Unit #1608:
Unit #1608: 3 bedrooms, 2 baths, 1200 square feet
- Originally sold in January 2004 for $295,500
- Was listed in January 2008 for $399,000
- Sold in January 2008 for $350,000 (I can’t tell if this included the parking)
- Sold again in March 2008 for $382,000
Currently, two other 08 tier units are on the market: #1708 and #1908. They are both priced under $400k.
Eugene Lee at Coldwell Banker has the listing for #1708.
Unit #1708: 3 bedrooms, 2 baths, 1200 square feet
- Sold in January 2004 for $311,500
- Sold in September 2005 for $350,000
- Currently listed for $375,000 (parking $30k extra and must be purchased with the unit)
- Assessments of $444 a month
- Taxes of $4,530
Unit #1908: 3 bedrooms, 2 baths, 1200 square feet
- Sold in January 2004 for $336,000
- Currently listed for $397,000
- Listing says “W/FPO by 8/15 $30k pkg free”
- Assessments of $468 a month
- Taxes of $4264
- Pointer Real Estate has the listing
The bedrooms are actually all a comfortable size, but obviously there’s no grand “Master Suite.” The living room is a bit small.
I don’t see that parking spaces have separate PINs, so they may not be (separately) deeded.
The January purchase of 1608 was 100% financed by a private party, not a bank. (At least, the grantee is two individuals, who only occasionally record mortgages.) Interesting.
The March purchase of 1608 has 90% financing hidden by MERS (i.e., probably some bank).
Normally a bedroom with a width of 10 ft won’t accommodate a queen size bed – at least without looking somewhat awkward.
kevin – where are you able to see that financing information? Is that public record?
That all came from the Recorder of Deeds (ccrd.info). You can translate addresses to PINs through the Cook County Assessor website (cookcountyassessor.com).
It would almost make sense to get two other friends and buy into a place like this. Nice place and a good way to build some equity.
Odd question, can you purchase property under an LLC or Partnership?
“Odd question, can you purchase property under an LLC or Partnership?”
Of course, how else do entities own property? But the mortgage interest deduction is then (at best) difficult to claim.
Well, I wondered if 3 people could incorporate to officially invest in a 3 bedroom.
Why would anyone want to invest in a three bedroom with two other people? Especially in this market, that’s a disaster waiting to happen.
Do banks frown upon the idea of loaning money to an LLC as opposed to an individual? I wonder what the difference in rates would be.
You would need a business model and business that is something other than real estate speculation. Chances are these days you would also need a track record of revenues and probably profits*.
*profits I’m not sure on as I’m not a commercial loan officer.
And don’t forget the personal guarantee unless you can secure the loan with substantial company assets.
YAAAAAWN. Another undersized, overpriced, featureless South Loop box shoehorned into the side of a half-empty highrise.
1200 sq ft for 3 beds is sad. The living room is tiny. It would have been better to make this a two-bed.
It’s interesting to consider just how low South Loop condos will drop when all the REOs now overhanging the market become part of the visible supply.
I really feel that the South Loop will end up being the same kind of disaster area Miami Beach is, where condos that sold, at peak, for $700 a sq ft, are selling for 15 cents on the dollar, dependent upon finding a cash buyer. Reason for cash buyer is that Bank United, a major lender there that is experiencing solvency problems, locked down financing altogether on 190 Miami and Miami Beach high rise condo projects. Wachovia followed suit by declining to finance anything in South Florida.
If you love the South Loop, just bide your time and hoard cash, because there will be incredible deals available in your fave buildings in another year, when the construction loans start coming due and the pool of qualified buyers has shrunk further.
Laura, What would you say is the correct price per sqft. in the South Loop? Also, I was wondering about where to find Miami Beach properties that are cheap, especially ones that are 15 cents on the dollar. I’d appreciate the help. Thanks
South Loop is so close to downtown and the lakefront amenities that it still seems like a good long term bet, but there certainly is an oversupply of condo inventory at the moment.
Laura have you ever been to Miami Beach? I was there a few months ago and comparing the south loop to Miami beach is ridiculous. Comparing the south loop to Rome would be more accurate. Obviously the south loop is not sitting pretty right now…but not even close to miami.
“Also, I was wondering about where to find Miami Beach properties that are cheap, especially ones that are 15 cents on the dollar. I’d appreciate the help. ”
Abhi, let me help you out in your “road to wealth”.
you can start here:
“In a sign of just how challenging the real estate business has been for WCI, it reported 84 new condo orders but 174 cancellations or defaults in the second quarter”
http://www.miamiherald.com/business/story/629254.html
and then go here:
Miami residents live in nearly condemned condos:
“Residents of a condo complex will be able to stay after code enforcement nearly condemned their building because it was too dangerous to live in.”
“Trash is one major problem. That trash goes all the way up to the fourth floor,” said Miami Fire Rescue Lieutenant Ignatius Carroll. Garbage trucks and crews were able to clear the mess of garbage before the end of the day.”
http://www1.wsvn.com/news/articles/local/MI93172/
you can start building ‘equity’ today!
A file came across my desk the other day. The ‘buyer’ of a south loop condo still under construction borrowed $50k from his own home for a downpayment on a $500k+ 3bd. Did I mention that the buyer makes $12.00 an hour plus tips for a living? Yeah, now he’s having second thoughts about his ‘investment’ a few months before closing. There is no way under the sun he’s going to qualify for a $450k mortgage when the building closes in fall 2008. I wonder how many other south loop units were also sold as ‘investments’ to clearly unqualified and unsophisticated purchasers? It’s like cockaroaches – you see one and you know there plenty more lurking in the walls.
sartre :
That Miami story was the highlight of my day.
Homedelete:
Interesting story about that investor.
I know someone who makes $90k a year and bought a 3 bedroom investment unit in The Legacy a few years ago. Price was about $900,000. He had the $90k to put down.
He doesn’t have many other assets other than his suburban house.
Do you think he’ll get a loan either in a year or two when The Legacy starts closing? (Not to mention be able to pay the mortgage every month?)
Of course not.
As you said- how many are there like these two examples out there?
I believe Laura’s comments (Laura, I am not trying to pick on you, but I have been reading so many fatalistic posts for months now but for some reason decided to post after reading yours) and others may signify that we are far closer to the bottom than people realize. Its funny how everyone overreacts to the rising housing markets and then overreact again when the markets begin to slide.
This is all cyclical and like other boom-bust cycles will correct itself in time. While previous boom-bust cycles may not be as widespread as the current one, we have a lot of historical data to follow, from busts in the early 80’s, early 90’s and so on.
The reality is never as bright during the boom and certainly isnt as gloomy during the busts.
All that being said, as others have commented, in the Midwest we never saw the kind of speculation that was rampant in Miami, Vegas, and California. And those markets will recover too, in time, though it may be five to ten years before they see 2005 prices.
Thanks for listening to me blather. 🙂
Great conversation.