5 Years Later, Has The Bleeding Stopped In River City? 800 S. Wells in the South Loop
One of the first posts on Crib Chatter was about a 49% reduction on a 2-bedroom duplex in River City at 800 S. Wells in the South Loop.
See the September 5, 2007 post here.
In 2007, the 1500 square foot bank owned unit was listed for $268,800.
That seemed like a deal back in 2007 given that the unit sold in March 2006 for $543,000.
But now, 5 years later, Unit #501, a similar 1500 square foot 2-bedroom duplex, is currently on the market in the building for just $195,000.
It is one of the renovated units, with cherry hardwood floors on the main level and carpet in the bedrooms.
The kitchen has granite counter tops and stainless steel appliances.
There is central air and in-unit washer/dryer. The listing also indicates there is parking.
This unit is listed for $65,000 more than the October 2011 purchase.
Will this seller get the premium just 10 months later?
Have we seen the worst of it in River City after seeing a steady wave of foreclosures in the building over the last 5 years?
If the building has now hit bottom, what kind of appreciation (if any) should the owners expect?
Barbara Barker at Re/Max Edge has the listing. See the pictures here.
Unit #501: 2 bedrooms, 2.5 baths, 1500 square feet, duplex
- Sold in June 2007 for $276,000
- Lis pendens foreclosure filed in June 2010
- Sold in October 2011 for $130,000
- Currently listed for $195,000
- Assessments of $1170 a month (includes a/c, heat, cable, doorman)
- Taxes of $3192
- Central Air
- In-unit washer/dryer
- Parking appears to be included
- Bedroom #1: 20×12
- Bedroom #2: 12×13
had a realtor tell me this whole building was a disaster a few months back
The place looks better than it did before, even though the decor is out of sync with the architecture of the building. But anything you do to an apartment like this is an improvement, with the best solution being a headache ball. This owner looks to have spent at least $100,000- and I’m probably estimating too low- tarting this place up with traditional embellishments and is therefore taking a major bath with an ask price of $195K. This feels like a desperation sale. And it’s still an ugly apartment- there’s no curing those windows.
The place will probably find a buyer at this price because it offers boat berths and those are difficult to get in good locations close to downtown. I was floating past the place a couple of weeks back on the water taxi and noted about 30 largish boats, any one of which was much costlier than any of the apartments in this building.
Additionally, the assessment is obscene, a real deal killer for most people.
You really have to love your boat for this to be a good deal.
“You really have to love your boat for this to be a good deal.”
And just like your boat, the happiest days of your foray into real estate will be the day you buy this place and the day you sell this place.
Laura, the pictures show no work has been done since the $130k purchase. This building is a nightmare and this buyer is dreaming thinking that they will get over a $50k profit for owning the place for less than a year.
If this building has hit a bottom (and that is a BIG if….) the owners cannot expect much if any appreciation I think in the short term. Long term, they will probably see minimal appreciation.
I wonder if the high assessments could be a result of when the building flooded and everyone had to be moved out or whether it is due to one of the other many problems I have heard this building has had or probably all the issues…
benjamon9, I must be thinking of another 3 bed 2 bath I saw in this dump that was completely unimproved in every respect, with a dark, cramped staircase; small, close rooms, an 80’s vintage white kitchen, and ratty old carpeting.
You’re right about the building. This building has nothing but problems- flooding, noise, garbage smells wafting up to the apartments, and there was once, in its days as an almost-new rental, an elevator accident that left a young woman extremely disabled for life.
As I said, the best cure for the terminal ugliness and problems is a headache ball.
But I do rather like that soaking tub in the bedroom.
I heard the current seller paid about $20,000 in unpaid assessments, unpaid River City Assoc fines and attorney fees. It was purchased as a short sale and a ton of the stuff the buyer paid on top of the sale price had not been recorded on the MLS. Clear title, easy close with 20% down or all cash. not a horrible deal. The assessments are a little high. I’ve seen the unit. Does not look exactly like the pics. The upstairs carpets had been redone and the living room flooring matches the dining room. Before that, the linoleum hardwood flooring with the Brazilian cherry engineered off set was an eye soar. Actually looks alright now.
“I wonder if the high assessments could be a result of …”
Doesn’t help that many units have been non-payers for stretches in the past 5 years.
I think river city is pretty cool but would not be surprised at all to hear it is chock full of bed bugs
Oh, so depressing…low ceilings, small windows, and the location. And what’s with the tub in the bedroom. Not a good idea at all. The only thing to liked is the washer and dryer.
“Doesn’t help that many units have been non-payers for stretches in the past 5 years.”
Makes this place an even wiser purchase as I doubt that is going to change overnight any time soon….
Dozens of moderate-priced condo buildings in this city have many owners in foreclosure and in deep arrears on their assessments. You don’t want to commit till you’ve had your lawyer do a thorough discovery to see how many units are in foreclosure, how many are delinquent in assesments, and how many are “underwater” on mortgages as these people will be even more motivated to walk away and add to the delinquencies, when they get a $200 a month assessment hike to cover the shortfall.
Buying a condo has never been riskier. Beware. This is a good reason to discount this place substantially, if you just must have it.
I wouldn’t even consider renting in this disaster of a building, let alone purchase a place here
The parking garage and water system flooded a couple of years ago. Residents had to find somewhere else to live for three weeks. Has anything been done to prevent another flood?
That flood is enough to scare off anybody.
I give this place another decade before the values sink and maintenance costs rise to the point where it is more economical just to buy everyone out and level the place… and build something that isn’t practically sitting right in the water, if anything gets built there at all
The bleeding will never stop. This building has been a disaster from the beginning and will be a disaster all the way up until the end, when it finally falls into the river. Any money put into a unit in this building might as well be flushed down the toilet.
“This building has been a disaster from the beginning ”
Was it really a disaster when it was a rental? I realize that it was a failure as a self-contained “city” (as was Marina City), but was it a failure as merely a somewhat out of the way rental building?
This building is an eye sore and should be torn down. Is that economically feasible? The land is right on the river and I believe the vacant lot to the north sold for a pretty penny a few years ago.
I can’t believe these comments! I live in this building and could not be happier. Great location, award winning architecture, spacious units with storage units, river views, good management, friendly security , impressive lobby, responsive board….
Yes assessments are high, but keep in mind property tax is low , so that cancels that out. Also assesments include heat/ac, so they are just 20% higher than average chicago condos..
“I believe the vacant lot to the north sold for a pretty penny a few years ago”
More or less than 10 of these condos sold for “a few years ago”?
“Dozens of moderate-priced condo buildings in this city have many owners in foreclosure and in deep arrears on their assessments.”
This is excellent advice Laura. You would not believe how many people don’t even bother to check out the other unit owners in the building they want to move into (even in buildings that have 3 or 4 units!) And then they are shocked to find out that several other units in the building also have lis pendens filed against them.
Buyers should be checking out as many of the other units as possible (harder in the larger buildings, I know.) See how financially sound the other owners are.
“I believe the vacant lot to the north sold for a pretty penny a few years ago”
Anyone know what is going on with that vacant lot north of this place? I know it was the former site of Chicago’s Grand Central station. I’ve heard that there are fuel tanks sitting underground which is why the land hasn’t sold due to environmental clean-up requirements.
Considering you can still get 3-bedrooms here for under $130k in winter months no this is not a deal at all.
“Anyone know what is going on with that vacant lot north of this place? I know it was the former site of Chicago’s Grand Central station. I’ve heard that there are fuel tanks sitting underground which is why the land hasn’t sold due to environmental clean-up requirements.”
We chattered about this years ago when a big condo/townhouse development was scheduled to go in there. The Great Recession meant it never happened. You can probably find out more about it on other sites that cover new construction like YoChicago.
What a shame that Grand Central station was torn down in 1971. That was one impressive looking old building, with a clock tower about 250-feet tall.
Photo of Grand Central station below:
http://en.wikipedia.org/wiki/Grand_Central_Station_(Chicago)
Oh, we got trouble! Right here in River City. With a capital T and that rhymes with P and that stands for Poor!
Thanks for the photo link, Dan#2. Being relatively new to this city- I came in 1987- I had no idea this lovely old building ever existed. What a tragedy for such a structure to be demolished just so a botch like River City can go up.
People say that Chicago has torn down more beautiful and architecturally significant buildings than most cities ever had. Given the quality of the wonderful old buildings that remain, I believe that. But, then, you could say the most of our old cities have demolished more beautiful buildings than we’ll most likely ever build again if our civilization lasts another 1000 years- which is pretty doubtful. I was perusing a blog named the Ruins of Detroit, and was just stupefied to see what has become of the city that was so lovely when I was a child in the early 60s.
If you passed away in St. Louis or Detroit, or Cleveland, or Cincinnati, or even Chicago or NYC, in 1950 and were resurrected today, you’d be horrified to see what has become of our cities. I asked my mother, could you have stood at the corner of Union & Delmar in St. Louis and freakin’ IMAGINE what it would look like 30 years hence? Well, she could imagine many improbable things that never came to pass, she said, but she could never imagined how utterly destroyed it would be….or that there would be almost no heavy industry left in the country.
What a long, strange trip we took.
When I said pretty penny I was thinking $50 million or so. I remember being shocked at how much somebody paid for that lot and it was after the bubble burst.
If the land is worth $50 million I think it is a close call what to do with the property. River City has about 450 units. At an average of $150,000 is $67.5 million. But at $100,000 it is $45 million. Yes, this does not include the retail space. But you look at the sales over the last couple years and a majority are in the $60,000 range. There are studios in this building as well.
Given the fact the property is 30 years old with numerous maintenance issues, reportedly is full of deadbeats, and given the low ceiling and hideous design, I’m not convinced this property isn’t worth more for the raw land it sits on.
” Sabrina (September 4, 2012, 10:37 pm)
You can probably find out more about it on other sites that cover new construction like YoChicago.”
Come on now this is getting out of hand,
Joey Z giving you a sincere comment and a nice one at that. and now you directing traffic over to him. its just too much for me to take in within one day.
“What a tragedy for such a structure to be demolished just so a botch like River City can go up.”
I costs a lot of money to maintain an unused structure like that. Take a look at what Allstate decided to demolish recently…
http://www.chicagobusiness.com/article/20120317/ISSUE01/303179981/total-wreck-allstate-opts-to-raze-vacated-suburban-building
“I costs a lot of money to maintain an unused structure like that”
also you can save a huge amount in property taxes if its just land and no structure it. many bank owned comericial properties have been getting demolished for this very reason.
I have a buddy who is working like crazy in the chicago land area that the company he works for is a demolition and hauling company. they did that comercial building on touhy between the wendys and lincolnwood mall. also just did one in warrenville.
from what i am hearing they want to pass a law that closes this loop hole so you dont end up seeing a bunch of vacant land like in englewood or dare i say it, detroit
“from what i am hearing they want to pass a law that closes this loop hole so you dont end up seeing a bunch of vacant land like in englewood or dare i say it, detroit”
How would that work? They going to give tax credits for boarding up and monitoring the places?
It’s not a loophole to say that a usable structure (usually) has more value than the dirt it sits on. And even saying that you can zero out the building value under certain circumstances doesn’t eliminate the maintenance costs.
“How would that work? They going to give tax credits for boarding up and monitoring the places?”
probably why its not in place yet, cant see a good strategy to keep structures up.
“It’s not a loophole”
correct, couldnt think of a better word sorry. But with the way its looking form stuff in the pipe lines banks and larger businesses are using it like its a loophole.
but you would really have to do a deep analysis so see if the the tax dollars lost will be offset by the jobs created to build a new structure if/when things get better.
btw what the word on the motorola building in the burbs? any plans for that?
“How would that work? They going to give tax credits for boarding up and monitoring the places?”
I think South Barrington was proposing tax free status on the Allstate property until a tenant was found.
[Laura Louzader] “I had no idea this lovely old building ever existed. What a tragedy for such a structure to be demolished just so a botch like River City can go up.”
It was demolished by its railroad ownership out of real estate speculation, not so River City specifically could take its place (which by the way, the part of RC that got built is South of the old terminal)
Regardless of what you think, River City is an architectural treasure and for people to be so short sighted as to call for the demolition of such a structure while mourning the loss of another (which was once deemed ugly, falling apart, obsolete) is the true tragedy… history will forever repeat itself I suppose.
River city, prentice hospital, and those senior CHA towers near Chinatown are absolute abominations and a disgusting architecture style that never aged well. Tear them all down and mark the history books as that architect was a fool.
Amen, Bob. They were novelties, not serious buildings. Of course Goldberg had all the anti-Western “critics” in his corner. Perhaps the only uglier and more hideous buildings in the USA are those by Libeskind, another darling of those that lack a sense of aesthetics, harmony, beauty, etc.
[helmethofer] “Perhaps the only uglier and more hideous buildings in the USA are those by Libeskind, another darling of those that lack a sense of aesthetics, harmony, beauty, etc.”
Way to show how uneducated you are in matters of architecture and design. NO ONE likes Libeskind, he is the whipping boy of architects the world over. To compare the two is foolish.
“To compare the two is foolish.”
You do realize that the only relevant thing for tehHof is that they’re both jews, right?
Helmet loves Lowenberg buildings too I’m sure