$65k Price Reduction for Printers Row Loft: 531 S. Plymouth
I first chatttered about this brick loft in The Mergenthaler Lofts, at 531 S. Plymouth, in Printers Row in February 2008.
It’s a 1300 square foot one bedroom, one bath authentic brick and timber loft with a parking space. I don’t think there’s a washer/dryer in the unit.
I chattered about it again in March 2008 after it was reduced.
It’s been reduced again.
In March, many of you believed it wasn’t worth anything more than what it sold for in 2003. Your predictions may turn out to be true.
Unit #502: 1 bedroom, 1 bath, 1300 square feet, corner unit
- Sold in April 2003 for $279,000
- Was listed in February 2008 for $364,900 (parking included)
- Reduced
- Was listed in March 2008 for $349,000 (parking included)
- Reduced
- Now listed for $299,000 (parking included)
- Assessments of $498 a month
- Century 21 S.G.R. has the listing
This place is pretty sweet for 300k! Can anyone give me a loan? 😀
I’d be surprised if this doesn’t sell quickly.
300k is still a little expensive for Printers Row. What are the taxes? Assessments are a little high also, I dont imagine that building has a pool, gym, etc etc.
Ever been in Printers Row after 6? Homeless central, really kind of a dumpy area.
I’m not surprised this didn’t go for anywhere near the 349K asking. The kitchen and bathrooms would need some serious work. (mirror on the shower wall???)
I’d curious to see if the large drop that aligns a bit better with reality spurs any offers. I still don’t think this is much a “deal” given the high assessments and declining south loop market.
Is that a true 1 bedroom with a window or a kinda-sorta-closet-like 1 bedroom? If it is the latter, I would call it a junior 1 bedroom. If it is a real 1 bedroom, this is a good deal if you like the neighborhood (after dark…)
$300,000 for a one bedroom is a lot in any neighborhood. In the rapidly declining south loop (Printer’s Row is pretty close) it’s absolutely crazy. $279,000 is getting within the ballpark, but I’d still try to talk it down from there.
Regarding the loan for $300,000 I can imagine most banks now wanting at least 10% down for a loan like this. Is this place still a good deal if the buyer has to cough up $30,000 plus closing costs right up front?
Yeah, it’s a bit of a shame for this seller. If he/she had priced it at this level a few months ago, I suspect it would have sold quickly. But now? The South Loop really seems to be in freefall–I think under $200 sq. ft. is more like it at this point.
I love Printer’s Row. I’ve decided not to upgrade my place for another year at this point, but once I do, Printer’s Row is my top choice. There are some gorgeous, unique, true lofts out there, like this one.
The neighborhood is in transition I think — the homeless mission that was on State St. has moved (over towards Chinatown I think?) so that helps with the vagrant population. I think it will continue to improve as those newer buildings come on line (IF they come on line.)
I’m not sure how you are getting junior 1 bedroom when it is 1300 sq. feet. Maybe the bedroom is small for 1300 but that does look like a king bed.
I like the window. =)
I think the listing price is fair for 1300 sq. ft in that area.
Pete, what does putting down the “required” down payment have to do with the condo being a good deal or not? I don’t understand your point. If the property is a good deal at
oops… got cut off.
If the property is a good deal at under $280K after negotations, then what does putting the required 10% down have to do with anything?
If you can’t come up with the 10% required for a $300K condo, you shouldn’t be buying a $300K condo.
Find a new lender that requires less or pay closer to list and ask the seller to give $30K back at closing. Really though, if you can’t muster up 10%, you should not be buying.
But Jim, that’s the very point. In a tighter credit market, fewer people can “afford” a $300K condo; fewer can get the loans. And yes, such people “shouldn’t” be buying such condos. But the question was about the viability of the asking price. If your pool of potential buyers has just shrunk because they can (appropriately) no longer get loans, it means there is more competition for the fewer buyers out there, and your price will therefore have to come down relative to what you could have charged before.
I’ve always like this place. Here is some interesting reading.
http://finance.yahoo.com/tech-ticker/article/19186/Why-It's-a-Bad-Time-to-Buy-a-House-High-'Real'-Mortgage-Rates-Record-Inventories?tickers=XLB,WM,COF,CFC,FNM,FRE
Kenworthey… your point is understood and well taken. I just find Pete’s response a little off because if the buyer negotiates a good deal on the condo (whether it’s $250K or $300K), then why would paying the 10% down all of sudden make it not a good deal.
I’ll second what westloop said, a big part of the bum population was related to the Pacific Garden Mission which was now gentrified out of the neighborhood to a no-man’s industrial area near Roosevelt/Canal.
I would guess the assessment is high because of collective heating costs. I remember an amenity-less 2 bedroom loft condo at 20 N. State having assessments of over $700/month (making the selling price deceivingly low), and it was due to heating. Exposed brick walls with tons of cubic space? It’s a climate control nightmare. And in the current energy market, maybe the poor wretches who somehow survive with !gasp! ceiling heights under 9 feet will prove to be a little less stupid than thought.
If the seller could just relocate this condo to Manhattan…. $1.1M?
I didn’t say a downpayment would make it a bad deal. It would actually be a better deal in the end. I said it would make a home unaffordable for a lot of potential buyers. Putting up $300,000 of the bank’s money is a lot easier than putting up $30,000 of your own (if you don’t have it saved already). This requirement will knock many buyers out of the market, for sure.
Pete and Kenworthey are right about it (as usual.) The pool of potential buyers has shrunk drastically. Why else has sales volume fallen off a cliff?
Jim on May 23rd, 2008 at 12:53 pm
I think the listing price is fair for 1300 sq. ft in that area.
Pete, what does putting down the “required” down payment have to do with the condo being a good deal or not? I don’t understand your point. If the property is a good deal at
==============
Today, any downpayment is money lost. First, money in the pocket is a better investment now. Second, if you buy that loft now it will be worth less in the near future. That $30k is gone from you for 10-15 or more years. The South Loop RE market will have to have another historic bubble before you can get that money back. You better be in it for the LOOONG haul. Wife does not want to live in the City? Too bad. You want kids? Too bad. The bums keep kicking your back door in? Too bad. And that unit better not need anything for a while. If you put everything you got into a d.p. for that unit and then a special assessment pops–Goodbye!
Altho not covered as much here, other people, like myself, are more interested in SFR’s. And as anyome that follows that market would know those prices are pretty wild. High prices + un-updated homes + higher downpayments = major headaches. Cash in hand is very important to the SFR market.
Higher D.P.’s strip the buyer of savings for needed updates and unforeseen repairs. Higher D.P.’s will force asking prices way lower, due to the fact America’s savings rates are negative. First time buyers will have to keep saving and current owners with negative equity, and possibly short sales, will not be able to use their current residence as the d.p.
In the end, the banks requiring higher d.p.’s are a bullet train to the bottom of this market. I just wished they would tell the Greedy Sellers this…………
No, the Pacific Garden Mission was NOT moved to a “no man’s industrial area.” It was moved close to the East Pilsen area DESPITE neighborhood outcry by your bitch of a ex-alderperson (Haithcock) who pretty much ignored us AND our alderman, especially since it was far enough from the pretty people who are okay with dumping their own mess in other people’s backyards as long as they don’t have to see it. Anyway, it’s not incredibly bad. The facility is a lot better than the old one on State and there’s not nearly as much pan-handling and harassment around this location either. Just wanted to clear that little tidbit up.
Getting back on topic: the 531 Plymouth building is one of my absolute favorites in Printer’s Row but I agree with the posters here who stated that you really have to be into it for the long haul to live in a space like that. Plus the price seems to be a bit high considering how the buyer will probably put out a lot of money remodeling that godawful kitchen and bathroom.