Historic Old Town Triangle Conversion Struggles to Find Buyers
It seems that even some developers know that we are heading into the slow sales time of the year. Melrose Partners, which is rehabbing 334 W. Menomonee in Old Town with top of the line finishes has units for sale OR for rent in the 18 unit building.
It is a gorgeous renovation of a three story brick building into two bedroom, 1 bedroom and studio units on historic Menomonee. You rarely see new product in the heart of the Old Town Triangle. The developer is putting in top of the line finishes, including Waterworks faucets and sinks.
Slow sales could be the result of the higher price points. The larger corner two bedroom, two bath unit on the second floor, Unit #201, (see pictures above) is listed for $729,000. There is no parking available with the building (and we all know how nasty Old Town is to park- with or without the permits). The developer is offering to pay for a year’s parking at Piper’s Alley.
The larger 900+ square foot one bedrooms are selling for $499,000, a much higher price point than was recently asked at Crilly Court, the historic conversion a few blocks away that took place last year that bordered Wells, Crilly, Eugenie and St. Paul. For instance, the building has a studio listed at $279,000 whereas you could buy a one bedroom at Crilly Court (albeit only 700 square feet) for around the same price. The finishes at Crilly weren’t as luxurious but they weren’t horrible either.
Five of the units are currently available for rent, including Unit 201. You could buy #201 for $729,000 or you could rent it for only $3300.
The larger one bedrooms are available for rent at $2400 a month.
Renting one of these units would be a pretty good deal (even without the parking.) They are very classy units. Problem for this developer is, they’re trying to sell a really expensive product in a declining housing market. When it was “hot”- you might pay $500,000 for one bedroom in Old Town. But now?
Jennifer Ames of Coldwell Banker has the listings.
These are probably the most beautifuly finished condos I have ever been in. It is not fair to compare them to other condos, really they have finishes better than most hi end lincoln park homes.
I am not in the market for this sized unit, but if I were, I would not think twice about buying these units. I doubt anyone will go to the expense this developer did any time soon, and as you mention, there is practically no new construction in Old Town. In a market, where most condos are crap, this is definately a Must See.
NO PARKING! Numerous clients have expressed interest in them but the moment they realize that there isn’t parking, they don’t even care to see them.
No parking is definitely an issue. I think the price is more likely. Most of Crilly Court also had no parking but the price points were at least $100,000 or more cheaper (yes- the finishes weren’t quite as nice).
I understand that, in fact they are including a year of parking at Pipers Alley , as well as a 15 mo. membership at X-sport Fitness on North Avenue included in the price…Still haven’t seen anything like the finishes anywhere elsein the condo market.
The Crilly Court project was warmed over Home Depot, lowest common denomonitor finishes.
While I agree that the finishes are nicer at 334 Menomonee, I would still rather purchase a 2 bed 2 bath w/den at Crilly Court vs a 1 bed 1.5 bath at Menomonee for the same price. It just makes more sense financially. Sorry!!
They would have been better off with home depot finishes and let the buyers chose upgrades or put them in themselves. God thats expensive. And the parking isn’t much of a solution considering you have to walk 5 -6 blocks down North Park to get there, horrible. People would rather drive around for 20 mins before they settle with pipers alley.
It looks like there is little interest in purchasing these units. The only closed units remain the same:
9/10/2007 #101 $590,800 1390sf 2/2.1
9/10/2007 #107 $599,000 1270sf 1/2
9/10/2007 #301 $748,000 1445sf 2/2
9/11/2007 #302 $495,000 920sf 1/1.1
Unit #102 went under contract on 2/21/08. It is a 1400sf 2/2 that was originally listed for $640,000 lowered to $599,000 lowered to $549,000 raised to $649,000 then lowered to $629,000 when it went under contract. It will be very interesting to see what this sold for when (if) it closes. That makes four sales and one contract pending out of 18 units.
As Sabrina indicated back in October, renting did indeed appear to be a “good deal”, at least for the following tenants (although I don’t know how reliable the rental amounts are, since they are identical to the asking rents except where noted):
104 rented 11/30/2007 $1,995
105 rented 10/25/2007 $1,995
201 rented 10/17/2007 $3,400 (asking $3,500)
204 rented 10/25/2007 $2,400
303 rented 11/6/2007 $2,350
304 rented 10/29/2007 $2,600
The conversion does not appear to have been completed yet and it was the developer who rented out these units (based on the fact that all 14 of the unsold units were used as collateral for a loan as recently as 12/13/07.)
I think it might be most accurate to classify this as a rental building.
G,
Please keep us (and by us I mean me) updated on Unit 102. I was interested in it and would consider making an offer should the deal fall through.
Elliott, I am curious what price you were quoted when you were interested? There seems to have been many.
I was quoted $595K. I find it absurd that the developer would raise the cost to $629K after having the property sit for so long.
But isn’t $595k also absurd if the developer had lowered it at one point to $549k?
That means even $549k wasn’t a “low” enough price to move the unit.
These are pretty units right in the middle of the historic triangle. The problem with them is that they are simply overpriced. They’ve been on the market for over a year now. The problem is almost ALWAYS the price.
I also find it interesting that several months ago the developer finally hired a marketing team- Jennifer Ames’ team at Coldwell Banker. Her team is one of the top sales teams in the city.
Well- they have since parted ways without any units selling- though she DID bring people through the door with her better marketing (as I was there for one of the open houses when it was her team handling it and there were dozens of people coming and going.)
I have seen several Ames’ listings, including one I chattered about in 530 N. Lake Shore Drive, where it looks like she told the seller they would have to reduce the price for her to take the listing- after the listing had been sitting on the market for months with another agent.
Maybe she told this developer that as well?
I’m thinking the developer didn’t take kindly to that (or maybe that explains the price reductions on that unit- and after he parted ways with her- he raised all the prices again.)
The collateral loan out on the remaining 14 units is interesting. This developer also has unsold luxury units up on North Sheffield in LP. At some point you have to pay your contractors.
And on a separate point, why is the developer renting them now- when the spring selling season is just getting into full gear? (for the ones that haven’t rented yet.) Wouldn’t the developer want to do everything to just get rid of them in the next six months- before he’s left holding onto them for at least another year?
Getting renters in there does nothing to help the developer at this point, in my opinion. What’s a few thousand dollars a month?
Thanks for the info G.
I can’t imagine the bank doesn’t have some direction to give this developer, who must be close to the brink, no? Maybe they just said rent it out til the market improves. I guess their basis is lower than a would-be purchaser of a single unit, so maybe the cash flow, although wretched, isn’t quite as bad as it appears at first glance.
will be interesting to see how things shake out in some of these buildings. doesn’t look to good.
G,
Any word on whether 102 closed?
Thx.
Elliott: I don’t believe this closed. It is back on the market. Anyone know what happened?
Also, one of the studios was pending and is now also back on the market.
Sabrina, I appreciate the quick response. Hopefully it will be there a year from now as I just signed a lease at 600 N. Fairbanks and would love to buy that place if the price were right.
Just out of curiosity- what do you think is the “right price” compared to what they have it listed at right now? (which is around $599,000- though it was listed a few months ago for $549,000, I believe.) 10% below $549,000? 20% below?
And on your lease at 600 N.F.- were you able to negotiate? Everyone here who is looking to rent wants to know. ha!
I was given an initial quote of $569K @ Menomonee and if I was serious enough at the time I would have bit for around $520K.
As far as 600 N. Fairbanks goes, I got a 1BR for $1800 a month. I negotiated as hard as a could (initial rent was $1900 a month). The unit is on a lower floor with a view down ohio st. i thought the rent was decent as units a few floors up with similar views were around $2300-2400.
By the way, unit 102 never closed. It is re-active and listed for $599,000. Anyone know what happened? The unit got through attorney review and was a day or so away from closing….financing issues perhaps?
Thanks for the info Elliott. It’s interesting that they’re offering the unit on Menomonee for a lot more now than what the “price” was when you were looking at it.
I’ll be watching it to see what happens.
That’s a great rental price at 600 N. Fairbanks. That’s among the cheaper rents that I’ve heard. Good for you. It’s a great building to rent in.
Sabrina: “It’s interesting that they’re offering the unit on Menomonee for a lot more now than what the “price” was when you were looking at it.”
Its even more interesting that there is now a remark for agents viewing the mls listing for #102 that includes this: “HUGE PRICE REDUCTION.” Is it assumed that agents won’t even go so far as to look at the listing history for a property in the very same mls that they search for potential properties for their clients?
PS – I am renting on the first floor, which if you check the floorplans, puts my bedroom in the basement and below my own living space. This certainly mitigates much of the noise at bedtime, so if you’re a light sleeper I’d look at one of these units as they are relatively quiet.
PPSS – Someone asked about the reserve. I just called a neighbor who bought in the building and she indicated its very low. I think her assessment in total is $150 so I’d guess the reserve is very, very minimal.
I think Wally is right. If you’re planning to buy in this building, plan to outlay some cash after the association takes over management from the developer. The common areas are going to need some serious work after the renters, the carpeting will need to be pulled and replaced, etc. I think any future association should prepare for special assessments going in.
I went to see this building as a possible rent with option or, rent til I figure out what to do. There is no sign and the Melrose Partners website seems to be down, what’s the deal now?
Carol: I’m not having any trouble getting on the website.
Melrose Partners
I believe there is currently one unit listed for sale.
The much discussed #102 finally sold in Mar-12 for $420k:
https://www.redfin.com/IL/Chicago/334-W-Menomonee-St-60614/unit-102/home/26810241