Developer Cuts Prices Again on South Loop Townhouses: 2301 S. Wabash
We last chattered in November 2008 about the developer slashing prices on 3 remaining townhouses at The Wabash Club at 2301 S. Wabash in the South Loop.
At the time, the price cuts were $100,000 to $175,000 and the listing said, “Unbelieveable opportunity* These final units are priced well below prior sales in the complex. Instant equity!”
See our chatter about the location and the price cuts here.
The 3 units are still available and the developer has cut prices another $30,000.
The listing now says it’s a $150,000 to $200,000 price reduction but it’s still an “unbelieveable opportunity” and you’ll have “instant equity.”
Here’s the history again:
2301 S. Wabash: 2 bedrooms, 2 baths, 2035 square feet
- Was listed in November 2008 for $374,900
- Reduced
- Currently listed at $349,900
- Assessments are $168 a month
- Taxes are “new”
- Bear Kaufman Realty still has the listing. See more pictures here.
This particular property is a great topic.
My fiance and I looked at this property 2 weeks ago for a rental, were so taken aback by the value we seriously considered buying (a couple of current owners want out), but ultimately walked away.
I have been quite critical of the South Loop, however this property is endemic of none of my issues with the area. The unit is very large for a 2/2, sensible in it’s layout and provides mature families as neighbors.
The problem?
You are less than half a block away from one of the largest open air drug markets in the city. The housing project @ 2200 S. State to roughly 2500 S. State is massive, scary and going nowhere!
If it were not a part of the equation (though it very much is the equation), the property would be looking at a $550-$600k+ ask, as it’s location is exactly the same distance from the loop as living at Fullerton and Lincoln Park West.
Anyone know of any pending plans for that CHA property?
google maps really showcases the beautiful view of empty lots and urban decay.
I’m guessing $275K for the win
“You are less than half a block away from one of the largest open air drug markets in the city. The housing project @ 2200 S. State to roughly 2500 S. State is massive, scary and going nowhere!”
But it doesn’t matter since they are not making any more land. Real estate always goes up. ALWAYS.
You forgot to mention that accross the street there is a large vacant full of semi-trailers.
I remember driving past the PJ’s there at 22nd and state on the 4th of July, I don’t remember why, but I think we were trying to get on the interstate, and there were about 10 people out front shooting handguns into the air. We got the fook outta there so fast, we just busted a U turn right in the middle of the street.
Scary area that’s for sure, I certainly wouldn’t want to be anywhere near that place, especially for that price.
sarte
if your answer to every dubious listing in the Chicago-area is, “they are not making anymore land (I see you own Superman Returns on blueray)”, why no invest all that precious money in Calcutta garbage dumps? I mean even if nobody does a thing, the simple process of erosion will allow nitrogenous soils to take that land back.
I am looking at the space as a place to live, not invest. While real estate investment is a fine, consistent money-maker over the long haul, if it were full-proof (or fool-proof) housing would not be going through a (industry-term) correction.
When people start looking at homes as a place to live, the market will find it’s natural pricing levels and we can start the long road back.
Investing in Citi at $14 a share looked great in late-August, how about now?
http://finance.google.com/finance?q=NYSE%3AC
“You are less than half a block away from one of the largest open air drug markets in the city. ”
Cool. Developer should ask some of the dealers if they are looking for a new crib.
The 2008 AV indicates a tax bill of $5400 without exemptions.
thx – This is approx 1 mile closer to the Loop than Fullerton/LPW. South blocks do not start out at the typical 8 per mile. Roosevelt (1200S) is 1 mile south of Madison, Cermak (2200S) is 2 miles, 31st St is 3 miles. The typical 8 blocks per mile resumes at 39th St to the city limits.
“Anyone know of any pending plans for that CHA property?”
Sounds like they are reducing the public housing by 2/3s. See this article from this week:
http://chicagojournal.com/main.asp?SectionID=1&SubSectionID=60&ArticleID=6875&TM=38753.02
Citi? I had to disagree back in August. Investing in SKF looked great back then.
G, interesting fact. i wonder why that is.
If that article is true about the projects closing or being drastically reduced I think this property could actually be a good deal. I know, better print this out and save it for future reference as Bob is bullish on this one.
Its within what I call the commuter rectangle: N of the I55, S of 290, east of I90/94. If you have a job that requires commuting to the burbs (especially one that can change burbs like meeting with clients, consulting, etc) the commuter rectangle is the place to be.
Bob:
It’s consistent with the CHA plan for transformation, available at thecha.org. The timing sometimes gets off-track by a year or two, and the change in administration might (I don’t think it will, but …) slow or stop the changes, but given the proximity to the Loop, McCormick, and the prospective Olympic Village, I expect this one to only change to include *less* public housing (quite possibly with the excuse/explanation that the market-rate marker is soo soft that there isn’t the funding to re-build what was torn down–expect to hear this more than a few times).
thx_bi-owner: You might want to consider a new RE agent if they suggested that this property would be worth 600K+ if it weren’t for the Section 8 Drug ring. Even if it is equidistant to the Loop as LP, in LP you have scenery, a park, tree lined roads, restaurants, bars, etc. This area has abandonded factories, semi trailer parking, chain linked fences, trash everywhere, etc. absolutely no comparison, in my humble opinion. Not to mention there are current owners already trying to get the F out of dodge.
Half a block from the largest open-air drug market in the city? Talk about convenience! I don’t think Streeterville has such a great amenity!
Also, thx_bi-owner? You might want to adjust your sarcasm-o-meter.
This area is a shithole and will be for the next 10 years minimum (and thats if we DIDNT have a housing/development recession).
You’ll have to stay here for at least 20 years to see what they’re “promising” for the neighborhood.
I am with Bob on this one, those projects are going to be leveled.
Thanks for the tip G, ChiGuy and anon.
A few thoughts:
The housing project I mentioned is the ONLY thing standing in the way of this area becoming Lincoln Park in a matter of 7-10 years. I believe developers have realized the mistakes made in South Loop and will build more family-oriented dwellings for the surrounding area, much like the development at 35th & State. the removal of the housing project is not as easily solved as it seems, just look at how long the efforts to clean up Howard Street is taking at the Evanston/Rogers Park border.
Any realtor that told me the place would be worth $600k would have been slapped, not fired! I then would have used chloro to knock them out, strip them, glue tootsie rolls and $100 bills to them and dropped them off, naked, at said housing project. I was merely attempting to compare/contrast similar pricing for a unit at Fullerton (though now I see I should have said perhaps Armitage).
Lastly, SKF? Brilliant call! The point was to illustrate a blue chip stock (Citi), trading at about 20-25% normal level, that now trades at $3, which would have (and I am sure did) washed more than a few fortunes away, forever. But damn, SKF looks nice today.
post script: are we all still under the belief Chicago will get the Olympics? I thought Blago blew the thin shot we had, as the Salt Lake Olympic scandal in the not too distant past.
I certainly hope we do get the Games because our transpo system needs a MAJOR upgrade.
Thanks all
No thanks. CHA tried the whole integration thing in Bronzeville 2 years ago and we saw what happened. Home invasions went through the roof within weeks of closings. Of course the City and the developers kept quiet about it to not discourage would be homebuyers. The south south loop may be a littler cheaper than north of Roosevelt however what you save in mortgage you make up in Home insurance premiums, higher car insurance and extra security for your home and a complete lack of convenience. At least if you live farther north, you have lots more amenities within walking distance and no armed bodyguard is needed. At that price, I don’t see any incentive to moving next to the projects when for that exact same 350-400k price range, I can find a distressed unit in a better area. Just yesterday, I found a bank owned 2BD/2BA in good shape (apparently) for 290 on the Gold Coast. That developer needs to slash that price down by a good 25% if he wants people to even consider living in that aweful area.
thx_bi-owner: The housing project I mentioned is the ONLY thing standing in the way of this area becoming Lincoln Park in a matter of 7-10 years.
We’re in a recession, December numbers came out, lowest since 1959. Do you really think this place is going to be developed right now until we’re out of this? It is not going to START for minimum 5 years. South loop is way over stocked. I know you’re probably invested here, but take your blinders off. The area sucks.
Forget one thing.
There is a long time lag between the announcement of tearing down a housing project and the development and revitalization of an area.
While the terror associated with Cabrini Green is largely gone, the buildings and surrounding area, while great from an investment perspective, are still doing their best Elton John impression.
http://www.youtube.com/watch?v=6lK-0wfHutk
Just saying.
land must’ve been pretty cheap and the finishes look very very cheap as well. seems that the developers would’ve loved to have sold them at 400K+ but may still be profitable at 350K. I wonder what their break-even point is? Seems like they’ll be heading there… and then lower.
Also, LOL at “instant equity”. If that were the case, the developers wouldn’t be selling it at that price. Like I’ve said numerous times, all Chicago-land prices are going down, but condos (esp ones in poor locations) will drop even more precipitously.
thx_bi-owner ,
you must be new here :-), I think I should have put a tag, although I though it was obvious from my post.
Re: Olympics–I wasn’t saying we’d get eth Olympics, just that the City will use that as another excuse to tear down the Ickes homes w/o necessarily re-building anything.
re: Howard Street problems–It’s a lot harder to clean it up when the proeprties are NOT owned by a government entity. To clean up Howard would require some 50s-style slum clearance which isn’t going to happen anytime soon b/c of political realities AND the lack of money to buy soooo many privately-held properties. And getting them disqualified, en masse, as Section 8 options would be a political football no one wants right now.
re: Timeline for this being a decent area–if the Olympics come (I currently expect Ze to be paying for them rather than us–but if the global financial crisis gets meaningfully worse, they’ll likely pick the “safe bet” of USA-based games), then this area will be quickly cleaned up (i.e., less than 5 years–but it will be a construction zone the whole time). If not, I think 10 years is pretty optimistic.
The problem with the south loop and further south is that…well…it’s the south side. That stigma will never be washed away as long as the poorest sections of our city remain on the south (and west) sides. There’s a premium to be paid to live as far away from crime as possible, with buffer and distance between the good areas and the crime ridden areas. It doesn’t matter if it’s the Gold Coast, Glencoe or Hinsdale, which all conveniently, don’t border ghetto crime infested toxic wastelands like much of the south side. Beverly could have been as nice and expensive Ravenswood, except, that Beverly is on the southside. It’s just the way things are, IMHO.
“the Gold Coast … which .. conveniently, do[es]n’t border ghetto crime infested toxic wastelands”
Depended on where you drew the lines. Cabrini was, quite recently, a ghetto crime infested toxic wasteland on the doorstep of the GC. I haven’t been in a while, but the Jewel was a study in stark, stark contrasts.
S.Loop will never be LP. it took LP 100+ years to get the “charm” it has now. S.Loop will not get that charm in the next 50 years. A few less Church’s Chicken/KFCs/payday loan places, yes, but not charm
Sorry but the South loop will never ever be like LP. EVER.
I’m sorry. I grew up in Lincoln Park during the late 70’s to early 90’s, right at Sheridan and Briar. While I never-ever-ever felt unsafe as a child, the area has VASTLY improved from the condition it was in at the time.
I remember the lakefront was not safe after dark. I recall (albieit minor) gangfights on the playground of my grammar school Nettelhorst (Broadway & Melrose). I know none of my friends ever ventured west of Sheffield to play or visit anyone. I recall foolish people committing hate crimes against the growing LBGT community at night along Broadway. I recall the area north of Addison was “shaky groung” and, past Irving Park, none I knew cared to be our groups Magellan.
That was less than 30 years ago, not during the times of Jane Addams, Anton Cermack and Al Capone.
What it took was enough tax-paying property owners to say ENOUGH! Lincoln park had the advantage of having stable property ownership. South Loop’s residents all seem to be there for the moment. The neighborhood seems planned as a kind of jumping off point to owning a home in the city. For, as so many people has elucidated, why else would you live there when you can find equal value (if not better) elsewhere in this fantastic city.
I just don’t see any outrage from the residents. Discomfort, yes. Unease, yes. but OUTRAGE, the kind that propelled the city to act, the kind that encouraged the electorate to put Bernie Stone in Aldermanic office, the kind that made clear to the gangs that they needed to find a new place to play other than Lincoln park, I do not see.
Bi-owner- I think you are right on this one but you have to remember the mentality of criminals back then. Gangs are much bolder these days. They don’t mind dealing right under city cameras and won’t think twice at shooting back at the police. If they are that disrespectful towards law enforcement, there is no saying what they would do to a homeowner, trying to protect his hard earned property. Given the current state of the economy, their crime rate must be increasing by quite a bit. Also, developers are too greedy. A few years ago if you were willing to buy in an up and coming area, you got $100/sq ft, a couple of plasmas, top notch appliances etc as an incentive to live in that area until it becomes decent. To each its own but I would rather take my 349, live in a smaller unit with the same cheesy finishes, to LP or GC. It would be interesting to speak to someone that has lived in the area. I just did a search in 60616 for 350-400 and there are a shocking amount of units on the market, given how cheap they are. Maybe the homeowners have given up that outrage and moved back north. Even the development on 19th and clark/indiana has alot of units for sale and they are directly across from a police station.
“Sheridan and Briar”
Lakeview, dude. But your point remains. Especially “past Irving Park”, as that was still quite undesireable 10 years ago.
That said, I think there is some talking past each other here. No matter how nice a nabe the South Loop may become, it just won’t be like LP, because there isn’t the same sort of existing housing stock there. At it’s pinnacle it could become an amalgam of the west loop, streetville, gold coast while remaining something different. It’s not fair to the south loop to expect it to be like LP–it doesn’t have the bones to be–It’s like comparing the UES and SoHo (or whatever–take your pick) in NYC–they might be equally desireable, but they are very different nabes.
biowner: not to split hairs but i’m pretty sure Briar at Sheridan is considered Lakeview. You also mention Addison/Irving Park/Boystown, none of which are LP.
Especially “past Irving Park”, as that was still quite undesireable 10 years ago.
Past Irving park is Uptown, and its still undesireable today.
Split away folks (hairs).
it’s the splits that send us to the barber/salon to get cleaned up, thus helping kick-start the economy :0)
So here is my defense.
At that time…..
Distinctions that are now so absolutely clear were not in place. Nobody, outside of the real estate industry, referred to my neighborhood as “Lakeview”, especially since it was south of Belmont. The word “Lakeview” was tied, at the time, to an awful, dangerous high school at Irving Park and Ashland, that just as well could have been the moon to any of us.
Boystown was, literally, unheard of outside of small trendy cliques until the mid-1990’s and all of said neighborhoods where, and are, in walking distance, therefore able to impact the quality of life in my “Lincoln Park”.
Don’t get me wrong, I loved my upbringing there and feel sorry for the current generation, as there is no neighborhood that is as diverse (real diversity, not 80+4+3+5.5+1.5+2+2+2% you get my meaning) economically, racially, corporately, as well being the only neighborhood in the city to treat those with differing sexual orientation like what they are, human beings.
There was a lot wrong with the place then, but much more right. It took an uproar from the property owners to force the realization of it’s potential.
So my apologies on meshing everything together, I chose to write as I remembered, not with the clarity time has given me.
Stay classy San Deigo.
bi-owner: Do you employ BHO’s speech writer?
“it’s the splits that send us to the barber/salon to get cleaned up, thus helping kick-start the economy”
*Past Irving park is Uptown, and its still undesireable today.*
just wait until we get rid of our alderman. The outrage that b-owner speaks of has begun!
I actually like the South Loop and think that the area isn’t that bad. Still needs some development and is dead at night but good resources, grocery stores, etc.
Unfortunately, my definition of the South Loop is limited to the Lake to State and then about three blocks north and south of Roosevelt (but I give convenience credit to the Whole Foods/Target/Dominicks/Best Buy that are just west on Roosevelt).
When you get any further south than that it turns very sketchy very very fast. This is definitely an area that has a huge drop off in quality in about two blocks.
“just wait until we get rid of our alderman. The outrage that b-owner speaks of has begun!”
It will take at least 10 years to remove all the damage that Shiller has done to your neighborhood. Good luck!
Oh and kp you are correct, anything south of 18th st. is getting pretty shady.
G, that one-mile rule also applied on the north side between madison and division.
1200 N to 0 N/S is 1 mile.
0 N/S to 1200 S is 1 mile.
1200 S to 2200 S is 1 mile.
2200 S to 3100 S is 1 mile.
Just figured I’d fill in that one gap in what is otherwise information that many/most people do not know.
“1200 N to 0 N/S is 1 mile.”
Where, exactly, is the bend in space that makes this true? Use any mapping site you like, Chicago Avenue is 1 mile from Madison.
Lauren, I was there before the police station on 18th street. Until the late 90s (1998/1999) you could walk out on your porch and hear shootings. I had access to copmuterized police information back in those days, and there were dozens of bona fide shootings at 2030 S. State and 2031 S. Clark (the two curved high rise buildings). Those two buildings were supposed to be senior buildings.
Subsequently the two buildings were emptied out and redeveloped. Almost nothing happens there anymore.
The problems since 2000 have been only with the low rises south of Cermak, including the problem with dealers in those particular jets selling chemically enhanced H a few years ago that killed numerous junkies.
From a safety perspective, the borders of the police districts over there were changed when around the time the station opened up on 18th street. Before then, the 1st district on 11th street only went up to the viaduct between 15th and 16th. Afterwards, the 1st district goes up to, I think, Cermak now. So the area of the near south side between the viaduct and cermak is in the 1st district now, and the 1st district station is right on the south end of the neighborhood at 18th street. The mass transit and traffic units for the whole city are also based there on 18th street.
Biggest problems in the neighboroods historically were the public housing and the Pacific Gardens mission. Pacific Gardens is over the river now, and the public housing problem was partially abated when they cleaned up the senior buildings. If they ever do anything to clean up those low rises south of cermak there ain’t much left in terms of negatives in the neighborhood.
–Where, exactly, is the bend in space that makes this true? Use any mapping site you like, Chicago Avenue is 1 mile from Madison.–
I take it back. When I was told it two years ago I verified it on the internet without the use of a map. But you are right, and its clear as day on the satellite view of Google maps.
So scratch what I said about 1 mile from Madison to Division! Sorry folks.
“2030 S. State and 2031 S. Clark (the two curved high rise buildings). Those two buildings were supposed to be senior buildings.”
Only the round buildings were senior buildings, the curved balcony access ones were family housing, hence the problems.
Either way, they closed those buildings and emptied em out for awhile somewhere around 1999 or 2000 (when the developments and police station to the north opened), and crime dropped through the floor.
On the south end there are very few problems north of Cermak now, and my guess is that north of the Lake Shore Drive extension around 25th or 26th streets is all going to be within a sheltered zone sometime in the next decade.
For perspective of what has happened to the south, people should know that Taylor and Taylor extension closed. Lake Park closed. Those buildings at 26th or 27th or 28th or whatever closed. I don’t remember if anything has happened at Ida Wells.
What I’m absolutely sure of is that the 2nd police district at 51st street and the 21st police district at 29th street are both WAY quieter than they ever were in the 90s or prior. There has been almost zero negative movement between downtown, Garfield and the lake and the Dan Ryan in more than 10 years. All movement has been towards movign public housing out, redeveloping, and moving thousands and thousands of people with jobs in. There has also been huge development of land in the north part of China town and the area south of China town in Bridgeport etc.
I guess its fair game to point out that there are still a few issues in the area, but to focus on the few remaining projects seems insane to those of us who remember when almost the entire area up to Garfield was in the hood.
Does anyone know the latest status around the wabash club area? Last time I drove by state street, looks like some of the project has been closed.
And there are quite a few of these townhomes listed for sale and on the foreclosure market too.
Does anybody know how safe it is in 18th and Michigan?
I saw two big old buildings 2 blocks south of it, seem to be some kind of low income apartment building instead of housing projects?
I have kids, so want to to stay far away from any potential “bad” areas as much as possible.
I know the east side(prairie) and a bit north (14th) are pretty safe areas but not sure about this area.
There are now short sales for the Wabash Club–MLS 07410823 shows a 2/2 at 2321 S Wabash listed for 310k.
Short sales continue to pop up:
2321 S Wabash Unit 12 for 300k (same as mentioned in previous message).
2303 S Wabash Unit ??? for 285k.
And one that doesn’t appear a to be a short sale:
2323 S Wabash Unit 7 for 325k (impressive PPSF of $143 if true).
(owner paid 540k in 2007 and spent 25k on upgrades, I know not to anchor to prior prices paid but this one seems like a deal to me)
In other good news for the area the remaining Ickes homes are going soon:
http://trueslant.com/megancottrell/2010/02/10/cha-moves-to-finish-off-harold-ickes-homes/