Design Your Own Townhouse in the Sky: 33 W. Ontario in River North
When you think of townhouse living, you usually think of a quiet block with leafy trees. But in a few high rise buildings downtown, you can actually live in a townhouse, and still get the views.
Such is the case with this unfinished tri-level townhouse space at 33 W. Ontario in River North. It has a private elevator to the garage as well as a solarium and a city terrace.
Who has the vision to buy the raw space and build a dream home?
Lindsey Delrahim at Jameson has the listing. See the listing, more pictures and a virtual tour here.
Unit #TH3: 4200 square feet, tri-level
- Sold in July 2007 for $1,050,000
- Currently listed for $1,099,000 (2 parking spaces included)
- Assessments of $1704 a month
- Taxes are “new”
I like the glass roofy thing. Reminds me of Paris except this one has depressing views… Still always an advantage for me to take a place completely undone.
Invsco Tragedy. Not only is the building plagued with foreclosures and short sales but there is a huge law suit with the developer over the water cooler.
Even if I had the money to buy this place, I would be . This building is REO city thanks to American Invsco. How would financing work on raw space? (Especially in a building with so many foreclosures)
*wouldn’t*
“How would financing work on raw space?”
At that price, in this market? Your next post is the answer, lauren.
Lauren – if i were buying it i would talk to my local bank, and they would set up a construction loan. they require 20% down payment of the total amount involved (purchase price plus renovation costs and interest/tax/assessment carry). I would submit a budget that they’d have to approve. They’d appraise value “as is” and then “as complete”. And they’d make sure i would qualify to finance it at the “as completed” value.
I would never try to use convetional financing using a mortgage broker on this – would be very difficult is my guess. I’d go directly to my local bank.
Local banks weren’t involved in the anywere near the level of idiocy as the big banks and they still willing to do loans like this – if the numbers make sense and the buyer is qualified!!!!!!!
bb:
I doubt there is a bank dumb enough to 80% finance a ~$1.5mm+ construction loan in this building at this time. Maybe if the fees and interest were high enough, or you pledged additional assets (as would have been required 10 years ago), or if you had a *lot* of restricted cash (i.e., CDs) in the bank that they could setoff against.
Ze, I’m surprised you can’t see past the bad view and instead imagine the growing possibilities upstairs. You’d be a favorite neighbor!
Love the idea of getting a raw space like that and that atrium window wall is great, but it appears to be on too low a floor for a decent view.
I’d leave it like it is, and put some lawn chairs in that sun room and wear a beer helmet.
And a cot on the 2nd floor maybe.
Its a new style called minimalist
“I’d leave it like it is”
Don’t forget the port-a-potty on the terrace. And a beer fridge.
Wicker.. SWEET!!! I’m moving back to CHI town!! Now to call Dr. Chronic and order me some seeds 🙂
anon – i wouldn’t recommend you spend 1.5 million (purchase + renov) on this place. I would think you would want to buy it cheap enough that you’d be guaranteed to have “instant equity” when done with the project. but like i said – the bank would have to agree with your numbers before they’d loan u the money, and in this market i think that means you’d have to get it at a substnatial discount to the current asking price.
My bank will require 20% down payment if i am going to live in the unit. they want higher down payment if i’m not going to live in the unit.
bubble & anon:
I recently dug into financing to try to pick up a 6 unit building entering foreclosure, where the previous developer had gutted the place and then ran out of money. In that case (where I was going to go for a ‘story’ loan) I was looking at roughly .4(purchase + construction) down payment.
If you could get this for the right price, it could be an awsome place. Someone who has a good interior designer is going to turn this into a gold mine down the road. Some of these banks are so desperate. Throw an offer, see if they take it. Either way, I think this can be turned into something spectacular.
However, I would consider the lawnchair thing anon mentioned! But can you make a twist? I was thinking a metal spring bed, without the mattress on one of the floors. You can call it the “guest room” lol.
thanks wicker – was that a local bank? was interest prime plus 1?
.4 seems right for a multi-family. were u planning to rent it out or convert (yikes!)?
Yeah, they’re converting the “47th” floor at 200 N. Dearborn as well when everything is finished. I’m sure they’ll do the same they’re doing here, sell the raw space. Right now it is storage/maintenance workspace.
Anybody know if this was planned to be sold as raw space, or did somebody give up and walk away.
“they’re converting the “47th” floor at 200 N. Dearborn as well”
But this is one of several townhouses on top of the parking garage, no?
“I would think you would want to buy it cheap enough that you’d be guaranteed to have “instant equity” when done with the project”
Figuring +/-$400k to do the buildout right, how little do you think you’d have to pay for the space to get that *guaranteed* equity? Keeping in mind that the association is likely headed for trouble with foreclosures. I don’t know that I’d say 50% off ask is cheap enough.
bubble: Actually checked with a local (Midwest), Bank of America, and then phoned a commercial real estate broker friend, as well as a mortgage broker friend for leads & advice. BofA wasn’t interested, Midwest and the commercial lenders the other two got me in touch with all hit same range of 40%.
I was looking at going for rental. A different friend is a general contractor, so his company would source materials and perform work.
I did think of the idea of trying to complete a renovation and then sell as condos, but only if I could make the numbers work at 60% of the lowest comparable close. I figured if I could turn a profit while massively undercutting the rest of the market I’d be happy, but with 6 units near a college holding a long term multi-unit that I could self finance monthly if needed seemed also like a good second job.
In the end, I did nothing as I am gun shy on entering a real estate partnership. Solo I’d be willing to risk my capital, but not with the added headache of partners.
Oh and speaking of buildouts… a recommendation.. keep the hell away from epoxy grout.. stuff is ruining my damn buzz.
I am currently renting in Museum Park Tower 4. I pay 1650 that includes parking, water, heat, internet and soon to be cable. Is this a good deal? I ask because I am looking to rent somewhere else if I can find a better deal in a building with more modern features.
Or where can I find out about rentals in highrise buildings? Thanks for the help
I figured someone would have to use a construction loan. However since construction loans are based on property values and equity after renovation, would a bank even approve a construction loan for any American Invsco building….
the only people who are going to be able to get a construction loan on this unit right now are the kind of poeple that don’t need to borrow to buy it anyway. a buyer might borrow anyway but no bank is going to lend without making sure they have the assets to pay it off. i agree with the poster above – you are going to have to pledge assets and/or have big bucks in the lending bank already.
and ze watch out for epoxy grout. a lot of it has uv problems and turns colors/yellows rapidly and then your stuck with it. good luck 😛