$70K Price Cut on Vintage Lincoln Park 2-Bedroom: 1445 W. Belden
Sometimes, the price reductions can be death by a thousand cuts.
But in the case of this vintage 2-bedroom loft-like unit at 1445 W. Belden in Lincoln Park, it went for the “drama” price cut- reducing $70,000 in one swoop.
The unit has 15-foot ceilings, a renovated kitchen with Miele, Wolf and Subzero appliances, parking, central air but no in-unit washer/dryer. [Editor’s note: Apparently there IS a washer/dryer in the unit- but it was not originally included in the listing.]
Will the drama price reduction sell this unit?
Matt Garrison at Coldwell Banker has the listing. See more pictures here.
Unit #3K: 2 bedrooms, 2.5 baths, 1800 square feet
- Sold in November 2006 for $465,700
- Originally listed in January 2009 for $589,000
- Reduced in March 2009 to $519,900
- Currently still listed at $519,900 (parking included)
- Assessments of $399 a month
- Taxes of $5648
- Central air
- Terrace
While the reduction was large in absolute dollars, it will not sell the unit. Their 589K ask price was insane and they are still over-priced. But this is the classic 2006/2007 buyer and 2009 seller phenomenon. I don’t know whether the sellers paid for the upgrades, but I do know most buyers will not pay up for subzero, wolf, etc.
“most buyers will not pay up for subzero, wolf, etc.”
Assume they did the upgrades; they should be able to sell it for around or slightly over their (peak) purchase price, right? Otherwise it’s really tough to justify a penny over their 06 price, no?
While I may not lose sleep over not having Subzero & Wolf appliances and a stove with a hood (a little ostentatious and silly), if I’m going to drop 500k+ on a place it better damn well have: parking (check), noone above me (check), central air (check) and in unit washer and dryer (fail).
If the washer and dryer situation could be remedied I think they could get out of this place above water, maybe 490k or so. The fireplace is a nice touch too.
Over 450 per square foot with an uninspired interior and no laundry: no way.
“Over 450 per square foot”
Do you know something we don’t, or are you using the new math, Ed?
$520/1800 = ~$290, w/o separating the parking.
you would think with all the space in this unit, the master bath that looks to be the size of a normal bedroom, these idots would have put in the plumbing to have a W/D. FAIL!
I see this taking another $50k dive. It’s in LP, but in the least desirable area (very far west).
“Assume they did the upgrades; they should be able to sell it for around or slightly over their (peak) purchase price, right? Otherwise it’s really tough to justify a penny over their 06 price, no?”
Don’t you watch Flip that House? A kitchen upgrade always results in 50-100% return on investment. So they are priced appropriately.
“Don’t you watch Flip that House? A kitchen upgrade always results in 50-100% return on investment. So they are priced appropriately.”
Yeah. And w/o the $50k kitchen, this place would be looking at $425k, right? So, I’m thinking 80-90% return on the kitchen. Show me where I’m wrong [emoticon here].
It was a joke. It was this rationale that got everyone and their mom to put in sub zero, wolf, etc. Don’t get me wrong, they are very nice appliances. They just don’t belong in every unit.
“It was a joke.”
Right back atcha, friend. I was playing along.
You know what, the more I think about it, the more I think this condo is in trouble. It’s a large 2 BR, but it’s still a 2 BR. How much work will someone have to put into it to make it a 3 BR? I ask because it’s hard for me to envision the person that pays half a million for a 2 BR in a non-prime location. If you’re going to be the hotshot bachelor, you don’t do it by the north branch of the river (next to the train tracks).
Was one of the photos taken from inside the shower?
Back to joking about kitchen upgrades, suppose we generously allow ~80% ROI for such upgrades. What type of credit (ROI-style) would you give for maintenance-type actions (e.g., new roof, new windows, new non-high-end appliances)? These seem valuable and could save the new owner some hassle and $, but they also seem qualitatively different from “upgrades” such as new kitchens and AC installation.
“very far west”?
ah my friend, you have not gotten up to speed with the “new Lincoln Park,” which at some point magically extended to Damen. My favorite abuse of that is how the Target on LOGAN and Elston calls itself the Lincoln Park Target.
“My favorite abuse of that is how the Target on LOGAN and Elston calls itself the Lincoln Park Target.”
“Chicago Near North” is what the website sez. Not that it’s really “near north”, but I don’t see Target calling it the “LP Target”.
“(next to the train tracks).”
What, the Lakewood line? Last business north of Clybourn that used them was torn down last year. Looks like open space to me, until the next housing boom.
““Chicago Near North” is what the website sez. Not that it’s really “near north”, but I don’t see Target calling it the “LP Target”.”
they had it listed that way in the phone book – calling it Near North is actually even more egregious, Near North was the name of the high school for some Cabrini kids, now you’re talking more like Halsted.
Near north = area bounded by the river on the south and west, the lake on the east and north ave on the north.
“Miele, Wolf and Subzero appliances, parking, central air but no in-unit washer/dryer”
No washer dryer and all those other really nice appliances?
hahaha FAIL!
This guy is gonna take a BATH on the place, I expect this one to be a short sale soon enough… or possibly taken off the market.
Let’s pool our money and buy it! We could put in a nice hot tub on the deck – isn’t that what everyone wants? We’ll be rolling in it!
I was just looking through other unit listings that have closed in the past and they all say they have a washer/dryer. Why wouldn’t this unit have one. Seems odd.
Hate to dredge up the inflated square footage issue again, but even allowing for a bedroom-sized master bath there is no way this place is 1800 square feet based on the listed room sizes (which total 1133 sf) — unless they’re including the terrace and storage space.
I’d bet 1400-1500 is closer to reality for the interior space.
“What, the Lakewood line? Last business north of Clybourn that used them was torn down last year. Looks like open space to me, until the next housing boom.”
I don’t think that changes anything. Living near non-operational factories & warehouses is not much worse than near operational factories & warehouses. Most people don’t use abandoned industrial yards like they would a park sitting on the lake. And it probably deprives the hotshot bachelor of some essential street cred.
JPS –
what’s a good rule of them for figuring out SF based on room sizes?
er, rule of *thumb*
“calling it Near North is actually even more egregious”
The one on Addisson is “Mid-North” so, from their internal perspective, it makes some sense.
“what’s a good rule of [thumb] for figuring out SF based on room sizes?”
According to Sabrina, we haven’t been in the space, so we don’t know.
“I’d bet 1400-1500 is closer to reality for the interior space.”
I’d believe it, too. Still $520k/1400 = $370/ft. Still wondering how Ed calculated $450+/ft
“Hate to dredge up the inflated square footage issue again, but even allowing for a bedroom-sized master bath there is no way this place is 1800 square feet based on the listed room sizes (which total 1133 sf) — unless they’re including the terrace and storage space.
I’d bet 1400-1500 is closer to reality for the interior space.”
No Coldwell Banker has a different definition of square foot. Similar to how there are differences between US and Imperial gallons, there are also differences between the commonly used standard as a foot being 12″ in length. Coldwell Banker defines it as the length of the agent’s foot squared, so it can be a variable measurement depending on who is doing the showing. In this instance the agent’s foot is 8 inches in length, leading to a CB square foot measurement of 64″, not the 144″ according to the standard system.
Some say the CB methodology unfairly biases smaller agents but I’m not sure.
I add up all the listed spaces, estimate the bathrooms if they are not stated, and add 10-15% to the total to cover hallways and closets. This usually gets reasonably close to the actual internal square footage except if the place has an odd (usually reads: bad) layout with a lot of extra hallways, or has unusually large closets. For a SFH with a big entry foyer I add on for that too.
I like the CB methodology (channeling Bob here)… If I used it for my head, I’d get 37 inches in circumference.
I’ve been in this unit and it has a side by side W/D.
“I don’t think that changes anything. Living near non-operational factories & warehouses is not much worse than near operational factories & warehouses. Most people don’t use abandoned industrial yards like they would a park sitting on the lake. And it probably deprives the hotshot bachelor of some essential street cred.”
Not necessarily, you just have to market yourself to hipster chicks as more “authentic Chicago” for living in a neighborhood that’s more traditional workmanlike. Or talk about how all the history and imagined stories inspire your art.
“I don’t think that changes anything. Living near non-operational factories & warehouses is not much worse than near operational factories & warehouses. Most people don’t use abandoned industrial yards like they would a park sitting on the lake. And it probably deprives the hotshot bachelor of some essential street cred.”
Um, what? Has anyone commenting on the poor location of this building ever actually been anywhere near it? This is not a location surrounded by abandoned factories and warehouses. Far from it, in fact. This area is thoroughly residential. There is nothing “industrial” or “abandoned” about it. Before you comment on a location, maybe you should actually visit the area.
What railroad? If you are referring to the old Lakewood branch, that line is no longer used (as noted by anon (tfo)). Even at its busiest during the past few years, it was used at most twice a week by an engine pushing a single tank car. The last customer, Peerless candy factory at Lakewood/Diversey, was closed and demolished last year. The line is no longer used. Even if it was, it is a good 2+ blocks or so east of this building.
Regarding the price of this unit, it is probably a bit high, but not by much. It looks like a nice unit in a neat building in a great location. Most single family homes in the immediate area have sold for well over one million dollars during the past twelve months. 2239 N. Wayne, a 5 bed/4 bath single-family house, sold on 7/2/08 for $2.03 million. I must note that this house backs up to the former Lakewood line. I doubt that the purchasers would fit the traditional blue-collar-lovin’ “hipster” stereotype.
“Most single family homes in the immediate area have sold for well over one million dollars during the past twelve months”
But this is not a million dollar SFH home. Near my apartment there are plenty of million dollar homes and there are also 150k starter condos.
“There is nothing “industrial” or “abandoned” about it. Before you comment on a location, maybe you should actually visit the area.”
He was probably viewing from Google maps streetview, which images are a couple of years old. And no hipsters don’t buy property, at least not in the city, they lack the income.
“Assume they did the upgrades; they should be able to sell it for around or slightly over their (peak) purchase price, right? Otherwise it’s really tough to justify a penny over their 06 price, no?”
No. The only thing that matters is what the market says the property is worth today. What they paid or what they spent on upgrades is irrelevant.
It may apply to Chicago’s ‘hipsters’ bob, but NYC’s hipsters are totally rebuilding the LES and doing a bang up job of it. BTW, what is your hangup with hipsters anyway?
True and false RR, there have been a few places where the price point pretty much ‘required’ those high end appliances be in place for the sale to close….of course this is in the NYC area where although most households don’t actually cook, they are seen as must have status symbols.
I have yet to complete any rehabs here in Chi for me to see if it is indeed worth the extra $$$. I do know most buyers are sick of the standard issue SS GE units now. No matter what the price, you see those fugly refs, stoves and microwaves and faux granite countertops.
I think whoever started this trend thought that by doing so would allow a hugely inflated sales price….and we all see how that is working out.
http://online.wsj.com/article/SB122756254327554165.html
1339 w webster
Editor’s Note:
There is a washer/dryer in this unit. The original listing didn’t include them. That has been corrected.
Sorry for any confusion.