Bank Owned 2-Bedroom Sells at 1601 S. State in the South Loop
We last chattered about this 2-bedroom bank owned unit at 1601 S. State in the South Loop in October 2009.
See our prior chatter and pictures here.
The unit, Unit #3H, recently sold for $54,000 under the original listed price.
It also sold for well under the recent sales price of Unit #5H, which had parking included, and closed in September 2009 for $267,500.
1601 S. State was built at the height of the market in 2004/2005. This unit had hardwood floors, the newer kitchen with stainless steel appliances and stone baths.
Colin Hebson and George Furla at Koenig & Strey had the listing.
Unit #3H: 2 bedrooms, 2 baths, 1250 square feet
- Sold in September 2005 but I couldn’t find a sales price
- Lis pendens foreclosure in February 2009
- Listed in July 2009 for $259,900
- Reduced
- Was listed in October 2009 at $239,000
- Reduced
- Sold in November 2009 for $205,000
- Assessments of $315 a month
- Taxes of $4115
- No parking with the unit
- In-unit washer/dryer
- Central Air
Under $1700/month @6% cap, with no reduction in taxes. Not too bad, even as much as I dislike the place.
$164/sf (not that I buy 1250 as true SF) seems a reasonable ballpark for the bottom for similar places, no?
this area seems like no mans land.
Sounds like a reasonable price for the space. Hell, had i been on top of things, I would have bid on it. Looks like i need to start spending more time surfing RE sites than working…
Before everyone gets too excited about what a great price this was, remember that this place “FACES THE EL” — Hmmm… see top picture, count 3 floors, do the math.
The EL noise must be terrible. Yikes.
When we see prices like this in locations that aren’t crap then we’ll be getting somewhere.
Yeah, I’ve seen other units in this building. The building is west of the tracks so you hear the noise from the north, south, and east. Never understood why someone would develop in a location like this. I believe these H units face east, which would be the worst.
There were some strange layouts in the units I saw.
“Never understood why someone would develop in a location like this. ”
Remember the developer doesn’t actually have to live in their creation. Buyers during the bubble were buying just about anything. Who needs a full time job when you can make boatloads playing real estate speculation?
Bob,
The funny thing is that I think one of the developers did live in the building for a while! Not 100% sure though.
The thing that drives me nuts about this bubble is that developers really went overboard when they designed buildings. They built as many units as possible on the smallest piece of property in the worst of locations. This bubble gave us way too many developments underneath power lines, near/on top of highways and train lines, etc. This building is no different. Apparently there are still idiots willing to overpay to live directly on the el.
Gary has a write up on his website to some $500k townhomes abutting the Dan Ryan and literally no more than a few steps away from the locomotive.
http://blog.lucidrealty.com/2008/06/02/elegant-underpassrailroad-track-living-in-chicago/
“Gary has a write up on his website to some $500k townhomes abutting the Dan Ryan and literally no more than a few steps away from the locomotive.”
LOL i saw those a few weekends ago when I was taking the Metra back into town from the burbs. Huge banner on the side of it says “YOU COULD LIVE HERE call now” like its a positive thing or something to be living on 6 sets of tracks… pretty damn funny
I was in this unit 4 different times. For the price, its is pretty good. The problem my client had was parking. But directly behind the unit you could get a parking space through Metra for 70 a month. Not a bad price. But it does face the EL. When the train was going by, with the windows shut, you really couldnt even tell. However, when you had the patio door open when the EL went by, I had to literally scream at my client across the room for him to hear me. But we are talking about a 2/2 in the south loop with great upgrades. The master bath was awesome. Great kitchen. Great size unit. Remember the second bedroom was a second bedroom. Not one of these 10×8 “dens” these agents call a bedroom. Someone on here tell me of something that sold for 205k in the south loop with these upgrades and was this size? Anyone? I didnt think so. This is a good deal. You could easily rent this out for $1500mth. Good buy.
“Someone on here tell me of something that sold for 205k in the south loop with these upgrades and was this size? Anyone? I didnt think so.”
Make sure that if you are responding to this you are talking about a unit with the following perks: no parking in the building AND el noise so loud you can’t have a conversation with the patio door open… These are 2 deal killers for me, so as far as “comps” go, well, I don’t think so.
Also, I dont think the location is that bad. (other than the EL, the area has some things to offer) It could obviously be better. The EL was the reason my client made a low offer and we hoped for the best. We lost out, but the person who got it at 205k is still a good price.
$205k is baseline/guideline price for what buys want to pay for the low-to-middle 2/2’s in the South Loop. The deals will only get better from here. Better building with better locations = higher prices; crappier buildings in crappy locations with bad finishes = lower prices. $205k is a reasonable price for lower-to-middle of the scale 2/2 in the south loop.
“You could easily rent this out for $1500mth. Good buy.”
Okay, if $1500/m is the market rent for this, then no, not a good buy. Should be ~$180k, if that’s fm-Rent.
“However, when you had the patio door open when the EL went by, I had to literally scream at my client across the room for him to hear me”
also think about the dirt and other stuff that gets kicked up in the air.
Mr. bubble brought us many barely habitable places the lemmings paid 400k and up for (so they cold heloc a bmw 3series and 50 inch plasma)
Anon you could get 1800mth for this. I was saying you can easily get 1500 for this. thats all.
I dont know if I agree with the fact that 205k will be the normal amount for 2/2s with these upgrades in the south loop.(in what you consider a crap building, which I agree) Can you give me some examples of other 2/2s (true 2/2s) that have these upgrades going for 205k? Because I would love to pass them along. I have been in all the buildings down there and I highly disagree with this statement.
I told my person to not go as high as 205k. (I was thinking more of a 185k-190k) I wouldnt of had a client of mine go that high.
The building is kind of bland, but at the right price this could of been worth it. 205k, still a good buy i think.
There are adds on craigslist for $1800 for this very building. We have no way of knowing if they get a tenant at ask but given the incentives common in rentals (1 month free), I’d say we can reasonably lop off 10% to arrive at around $1600.
I do think you could easily get $1,500 for this and I do think that its a good buy at 205k even if not cash flow positive as a rental (not sure if it is or not I’m too lazy to run a comparison now).
Even if SL valuations collapse I don’t see this owner taking a big hit. Even with a 205k mortgage a couple could easily afford private school for a couple kids and live here.
“The deals will only get better from here.”
No the selection may get better but I’m not sure the average 2/2 condo is SL is going to drop down to 205k. I am guessing 240-250k, or $200/sqft.
“Mr. bubble brought us many barely habitable places the lemmings paid 400k and up for (so they cold heloc a bmw 3series and 50 inch plasma)”
The funniest lemmings are those who bought 2/2s in SL for 450k and leveraged themselves out the wazoo on their home purchase but also bought an Acura over a BMW so they could save a couple k and feel better about themselves for thriftiness.
I can’t give you examples right now because this particular unit is contributing to lower comps. I guarantee I will be able to in the future.
“Can you give me some examples of other 2/2s (true 2/2s) that have these upgrades going for 205k?”
Yeah, you’re right Bob, the selection may get better but the price will stay around the same and by same I mean $205,000. A condo in the south loop for $240k to $250k implies a monthly nut of around $2,000-$2,500 depending on assessments/taxes, and that much money is on the higher end of the rental scale for Chicago. In NYC or LA $2k is entry level but in Chicago that’s a lot of dough. The difference is that we’re not an island nor are we wedged in between a desert and mountains and the ocean. It’s cornfields for hundreds of miles in each direction. Granted my social circle gets smaller as I get older but I’ve only only met one renter who pays $2,500 a month for a 2/2 and I’m pretty sure he’s involved in some illicit activities. Virtually everyone else I know that pays $2,500 a month or more owns. I can’t see the tens of thousands of 1,100 or 1,200 ft cookie cutter 2/2’s trading at such premiums to have an entire neighborhood (if you want to call it that) paying $2,500 a month to live there. Gold coast or old town, maybe. South loop? No way.
“The funniest lemmings…..”
Come to think of it CC is like a lemming spotter,
Sabrina should change the name of her blog from CC to WHAT NOT TO DO IN REAL ESTATE.
South loop is a bubble made and i wonder what it will be like in 10 years? ( i see sec. 8 housing) i as a rational human cannot look there and not see a gamble that will go wrong. being said OMP is still on my list (to rent) when prices hit earth people levels.
“Granted my social circle gets smaller as I get older but I’ve only only met one renter who pays $2,500 a month for a 2/2 and I’m pretty sure he’s involved in some illicit activities. Virtually everyone else I know that pays $2,500 a month or more owns.”
Huh?
As some who’s been looking to buy a 3/2 in the $475 – $525k range in LP or ELV, I have been happily renting a 2/2 in the $2,500 range for nearly two years. I think the unit owner is renting it at about a $1,000/mo loss. Love the unit, but wouldn’t buy it for what the owner paid two and a half years ago.
Of the 3/2’s we’ve considered buying over the past year, all needed to come down between $75 and $100k, which is more than the sellers can bear (given that they paid minimal downs at the peak of the market, many of these people would need to bring such sums to the closing in order to sell at an appropriate price).
Yes, I’m an icky “renter.” Thankfully.