Live in a Lucien LaGrange Building for Less: 653 N. Kingsbury in River North
This 2-bedroom unit in the Lucien LaGrange designed high rise at 653 N. Kingsbury in River North has been on and off the market since January 2010.
It is currently listed as a short sale and is priced $67,000 under the 2003 purchase price.
The Northeast corner unit has floor to ceiling windows and a balcony but carpet throughout.
The kitchen has stainless steel appliances and grainte counter tops.
The listing says they are not accepting FHA/VA loans.
Is this a deal?
Adam Savick at Jameson has the listing. See the pictures here.
Unit #1805: 2 bedrooms, 2 baths, 1179 square feet
- Sold in October 2003 for $376,000
- Originally listed in January 2010
- Was listed in April 2010 for $349,000
- Reduced
- Was listed in July 2010 for $284,000 (not sure if this included parking or not)
- Raised
- Currently listed as a “short sale” for $309,000 (includes the parking)
- Assessments of $688 a month (includes heat, air conditioning, doorman)
- Taxes of $4695
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 12×11
- Bedroom #2: 12×10
- Living room: 23×12
- Kitchen: 12×8
Great Deal, although I hate that doormen jack up the cost of assessments by about $400 a month…
No FHA/VA listed so you’ll probably have to bring 20% down… nothing a 401k loan can’t cure (lol I kid)
I don’t know – I would be kind of nervous to buy this place. This area is overbuilt and there is nothing spectacular about this unit. If the seller was smart, they might want to consider a rent/purchase option and spell out the terms in the comments so that the majority of the morons out there could understand.
It would be a win-win situation. For the buyer, they have a locked price and option to buy in 1 -2 years. If prices are lower or if they find something else, they can walk. For the seller, it buys them time (especially if they are hedging that the market will improve in a couple of years).
oops – I didn’t realize it was a short sale – scratch my last comments.
“It would be a win-win situation. For the buyer, they have a locked price and option to buy in 1 -2 years. If prices are lower or if they find something else, they can walk. For the seller, it buys them time (especially if they are hedging that the market will improve in a couple of years)”
How does that equal win-win? If the Buyer has a fixed price option to purchase, then the Seller only gets the property back if pricing conditions are the same or worse. If they do buy it (b/c the unit is worth at least as much then as the option price), the Seller has the obligations of being a landlord for the lease term and gets option price – TVM.
anon- A lease/option agreement beats going through short sale/foreclosure/bankruptcy or even going through your savings – but you are right, it is not an ideal situation. However, the seller is in a bind and it could have been a “way out”.
Clio, I don’t understand your comments. There’s been other featured properties on here that are seriously overpriced and butt up against el tracks and you think they’re wonderful. Then here’s a beautiful looking place in a great area at about 10% under market and you criticize. For a $309K unit it is fairly spectacular.
I live in River North. Units this size in older loft buildings are going for about $20k more. Don’t know anything about this building, haven’t been inside, but I like where it is and I like the design from the outside. The only recent overbuiding has been the Silver Tower. Other high-rises in the vicinity have been around for awhile. They may be troubled financially (e.g., The Sterling) but then they turn rental and remain nice places to live (if not to own).
The assessments on this one are quite high — that raises questions. Other than that it looks like it could be a fairly good deal.
Any thoughts?
Appraisal Research Counselors on downtown apartment inventory:
Demand for downtown apartments continues to expand at a record pace. There are 2,146 more occupied rental units downtown in 2Q ‘10 vs. 2Q ‘09 — 698 units were absorbed in 2Q ‘10 alone. We expect the new product (2,324 units) delivering this year, combined with the remaining units at existing product, to be leased up by fall 2011. By 3Q ‘11, the market will transition to an overall shortage of rental units downtown. We project the number of occupied survey units to increase by 44.6 percent from 1Q ‘07 to 3Q ‘11 — an additional 6,570 renters downtown compared to early 2007.
On pricing and tenant trends:
For luxury buildings in lease-up, net effective rents are in the $2.40 to $2.50 PSF range — returning to peak levels from 2007. The exception is for those buildings located in the South Loop, which are closer to $2.00 PSF due in part to intense competition from condo rentals. The market continues to respond well to new product with strong leasing activity. There is clear demand for high-end product downtown, with leasing agents reporting diverse demand sources including transferees, relocation from the suburbs, and unbundling of households, in addition to typical move-up demand in the market.
Assessments don’t seem out of line to me, given what they include: a doorman, heat, a/c, and exercise facilities. Once you cover those things yourself, haven’t you paid at least half the assessment?
Not a terrible deal though this building has one of the worst condo assoc in the city not to mention if you have one of the east facing units below the 20th floor, you are looking directly into the new rentals at Parc Huron.
Spiders.
The potential owner backed out of the deal for good reason.
This is a really nice deal. You can’t get 2BR views like that in this neighborhood for under 350 with parking. I’ve seen units in this building and the floor to ceiling windows are quite nice. The only complaints I’ve heard relate to energy costs resulting from the floor to ceiling windows(which you see in the high assessments).
Also – I am no RE professional, but the fact that it’s sold ‘as is’ shouldn’t be as scary in a high rise since the association is responsible for heating/cooling/plumbing/etc.
I would monitor for this to enter REO status.
valasko –
very interesting – thanks for the information. my personal opinion is that nobody knows wtf is going on – they can postulate/predict/analyze, etc. etc. – but they really don’t know wtf is going to happen!!!
“Clio, I don’t understand your comments. There’s been other featured properties on here that are seriously overpriced and butt up against el tracks and you think they’re wonderful. Then here’s a beautiful looking place in a great area at about 10% under market and you criticize. For a $309K unit it is fairly spectacular.”
It is supply and demand – that property on Wilton was 4 bedrooms, 2 baths with extra living areas and 3 parking spaces for 239k!!!! You really can’t get a much better deal than that in that particular neighborhood. This property is OK – but it is a cookie cutter condo unit in a blah building in an OK neighborhood – there are thousands of such units all over Chicago – might as well go live in Russia!!
The dresser in front of the floor to ceiling window in picture #7 to block the view of the building next door certainly is shady
Sonies, my guess is it’s strategically placed so that the rising sun doesn’t get right in the eye of whomever is sleeping there. Probably nothing more than that
Valasko, those assumptions seem to project that the demand for rentals is skyrocketing without regard to what’s happening in the condo market. “Condo Rentals” should absorb any seen increase in rental demand, as I don’t think there’s not a mad rush of new renters flooding the area from outside the market completely. The influx of renters will slow as parity is reached and you’ll hope to have a free flow of owners and renters from one side to the other.
“The dresser in front of the floor to ceiling window in picture #7 to block the view of the building next door certainly is shady”
nice pun.
The dresser in front of the floor to ceiling window in picture #7 to block the view of the building next door certainly is shady
It also strategically blocks the neighbors view of any adult activity. We have a wall of windows in our master with no coverings. We are careful but I’m sure that if one of my neighbors has a pair of binoculars that they have…….
ALT got it…
🙂
“… this building has one of the worst condo assoc in the city…”
Could you elaborate? Had thought about looking at this unit but am currently dealing with a bad condo association situation and don’t want to jump into another.
I live in the neighborhood and generally like this building. If you got rid of the carpet it would be really high end. The cabinets are poggenpohl. However, I have heard that the condo association failed to increase assessments after the building turned over from the developer. As a result, assessments were too low to build a reserve for the first several years the association managed the building. Now, apparently there have been special assessments or they are in the works.
I like the SOM-designed conversion of old Montgomery Ward corporate tower far better. There have been several comparably priced “1 bedrm + den” Montgomery units that are larger, more attractive, and easier to furnish than this unit.
Montgomery has no balconies (except corner units). Not sure what the allure is with the building, I think it is worst condo in the area.
We looked at units in this building a few years ago. It was a no go for me because if you notice, the portion of the windows that open is near the floor (the large top pane doesn’t open). We have dogs(including a small rodent like one) and all I could envision was my dogs chasing after a toy on a nice day and falling out the window… Also, seems like windows located on the floor wouldn’t be ideal for air circulation.
I would never buy one of Lucien’s works after seeing what he did to the Elysian. It was almost his personal F U to Chicago seeing as his firm was going under, to put that fugly green crap on top of the Elysian as well as not deliver the roof that was promised in developer plans.
He’s just developer who ruined his reputation by allowing corners to be cut and allowing a different product to be built than he promised.
“We have dogs(including a small rodent like one) and all I could envision was my dogs chasing after a toy on a nice day and falling out the window… ”
LMAO!!!
why when people mention falling out their windows… why does it make me laugh so much!!!
Architect – I use to live in one of those 1 bed + dens / 2 bath at The Montgomery. If you are on the north side and on the lower floors its quite loud w/Chicago & Larabee intersection. Another terrible condo assoc.
Interesting fact: the owner of the development company who did all three Montgomery Wards buildings lives on the top two floors. The Mongomery was the flagship and last of the three. The top floor was built on top of the orignial structure especially for him and has acccess to half the roof actually making it three stories. $$$
Papu – If you have never been to a high floor 2000 sq ft unit at the Montgomery, you haven’t seen luxury in Chicago. Some units are easily on par with the finest in Chicago including that of the Palmolive, 340 OTP, Trump…The building itself is kept in immaculate condition as well. Only catch is you have a minimum of 1 million dollars on you at all times jk.
a-fed,
Based on the prices I have seen, I am sure many of the units are well done with great finishes. I ate at the restaurant that used to be there and the lobby is also top notch. I just can’t understand anyone getting a 1-2 bedroom place with no outdoor space over the other buildings in the neighborhood. The street is also pretty bare (and worse if you face Chicago Ave).
“Interesting fact: the owner of the development company who did all three Montgomery Wards buildings lives on the top two floors. The Mongomery was the flagship and last of the three. The top floor was built on top of the orignial structure especially for him and has acccess to half the roof actually making it three stories. $$$”
I have toured that unit a few times during development and it is incredible. A couple notable things about it: They cut the concrete floor in the master bath to have a walk in tub. The size of the master bath is larger than my master bedroom. Say what you want about the design of the building or units, the developer made a ton of $$$ on this and has a phenomenal home in it to show for it.
This looks like a great deal.
I’ve been in a large penthouse in the Montgomery. Bar none the most beautiful apartment I’ve seen in Chicago. It took the owners 2 years, though, to get the plumbing fixed so they didn’t have to have someone come in EVERY WEEK to clear the pipes. Oy.
“I would never buy one of Lucien’s works after seeing what he did to the Elysian. It was almost his personal F U to Chicago seeing as his firm was going under, to put that fugly green crap on top of the Elysian as well as not deliver the roof that was promised in developer plans.
He’s just developer who ruined his reputation by allowing corners to be cut and allowing a different product to be built than he promised.”
Bob,
Lucien is an architect not a developer and his firm didn’t “go under.” Due to all the corner cutting developers getting sued Lucien bankrupted his corporation to protect himself from being pulled into lawsuits. there’s a crains article you can read about it.