Another Week, More Foreclosures in The Sterling: 345 N. LaSalle
Didn’t someone post a few months ago that the worst was over for the foreclosures in The Sterling, at 345 N. LaSalle in River North?
But I keep seeing them.
The good news is, they keep selling if they’re priced cheap enough.
Unit #1501, a 2/2, was just recently listed although the listing has mysteriously vanished. Is it under contract already?
The mid-$200,000 range for the 2/2s seems to be the going rate in the building now.
Unit #1501: 2 bedrooms, 2 baths, 1200 square feet
- I couldn’t find an original sales price but likely in the mid-$400,000s
- Bank owned
- Listed for $266,000 (no parking- rental only in the building)
- Assessments of $575 a month
- Taxes of $6300
- Carpet in the living room
- Goldtree Realty Inc. had the listing
Unit #1801 is also on the market and just reduced its price.
Re/Max Top Performers has the listing. See more pictures here.
Unit #1801: 2 bedrooms, 2 baths, 1200 square feet
- I couldn’t find a prior sales price for this unit either
- Bank owned
- Recently reduced
- Currently listed for $292,900
- Assessments of $551 a month
- Taxes of $5254
- Hardwood floors in the living room
These units look like cheap ghetto rentals.
It will be no surprise when the “investors” buying these units become a future round of foreclosures.
Well, what do you expect for a quarter of a million dollars?!
Sarcasm off.
Those taxes and assessments are brutal for such a new building. But then again, some people will pay dearly for that swimming pool that’s open for 4 months out of the year.
I’ve always thought the Sterling would have worked better as a rental. $1,300 for a one bedroom and $2,000 grand for 2/2, with a premium on the higher floors. It’s sort of a weird location.
It was built as an apt bldg and sold to Am Imvsco before any tenants moved in.
G, I did not know that. But that would make sense!
I don’t remember exactly how it works, but I think there is a tax benefit to doing that way.
I doubt it had anything to do with tax benefits. By the time it got built condo prices had reached such crazy multiples of market rents that Invsco probably made the original developer an offer they couldn’t refuse. But the design for rentals shows in the units.
Definitely a rental building. A big no-no… buying a high rise rental to condo conversion. Slap a coat of paint on and shampoo the carpet… presto… $450k condo at the height of the market.
Brilliant.
Speaking of condo conversions, the one large building that was converted to condos that seems to have done well is 2 E Erie. 345 E Lasalle, 10 E Ontario and 2 E Erie all seemed to be marketed around the same time. Sorry to get a little off topic but is there any info on Erie that states the otherwise.
#1501 is currently CONTRACT PENDING in the MLS. I looked through the Cook County Recorder of deeds and could not find a sales price…
A realtor that lived in the building told me that the condo assn had won a lawsuit against the developer. This money was directed in the general fund and he claimed that the association was very healthy at this point. Still a little uneasy about the building…
Someone claiming to be an owner here posted on the last Sterling thread in November that the settlement with Am Invsco was only (for a bldg this size) $350,000 and had not been paid yet.
I don’t know if there was anything left from the special assmt for façade work, but that $350K won’t go far with the number of foreclosures and rentals.
I would suspect that the number of rentals will make mortgages difficult to get without higher down pymts and int rates, too.
About the building being an apartment building first- that is correct. American Invsco bought it from the owner and sold it as condos before anyone moved in.
They offered the standard apartment finishes (laminate counter tops) in the units up to somewhere on the 20th floor or so. On the higher floor- you could “upgrade” the kitchen. But there was never an upgrade package for any of the bathrooms.
Hence, they’re all the standard white apartment bathrooms.
These are definitely cheap finishes but “ghetto”? Have you ever been to a ghetto?
And add…..another Friday, another two bank failures….
Sanderson State Bank, Sanderson, TX
Haven Trust Bank, Duluth, GA
– The consensus is more than two a week in 2009….
Just found out a nice new building on the beach in Miami Beach that started closings in 2006, has established a good HOA run by the owners, was one of the lesser expensive since was started at the beginning of the bubble, etc. currently has 10% of the 350 units in foreclosure! And this is one of the better buildings and most modestly priced…..with all the lux high rises coming on line I expect those high end buildings to have a lot more foreclosures unless the contract holder walk away from their deposits. My observation has been that South Florida’s real estate decline is ahead of Chicago’s so if this is an indication of where things are at I would say Chicago’s foreclosures are just getting started. Any word what % in The Sterling are in actual foreclosure?
“The consensus?” Of gold bugs, survivalists and frustrated Ron Paul supporters?
Has anyone commented on how Illinois has about 99% lost the Olympics?
I don’t know why some people assumed getting the Olympics would be a boon to the real estate market, temporary or otherwise. I’ve never seen any data that shows that there is a real estate bump in a city hosting the Olympics.
BidIndex SUMMER 2016 http://www.gamesbids.com/eng/bidindex1.html
CITY SYM STAT HIGH LOW * CHG INDEX
Chicago CHI 11/05 60.73 58.78 01.96 58.78
Madrid MAD 11/05 59.50 58.25 00.87 58.63
Rio RIO 11/05 60.81 59.73 down 00.17 59.73
Tokyo TKY 11/05 61.22 60.41 00.56 61.22
http://www.gamesbids.com/eng/olympic_bids/chicago_2016/1216133965.html
Illinois Governor’s Arrest Won’t Affect Chicago 2016 – IOC Members
Wednesday, December 10, 2008 11:28am EST GB Staff
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Several members of the International Olympic Committee (IOC) said that the arrest of Illinois Governor Rod Blagojevich Tuesday won’t have an impact on Chicago’s bid for the 2016 Summer Olympic Games.
The Chicago Tribune quotes IOC member Prince Albert of Monaco Wednesday saying, “anything like that can’t help. But it doesn’t touch the technical aspect of the bid or the infrastructure side, just the political atmosphere around the bid and I shouldn’t think it will have too much of an impact”.
The Tribune reports every member asked about the governor’s arrest was aware of the situation. Blagojevich was arrested and charged with conspiring to sell president-elect Barack Obama’s Senate seat, among other charges.
Norway’s Gerhard Heiberg, an executive board member said, “it shouldn’t have any effect. The governor’s behaviour is irrelevant to the bid”.
Board member Richard Carrion of Puerto Rico said Blagojevich’s limited role in the bid diminishes any negative fallout. He said, “its very sad if the charges are proved, but I don’t think it will affect the Chicago bid one way or another. I haven’t seen him involved in the campaign at all”.
Mario Pescante of Italy, another board member added, “Mayor (Richard Daley) is more important”.
IOC executive board member Sam Ramsamy of South Africa said, “my impression is this will not have an effect on Chicago. Politics is an issue we all have to face from time to time”.
Before the U.S. Olympic Committee chose Chicago as the U.S. candidate for the 2016 Games the governor pledged $150 million in state funds as part of $1.15 billion in financial guarantees the bid is offering, but the pledge has not been backed by legislation.
The newspaper reports the guarantee is a major issue for Chicago’s bid because it is the only one of the four finalists without the full backing of governmental entities.
Gilbert Felli, the IOC’s Olympic Games executive director said, “I don’t know enough about the nature of Chicago’s guarantees. In some countries when a person who gives a guarantee changes, so does the guarantee. In other countries there is no difference”.
Chicago 2016 reportedly has not used Blagojevich’s image in any of the videos it made to promote the bid internationally.
Chicago Drops From Top Spot In 2016 Olympic Bid BidIndex Despite
“Obama Effect”
Tokyo has taken the lead in the latest installment of GamesBids.com’s BidIndex, the original and most trusted formula for rating Olympic bids throughout their campaigns.
http://www.gamesbids.com/eng/bidindex/1216133875.html
I’m still betting on we get the Olympics. They are not going to hold the Olympics in Asia in 2008 and 2016. And Rio has the World Cup in 2014.
“the original and most trusted formula for rating Olympic bids throughout their campaigns. ”
HA HA HA.
That is even more chocked full of subjective marketing BS than all of the property listings you are always first to poke fun at…
homedelete has some of the most inane posts found on this site.
Jack, I’m glad you enjoy my posts.
RunnerRunner,
As a ‘frustrated’ Ron Paul supporter I’d be willing to guess you’re a bit more frustrated being long real estate these days.
:O
Also he called this crisis before it happened. Did you and your Kool Aid drinking friends ever realize the RE party was about to get broken up by the po-leece?
You’re stereotype labels just show you to be the MSM automaton you are. You don’t need to think for yourself just keep watching the boob tube and arranging your finances like “everyone else”. Afterall the lioness only gets one gazelle at a time right?
Inane? Pay close attention to the picture of the toilet.
Yes, this is a real listing.
http://www.redfin.com/CA/Riverside/10347-Pendleton-St-92505/home/4784836
HD.. Sydney exploded post Olympics. Barcelona moved up to a tier one city afterwards also. I wouldn’t expect the same for Chicago or Tokyo. The former is way too cold for most people to want to move to and the later is too foreign for most.
I’m a bit skeptical about the benefits of the olympics here and whether or not it’s going to be worth the cost. However, I can see a scenario where it really revitalizes the south side. Right now that area is full of empty lots and boarded up buildings. Pretty depressing. So, if they can bring some activity to the area….but then what happens after the olympics are over? Of course, the realtors are pushing the idea that it makes real estate in the area a great investment – a highly speculative proposition.
BTW, Intrade is giving it 50% odds of happening here. If you don’t buy those odds then place your bets.
Gary,
These days its tough to open an Intrade account with a U.S. bank account or credit card. I’m sure there are ways around it but I’ve been too lazy to figure out yet.
Bob,
I opened one a few months back with a wire transfer. It was pretty easy actually.
Wow homedelete. That’s a pretty disturbing link. Out of all the lazy realtor photos and bad listings I’ve seen, showing an unflushed toilet has got to be the worst. Not that any of those photos were flattering, but could it get much worse than that?
I am an owner at the Sterling. The settlement was indeed for $350K. The HOA fund is right now at a surplus of ~1.2M From this perspective, this is probably the ONLY positive that could be said about this building. Sadly, having bought in 2001, I am fairly under water in my equity, though I am one of the few owners at the Sterling who bought to own for life.
Mozart, thanks for facts. im assuming that’s a 1.2M reserve. is the current budget continuing to add to that?
Mozart- I am actually considering investing in this property. Can you tell me what your general thoughts on the building are? (Per HOA, are there any structural problems with the building? Difficult to find renters? Any special assessments-I’ve heard that there was one time 5K assessments);
What would you say you dislike about this property?
Is it possible to get the HOA annual Reports on Monthly notes from you….
I really appreciate your input….thanks.
Guys–What is the going rate for a 345 N. Lasalle 12-15 Floor, unobstructed views of down town + Balcony + 2br 1100ft. Thanks.
Igor:
Foreclosures have brought down the comps in the building. I wouldn’t pay more than $255k-$260k (which is what the foreclosure 2/2s are selling for).
Sabrina–1st of all; thank you very much. I think the input on this site is excellent.
2nd Another question for you: Is there any reasons why foreclosure realtors would not place the the adds for this building on the MLS. MLS has couple of listings for short sales/foreclosures for mid 300+. The other properties for 266K/292 were removed from MLS in matter of days.
They sell/go under contract quickly Igor
That’s right. The foreclosures usually sell quickly (though we’ve seen some cases where they’ve lingered- even in The Sterling.)
I’d also look at 33 W. Ontario (where foreclosures are also plentiful) and there will be a deluge in 10 E. Ontario shortly (not sure how many of the bank owned are back on the market yet.)
There will be foreclosures in these bldgs for years to come. Declining rents will guarantee knife-catching at current foreclosure prices.
“Declining rents will guarantee knife-catching at current foreclosure prices.”
When do you think we’ll see declining rents in places like LP, GC, Streeterville, etc.? So far, I’m only seeing increases.
I love G’s “declining rents” call. Noone is buying and noone is renting. Everyone will leave under bridges in the near future. Rents have increased over the past year. My agent just rented a place in LP in 2 days after not being able to sell the unit.
Soon G & HD will be able to live in the Gold Coast for $10, maybe $20 per month. It will be great for everyone 🙂
Steven, ‘noone’ is two words. You made the same spelling mistake twice.
“When do you think we’ll see declining rents in places like LP, GC, Streeterville, etc.? So far, I’m only seeing increases.”
When reality ‘comes a calling’
Unemployment + recession + previous bad lending + forclosures + BK’s + development forclosures + massive empty inventory will have a ripple effect on the entire housing market. Granted it will be less severe in wealthy neighborhoods such as stretterville, LP, etc.
People just haven’t realized how bad things really are, and are keeping their prices high because there is still an idiot out there that will pay 2006 prices, or recently paid 2006 prices, and is trying to rent accordingly as to not completely lose their butts.
I know of one idiot on this board still espousing 2006 prices for real estate but I don’t want to call him so I’ll leave him unnamed.
Theya re keeping their rents high beacuase the market support the prices. Vacancy is very low right now.
Very low vacancies in rentals but record high vacancies in unsold units. Oh the irony. What will rents look like when an equilibrium is reached?
HD – We were talking about LP and the Gold Coast. Where are the high amount of vacancies with unsold units? Please let us know…
No Steven, you show me the data saying that vacancies are low. You made the assertion, you back it up.
http://lucidrealty.com/lincoln_park_market.htm
Lincoln Park inventory
(Thanks Gary!) How many of those units are vacant, I don’t know.
But having twice as much supply as during the boom years with about 50% less buyers (demand) out there… no, there won’t possibly be a decline in prices or volume sold… STEVE SAYS SO!
And rents will continue to increase too, so says Suzanne…I mean Steve.
I am the one who come out and said everytihg was normal in LP & LV until around Septemeber of 2008 (and I received 100’s of post telling me I was an idiot). I also went on to say the inventory is not up but nothing was going under contract after Sept. This of course do to the financial crisis and people’s lack of confidence in their own futures. The inventory levels are lower than in 2007 and 90% of these units are occupied. Again HD, why are rents going down in LP?
Just curious how your mind works.
HD – Is there an attorney blog I can run to and post about how billing rates will come down with the economy?
You will rent the rest of your life. You are not a smart man!
“Job market, supply hurt downtown apartment rents”
http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=31321
Inventory levels in LP are lower than in 2007, but sales are down a much larger percentage.
Based on the current econmomic conditions, the short term view is that rents are and will go down. But based on the governments current monetary policy they are trying too inflate the ecomomny. Longterm what they are doing can cause inflation or hyper-inflation down the road. If this happens rents will increase dramatically. Everyone here needs to understand what is going on in the economny beyond real estate…… And hope that everyone here is positioning themselves for what may lie ahead.
On a happier note everyone have a great holiday and happy new year.
I am off to Switzerland for two weeks of skiing.
Well I wish these generalizations held true at the granular level. My rent is going up $40 and I’m pretty pissed off at that.
Its still a great deal and less expensive than these luxury places, but the differential is getting smaller..I might have to jump ship soon and help a flipper stem the bleeding on a luxury place 😀
The downtown rent bubble will burst (+27pct in 3 yrs) and oversupply will cause an overcorrection.
After the inevitable correction, rents will not hyper-inflate without wages doing the same.
Bob, did you counter their offer?
G,
Nah its a professional landlord family who owns multiple buildings, not a stuck flipper turned amateur landlord. I have negotiated with them before at lease renewal and will probably try to do so again. Was going to wait until the weather got real bad but I went out of town right when it did! I bet I can cut that 40 down to 25 or so..
G,
If we enter a hyperinflationary period all hard assets inflate in price, including rent. Nothing but purchasing power goes down, read history regarding this issue. The level of rent increase may not inflate at the same pace as the hyper-inflation rate but it will inflate. In Germany 1920s the currency became devalued to the point it was cheaper to burn the currency than it was to buy wood. Basically what happens in a hyper-inflationary envrionment is your money becomes completely worthless while hard asset retain a value. I not saying this will happen, but based on the government actions to date this is a possibilty.
valasko – I don’t see talk of the fed govt monetizing the debt/deficit spending. There are really two ways the federal debt can be handled: (1) through monetization (the printing of dollars to pay the debt) or (2) through issuance of debt instruments that are paid off over time. Only the former causes hyper-inflation, the later does not. To date, the increase in the money supply has been an attempt to fill the credit gap / liquidity….not to actually spend money.
John,
I agree with you, but based on the feds comments where will all this end. You can’t bail out every insdustry, company, mortgage and individual. What if companies that have been bailed out to date still go belly up and can’t repay the government (your #2 comment goes bye-bye). What if the Chinese stop buying our debt. At some point the fed will need to decide if they want to take the deflationary or inflationary route, and it appears they are taking the inflationary road. I am not saying that we are there yet, just what might happen in the next year or two.
So whether to buy vs sell depends upon whether we go into deflation vs. inflation?