Back to the 1999 Price For This Loft in the South Loop? 1601 S. Michigan
This 1-bedroom loft at 1601 S. Michigan in the South Loop was recently reduced to $100,000.
It is a short sale.
We’ve seen a bunch of one-bedrooms in the South Loop reduce to $100,000 in just the past few weeks in other buildings.
The list price is now just $7,000 above the 1999 purchase price of $93,000.
The listing says it is a brick and timber loft.
The kitchen has black appliances and what looks to be stainless steel appliances.
Parking is included in that price. The loft also has central air and in-unit washer/dryer.
Is this a deal?
Laurie Foote at Century 21 S.G.R. has the listing. See the pictures here.
Unit #205: 1 bedroom, 1 bath, no square footage listed
- Sold in May 1999 for $93,000
- Sold in September 2006 for $221,500
- Originally listed in November 2010 for $180,000
- Reduced several times
- Currently listed as a “short sale” for $100,000 (gated parking included)
- Assessments of $202 a month (includes cable)
- Taxes of $1434
- Central Air
- Washer/Dryer in the unit
- Bedroom: 12×10
- Living room: 18×14
- Kitchen: 12×5
Good deal if you like the S Loop. I don’t mind it and like being on Michigan Ave down there…a number of neighborhood pubs have popped up
I think it’s a deal too. The only reason I can think of why it wouldn’t sell at this price is if there’s something preventing people getting financing. Of course list price and what the bank will accept aren’t always the same thing.
There must be something wrong with the health of the building. 1600 south can’t be a good location at this point given the struggles in South Loop. Any idea what the extent of vacant units is in the immediate area? 20%? 30%?
This will be under contract by the time I finish this sentence.
“This will be under contract by the time I finish this sentence.”
Assuming the bank will really take 100k. I’m not so sure…
Great deal – would even work as a rental, can easily rent this for ~1300ish with parking.
“This will be under contract by the time I finish this sentence.”
It’s been listed at $100k for several days already and it apparently hasn’t gone under contract yet.
A couple of other 1-bedrooms in 1620 S. Michigan also recently came on the market at $100k. I don’t know if they’re under contract already or not.
Seems to me that $100k is becoming the norm for 1-bedrooms in this part of the South Loop.
“A couple of other 1-bedrooms in 1620 S. Michigan also recently came on the market at $100k. I don’t know if they’re under contract already or not.”
They went under contract right away. I believe they have both closed already as well. If this unit goes for 100k, I’m buying it.
Not those $100k 1-bedroom chukdotcom. New ones. That’s what I’m saying. There are plenty of these $100k one bedrooms popping up all over this part of the south loop. If you miss out on one, there will be another one the next week or the week after.
Here’s one of those that was just listed. Redfin says it’s been listed for 4 days. It’s one of the smaller, 650 square feet 1-bedrooms but it’s not under contract yet.
http://www.redfin.com/IL/Chicago/1620-S-Michigan-Ave-60616/unit-1118/home/18916669
I know why this hasn’t sold:
It’s really an ‘efficiency’ apartment with a partitioning wall as a sorry excuse for a bedroom. The 1999 price $93,000 was too much money even then. These should all be rentals for $1,000 bucks a month or less based upon the location. The 2006 price was 100% financed: $177,200.00 + $44,300.
Thanks for the link! I like the looks of 1601 much better than 1620. Plus, it has the advantage of not having everyone that bought at the top. That’s the problem with 1620, 1720 is that pretty much everyone is badly underwater. It’s possible that 1601 is in better shape due to buyers from 1999.
I like the sloop a lot, and defend it many times on CC.
but man i have to say personally i dont like gamble and there are too many variables that scare me, I ran it through my cranium and the out put is i could live in sloop in a heartbeat but i would never buy they.
anyone have some solid reasons why to BUY in the sloop?
chukdotcom: Please, buy them all up; for every seller of a $100,000 efficiency there is a buyer. Your purchase is merely a signpost on the way down to $70k or $75k, tops.
“It’s really an ‘efficiency’ apartment with a partitioning wall as a sorry excuse for a bedroom.”
Right. That’s what most of the 1 br’s are in this price range. Personally, I prefer just a plain studio. Put all the space in one big room.
And 221k is insane in ANY market.
“chukdotcom: Please, buy them all up;”
Not all of them. I just need one. I’m not looking to become an investor, I just need an in-town unit.
“anyone have some solid reasons why to BUY in the sloop?”
Well, for one, it is cheap. You get what you pay for. For another, at 100k, it is a lot cheaper than renting.
Let’s do some math:
Buy for 100k cash.
Monthly outlay = $200 HOA + 120 tax = $320.
Cost opp on my 100k = 3% per year or $250 per month.
So, let’s call it $600 per month “cost”. Would cost me at least $1300 to rent. So, saving $700 per month or $8400 per year. If I keep it for 5 years, I will have saved 42k. So, even if this place only worth 58k in 5 years, I am still ahead of the game.
Let’s just all take turns buying these units until they are all sold and then we can start another bubble since there is no inventory. Who’s with me?!
In-town purchases are different than investing; if you got the cash to float an in-town, then go for it! I mistook your enthusiasm for an investor. My sincerest apologies.
Is parking really included in this? If you read carefully, it says “Access to gated guest parking included”. That doesn’t exactly sound like a deeded parking space to me.
I personally like the area quite a bit. Great proximity to down town, loop, museums and parks. Some of the new constructions buildings are quite nice and have much lower assessments compared to other down town areas. I also like the population diversity of the place both in terms of ethnicity and age. Also parking is much easier for guests as well (small perk but hey).
“anyone have some solid reasons why to BUY in the sloop?”
Zapatista was once a reason for me to visit the SL. But now…
its a “short sale” you aren’t getting this property at 100k, nor are you buying it within the next 6 months
What’s wrong with Zapatista now? I still go pretty regularly and it seems as good as ever…
There’s now a Zapatista in ELP. (Intended that as a bit of self-depricating humor, i.e., now I’ll have no reason to leave ELP.)
And as a general rule, I’d say for the south loop, don’t go south of 19th st. almost everything north of that is fine though
MiuMiu,
I like the south loop a lot, and like i said i would live there in a heartbeat,
but the true question is why would you *BUY* there
“I personally like the area quite a bit. Great proximity to down town, loop, museums and parks. Some of the new constructions buildings are quite nice and have much lower assessments compared to other down town areas. I also like the population diversity of the place both in terms of ethnicity and age. Also parking is much easier for guests as well (small perk but hey).”
and by “go” I mean purchase… you can obviously traverse south of 19th street, LOL
Groove, I have bought a 1BR and planning to buy a 2BR there.
“but the true question is why would you *BUY* there”
Why wouldn’t you buy there if you see a good deal, like this one at 100k (if it would indeed sell at that price)? Renting isn’t all that cheap around here… Just stay away from grossly overpriced stuff (most of the high end imo)
Assuming one was to buy now (so forget the arguments about where prices are headed), does anyone have any thoughts on this particular building vs other stuff in south loop? Personally, I never knew it existed until this morning. My understanding is that it is 100% owner occupied, and renting is not allowed. I can see that as both a positive and a negative. Also, parking is NOT included in the price.
“Groove, I have bought a 1BR and planning to buy a 2BR there.”
but why *BUY*, thats the thing i am missing. in my brain it doesn’t compute to a safe purchase, to many forclosures, to many badly constructed buildings in which the low assesments just mean a special ass will be needed. To many vacant units either unsold or being held be specuvestors.
its just to scary for *me in my brain to buy there.
it is known that i tried to get a rental at OMP as i like the sloop mucho. but i just wouldnt even think of buying there.
“its just to scary for *me in my brain to buy there.”
And those are usually the best times to buy. When it is “easy” to buy, that’s when you should be worried.
HD – u are saying this place is worth a porsche? 70-75k? no way, this place is worth 150 easy w/parking…
“this place is worth 150 easy w/parking…”
305 just above it same floor plan is also a short sale priced at $159. Been on the market for a while steadily dropping in price. We’ll see if 150k is realistic…
“this place is worth 150 easy w/parking…”
It does not include parking, and I think 150 is way too high. I think 100-120 does it.
@ Groove, is the question in general asking about why buy/rent?
then my reasons are: I like to own my place and be able to do as I like within reason to it, believe renting is waste of money in the long run, and like to diversify my investments and still think housing is a good asset class in long run.
As for why South loop, I think I answered already: the location is very neat to me. There are not that many neighborhood so close to down town and lake with great walkability and low assessments. I don’t feel like paying 1K of assessments a month when I can get away with paying say $600.
Another reason why we like SL is specific to us as we commute from the South and it is closer than other neighborhoods. Also, we have parents and friends visiting us from over seas often and for them this location is great. Specially availability of public transport is a great plus for us.
Hope this helps a bit clarify what I meant : )
chuckdotcom – soo…100-120 for the place, 15-20 for the parking = 115-140 total…I still personally think its worth 150k w/parking given its attributes. There is a lower limit threshold I feel in Chicago that affects condos. Pretty much anywhere close to the loop is worth more than 100k imo, given no serious defects.
This is a 1 bedroom where the bedroom doesn’t have a window. This is an efficiency with a partitioning wall. Remove the wall and it ‘might’ be a studio but usually the kitchens are separate in studios. The kitchen is along the living room wall in this ‘one’ bedroom. To me that makes it an efficiency with a balcony, not too dissimilar to what a transient would rent at a half-way house for $125 a week. Show me a true one bedroom (with a separate room and a window) and that’s worth more than 100. Not this, not this at all, in a post-bubble market. Uptown and east lakeview are filled with these vintage one room efficiencies. What do they rent for?
You can get a one bedroom in a high rise along the lake in lakeview for roughly $100k. I won’t be in the best of condition but it’s completely livable. No way this should command a premium.
“To me that makes it an efficiency with a balcony, not too dissimilar to what a transient would rent at a half-way house for $125 a week.”
hahahaha good one
“My understanding is that it is 100% owner occupied, and renting is not allowed.”
It is odd that the listing for 205 says “no renters allowed in building” since the same agent listed it for rent last July and rented it in Sept per the mls.
#103 also rented in the past year on the mls.
$85K would make for a good in-town or as a rental for a Columbia College kid with parents paying the rent.
“You can get a one bedroom in a high rise along the lake in lakeview for roughly $100k. I won’t be in the best of condition but it’s completely livable. No way this should command a premium.”
Yes it should. It doesn’t have window a/c, it doesn’t have sky rocket high assys/taxes…it does have a view – a city view at that which is better than a lake view imo, plenty of light, nice kitchen space, decent bathroom… so what if it’s a an efficient studio or what not – id live here over LV in a 1970’s run down building any day!
G –
Do you know what 103 or 205 rented for?
“You can get a one bedroom in a high rise along the lake in lakeview for roughly $100k. I won’t be in the best of condition but it’s completely livable.”
How is that better?
“How is that better?”
It isn’t, but whatever, that’s his shtick
chuk,
#103 is a 2/2 rented last March w/outdoor pkg for $1450
#205 rented for $1400 w/o pkg
#1601 has also been listed for rent in the mls, but cancelled.
The rental listings all incl a variation of “$300 REFUNDABLE MOVE-IN DEPOSIT; $100 NON-REFUNDABLE FEE FOR MONDAY – FRIDAY MOVE-INS, $200 FOR SATURDAY MOVE IN.” That tells me rentals are allowed. Perhaps, they are limited?
“That tells me rentals are allowed. Perhaps, they are limited?”
I’m sure I am butchering the quote, but I was told something about “concessions” for “owners that have been there xx amount of time” in regards to rentals.
“Hope this helps a bit clarify what I meant : )”
it totally does but doesnt clarify my question, which i dont even really know what question i am really asking?
the question is sort of a rent/buy thing but just specific to the sloop’s inventory/quality/forclosure woes.
i know i am not clear maybe somebody that *gets the groove can word it better?
Wouldn’t touch it with a 10 foot pole for now, prices are still falling, and this is no different. Without parking is a big deal too, who wants to park on the street in the sloop???
“the question is sort of a rent/buy thing but just specific to the sloop’s inventory/quality/forclosure woes.”
I think its a risk/reward scenario. The less risky areas have fallen less in price. The problems you mentioned are at least partly factored into the pricing (to what degrees is the 100k question). If there weren’t so many foreclosures,etc. these places wouldn’t be selling for 100k.
To be honest, so far I have not seen data that supports SL has more foreclosures than other down town areas. Some of the most distressed building are in GZ central. I find the MP complex in SL pretty stable on the whole. Also there are many town homes between 16th and Roosevelt which makes the area more stable again compared to condo only areas in the loop.
“If there weren’t so many foreclosures,etc. these places wouldn’t be selling for 100k.”
“To be honest, so far I have not seen data that supports SL has more foreclosures than other down town areas.”
Well, that’s what the “etc” is for. There does seem to be more short sales, but I’m not sure there are that many more foreclosures. Also, the other issues he mentioned (poor construction in some new developments, over building, etc.) I do think there is greater supply in south loop than other places.
““You can get a one bedroom in a high rise along the lake in lakeview for roughly $100k. I won’t be in the best of condition but it’s completely livable.”
How is that better?”
I’m guessing established neighborhood and building (which will long since have fixed any construction flaws) vs. developing neighborhood/new building.
“vs. developing neighborhood/new building.”
Well, this one isn’t exactly a new building. Was converted in late 90’s.
It’s still new enough, though, to be developing problems. I see lots of big ticket maintenance items just looking at the facade (tuckpointing, balconies, cornice, etc).
“I see lots of big ticket maintenance items just looking at the facade (tuckpointing, balconies, cornice, etc).”
Well, the building itself is very old. Obviously the balconies were part of the conversion. I have no idea what condition any of it is in.
miumiu is right about the townhomes making the sloop more stable.
And this is in a residential area, adjacent to a lot of condos and Central Station. It is not a CMK type of property. I think for the right person who intends to stay awhile it is a deal.
Don’t forget about the Sloop’s proximity to downtown, the lake, and GOOD PUBLIC TRANSIT. With gas prices so high (and they are only going to get higher), I think this has good long term potential, especially for someone who doesn’t make a ton of money and can’t afford something more expensive but who wants to live in the city.
Someday the sloop will bottom and some people will get incredible deals. Not sure that day is here yet and not sure of any way of knowing but those structures are already built & aren’t going anywhere..just have to wait for the excesses of the boom to be shaken out.
Here’s the Woodstock Institute’s foreclosure data per 1,000 mortgageble properties along with REO market share from the MLS for each community area.
Near South Side 2009 2010
Foreclosure Filings 94 136.2
Foreclosure Auctions 27.3 47.7
REO % MLS Sold 5.47% 9.76%
Near North Side 2009 2010
Foreclosure Filings 30.4 32.6
Foreclosure Auctions 8.7 12
REO % MLS Sold 5.15% 7.42%
Loop 2009 2010
Foreclosure Filings 44.8 68.8
Foreclosure Auctions 11.1 21.5
REO % MLS Sold 4.86% 5.49%
Near West Side 2009 2010
Foreclosure Filings 41.3 64.1
Foreclosure Auctions 16.3 23.2
REO % MLS Sold 7.55% 11.33%
Lincoln Park 2009 2010
Foreclosure Filings 11.7 15.7
Foreclosure Auctions 2.5 4.6
REO % MLS Sold 2.43% 2.78%
Lakeview 2009 2010
Foreclosure Filings 15.6 16.9
Foreclosure Auctions 4.4 5.9
REO % MLS Sold 2.37% 4.54%
I track foreclosure auction numbers for comparison to current sales. It looks to me from my data that all of the above community areas will have to see 75%+ increases in sold REO properties in 2011 just to clear what the banks are already holding. The exception will be the Near North Side, which will likely see ~50% increase (will still be leader in total units.) New foreclosure filings are still increasing in these areas, too.
G,
I think much of that has to do with timing (not that it helps the previous buyers). Much of the south loop went up during the bubble vs more established neighborhoods. Stuff like 1620 and 1720 S Mich. Those people ALL bought at the top. So, that is obviously having an effect in reverse. It’s not so much the south loop is “bad” IMO, it’s that a larger percent of its buyers bought at the top, therefore more short sales, foreclosures, etc.
chuk, I was just answering the question of whether or not the SL is so “bad” relative to other near Loop area foreclosure numbers. Obviously, it is in a class by itself.
No doubt that the Loop and Near West Side are next worse due to their having the next highest % of bubble construction.
I was also hoping you picked up on the fact that we ain’t seen nothing yet in REO for sale. Don’t bother with the short sales unless it’s just to kill time until your eventual REO is listed.
For starters you get a window in the bedroom……
“How is that better?”
Thanks for the date G. It is helpful. What is exactly near south side though? To me certain parts of greater SL like central station are premium locations while say 20th street (not even sure it is SL) might be much worse. Also for the data to make good sense, it will help to see what is the spread. Huge number of foreclosures in a few distressed building or all over. If the former, one might want to correct for those properties in any zip code and then make the comparison.
For instance looking at the more informative chart and demo of the link below central station (60605) in no way worse off than other premium green zone properties. This is of course for a short period only, but is consistent with my observations of foreclosures in Chicago Tribune and what our realtor has been telling us. Unless, zip codes are attached the data is a bit too vague to interpret IMHO.
http://www.chicagorehab.org/resources/docs/policy/foreclosures/a_picture_of_chicago_foreclosures_february_2010.pdf
“I was also hoping you picked up on the fact that we ain’t seen nothing yet in REO for sale”
Yes, thanks for the info. For me, I need a place between now and the fall, market be damned. Also, the REO is a catch 22. If there are tons of REO’s in one bldg (ex: 1620 S Mich), then I don’t want a place there. So, I want to buy an REO where there are no REO’s….
I need it for my work, so I am a different kind of buyer. And yes, I’m looking to avoid short sales, it’s just that buying REO’s can sometimes be easier said than done. I don’t like the “black box” approach to the offer process. There is no transparency, and usually no chance to adjust your bid. So, just because an REO comes up that I am interested in, there is no guarantee I will get it. I could bid 120k on the next N Franklin place, only to find that I got outbid at 125k, or that it sold to someone else for less. I wish there was a “buy it now” price like on ebay….
Good price not building.
Good price with parking.
“What is exactly near south side though? To me certain parts of greater SL like central station are premium locations while say 20th street (not even sure it is SL) might be much worse.”
What’s commonly known as South Loop doesn’t exist in mls. It’s Loop down to Roosevelt and then Near South down to 26th, bordered by the River and Chinatown to the west. You can go to redfin.com and type in a neighborhood and it’ll show you the exact outline.
“Good price not building.”
What is wrong with the building?
chuckdotcom, have you looked at 611 S Wells dot com? My unit is for sale by owner at a great price and includes deeded parking, though only advertised on the buildings website.
“Good price not building.”
What is wrong with the building?
Is there something wrong with this building?
Is there even good parking nearby without worrying that your car will get broken into?
Brian,
Nice unit, but way overpriced in this market.
“For instance looking at the more informative chart and demo of the link below central station (60605) in no way worse off than other premium green zone properties. ”
Please provide some analysis. You seem to be confusing foreclosure totals with foreclosure rates.
Unlike you, I dont have access to MLS data. Please clarify what is near south side. I would really appreciate if your numbers were based on zip codes.
“Please provide some analysis. You seem to be confusing foreclosure totals with foreclosure rates.”
Lol. Is G now pouting?
“Unlike you, I dont have access to MLS data. Please clarify what is near south side. I would really appreciate if your numbers were based on zip codes.”
MLS data has nothing to do with the foreclosure rates I posted. Those are from the Woodstock Institute. Near South Side is an official community area. Try google. Doesn’t matter, we can discuss your data. OK? Let’s take a look at your conclusion from your zip code data.
“For instance looking at the more informative chart and demo of the link below central station (60605) in no way worse off than other premium green zone properties. This is of course for a short period only, but is consistent with my observations of foreclosures in Chicago Tribune and what our realtor has been telling us. Unless, zip codes are attached the data is a bit too vague to interpret IMHO.”
“No way worse off”? How did you draw that conclusion from your data? Feb 2010 had 21 foreclosures completed in 60605. There were 27 in 60611 (near north), and 16 in 60614 (LP). Is your conclusion based on those totals? Did you consider that the number of houses/condos in 60611 and 60614 are 2-4 times greater than in 60605? I believe the rate is more applicable for comparison purposes. Then again, you are the one who has claimed superior powers of reason that I do not have, so please share your analysis. How does that data show that 60605 is “no way worse off”?
Where’s moomoo?
I live in the building – it doen’t allow rentals. That is why the unit is so cheap. The building is in a great shape though and taxes and assesments are really low. Assesments include high speed internet and cable.
Maria, is there any way I can get in touch with you? I have a couple of questions about this building.
Or, you can reach me at chicago.buyer@yahoo.com if you don’t want to give out your contact info.
I was under contract for this unit for 107k. There was a 1st and 2nd mortgage on the place and the short sale was taking forever. They wanted me to kick in more money, but I wouldn’t. After 5 months, I told my attorney to cancel the contract because I found something else I wanted to buy. They immediately approved the short sale to me that day, but I had made up my mind. This unit closed today for 107k, and is back on the market for 175k. Who said flipping was dead?
http://www.redfin.com/IL/Chicago/1601-S-Michigan-Ave-60616/unit-205/home/12763475
Also, appears to have been bought with 5% down. CCRD shows a mortgage of $101,650.00. Is this 2012 or 2006?
Chuk, just because it is listed for $175k doesn’t mean they will get it although it will be easier not being a short sale.
If it does sell for this price, it looks like your impatience got the best of you….
“Also, appears to have been bought with 5% down. CCRD shows a mortgage of $101,650.00. Is this 2012 or 2006?”
This is what I’ve been saying for a couple of weeks now. I’m STILL seeing mortgages where people are putting almost nothing down from 2010, 2011 and now, apparently, this one that you’ve pointed out Chuk.
Should we chatter about the flip? I think we should. I miss them so!