Be a Landlord and Live in the Penthouse Zen Oasis: 2737 N. Hampden in East Lincoln Park
This 4-unit vintage building at 2737 N. Hampden in East Lincoln Park came on the market in August 2018.
Built in 1912, this brick building is on a larger than average 35×125 lot and has a 2-car garage plus one outdoor parking space.
It has four units:
- Unit #1: 1 bedroom, 1 bath garden unit rented at $1350 a month
- Unit #2: 3 bedrooms, 2 baths, 2500 square feet with in-unit washer/dryer and window a/c rented at $4150 a month
- Unit #3: 3 bedrooms, 2 baths, 2500 square feet, with washer/dryer, window a/c and one garage space rented at $3525 a month
- Unit #4: 3 bedrooms, 3 baths, 3500 square feet, duplex up with central air, washer/dryer in the unit and one garage space plus the outdoor parking space: owner’s unit but also says the rent is $8,000 a month
The listing says the penthouse duplex up unit has a top floor zen oasis designed by renowned Japanese architect Masami Takayama (who designed the Sears Tower and Hotel Nikko).
It has a retractable wall of windows in the master suite with a private terrace and water garden as well as a zen oasis.
You could live in the owners unit and rent out the other three units which have vintage features including fireplaces, crown moldings and sun rooms.
The listing also says it’s zoned RM-5:
LOTS OF INVESTMENT OPTIONS HERE: TURN-KEY PROPERTY PROVIDES STABLE INCOME STREAM FROM CLASSICALLY DETAILED VINTAGE APARTMENTS IN HIGH DEMAND ALCOTT SCHOOL DISTRICT OR RE-BUILD INTO MODERN CONDOS
The building also has coin laundry.
Originally listed at $2,947,747 in August 2018, it has been reduced $500,000 to $2,497,747.
Given the prime East Lincoln Park location, will this building be torn down for more “new” million dollar condos?
Michael Rosenblum at BerkshireHathaway KoenigRubloff has the listing. See the pictures and floor plans here.
2737 N. Hampden: 10 bedrooms, 8 bathrooms, 4 units
- Sold in 1993 (no price listed)
- Originally listed in August 2018 for $2,947,747
- Reduced
- Currently listed at $2,497,747
- Taxes of $30,120
- Central air in the owners unit
- 2 onsite private garages and 1 exterior parking space
- Unit #1: 1/1 garden unit rented at $1350 a month
- Unit #2: 3/2, 2500 square feet, rented at $4150 a month
- Unit #3: 3/2, 2500 square feet, rented at $3525 a month
- Unit #4: 3/3, 3500 square feet, owners unit, rented at $8,000 a month, zen oasis
- Gross Rental Income: $209,400
- Gross: $40,516
- Coin laundry in the building although 3 of the units appear to have washer/dryer in the unit
Its a beauty but I feel like the owners’ unit is NOT actually rented for $8K/mo. My back of the envelope is that if you were the owner and living in that duplex up, in addition to all the fitness gains you would have (No elevator?), break-even pricing on that unit based on what seem like actual rents for the other units is $6400/mo, which also seems steep. That also doesn’t account for building a reserve for repairs and maintenance each month.
Clearly over-priced for most investors who want actual turn key or it would have sold by now. Also, anyone who can afford to rent a 3-bed for $8K a month can live in a nice new high rise with tons of amenities.
Curious what the wooden bath tub is like though đ
Most people who can afford this place are not going to have the time or inclination to be landlords. On the other hand, if the building was converted to four condos, I could imagine someone paying a million for that amazing top floor unit and then the remaining three going for at least 1.5 million total, more if they have been rehabbed, which I doubt they have.
“Masami Takayama (who designed the Sears Tower …)”
Um, no?
As the Chicago Architecture Center sez:
“When this 110-story tower was designed, architect Bruce Graham and structural engineer Fazlur Khan of Skidmore, Owings & Merrill (SOM) utilized the bundled tube system to address structural problems never before seen at this scale.”
Also, per Rodkin, they started this place off at $3.95m in 2016.
http://www.architecture.org/learn/resources/buildings-of-chicago/building/willis-tower/
Takayama may well have worked on the project (he was a longtime partner at SOM), but implying he was the lead architect is crap.
Also, how did they value their imputed rent at $8,000? When they claim a net cash flow of $40k, assuming that preposterous rent? Ratchet down to a still high (imo) $5k, and that’s breakeven. Even with $96k in imputed rent, they’re telling everyone the expenses are really high:
$209,400 (rent) – $30,120 (taxes) – $40,516 (gross profit) = $138,764 in other costs–that’s $11,500/month in common utilities, insurance, maintenance and P+I. And, when you include the imputed rent, makes it almost $20k/month to own the place, to be offset by what you collect in rent. For someone with the wherewithal to buy, run a slightly tighter ship, and live in the garden unit, your leverage could be your friend. But that’s a pretty risky proposition, with no track record on the $100k/year for the duplex unit.
@anon beat me to it.
Bruce Graham and Fazlur Khan are rolling over in their adjacent graves at this realtor’s lies.
I can’t imagine this would make sense as a teardown until the price got *way* lower. RM-5 would allow smaller units, but you couldn’t build a bigger building. max FAR is 2, max height of 47′. I’d guess the height is close to 47 if not taller already and if they’re not lying about the unit sizes, they’re right at 2 right now (8500 sqft not counting the garden which I don’t *think* you do with FAR, 4375 sqft lot means you could add like 250 sqft). You could do it as 8 smaller units (like 1000 sqft 2/2’s). It just seems like a developer would want the lot quite a bit cheaper.
Convert them to condo as is makes more sense, but still, someone would want to make a lot more money for the holding costs/risk/etc.
And that’s all not talking about the fact that despite 2 new midrises just up the block, you’re still right off of Clark/Diversey which despite various new stuff, still feels a little sketch compared to other parts of LP/LV. The big Walgreens is closing soon too (later this month I think)
“The big Walgreens is closing soon too (later this month I think)”
They’re closing that big Walgreens right in the middle of the intersection? Wow. Huge loss for the neighborhood. What could go in a space of that size?
“Theyâre closing that big Walgreens right in the middle of the intersection?”
Yep, it closes next week:
https://chicago.cbslocal.com/2019/10/29/walgreens-lakeview-jeffery-manor-closing/
The one in Jeffrey Manor got more press as there aren’t 4 other Walgreens within 1/2 mile (plus 2 CVS and a Mariano’s) like the Clark/Diversey one.
Even though that store predates the Boots purchase, it’s somewhat of a microcosm of the strategy failure. Americans don’t go to Walgreens for cosmetics or food they way Britons go to Boots and their attempts to change that haven’t worked. Rumors are swirling that Boots is going to dump Walgreens.
“Bruce Graham and Fazlur Khan are rolling over in their adjacent graves at this realtorâs lies.”
I have to imagine Takayama would be incredibly embarrassed, too.
“What could go in a space of that size?”
Revive the Great Ace!
Great looking place, love the building and I think it should be divided into 4 condos.
Can’t believe that Walgreen’s on Clark and Diversey is closing. It’s been there forever (well, since the 1970s anyway – back to my first years of living in that neighborhood).
Walgreens is in a different building across Broadway from the old location. The current (about to close) location was formerly Borders. The old Walgreens location sits empty except when it’s a Halloween store. I’m nitpicking, but your point is correct, there has been a Walgreen’s at that intersection for a damned long time.
That said, there is a location closer to there than in the past. For a long time, there was one down south of Fullerton, almost to Belden. That one moved to the former Lincoln Park Market building a few years back (ie almost to Deming). So that one is quite a bit closer to Clark/Diversey than historically. Between that one, the one at Barry/Clark/Halsted and the one at Diversey/Halsted, it’s not like there is a dearth of Walgreens in the area.
The big 2-story Walgreens that’s only been opens few years is closing? Surprised the one at Belmont and Broadway wasn’t the one to close.
“Between that one, the one at Barry/Clark/Halsted and the one at Diversey/Halsted, itâs not like there is a dearth of Walgreens in the area.”
But the one in the old Borders was designed to be a “flagship” store with the upscale beauty department on the second floor and better than normal grab and go food on the first floor. Same with the store in Bucktown in the old bank.
Yes, there are other Walgreens nearby, but those aren’t the fancy flagship ones.
Wow.
I guess that concept didn’t work.
“The current (about to close) location was formerly Borders.”
Dan-Deuce might remember it better as the Great Ace, which it was before Borders. I miss the Great Ace, both there, and when it relocated to Elston.
“Surprised the one at Belmont and Broadway wasnât the one to close.”
Parking v. no parking. Also, far more likely that the B&B location is owned, or belongs to an affiliate.
Diversey location is almost certainly 3d party leased, *and* it may be that they are operating under the Borders lease, bought out of the bankruptcy.
“Between that one, the one at Barry/Clark/Halsted and the one at Diversey/Halsted”
And every one of those has a parking lot.
Of course I remember when it was the Great Ace, back in the 70’s and 80’s. The Rienzi Hotel was across the street, and it got replaced by the current generic-looking residential block there in about 1980.
The one north of Belmont on Broadway has also been there at least since the early 70’s. There used to be a Fayva shoe store next to it, along with The Drum gift shop and a Baskin Robbins on the same block just north of Evergreen Foods.
Sigh.
“But the one in the old Borders was designed to be a âflagshipâ store with the upscale beauty department on the second floor and better than normal grab and go food on the first floor. Same with the store in Bucktown in the old bank”
Yeah, that’s what I was getting at saying that although the store predates the Boots purchase, it’s the same stuff Boots does more of in the UK. The food was super nice at the beginning. Now it’s sad and barely there. The beauty it just seems like people don’t shop at Walgreens for that high end cosmetics. They go to Ulta or whatever. Low end, I’m guessing Target right down the street is cheaper.
“And every one of those has a parking lot.”
Weirdly even in such a walkable neighborhood, that matters. Anecdotally, a friend of mine lives right by there. He told me he usually goes to the one at Deming because of the parking lot. I cracked a “lazy ass” joke about driving a couple blocks, to which he said he doesn’t drive just to there, but he would stop there on the way home from somewhere else. If he’s just at home, he’ll walk there, but it having a parking lot for those times when he’s already in the car have made it his default store.