Brick and Concrete South Loop Loft Now a Short Sale: 1528 S. Wabash
We first chattered about this brick and concrete 2-bedroom loft at 1528 S. Wabash in the South Loop in February 2009 and again in May 2009 after it was reduced.
See our May 2009 chatter and pictures here.
The loft was then withdrawn.
It has recently come back on the market and, after several reductions, is now listed as a short sale.
The loft has 11 foot ceilings and wrap-around windows. There is exposed brick.
Both bedrooms have full ceiling heights and windows, a rarity in many loft units (especially the windows in the bedrooms.)
The kitchen has maple cabinets and stainless steel appliances.
The loft is now listed for $28,100 under the 2004 purchase price (if you include the parking).
Is this now a steal for a 2-bedroom in this location?
Elizabeth Sheeran of Ideal Location Chicago Real Estate still has the listing. See more pictures here.
Unit#608: 2 bedrooms, 2 baths, no square footage listed
- Sold in January 2004 for $268,000
- Originally listed in October 2008 for $299,900 (parking is extra)
- Reduced
- Was listed in February 2009 for $284,900 (parking is $34,000 extra)
- Reduced several times
- Was listed in May 2009 for $261,900 (parking is $28,000 extra)
- Withdrawn
- Listed in April 2010 for $289,900
- Reduced
- Currently listed as a “short sale” for $214,900 (plus $25,000 for parking)
- Assessments of $433 a month (includes heat, gas and cable)
- Taxes of $3329
- Washer/Dryer in the unit
- Central Air
- Bedroom #1: 14×12
- Bedroom #2: 12×11
- Living room: 14×18
- Kitchen: 14×9
I’ll admit when I’m wrong – as a short sale the seller probably won’t be bringing any money to da table.
“homedelete on May 26th, 2009 at 8:22 pm
Also nobody mentioned the 100% financing with a HELOC of $40k after that. This seller is underwater and bringing money to da table.”
I can understand going past Roosevelt if you’re in Museum Park and have a lake view to make up for not having the ideal location. But what is there around 15th and Wabash appealing enough to make a buyer interested?
One added feature: There is a train track that runs directly next to the building…and of course it runs at odd hours.
if this is a short sale would the bank even approve it without the parking included. i dont see the bank taking the hit on the house and then just having the parking spot hanging around. How would that even work? The mortgage is tied to both pins, can it be released on just the condo while remaining on the parking spot???
“The mortgage is tied to both pins, can it be released on just the condo while remaining on the parking spot???”
Yes. Partial releases are completely okay.
But, yeah, there’s almost no chance the bank accepts an offer excluding the parking.
Ok I had a unit listed in this building. The seller decided to just let it go into foreclosure. There is a special assessment in this building. The buyer is going to be responsible on this one. Its going to be at least 25k+ for this size. After this special, the reserves are pretty much gone. Also, this is right on the EL. (not sure about this unit) It is very noticable in a lot of the units. The problem is, a lot of owners going to do what my owner is deciding to do. Just let it go. His was a 1200 sq/ft 1/1 in the building. (one of the larger units) And I know of a few other owners just doing the same thing bc they cant swing the special. This looks good now, but if you get a ton of foreclosures in here, this price may seem like a bad deal a year or so from now.
OUCH!!!
laricy,
can to clarify, will there be a $25/unit special AND all the reserves will be eaten up?
How does that even get financed if there arnt adequate reserves and a looming mega-special assessment?
It probably won’t get financed…
Special assessments, litigation, lack of reserves, too many renters, one entity/person owning more than 10% of the units, too many owners delinquent with assessments, etc can all cause financing problems.
Not only does the borrower have to qualify, but the building as well. Most deals fall apart due to issues with the development.
How does a 5 figure/unit special assessment get worked into the HOA dues? Over how many years will it be spread out?
Russ:
Are there any reliable publicly available sources that one could point to for the financing variables you mentioned? I’m mainly interested in the reserve level and renter % stats as I’d like to put clauses in our HOA that make sense.
I know the renter % number has changed over the past two years but only ancedotally, and would prefer to put a rule that states our building can only have the number or units rented equal to the LIBOR of financing trackers.
@Wicker
“anecdotally”: keep it that way, if the HOA doesn’t official know about a rental that they won’t count it as a rental on the condo questionairre.
-thats called Enron accounting. (not that I recomend this, beacuse I actually don’t)
Tom,
I am guessing it will be 25000 on this one. On the clients unit I had it was 21000 and it was the largest 1/1 (1188sq/ft). You can pay the special all at once, or do a monthly payment on it. I think it was over 200/mnth for like 20 years. And yes, they were only dipping into their assessments AND having a special. The reserves will not be very low for a building this size. I think around 200-300k total. The special was for a roof and tuckpointing.
*will now be very low.
@laricy
6 year old rehab needing roofing and tuckpointing should be criminal.
Unforetunately the developer can hide behind the now disolved LLC.
I’m surprised none of these sleaze-developers haven’t been bricked.
can’t wait for condo prices to tank; I think 150K for a 2/2 isn’t bad for a decent building in southloop; this close to downtown, w/o regard to lack of amenities, the cta tracks are a big -. what do you think the sq ftage is in this place, 1400+?
look at the pics and size of the rooms on the listing, this looks to be smaller than the 1188 sf 1/1, even if there was creative agent, um, enhancements.
revassal on June 3rd, 2010 at 6:33 pm
what do you think the sq ftage is in this place, 1400+?
well if its that small then under 150 would be a better price.
laricy – 25 K? I believe you mean 2.5 K
To all those blogging about this unit: I am the listing agent and want to set the record straight. There is a special assessment on the building for roof work, a new parapet wall, tuckpointing and balcony repair. For this unit it will be slighty under 20K. The association is not dipping into the reserves at all for the repairs leaving the reserves at a decent amount. This is a top floor corner unit with south and east exposures. It is 4 floors above the freight line to the south and the farthest unit to the east of the El. It is roughly 1150 sq. ft and is all useable sq footage. All the newer construction 2/2 condos in the South Loop are all around 900 sq. ft with terrible layouts. The other 1188 1/1 that people keep comparing this unit to is probably the worst unit that I have ever seen in terms of location being surrounded by trains, literally. If you look out the bedroom window you will see the freight train rails running at the same level as your window and out the living room windows, you see the El rails and train wheels, leaving the unit with no natural light and unimaginable noise. If I was that owner (who paid 220K for it) I would give it back to the bank too. The two units are drastically different.
“All the newer construction 2/2 condos in the South Loop are all around 900 sq. ft with terrible layouts.”
pretty bold statement
With the s.assessment and parking, this is a $260k unit. Not only that, but taxes and regular assessments come to $710 a month before you factor in the mortgage. It seems reasonable when you compare it to bubble prices and to other cities. Unfortunately, the South Loop is in free fall and only getting worse.
Anecdote time! I know 3 people in the area who are going to mail the keys in after they live rent free for a while. All 3 HELOC’d their sloop pads. One bought an M3, another bought a boat, I think the other pissed it away playing on-line poker (not kidding).
Those of us that waited until after the crash to buy or who just rented really are the suckers here. There was FREE money and we didn’t take it.
Serious question, after these buildings fail, what are the chances the city turns them into section 8 housing?
Has the city turned any of the boom condos into section 8 housing yet?