Deal of the Month in the South Loop? 1111 S. Wabash
I can’t tell if this listing of a 3-bedroom unit at 1111 S. Wabash in the South Loop is a foreclosure or simply a short sale.
But either way- this unit is priced at only a third of what it sold for 2.5 years ago.
Is this the deal of the month in the South Loop?
There is no written description or pictures in the listing. Sorry!
But here are the room sizes. This is a “true” 3-bedroom condo:
- Bedroom #1: 15×15
- Bedroom #2: 14×11
- Bedroom #3: 12×10
- Living room: 18×14
- Dining room: 11×8
- Kitchen: 10×10
1111 S. Wabash only has 34 stories so this unit is just below the penthouse floor.
Unit #3301: 3 bedrooms, 3.5 baths, 1 car parking
- Sold in April 2006 for $1,586,500
- Currently listed for $500,000
- Assessments of $1,467 a month
- Taxes of $9,810
- Crea Housing has the listing
The developer is still trying to sell Unit #3302 on the same floor. It also has 3 bedrooms, 3.5 baths but appears to be a larger unit. It’s a duplex with two terraces. It is currently listed for $1.5 million.
what is the difference between a foreclosure and a short sale?
Foreclosure is when the property goes to a judical sale after litigation. A short sale is when the seller obtains a buyer offering a price lower than what is owed on the property, and the bank approves the sale. (In a nutshell.)
Also, without doing any research, my guess is that this is a foreclosure.
I don’t really think the word “deal” can be used when referring to anything with $1500/month assessments…but maybe the joke will be on me when someone turns around and sells this place for a million in a few years.
There is not a single property in the South Loop that is justifyably worth over $1 million. It’s just not that kind of neighborhood, especially given how overbuilt it is.
You know there is something hip and cool about owning a sweet high rise condo downtown, even if it’s the south loop, but it is really difficult to justify the prices. I know people who paid $200k and $250k+ for one bedrooms down there. These are young people too – taking on so much debt at such a young age. But like Danny said, maybe the joke is on me. Maybe these young couples won’t move to naperville, but rather they’ll move to three bedroom condos in the same neighborhood. I guess it’s possible but not likely.
On first glance, this appeared to be just another generic FB. I had more info pulled and I must repeat one of my oft-asked questions here: How much were prior sales influenced by fraud?
There is no indication in the public records that #3301 has been taken back by the bank to date, although the lis pendens was filed long ago. The time line is as follows:
#3301 (17-15-309-039-1243)
4/21/06 sold for $1,586,500 to Shana Kyler
5/23/06 mtge for $1,110,340 & $396,550 with MERS
3/9/07 lis pendens filed by US Bk
The buyer, Shana Kyler, purchased at least three other properties (all on the South Side) just prior to #3301:
20-10-109-031-1004 (2BR/2BA condo duplex down)
6/7/02 sold for $160,000
9/20/04 listed on mls for $249,000 (by an agent with same name as unit owner)
Price lowered to $190,000
3/15/05 listing canceled
8/31/05 sold for $260,000
8/31/05 mtge for $260,000 with MERS
11/1/05 sold for $330,000 to Shana Kyler
11/1/05 mtge for $330,000 ($264,000 + $66,000) with Long Beach Mtge
11/13/06 lis pendens filed by Deutsche Bk
10/1/07 deed to Deutsche Bk
4/29/08 REO listed on mls for $85,000 (“contains water damage and mold”)
8/28/08 REO listed with new agent for $49,900
20-25-130-036-1002 (3BR/2BA condo)
12/19/05 condo conversion declaration filed
3/27/06 sold by developer for $289,000 to Shana Kyler
3/27/06 mtge for $289,000 ($231,200 + $87,800) with MERS
2/26/07 lis pendens filed by Countrywide
11/6/07 deed to Countrywide
4/2/08 REO listed on mls for $124,900
Price lowered to $119,900
6/2/08 contingent contract
20-16-309-026 (3-flat with 2-4BR & 1-3BR)
4/8/04 sold for $125,000
3/30/06 sold to Shana Kyler with no price on deed
3/30/06 mtge for $365,000 ($292,000 + $73,000) with MERS
9/19/06 lis pendens filed by Fremont Loan for 1st mtge
11/13/06 lis pendens filed by Citimortgage for 2nd mtge
9/24/07 deed to Fremont Loan
Deed from Fremont to HSBC
7/16/08 REO listed on mls for $69,000
Price lowered to $59,900
8/20/08 pending contract
Those last two appear to have been sold to Shana Kyler by related parties.
These things don’t surprise me anymore. The total is at least $750,000 in losses already PLUS whatever is lost on #3301. Is anybody out there looking into things like these? If fraudulent loans end up with fraudie and phoney and they are “owned” by the govt, do whistle-blower laws now apply?
“These things don’t surprise me anymore. ”
Welcome to my world. I see a lot of this stuff. There are a lot of unscrupulous people out there who think that ‘making money in real estate’ means stealing it from the bank. There are a million and one ways to do mortgage fraud and overflated appraisals are only one of them. There are fake releases, the mutliple mortgage originations on the same day, multiple sales in the same day, construction loan fraud, ripping off poor people with a desire to become land barons, etc. Half the time these guys are from foreign countries and they return there as fast as them came. You can live really well for a long time in Poland off $500,000. The banks are so discombobulated and disoriented they cannot even begin to try and investigate these things. The FBI has become more proactive as of late but that’s sort of like closing the barn door after all the horses have left.
I am familiar with this unit because I live in the building. This unit has quite a history. The unit was occupied by Reginald Potts, who was arrested for the highly publicized murder of Nailah Franklin last year. There was a quitclaim deed of the unit from Ms. Kyler to Mr. Potts before the lins pendis was filed. Apparently Mr. Potts has long been suspected of participation in fraudulent mortgage schemes. He supposedly was a “real estate investor”.
If you google Shana, you’ll find several Chicago-based “hits” and a photo of a young southside teenager who attends Kenwood Academy HS. Is that our Shana the real estate mogul wanna-be?
Shana wanted to be a land baron and it seemed to work for a while. She paid a the mortgages for almost a year before the lis pendens were recorded. She amassed at least four properties in her empire and was probably ready for a 5th until the credit crunch squashed her plans.
Deutsche Bank! Oh our favorite foreign investment bank caught holding the hot potato of toxic CDO’s and MBS!
My what experts they must be in the Chicagoland market to be owners of so many properties these days!
Come to think of it I wouldn’t mind having a german investment bank as my landlord–if you don’t mind shoddy maintenance its not like they’re going to come bother you if the rent is late. It _is_ a long flight, afterall 😀
As has been demonstrated in court, just because Deutsche is either (a) named on the mortgage or (b) filing the foreclosure action does not mean that Deutsche has an ownership interest in the mortgage (probably has some, but often just a couple percent). It just means that they are the servicer–the whole point of securitization is to bundle it up and sell it off. Any given mortgage (esp. if originated after Q1-07) may still be totally on the books, but this one (closed 3/30/06) is highly likely to be pieced out.
‘who think that ‘making money in real estate’ means stealing it from the bank.’
Technically homedelete stealing from the bank is a way to make money. Only in this credit crisis people didn’t need masks and guns to rob the bank, they relied on the banks own stupidity. In this bubble the banks gave them the keys to the vault.
Kudos to Shana for trying to get rich. Kudos to the banks that enabled her that will soon be insolvent. Shana might do some time but she’ll live. Some of her banking insitutions likely won’t.
When comparing the room sizes of 3301 and 3302, it seems that the bedrooms are MUCH bigger and according to what I read above is a duplex. How is it possible that 3301’s rooms are so much smaller and it’s not a duplex (I’m guessing) when the assesments are not much different ( $1467 vs. $1742)?
The unit in question (#3301) is a duplex. I have been in the unit before it was sold to Ms. Kyler. There is a huge wrap-around terrace and a hot tub on the terrace. It has amazing views.
I emailed Crea housing yesterday and they responded saying that the apartment is under contract and will be listed as pending soon.
Abhi: Thanks for checking. Is anyone surprised that this would go under contract quickly? Unless the inside was a total disaster- I’m not surprised (and even if it was- it’s still considerably under what a similar property would sell for in that location.)
Something is still wrong with this unit? Doesn’t look sold. I recently took a look at the 3302 unit and was shocked to see the front door of the 3301 unit smashed in. It appeared someone took a large object to whack the area around the doorknob to be able to reach in and unlock the door. The real surprise is why didn’t the developer or HOA spend the money to fix that door. A real eyesore and wouldn’t it turn off buyers.
GLS –
I was in this unit very recently. You are correct that the door is still smashed in, from when the police raided the home in 2007, searching for evidence in connection with murder for which Mr. Potts accused.
Neither the association nor the current seller have sought to repair the door or the unit itself, which was damaged during “renovations” by Mr. Potts, the police raid, and from the subsequent neglect from being unoccupied since 2007. The door, however, is (or was) boarded shut from the opposite side.
This unit is still trying to be sold. The taxes are $15,840.97 and the assessments are $1,704/month. That is $36288.97 per year. Are the taxes so high because of it’s sales price in April 2006 for $1,586,500? If it is purchased at a third of that cost can the taxes and fees be readjusted? Here are taxes for some similar units:
Address Prop. Tax Last Sale Last Price
Unit: 3101 $8,378.58 May 20, 2004 $679,000.00
Unit: 3102 $10,771.41 Jun 8, 2004 $755,000.00
Unit: 3103 $8,141.82 Mar 26, 2007 $0.00
Unit: 3104 $9,878.78 Jul 2, 2004 $750,000.00
Unit: 3201 $8,525.86 Oct 14, 2008 $0.00
Unit: 3202 $1,105.22 Apr 2, 2008 $750,000.00
Unit: 3203 $8,741.20 Sep 23, 2004 $657,500.00
Unit: 3204 $9,134.68 Apr 21, 2006 $0.00
Unit: 3301 $15,840.97 Feb 26, 2009 $0.00
Unit: 3302 $1,829.15
Unit: 3303 $9,936.46 Aug 7, 2007 $580,000.00
Unit: 3304 $10,487.75 Oct 17, 2005 $846,000.00
Unit: 3403 $8,853.96
If I end up buying this place for $500,000, is the $3,000/month tax & assessment fee worth it? That seams outrageous to me. Is this why it has not been sold yet?
Please advise. Thank you!