Developers Waiting and Waiting for Buyers: 2736 N. Southport in Lincoln Park
We chatter a lot about developers of big high rises having a lot of extra inventory, but what about the smaller developers who maybe built a lowrise building or in the case of 2736 N. Southport in Lincoln Park, a 3-unit building?
Completed in 2007, I haven’t been able to find any records indicating that anything has ever sold in 2736 N. Southport.
Unit #1, the only unit out of the 3 units currently on the market, has not had a price reduction in 10 months.
Unit #2E, also a duplex unit, which is currently not on the market, saw some price reductions before it was withdrawn from the market.
How long can these developers hold on with no sales? (even if they are renting out the units?)
Mike Vesole at @Properties has the listing. See pictures of the building and Unit #1 here.
Unit #1: 3 bedrooms, 2.5 baths, 2200 square feet, duplex
- Originally listed in July 2007 for $839,900
- Reduced in March 2008 to $799,900
- Re-listed in May 2008 for $829,900
- Currently still listed for $829,900 (parking looks to be included)
- Assessments of $150 a month
- Taxes are “new”
- Bosch and Subzero
- 4 inch hardwood flooring
Unit #2E: Not currently on the market- but I see no record of it ever selling
- Listed in July 2007 for $689,900
- Reduced several times
- Listed in May 2008 for $629,900
- Withdrawn in October 2008 at $629,900
It’s not selling because it’s ASS ugly.
Over $375/ft. That’s why it isn’t selling.
Wow, this will be a rental forever. It would maybe fetch 550k- big maybe. 830k? Insanity.
I am unsure the developer is trying to sell all their units. They can only sell units they list on the MLS. That should be the first clue to this developer. Epic fail.
And now the banks are going to pretend loans made to developers like this are good and hold them at face value on their books once MTM accounting gets suspended (on the news today). Yes this construction loan is truly worth 1.8MM…trust us..
Developers can hold out with no & slow sales so long as their bank will let them. Their bank can let them so long as taxpayers keep throwing money at them. So until there is enough public outrage to stop further bailouts. And this public seems pretty docile and even numb to the trillions (with a T) unit now, so perhaps ad infinitum.
I’d take it for 500k, no more
So, I’m not a realtor, I don’t know anything about real estate… but I am looking for a house. And the thing I can’t stand about this house (and many of the ones I’ve seen listed) are the cabinets in the kitchen. They look so cheap, and also like they’ll look outdated within a few years. Leave out the granite and stainless steel appliances, and give me nice, well made cabinetry! I’d much rather pay for that.
But then again, I don’t know what “sells”.
so is it just me, or does the birds eye view on the real estate websitre circle an empty lot?
Aesha, the thing is nothing is selling right now! 😉
Seriously how many people that want expensive three flats, but don’t have enough money for a single family home actually drive to work? The number of places like this built so far from El stops boggles me.
I walked by this place yesterday while walking my dogs… the glass looks a lot better in person, but it still looks like a frank lloyd wright wannabe because they used cheapy lookin bricks on the front. The interiors look fairly nice from the pictures, but no way this place fetches 800k when you can buy a 3000+ sqft SFH nearby for that kind of dough.
“so is it just me, or does the birds eye view on the real estate websitre circle an empty lot?”
That function uses google earth or msft something, and those pictures are usually a few years old, so if its a new build, then there will probably be an empty lot there.
“you can buy a 3000+ sqft SFH nearby for [$800k]”
Where? And to be comparable, it certainly doesn’t have to be as d-lux as this place, but it can’t be all Starsky, either. That’s an entirely different market, who wouldn’t pay $800k.
I know, I jsut thought it was kind of funny and apropo for these times
wow, i’m actually pretty surprised at those calling this place ugly and cheap. looks very high-end to me. the marble/granite wrapping around the island is a very high-end feature you dont see in too many places.
“And now the banks are going to pretend…”
They don’t call it pretending, it’s called waiting for the market turn back up. :=)
The MTM rule change is a really big deal because it changes banks reserve requirements. It will make a huge difference in their ability to lend and grant forbearance, two factors that have exacerbated the housing decline.
Based on the bedroom windows, this is a duplex down with the bedrooms in the basement. Count me out at that price, although I agree that the bath and kitchen fixtures are nice.
“…but no way this place fetches 800k when you can buy a 3000+ sqft SFH nearby for that kind of dough.”
Yeah. I’d take that little house on Paulina over this anyday.
“Yeah. I’d take that little house on Paulina over this anyday.”
Well, yeah, given that it’s $200k less, but the house on Pualina ain’t 3000 sqft, and it’s a mile away which isn’t exactly “nearby” in the scheme of the neighborhoods.
The appointments look nice, but I don’t think buyers are willing to pay that kind of premium in this market for higher end faucets. I agree with Aesha, a lot of modern looking cabinetry looks somewhat cheap…although their particular choice doesn’t look bad, I’d prefer to see higher-end traditional cabinets used here. Room size is unspectacular…most duplexes I’ve looked at recently start around 2400 sq ft, so as a previous poster pointed out, the $/sq ft value proposition is poor. Lastly, from the pics, I actually don’t like the way the island looks with the granite on the side…just looks strange to me.
I don’t believe it will sell anywhere near ask.
Some nearby SFH’s for under 800k
1235 W. Nelson 799k (VERY cool house too)
2735 N. Sheffield 825k Better Location, sorta
2516 N. Seminary 725k not that great
1223 W. Barry 639k not that great and needs work
and of course if you can be a good negotiator there are probably some 1 million dollar homes in the area that some developers are dying to get rid of, like 1537 W. Wellington
there are single-family homes priced under 800K, but they are usually messed up.
1235 Nelson – awful and dated, and floor plan looks like a mess. It’s a two-bedroom house plus a finished basement. Interestingly (for the doom and gloomers), sold for $825 in 2002 and $695 in 1999.
2735 sheffield – backs up to El!!!!!!!!
2516 seminary – no parking on site – they own a spot somehwere in the neighborhood. converted two-flat – ick. “bring your contractors” is in listing. sold as is.
1223 barry – also marketed as a tear down. appears to have an attached garage. this house sits at the back of the lot, near the alley.
I’m not saying the featured condo is a good deal, i’m just saying that houses in the area under 800 all have issues.
at least with this condo it has all the bells and whistles and is ready to move in. Houses in this price range generally are tolerated until they are torn down.
Aesha,
I am a realtor and those kitchens are actually “in” right now. A lot of buyers like the flush look. The cabinets are actually pretty expensive as well.
Sonies,
You are nuts. Where can you buy a 3000+ sq/ft house for 800K in LP? One thats not a gut rehab or a tear down? Decent ones that have no were near the upgrades are about a million and they arent brick. For ones to look like this you are looking at a $1.2 mil easy.
I like the way this looks, but I wouldnt pay no 800K for it. Around 700K will bring buyers in this place.
Here is the floor plan for the building —
http://www.funkearchitects.com/work/floorplans/2736Southport.pdf
SSDD
Steele-
3000 sqft SFH in LP under 1Million : http://cribchatter.com/?p=6175. on the market since July 08, so apparently sub 1 mil is still too expensive… Not brick like you mention in your comment, but is brick worth another 200K? I doubt it.
Yeah and when you own a home, no association dues, you get your own yard, and personal garage as well that you don’t have to share with people.
Another interesting note on this property, the heating device is listed as ‘solar’. Any info on that?
Look, I’m not arguing in favor of (a) the pricing of this unit, or (b) condos in general. But, to say “who would buy this” b/c of mythical $800k, 3000 sqft homes “nearby” is, at best, misleading.
It’s almost the same thing as SITC (remember him?) saying (over-and-over-and-over) “who would buy condo x for $y when you could have House Z in Naperville for $y-$75k”; it’s apples and oranges–anyone who would seriously consider paying for the premium (by price at least) fixtures and finishes here wouldn’t be interested in a DIY project for the same price, even if it were next door.
I have seen this unit in person and the neighboring building which is very similar(2 2 beds and a duplex down). This building was done well, lots of nice details and materials. The cabinets are better in person than the look in the picture. The 2 story great room in the back is great.
The bad – I just can’t justify having all of that living space in a basement. Not all duplex downs are bad in my book, but there was just not enough space on the upper level. When I visited the building next door before these units were complete, the entire basement was flooded with 2 ft of water. No thanks, I prefer breathing without black mold….
I’ve seen the 3bd and 3bd units. I agree the 3bd is not worth $800K. There is too much of the unit in the basement. The 2bd 2bth is interesting though… very high end finishes (toto toilets, subzero fridge, high-end merchandise mart cabinets, etc.). The 2bd 2bth is also a duplex on the second and third floor. Pretty interesting. It’s listed for $629 which is too much in my book, especially since Southport isn’t a very quite side street and it isn’t that close to the “el.” If it were $475-$525 it would probably sell. The 2bd 2bth are for sale they’re just not on MLS because they’re being rented until August. The thing for me is that they are no longer new construction… shouldn’t the price go down!!
Here’s 2E (it comes on craigslist from time to time)
http://www.postlets.com/res/234684
I actually like the exterior from what I can see. And Funke Architects typically has high-qual work.
The developer/realtor shouldn’t try to market it so much as a detached home. They shouldn’tve put carpet in the bedroom at that price. I don’t expect to see one sq inch of carpet in anything over 200k these days.
As others have said, it is too far from the El. 475k and I’m in.
4 blocks is too far from the L?
jeez, not that I wouldn’t prefer a shorter distance, but wow are some of you people soft – that’s a 10 minute walk (and a nice one), tops, and chances are decent you’ll be able to jump on the 76 Diversey most times.
better question – are people paying this much money for a condo actually taking the L or are they all driving?
you guys have way too much free time to be worrying about somebody elses project. get a job and make the community more stable and maybe the realestate prices will go up!
the developer is still renting these out and will not drop the price. funny thing is RIGHT NEXT DOOR there is a virtually identical 2009 built building whose prices are $100K lower. the 2bd go for $539 vs this one’s $629K. let’s see how this plays out.
phil mckracken – why watch sports, tv shoes, etc.? when we should all be making the “community more stable.” people read, talk about, and think about things that they find interesting.