Do 853 Sq. Ft. 1-Bedrooms Still Sell For Over $300,000 In River North? 400 N. LaSalle
This top floor 1-bedroom at 400 N. LaSalle in River North just came on the market.
It is bank owned.
Located on the 45th floor, it has north facing city views.
From the listing pictures, it appears to have hardwood floors in the main living area.
The kitchen seems to have maple cabinets, granite counter tops and white appliances.
The unit has central air and in-unit washer/dryer. Parking is available for rent, or to purchase, in the building.
This is the high rise where an investor bought up over 100 of the unsold units during the Great Recession with the intention of renting them out.
See that chatter here.
This unit is only 853 square feet yet it has come back on the market from the bank at $314,900.
Before you get in a tizzy, you should know that the following units are currently on the market:
- Unit #4504: also a top floor unit, 861 square feet and listed at $359,000
- Unit #4404: 850 square feet and listed at $319,000
Are high floor 1-bedrooms without luxury features (and size) still able to command over $300,000 in River North?
Jason Shapiro at Rising Realty has the listing. See the pictures here.
Unit #4501: 1 bedroom, 1 bath, 853 square feet
- Sold in November 2005 for $399,000
- Lis pendens foreclosure in January 2011
- Bank owned in February 2012
- Currently listed at $314,900
- Homepath property- you can buy it with just 3% down
- Assessments of $518 a month (includes c/a and cable)
- Taxes of $3523
- Central Air
- Washer/Dryer in the unit
- Parking available in the building (rent or buy)
- Bedroom: 10×10
And the buyer immediately gets to drops about $3k to pay off the 6 mos. missed assessments.
Even if the unit was in a stable, healthy building, I think this would be a stretch. But given that it’s in this very troubled building, no way!
No need to pay this much in this building. You could get a 1-bed in Streeterville for the same price in a better location without the hassles of a troubled building or dealing with an unmotivated bank seller. Try $250,000.
“And the buyer immediately gets to drops about $3k to pay off the 6 mos. missed assessments.”
Doubtful. Why would the bank (which is now, as owner, responsbile for current assessments) not just bake that into the price? And, even if they did not, why would a buyer not insist that it get paid before close, and get a association letter confirming assessments are all current? I guess it could work if the buyer is paying cash, but I *seriously* doubt that FNMA is making loans with outstanding assessments, so it would need to be paid thru closing.
Cheap granite, cheap cabinets, low end appliance and electric store to boot – ergo. This should have been a rental.
@anon (tfo) – your point is a very logical one, but the listing states “Buyer responsible for 6mo past due assmts.” I think that just further shows how little the bank cares to make the sale.
If the association were smart, and I’m assuming they are not, they would put a lien on the place for back assessments which would force them to get a check at closing in order for the sale to go through. How is this not condo standard operating procedure?
” This should have been a rental.”
That’s what it was designed to be. As noted on this site:
“The last time we chattered about the apartment-to-condo conversion high rise at 400 N. LaSalle in River North …” http://cribchatter.com/?p=8906
“your point is a very logical one, but the listing states “Buyer responsible for 6mo past due assmts.””
Good god. What a bunch of f’ing morons. All that means is that they will end up selling the place for $3k less. Idiots.
The greatest thing this unit has going for it is the view… and there is not even a picture of it. #epicrealtorfail
Fred – Perfect point. How do realtors miss the obvious with such great frequency.
It is their job to try to get someone intrigued. Those outside photos and the crummy kitchen and bedroom photo do absolutely nothing to encourage a buyer to ask their realtor to see the space. At least try to win a few of them over with a shot from the window of those 45th floor views.
“If the association were smart, and I’m assuming they are not, they would put a lien on the place for back assessments which would force them to get a check at closing in order for the sale to go through. How is this not condo standard operating procedure?”
Fred the condo association has the legal right to take of the unit over and rent it out to cover back assessments and any legal fee incurred. Any good board will do this before things get out of hand in a large association like this. I know many on this site likes to say how buildings with high foreclosures are in touble but thats not really the case.
“take over the unit”
Before everyone jumps all over my commentary above. When I say a buidling with high foreclosures are not in trouble. What I mean is that the association is not really in trouble for back assessments, if they have reserves they should be able to recoup any assements and legal fees through the rental process. So if they are proactive this shouldn’t be a problem. (in a large building, smaller buildings not quite the same).
Banks are not responsible for assessments prior to the foreclosure. To protect associations, laws were passed that make the buyers of foreclosures responsible for up to six months of past due assessments from before the bank took possession. The bank is responsible once they have possession and generally do pay so that the association cannot take the unit as oilc describes.
” What I mean is that the association is not really in trouble for back assessments, if they have reserves they should be able to recoup any assements and legal fees through the rental process. So if they are proactive this shouldn’t be a problem.”
As B-9 notes, they need to be *all over it*, tho, as once the f/c happens, they have no recourse other than the 6 months.
““If the association were smart”
I think I see a flaw
I’m aware of an association’s right to take possession of a unit and rent it out, I just wonder at what point can an association do it and when does it make sense to do it? If I miss one single payment can the association take possession of my place because I owe $400? I would certainly hope/assume not. Even at 6mo out, you are only talking about $518 x 6mo = $3108 or about 2 months rent. If an association takes control and recoups its money, what happens then? I would think that for less than a year’s worth of rent (which would be many years worth of missed assessments) it would make more sense to go the lien route.
“I would think that for less than a year’s worth of rent (which would be many years worth of missed assessments) it would make more sense to go the lien route.”
Or assessments + legal fees.
If the lender forecloses, the lien is limited to 6 months of assessments, even if 10 years of assessments were unpaid, and the association filed a new lien ever month they became past due.
as to renting it out, iiuc, the association would need to get an o/o evicted (not very likely) in order to rent it out, but if it were already rented out, could much more easily get a court to order that the tenant make rental payments to the association until the arrearage is satisfied, and quite possibly after that, to ensure payment of current assessement.
I’m aware of an association’s right to take possession of a unit and rent it out, I just wonder at what point can an association do it and when does it make sense to do it?
I’m on a condo board. We take possession after 6 months if the owner has not worked out, and made payments according to, a payment plan. Forclosures are taking years so we ususally can get good rent b/c tenants know they have at least a year before foreclosure proceedings occurr. After the foreclosure, we can only get 6 months of assessments so we are very proactive. We have not written off much bad debt and owners currently in default typically pay the condo assessment (not the mortgage) b/c they know its free rent (apart from condo fee which is far less than if they rent elsewhere) for months to years b/c banks are so slow in foreclosing.
Also, its not hard to get the court to evict an owner in default on his mortgage and not paying assessments, we have done so on several occassions. It used to be hard, but now its not. Judges are beginning to see that associations are the most innocent party and are not abt to make them suffer.
a local has it exactly right from the condo building’s/board’s perspective (I’m a board member, we’ve done the same thing and seen the same result). In addition, if a lender sees that a building has taken possession and is renting to cover back assessments (and in the case of my building, special assessments for new windows and roof as well) they’re likely to delay the foreclosure even longer to allow the building to recoup actual costs.
Foreclosure listing agents (Jason Shapiro at Rising Realty among others) put the statutory language RE: 6 months assessment in every foreclosure listing because it’s a mandatory disclosure. Who actually pays it is a matter of negotiation.
As a Realtor downtown I can also attest to my experience at getting the corporate (foreclosure) owner to cover the 6 months statutory assessments, especially if you’ve got a solid buyer paying cash, or a mortgage buyer willing to make a significant earnest money deposit (a sign of a serious buyer as opposed to a bottom-feeder). If they won’t pay we reduce our offer by the outstanding amount. Same result. Yes, sometimes we walk away – it’s a case-by-case cost/benefit analysis.
Finally, the past-due assessments have to be paid BY SOMEONE at closing, title company won’t close a deal or give title insurance until all outstanding liens are cleared, and in most cases you can’t get a Paid Assessment Letter from the condo assn until the past-due assessment are paid or how they are paid is addressed contractually and then carried out at closing.
Half-hearted attempt to sell. Awful pictures. One wouldn’t know at all from the listing that this is a full amenity building with pool & fitness center. I know top 45th floor will command a higher price for the view, but this is a distressed property with over $3,100 in assessments due. Can’t see how this is worth over $300K.
The foreclosure listing agents rarely do their clients any favors in the way of posting a quality listing designed to attract buyers. Or agents for that matter. Sometimes they require you to come to their office to pick up keys, but they’re not open on weekends blah blah blah. They don’t post crucial details such as “rentals not allowed” or “no pets” – or they post “no pets” for a pet-friendly building. They screw up the PIN numbers so all the MLS info links don’t work, or they screw up their own “deal number” so when an agent wants to submit an offer they can’t find the property on the deal site. I closed on a foreclosure that the listing agent didn’t even know included LCE parking. Think it might have sold for more if it were advertised with parking included? The good news is that smart buyers’ agents will do all of that due diligence for their clients and so can get better deals for their clients than the sellers know they’re selling sometimes! (My client loves her free garage parking!)