First Foreclosure Appears in 757 N. Orleans in River North and Is Reduced
This bank owned 1-bedroom at 757 N. Orleans in River North appears to be among the first distress sales in the building.
Built in 2008/2009, 757 N. Orleans hasn’t yet sold out its units from the developer.
The unit was purchased in 2009, had a lis pendens filed in 2010 and the bank took it in May 2011.
The bank quickly relisted it for sale in June 2011.
But even at $94,100 off the 2009 purchase price, there were no takers.
The unit was recently reduced another $23,900.
From the pictures, it appears to have the kitchen and bathroom intact.
The kitchen has stainless steel appliances, granite counter tops and cherry cabinets.
There are hardwood floors in the living/dining area.
The bedroom has carpet.
The south facing unit also has central air and washer/dryer in the unit.
There is no parking with the unit, but it’s available to purchase in the building.
Now listed at $220,000, the developer has a similar Tier “10” unit for sale on the 9th floor for $281,000.
Given the other prices in the building, is this a deal?
Gaspar Flores at Su Familia Real Estate has the listing. See the pictures here.
Unit #1210: 1 bedroom, 1 bath (the listing says 781 square feet but #910 is 931 square feet which would seem more likely from the pictures)
- Sold in January 2009 for $338,000
- Lis pendens foreclosure filed in May 2010
- Bank owned in May 2011
- Originally listed in June 2011 for $243,900
- Reduced
- Currently listed for $220,000
- Assessments of $331 a month (includes a/c, pool, doorman)
- Taxes of $4965
- Central Air
- Washer/Dryer in the unit
- No parking included (but can purchase in the building)
- Bedroom: 15×11
I realize this is a 1/1 and the link below is a 0/1:
http://www.redfin.com/IL/Chicago/757-N-Orleans-St-60654/unit-801/home/17287581
However, 220k with no parking on an REO still seems very high compared to 160k for a studio WITH parking from the developer.
I would think this one needs to be 199k or less.
**shakes head**
Obviously not a crib chatterer who bought this place for $338k. $338k for a 1 BR when the world was going to end in January 2009? What in the hell was this cat smoking?
When I am elected to Congress, I am going to clone Sabrina and mandate the creation of a crib chatter in every major city in the country. A person looking to mortgage a property purchase will have to represent under penalty of perjury that they spent at least 1 hour on their local crib chatter site before qualifying for the mortgage.
could rent for 17-1900 (with parking) easily
why would you pay this much
20% down 176k mrtg @ 5% = 944.81
ass = 331
taxes = 413
not worth tying up a 44k downpayment for $12 a month IMO (lol)
This seems too high to me. I think it will sell sub-200 like chuck does. I wouldn’t be shocked if 1 bedrooms in this building fell to 150 or less before this crisis is over.
Lack of parking and issues with units not being able to sell will hold this one back. I’m basically with chuk, and will guess at $190k.
i doubt it, I mean 1br’s in my crappy building are selling (recently) for 220k (with parking) this place is much nicer
“I’m basically with chuk, and will guess at $190k.”
While I think it probably would sell around there. I still wouldn’t be a buyer. As a cash buyer of an REO, I would pay up to 175k with parking for this. Beyond that, there are just too many other options.
does this qualify for 5% fha financing?
“i doubt it, I mean 1br’s in my crappy building are selling (recently) for 220k (with parking) this place is much nicer”
The last REO 1BR in your building sold for 113k without parking (I put an offer on this):
http://www.redfin.com/IL/Chicago/630-N-Franklin-St-60654/unit-513/home/12600138
There was a corp owned one that I believe had parking that sold for 160-170k.
There is no way people are paying 220k for a 1/1 at 630 N Franklin.
You are right! I had it confused with a 2/1 that sold for 235
a 2/2 sold for 295 and a 1br with a terrace sold for 155
so yeah I could see a 1/1 here at 757 n orleans selling for 175k someday
“so yeah I could see a 1/1 here at 757 n orleans selling for 175k someday”
I am factoring in a decent discount for cash purchase of an REO. If this was a traditional sale, I think the 199k price I mentioned is closer. But as you can see by the 113k REO sale in your building, a cash sale of an REO can/should have a good sized discount. That 113k unit was easily a 150k unit. (I offered 130k cash, no idea why I didn’t get it…)
Anyone who buys anything now is absolutely crazy. We are entering the 2nd dip of the double dip in the recession. The economy is so shaky right now and I have the feeling that millions of people are going to start walkinga away from their mortgages. We are in for a major major disaster in housing. The more liquid you are, the better. Who knows how far housing prices will fall. I am very scared that there is no set bottom. I have officially joined “the other side”.
The view of the mechanicals on the roof across the street are to die for! Sold!
“Who knows how far housing prices will fall. I am very scared that there is no set bottom. I have officially joined “the other side”.”
Well, the old clio did often point to the rising stock market as evidence that there would be more buyers for higher end properties. Applying that analysis to the stock market today, a lot of buyers just vanished.
Clio, I’m not sure it’s possible to effectively mock housing bears on a day the stock markets fell 4%. Even commodities were slaughtered. You should wait until there is actually good economic news and then start your schtick again.
If clio is serious, he is the ultimate contrarian indicator that we’ve bottomed.
“Anyone who buys anything now is absolutely crazy.”
When you’re crying, you should be buying. When you’re yelling, you should be selling.
Is it just me or does that bathroom look weird with the toliet facing the tub and no sink in sight but in a different picture? I can’t figure the bathroom layout, but it seems awkward.
Speaking of chasing the market down, this is a hell of a loss, even for an NBA player: http://www.chicagotribune.com/classified/realestate/luxury/ct-mre-0807-elite-street-20110805,0,5118571.story
“Speaking of chasing the market down, this is a hell of a loss, even for an NBA player”
Tink he could have gotten out of it for his purchase price if that’s where he’d started in ’07, instead of trying to clear 20%?
The real estate market hasn’t bottomed – things are really really bad out there (in the economy). This means the real estate market is going to tank. Not a great time to sell and, if you want to buy – just wait until this winter……
Clio, your too funny now.. The old Clio would have pointed to a drop in the stock market as reason to invest in real estate as at least its a tangible asset that can be lived in or rented out as opposed to paper stock that can disappear. Just like the tech bust of the late 90s/early 2000s caused people to invest in real estate rather than tech stocks, the current drop in market will encourage investors to buy property, a tangible asset, and rent it out.
http://online.wsj.com/article/SB10001424053111904292504576484571234105448.html?mod=WSJ_RealEstate_LeftTopNews
With the prospect of a 100% hike in real estate taxes in the next 3-5 years, I question why anyone would even consider buying.
“With the prospect of a 100% hike in real estate taxes in the next 3-5 years, I question why anyone would even consider buying.”
You don’t think those will be passed onto the renters?
chukdotcom – we live in a socialist society. Renters are protected like you would not believe. They can demand anything they want – they don’t have to pay rent if they don’t want – and the eviction process is several months. I know serial renters who have gone years and years without paying steady rent (they just make up references, pay a few months, live there until they are evicted, sue a few owners for “dangerous conditions” and then move on to the next place).
clio, while sensationalist stories like that certainly exist, it is very much the exception, and not the rule.
clio is right to a degree. I have some deadbeat friends pulling the same card. They know their landlord is having trouble paying the mortgage and he is basically a absentee landlord and the building isn’t up to code.
But that doesn’t mean they’re moving out they’re squatting there without paying any rent for as long as they can and they are committed to dragging it out for as long as possible.
chuck.com – yeah, it’ll be passed on to renters but who, in their right minds, would pay when there are better places to live with reasonable tax rates.
“With the prospect of a 100% hike in real estate taxes in the next 3-5 years, I question why anyone would even consider buying.”
The “prospect” is of the city’s piece doubling. Which (1) would result in a ~20% increase and (2) aint gonna happen.
Well it all means that I’ll have to keep our Chicago in-town for more years then we had planned, which is not a terrible problem, and I will have to keep on working until I’m into my 70s, which is also not a problem since I enjoy my job and like working for a University.
As an aside, we have been enjoying the pleasures of the Oak St. beach this summer. We plan on doing so again tomorrow. Well be driving into Chicago tonight after work. Saturday evening we are going to the Navy Pier to see the musical at the Shakespeare Theater. Afterwards we’ll stop at the Wildfire for a late supper.
G– I love having discretionary income.
When I first saw the ads for 757 N Orleans (the developer started selling the units right at the start of the bust) I was thinking “what the hell are they smoking” with those prices. I wondered who would be dumb enough to pay them, considering they would have been high even if the bubble continued on. I’m extremely surprised this thing got financed in January of ’09 at any price, especially the laughable price of $338k for
Clio is very right about tenants but I don’t give a rats ass about references….I check eviction records and credit checks show addresses….but eviction doesn’t really take that long. If I go down to Daley center today, I’d get a court date in two weeks, and the judge, depending on how you play it, will usually make them move out pretty quickly. Meanwhile, their water tank “breaks”. Or on a super hot day, their ac “breaks”.
Current owners about to get crushed:
http://www.chicagorealestatedaily.com/article/20120308/CRED0701/120309806/bulk-sale-planned-for-river-north-condos
“Current owners about to get crushed:”
again somebody please sing the praises of condo (Communism) ownership?
what was it again, no shoveling or raking leaves and a doorman? i cant remember?
a quick bump as it may have gotten hidden in the great discourse today
Bulk sales aren’t comps (usually 50% under normal market values from what I have seen) and will likely wind up as rentals, at least the assessments will get paid now, thats a bonus!
With that many rentals, I wonder what the financing options will be for potential buyers (should there be any) of already purchased non-bulk-sale units.
So…if I was looking to buy in this building…I shouldn’t anymore, is what you’re saying?
Last 39 developer-owned units sold for $11m ($282k/unit):
http://www.chicagorealestatedaily.com/article/20120524/CRED0701/120529868/investor-buys-39-units-in-river-north-condo-tower
Anyone able to provide the unit mix?
Im sure glad I didn’t buy here!