Foreclosure Alert: Reduction on Heritage Foreclosure: 130 N. Garland
We chattered about this one bedroom foreclosure in The Heritage, at 130 N. Garland, in the Loop in June 2008. It had gone under contract almost right away when it was listed but fell out of contract.
The bank has since reduced it further.
Frank DeNOVI at Coldwell Banker has the listing.
Unit #2410: 1 bedroom, 1.5 bath, 900 square feet
- Sold in April 2005 for $339,500
- Sold in September 2005 for $394,500
- Foreclosure auction in December 2007 for $331,218
- Bank-owned
- Was listed in early June 2008 for $329,900 (This includes the parking.)
- Reduced
- Now listed at $310,000
Unit #1410 is also still on the market- and still listed for the same price as in early June.
Unit #1410: 1 bedroom, 1.5 baths, 900 square feet
- Currently listed for $389,900 (no parking)
- Assessments of $326 a month
- Blue Property Inc. has the listing
As a comparison:
- Unit #1710 sold in September 2007 for $375,000
- Unit #2710 sold in July 2007 for $365,000
I would love to live in this building, but the prices still need to come down to the mid-upper 200’s.
Nothing entertains me more than the apartments in the same buildings that are on different floors and cross on price. anyone want to make bets on 1410’s chances here?
unit 2410 is under contract today. Take the paking off and this unit just sold for $250k. Pretty darn good deal…
They rent for $2,000 per month. You do the math and see if it is a good buy at $300k.
Off Topic: What happened to the site?
Considering the location and views, $300,000 is a pretty good price for a one-bedroom. These are some of the very few one-bedrooms in the entire city that are worth this much. As for the seller of 1410, they are in serious need of a reality check.
Pete, both of these are low west facing units. The view is straight into a building with an alley between. Not really a good view.
“Take the paking off and this unit just sold for $250k. Pretty darn good deal…”
So, Stevo, the seller would have taken $250k for the unit w/o the parking? Perhaps we should think of it as $310k for the unit and free parking included? Why not? Because a cap of the rental “value” of the parking space give a “value” of $60k?
But, yes, that’s a “reasonable” price for that unit, either way. It’s also over 20% off the prior sale price, which was prior to peak pricing. I guess this isn’t a premium building?
“both of these are low west facing units. The view is straight into a building with an alley between.”
Think, for a moment, about where this building is actually located. Got it–right, it’s just WEST of an alley and to the west of the building is Wabash and then Marshall Fields (all 13 stories of it). So, assuming that these are west-facing units, they do (a) not have the good view and (b) get el noise, but do NOT have a “view staright inro a building with an alley between”.
Anon – The parking is worth at least $40k (on the low side) and I would bet the buyer did not pay more than $290k for the REO.
Yes $250k for the unit is a great deal.
Okay, WHY is this considered such a great deal, such a prime building? Because I just looked at the pictures, and if it’s possible for a condo to be stunningly ordinary, this is it.
http://cribchatter.com/wp-content/uploads/2008/06/130-n-garland-_1410-livingroom.jpg
http://cribchatter.com/wp-content/uploads/2008/06/130-n-garland-_1410-bedroom.jpg
http://cribchatter.com/wp-content/uploads/2008/06/130-n-garland-_1410-balcony.jpg
Like I said, not that great.
Ken,
Probably cause of the building’s location and that it was one of the first buildings to take advantage of (then new) Millennium Park (basically lucky timing).
But I agree, the unit itself… meh.
It is a very high end building with great amenities. Perfect location for in-town buyers.
You guys would not know a good deal if it hit you in the head 🙂
I rented a one bedroom on the 13th floor below this unit for one year, alas, I am the resident expert:
-Train L-train noise is horrendous. Forget using the balcony.
-You need to be at about the 18th floor to clear the creepy looking AC chillers on the Macy’s roof.
-Unit finishes are ordinary, but they are in all new construction.
-Great gym and amazing INDOOR pool/hot tub.
-Top notch service, door people, on-site management.
-Weird electric heat system – very noisy.
-Quite units, never heard the neigbors.
-I paid $1600 for the 1 bed 1bath (not 1.5 bath like this one)
-Parking was $175 month
-Location is not great but will be when Block 37 opens.
-At $250K, this would be a steal if you can get used to the train and not ever having your windows open.
11 floors higher and an extra bath. I guess it is a good deal…
I think it is a wonderful unit! I would like to buy it.
“I would bet the buyer did not pay more than $290k for the REO”
Okay, what would you bet? Must be deliverable via posting here.
How can such a spiteful person not have a more creative user name than “anon” (anonymous) ???
We could change his name to “Dil” (Dil**). I like it!
I agree with Steve on this one. The Heritage is a great building, great location, great staff/amenities, OK finishes, and this unit is a good deal. The building appeals to both Chicagoans and suburbanites. I’ve been there 100’s of times and I have always enjoyed the units, staff, and location.
is block 37 really going to improve the area? I know they are going to have a Dairy Queen, but isn’t the strong point of the location is the short commute for loop jobs and Grant/Mil park. And I already think there’s a DQ in the pedway somewhere.
The movie theater in block 37 is an added bonus.
I thought the “nice” bldgs weren’t supposed to lose value? And just think, we are nowhere near bottom. But it is nice of the knife-catcher to illustrate the downward trend.
Then again, let’s wait and see if it closes.
That’s funny G. We are no where near bottom yet half the cities in the Schiller index had up ticks. We will sit with a sideways market for the next year or so but the bottom is in place.
Keep renting boys. I have a property coming available this October. It is a 2 bed, 2 bath at 345 n LaSalle for $2,400. Let me know if any of you guys are looking for a place 🙂
Would I be able to buy your place at 345 N LaSalle for a price that would allow my total monthly expenses (mortgage, insurance, assessments, taxes, maintenance) to total $2,400 or less? If so, I’d buy it yesterday. I’d even factor in the tax breaks to arrive at that number. Of course, if I really bought it at today’s prices my total monthly expenses would be about $5,000. Proving yet again that it makes NO sense to buy a Chicago condo at today’s prices when you can rent for half as much. Whatever investment I put the remainder of the money into, it will surely outperform a condo that is likely declining in value along with the measly ownership tax breaks.
the case Schiller bottom or the local market bottom?
Pete – I guess it all comes down to buying smart now doesn’t it?
Steve:
“We are no where near bottom yet half the cities in the Schiller index had up ticks. We will sit with a sideways market for the next year or so but the bottom is in place.”
Month over month increases? No city had year-over-year increases.
Chicago saw prices decline 9.4% in May compared with the same month in 2007. Prices also fell 0.3% in May over April.
Out of the 20 cities in the index, only 7 saw month-over-month increases and they were small increases.
Sabrina – Is the index improving or getting worse? Has LP or LV suffered greatly? The end is near and most of us (other than who paid top $$ in 2007) are fine. Buy smart and you are fine. Pay $600 per sq ft for new construction and you will lose. Smart vs dumb…
Buy Lehman Brother vs Sell Lehman Brothers? Smart vs Dumb? It is all relative!!
Block 37 from the Trib on July 10. The gym is supposed to be David Barton.
“Lululemon Athletica is a Canadian retailer of yoga and athletic apparel. Aveda makes and retails hair and skin products. Godiva Chocolatier retails Belgian chocolates. Sabon sells body and bath products with natural ingredients. Steve Madden offers signature clothing and shoes.
These tenants join those previously announced, which include a movie cineplex, upscale gym, two restaurants, food court and coffee shop. Earlier this week Freed announced he had leased space to Beard Papa’s, a paired Dairy Queen and Organge Julius, Freshii, Gateway News and Au Bon Pain.”
Relative? Holy f*ck my a*s Heitman.
[Editor’s Note: Try and keep the language clean. And try and refrain from personal attacks. Thanks!]
“Sabrina – Is the index improving or getting worse?”
The index is getting worse and the price declines are accelerating (which could be viewed as a good thing as that means we’ll get to the bottom more quickly.)
Ask the homebuilders. They don’t see any bottom. Nearly all of them said they expect the declines to continue well into 2009.
The Chicago CS Index numbers have been stable around 150 for three months now (March-May). Sure this doesn’t account for seasonality but it looks like Chicago is in much better shape than the markets that continue to crater even during the summer selling season.
“Buy smart and you are fine.”
The problem is there are fewer “smart buys” now than there were before the bubble. However there are more now than there were DURING the bubble so I guess that is your logic. We’ve hit bottom when we return to pre bubble levels.
Steve, IMO, I don’t think LP & LV are the bellweather’s for the city. Those places got out the price range of the average buyer before the bubble. Let’s keep an eye on the newly gentrified neighborhoods were the average Joe bought.
You got it.
could be an excercise in data mining, but the May month over month change over the past 10+ years is typically one of the best of that whole year. so if -0.3% change is one of the best for 2008, looks like more decreases ahead. just a thought. and the CHI CS index held at about 167 for four months in late 06 early 07, so holding steady for a few months is not proof of a floor.
There is no way that the following decline in sales indicates a bottom in pricing for LV and LP:
Closed Sales
Attached Single Family
Area 8006 (Lake View)
Year June 2nd Q 1st H
1997 139 449 752
1998 176 517 855
1999 189 568 909
2000 221 642 950
2001 216 625 962
2002 204 690 1,043
2003 244 699 1,089
2004 260 791 1,168
2005 328 900 1,355
2006 320 901 1,386
2007 303 818 1,228
2008 242 595 957
YOY -20% -27% -22%
YO-Peak -26% -34% -31%
Area 8007 (Lincoln Park)
Year June 2nd Q 1st H
1997 144 413 619
1998 156 438 686
1999 135 393 628
2000 135 390 637
2001 142 356 561
2002 138 403 619
2003 167 431 670
2004 186 452 727
2005 205 540 863
2006 163 439 679
2007 187 511 780
2008 111 300 476
YOY -41% -41% -39%
YO-Peak -46% -44% -45%
Don’t forget to consider these sharp declines in the context of how many condos/townhomes were added to these markets over the same years.
With sales declines like these in the face of additional units added to the market, there is an obvious pent-up supply of sellers. Many may have given up for the time being (as fence-sitters often do) but they are out there. Their only hope will be price reductions.
Where’s the spite?
Also, anon is intended as a minor (really, really minor) pun. Anon is a complete word, not just an abbreviation–note the lack of a period (not necessary, but indicative). Besides, let he with the actually creative name be cast the first stone.
Finally, Stevo, once again a lot of big talk but no substance. All hat, no cattle. All leverage, no equity.
Pete,
Enjoy renting the rest of your life and paying incrementally more every year. One of the nice things about a 15 or 30-year fixed loan is that a condo owner’s expenses stay constant, save for the ~3% long term average annual appreciation in assessments. Heck, we can even lower our future monthly payments by paying down the principal faster.
These perks do have some value that represents a premium over renting, not even getting into what people pay for the security of not being at the landlord’s mercy to renew your lease or kick you out.
If rent parity is your criterion for buying a condo, you’ll be waiting a very long time to buy anything.
Oh no, I’ve been stigmatized as a life-long renter! Anything but that! I’ve got a better way to lower housing expenses over time: buy when it’s cheaper. The people who are saying it can’t go any lower were saying the same thing this time last year. By the way, my rent went up $100/month for a total of $1200 more this year. I bet your property taxes and/or assessments went up more than that.
You only know that you’ve hit the bottom after it’s happened, so why try to look forward and guess? There are many reasons people buy homes, so who cares if you buy your house and it drops in value for the short term. Most on this site seem to believe that if you buy a house and it drops in value (on paper) you are a huge, knife-catching sucker, without knowing absolutely anything about the individual purchaser’s reasons for buying, time horizon or financial situation. The knee-jerk responses are for the most part predictable and laughable. Especially when most of the posters here admittedly can’t afford anything that costs over $250,000. It’s hard to take those opinions seriously. Not that I expect anyone to take mine seriously either.
Dave,
I rent an apartment in Lakeview with amenities that include cable, internet, water and a parking space. My rent is $910 a month, it went up from $885 last year. How much are YOU paying for the ‘pride of ownership’?
Nice argument to try to scare people off the fence, but anybody third grade level math skills can clearly see that renting makes infinitely more sense than buying right now.
Maybe a lifelong renter, Dave, if the market never corrects. And not the least bit worried about it!
pete9441, (talk about laughable responses) first you say “so why try to look forward and guess” about the market and then you go on to do the same thing by stating “so who cares if you buy your house and it drops in value for the short term.” What if it drops for the long term?
I don’t have any problem with anyone paying as much as they want for a place, just as I didn’t anytime I was the seller in the past. There is just no chance that enough “we can afford the risk” buyers that you describe will come along to affect the market decline. The sales numbers bear this out.
“Especially when most of the posters here admittedly can’t afford anything that costs over $250,000”
You brush those posters aside like $250,000 is something insignificant.
Nowadays $250,000 is the low end of the 1 bed 1 bath condo market. When you consider that historical lending standards would have you buying no more than 3 times your yearly salary that would mean you’d have to earn $83,000/year just ot get entry into the housing market. An $83,000 yearly salary is not on the low end of the pay scale which means something is out of whack when you’d have to make an upper middle class income to own a entry level 1 bed condo.
Hell, I make $60,000 a year which means I’d have to go to 4 times my income just to buy that same condo and my $60,000 a year in an above average income.
Ken,
You just touched on why Chicagoland has such a big foreclosure problem lurking just beneath the surface. G recently posted stats that showed that for Chicagoland as a whole, the median mortgage was a 4x multiple of the median income. This ratio is not sustainable long term. Either income is going to have to increase substantially (unlikely) or prices are going to have to come down.
For comparison I think in 1998 this ratio was only like 2.8x, which is much more reasonable.
I didn’t realize there were so many low salaried people on this board. No wonder you don’t understand. You are either young, or just simply dumb! LOL!!
If you’re refering to my salary Steve, I will correct you by saying I’m not low salaried. You may want to check the labor statistics regarding median salaries. I’m glad to hear you’re doing so well. Maybe that’s why you are so wrong on this subject because you are out of touch.
SH, your own claims of wealth, intelligence and experience clearly disprove your theory about “understanding.”
Steve likely doesn’t draw a salary. If he’s a FT RE pro as he claims his income is likely entirely from his business ventures. He doesn’t realize his ‘LOL’ is bad for him too though if thats the case. Steve if the units are far enough away from the median and everyone is young or low salaried in your book, what does that say about your potential market? Its a lot smaller than you think. Good luck!
In SH’s fiefdom, Steven sees himself as a land barron; we posters are lowly serfs forced to rent apartments from him.
Except Steve-O got one detail mixed up. In medieval times the serfs were a source of income and transferred much of their wealth to the lord of the manor, not the converse!
Bob, shhhhh. Landlord subsidies are a good source of wealth transfer. Its been going on for years already and the total will be staggering before the return to the mean is complete.
G – I was not describing the issue in macro terms (or suggesting that just anyone can afford what you call risk – if you intend on staying in your house for 30 year there is no “risk”); rather, I am only referencing the individual purchasers that are attacked on this board relentlessly and daily by strangers who know next to nothing about the purchaser’s individual circumstances yet make snap judgments regarding the wisdom of those decisions. We are in a historically bad housing market, that is no secret. Beyond saying that, it is simply not possible to determine the degree of wisdom associated with any particular, individual, decision to buy a house, although every renter on this board seems compelled to do just that. Also, the first part of your response to my initial post here made no sense. There was nothing inconsistent in my two statements.
“I am only referencing the individual purchasers that are attacked on this board relentlessly and daily by strangers who know next to nothing about the purchaser’s individual circumstances yet make snap judgments regarding the wisdom of those decisions. ”
But that’s the beauty of the internet! Are you a knifecatcher feeling buyer’s remorse?
I think the phrase knife-catcher is meaningless, and has really become a bit of a cultish type of term on this board. I own multiple homes and have never felt remorseful about any of those purchases. I am defending the purchasers who are mercilessly attacked by the mediocre on this board, not my own decisions as to what to purchase and when. But I do agree with you that the internet provides the perfect camouflage for the weak to spew their vitriol. It is one thing to politely and diplomatically question the wisdom of individual purchasing decisions (as Sabrina does) and quite another to self-righteously pass judgment on everything from the way someone has staged their home to the lunacy of advertising an initial asking price that is higher than the value of the home in 1985. It’s all very high school.
Pete,
I agree with you on the pejorative nature the term ‘knifecatcher’ has become. I certainly don’t use it in common parlance and agree with you on that.
I disagree in that those with dissenting views are somehow ‘weak’. Earlier in this thread you even tried to attack those who couldn’t or _wouldn’t_ want to afford a 250k mortgage. Wouldn’t is key term there.
Ask those renting out their units at a monthly loss of at least 500 who is weak? I’d rather call them savvy or smart.
Reality doesn’t support your perception of it. The sky isn’t falling in Chicagoland real estate if that makes you feel better, but I wouldn’t trade places with any property owner these days either.
Correction:
‘rather call them savvy or smart’ referred to the renters renting out
the units. Not the owners who are taking a monthly hit.
Also I think pete has the year 2000 confused with 1985. Fortunately for those willing to look at the data Chicagoland real estate circa 2008 is still 50% higher in nominal terms vs. 2000.
Maybe got your years mixed up a little pete? I mean most on here probably love 1980s music but 80s real estate prices? Well we might have to wait a little for that. All signs are pointing to crazy inflation except government propaganda (excluding energy and food from the CPI? LOL!). So we’ll see..
I was exaggerating when using the year 1985 to make a point. I honestly dont understand blanket statements like “I wouldn’t trade places with any property owner these days” – You cannot honestly mean that. You would clearly trade places with a home owner who has no mortgage, or someone whose mortgage is about to be paid off in a year, or someone who has had a 30 year fixed at 6% for the last 10 years, or if you were Bill Gates or Angelina Jolie, or if your career took off and suddenly you were making three times what you were making last year. There are plenty of people who are property owners that live quite comfortably and, in many cases, far beyond comfortably. When I referenced those who couldnt afford a $250,000 home, I wasnt a
“attacking” them. I only meant that it is not surprising that those who do not make enough money to afford a $250,000 home have a bias against those who can, and make themselves feel better by calling the other people fools (you can substitute any number you wish). There is a lot of name calling on this board and I find that interesting, from a sociological perspective. And, to those who would point out that I am doing the same thing, I am only calling out those who are initiating the practice.
“I only meant that it is not surprising that those who do not make enough money to afford a $250,000 home have a bias against those who can, and make themselves feel better by calling the other people fools (you can substitute any number you wish). ”
Ha! That’s great. I call them fools because them and their funny money drove up the cost of housing for everyone. I met with a guy Wednesday. He bought a condo in ’05 with the 80/20 loans….(howmuchamonth?) for $300k! He tells me a distressed unit similar to his just sold last month for $185k! Oh and this guy is in foreclosure himself.
He was a fool who bid up the price of housing to astronomical levels because he only cared how much he could pay per month, not how much the house cost. He didn’t think past three years in the future when the loan reset to a level that he couldn’t afford. He only thought that if he bought now, regardless of the price, that real estate would go UP and then he’d make a killing……well it didn’t work out that way.
As a result of this guy’s foolishness, $250k became the low end of the 1ba/1ba condo market; and SFHs in Roscoe Village sell for $1.5 million. Prior to this mess, $250k in 2000 could’ve bought a nice bungalow and $1.5 mil would be really really nice brick home in lincoln park or old town.
HD:
Who’s really the fool? The person who risked his credit rating and (really) little else, or the lender(s) who made such loans based on a total lack of underwriting, or the institutions (including, indirectly, the US govt.) who provided all of the money to the lender(s) without any thought given to the evisceration of lending standards?
I’d say the fool was anyone but the borrower in your example (and any like him)–he was gambling with house (ha! ha ha!) money, why wouldn’t he take what seems (in hindsight) to have been a foolish risk when he wasn’t really risking anything?
“I think the phrase knife-catcher is meaningless, and has really become a bit of a cultish type of term on this board.”
Like the term “bitter renter” has or when property owners insulting the income of those who don’t own?
pete9441, you crack me up. I also find the name calling interesting, from a sociological perspective. I’m not “attacking” you. I only meant that it is not surprising that those who do have enough money to buy an obviously depreciating asset for any price have a bias against those who don’t, and make themselves feel better by calling the other people mediocre and weak.
pete9441, you are completely right. Most of the people on this board are 20-something turds who make $40k a year and are jealous of all the people who can afford these places. It’s really sad. I’d bet a month’s salary (which is more than Homedelete makes in 6 months) that G is a junior admin in a real estate office who is jealous of all the people who make more than him. Why else would he have access to the MLS when he obviously hates real estate brokers so much?
D
How brave of you to make that bet. I’ll take it.
Now how do you suppose I’ll be able to collect from an FB like you? Wait for the bailout?
Watch out, G, or someone will accuse you of being spiteful AND uncreative. I’ve barely made it out of bed the last couple days after my experience with such invective. I wouldn’t want your weekend ruined.
You guessed it. I live off welfare, in a section 8 apartment, i have two baby daddies but since they bums, they don’t pay hardly nothing in child support. I sell drugs and various other services on the side to neighborhood folk. Massages start at $10.00. So yes I bet your income is 6x mine.
G,
Don’t you need to go get some coffee for Steven Heitman or something?
D
I remember when DeaconBlue first came to this board. He was just a nice guy who had bought in 600 N Fairbanks, was happy with his purchase, and offered feedback on it. Within about two or three weeks, he had stopped contributing anything but nasty, juvenile ad hominem attacks on other posters.
What happened to you, DB? You now take the title as the least pleasant poster. I can’t think of the last time you actually offered a substantive comment. Why do you even bother coming back for all these months? It’s just… sad.
I suspect it must be rough when you buy a new place, are proud of your purchase, and then find out it’s going to be worth much much less in the future. Especially when you thought you were buying at the market bottom. Once the denial phase is through, bitter anger and resentment must follow.
I think everyone knows where everyone else stands. Perhaps it is time to move on.
I have been shopping for a condo and I like this complex but I heard they do not allow motorcycles in your parking space. Does anyone have any experiences?