Foreclosure Deal in The Heritage: 130 N. Garland in the Loop
The Heritage, at 130 N. Garland, in the Loop near Millennium Park is the building that “started it all” in the Millennium Park neighborhood.
It was The Heritage that made it seem chic to live south of the River. Prices skyrocketed in the building initially, but have since leveled off as other buildings opened nearby.
The east facing units have great views of the lake and the Park, which cannot be obstructed because of the historic designation of the Cultural Center that is in front of the building on Michigan Avenue.
The west views are also quite dramatic with the city scape, including the Sears Tower and, in some cases, Trump Tower and the Hancock, to the north.
This one bedroom west facing unit just came on the market as a foreclosure. Here’s the listing:
SOLD AS-IS.NO SURVEY OR DISCLOSURES PROVIDED.BUYER RESPONSILE FOR ANY/ALL COMPLIANCES,ESCROWS ETC IF REQUIRED. ALL INITIAL INSPECTIONS INCLUDING SYSTEM TESTS ARE AT BUYERS EXPENSE.
ALL OFFERS MUST HAVE PRE-APPROVAL,AND MINIMUM 3% EARNEST MONEY IN CERTIFIED FUNDS DUE UPON ACCEPTANCE. SELLER TO CONTRIBUTE UP TO $9000 IN BUYERS CLOSING COSTS.
Sorry, no interior pictures yet.
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
- Just listed for $329,900 (I believe this includes the parking.)
Another “10” tier unit is currently on the market in the building. This one has pictures. These finishes are pretty standard for the one bedrooms in the building (though some have stainless steel appliances.)
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 don’t believe either sale included parking.
Many banks are themselves delusional sellers. There’s no way they’re getting more for this bare-bones forclosure unit than the fairly recent comps.
Pete, they are asking below the comps.
That is awefully nice of the bank to offer 9K for closing costs.
I would never want to live there. It has that “cheap apartment feel.”
Laura, if you are around, what do you think of dupont corian countertops?
Hi Jason.
I think the Corian looks merely OK. It was big in the 80s, until granite came around in the early 90s.
If you’re a stone-lover, I don’t believe you’ll be happy with it for long. It doesn’t begin to look as good as granite or reconstituted stone.
OK, my bad. The $389,000 was not the foreclosure unit. Still, I’d want it for less than $300,000 for buying a foreclosure to make up for all the crap and uncertainty this involves.
Don’t be afraid to make an offer. I am developing a rule of thumb. Unless the bank listed the place at a price significantly lower than 2003 prices, wait 90 days before you make a lowball offer.
Jason, this building did not exist in 2003.
If the unit includes parking, it is a great deal. We were renting in this building and it was managed perfectly. Indoor pool, connection to the pedway great in the winter. Fox and Obel is opening nearby as well as a Dave Barton gym.
This is a nicely laid out unit but would need some upgrading.
Eh. West facing straight into another building. Their selling point that the lake/park view cant be obstructed is kind of moot here as the unit is on the opposite side. But it is a nice building. However it faces competition from MoMo which is newer, right a crossed the street, and cheaper for a very similar unit. You also have 200 Dearborn a few blocks behind that.
Lots of competition in this area. I wonder what the price is without parking. Is that even possible?
Agreed, I rented in the Heritage while my unit at 600NF was being completed. The building has a lot of nice amenties and a great loop location. Some of the finishes seem a bit dated, but I think we are all spoiled and used to seeing all of the higher end finishes in sales centers. But this unit’s finishes probably represents more than the “average” house in the Midwest.
Well, look for comps in 2003. Its a foreclosure. Banks get more eager to dump after 90 days on the market. I’d bet you could get it for under $300K. (There is a little luck involved.)
A said: “However it faces competition from MoMo which is newer, right a crossed the street, and cheaper for a very similar unit. You also have 200 Dearborn a few blocks behind that.”
200 Dearborn isn’t even in the same league (old building and no w/d in the unit).
MoMo IS new, but I didn’t think you could get a one bedroom for much less than this- and it won’t have parking. I also don’t think MoMo one bedrooms have 1.5 baths, just the one bath.
No pool or stunning views on the amenities floors in MoMo either (great rooftop deck overlooking Millennium Park on the 25th or 26th floor of The Heritage.)
One other observation about this unit:
It took about 6 months to go from foreclosure auction to coming back on the market from the bank.
That’s a little longer than most of the others which I’m seeing come back on 3 to 4 months after the auction.
But it’s an indication that we aren’t anywhere near the bottom of the correction- and if anything we’ll see it get worse in six months to a year as these foreclosures are finally listed and work their way through the system.
Absolutely. These are due mostly to subprime. The next wave will be the ARM/Option-A resets peaking next spring, with the same timeframe to market.
The bottom is a long way off.
Correction: that should have said “starting to rise next spring.” The peak isn’t until 2011, but will be moving closer due to reset caps being hit sooner than expected because most debtors opted for the minimum (neg am) payment.
The Option-ARM recasts were predicted to peak in 2011, but (per CalculatedRisk on June 8) their principal is growing fast enough for the peak recasts to occur in late 2009 or early 2010. Their interest rate resets are probably still peaking in 2011, but being recast (forced to fully amortizing payments with little warning when principal hits a level like 125% of original) should cause plenty of pain.
Dang smileys.
The CalculatedRisk post was on June 8.
This unit was purchased for $300k last week and just today went back under contract.
How much money do you think the flipper will make? What price do you think the unit will sell for?
I would like to rent in 130 garland. I am willing to pay $1700 with parking. Anyone have a unit for a excellent tenant? celyl@hotmail.com
FYI:
1310 rented 4/20/2008 for $1,875 no pkg
2504 rented 4/21/2008 for $1,875 no pkg
1208 rented 5/2/2008 for $1,825 with pkg
1308 rented 6/3/2008 for $1,900 with pkg
1404 rented 4/9/2008 for $1,900 with pkg
1808 rented 7/1/2008 for $1,795 with pkg
2010 asking $1,750 plus $200 pkg
2408 asking $1,875 no pkg
2508 asking $1,775 no pkg