Get a 2-Bedroom Loft at 65% Off the 2007 Price: 3963 W. Belmont in Avondale
This 2-bedroom loft at 3963 W. Belmont, in the Shoemaker Lofts, in Avondale has been on the market since November 2010.
It is bank owned.
The Shoemaker Lofts is the old Florsheim Shoe Factory and was converted into lofts in 2007.
The corner loft has 11 foot high ceilings and exposed brick.
At 800 square feet, it has 2-bedrooms.
Given its recent conversion, it also has the features expected from that time period including central air and an in-unit washer/dryer hook-up.
The pictures show the kitchen and bathroom intact (which isn’t always the case with other units in the building).
The kitchen has stainless steel appliances and granite counter tops.
However, there doesn’t appear to be deeded parking with the unit.
Curbed Chicago actually covered this property last February when it was listed at $30,000 more and had a more interesting interior- you can see that picture here.
The loft has now been reduced about 65%, or $150,600, under the 2007 purchase price.
Several other lofts in the building are in foreclosure/short sale and several are already under contract.
This loft is the cheapest currently on the market- and it appears to have the kitchen/bathroom intact.
Will an investor swoop in to pick this loft up on the cheap?
John Mousser at Janssen Chicago Real EState Resources has the listing. See more pictures here.
Unit #409: 2 bedrooms, 1 bath, 800 square feet
- Sold in October 2007 for $230,500
- Lis pendens filed in March 2009
- Bank owned in August 2010
- Originally listed in November 2010
- Was listed in February 2011 for $109,900
- Reduced several times
- Currently listed at $79,900
- Assessments of $208 a month (includes a doorman)
- Taxes of $2012
- Central Air
- In-unit washer/dryer
- No parking (?)
- Bedroom #1: 10×11
- Bedroom #2: 10×10
If this could rent even at 1000/month – it is a no brainer for an investor.
now that the jewel has been gone for like 10 years, so has madonna HS and the 17 and under club on milwaukee is gone nothing fun is left here besides the “wholesale” market where you can buy a 30 pack of white tee’s a kids tricycle and a box of strawberry all in one stop.
just make sure you dont need to visit the park anytime soon
You’d probably have to pay cash for this unit. No bank will touch this one. Also, there’s no way you’d rent it for that either. This is a scary area, close to that recent shooting by the park. I think it sells for $60K cash.
The “not perfect but willing” quote rocks. I have to find an occasion to use it…lol
This area is not scary but not very interesting either.
As for the price? Ouch. And I know someone who lives there.
This is a Dubin project as in D for Dubious.
I remember those signs – “Dubin does the Town” – there used to be one on Belmont on the metra bridge going overhead (1800W).
Someone please explain this one to me – what are 2/2’s going to be have to be priced at in order to be able to do developments in these neighborhoods in the next few years? Would this development project ever receive financing in the next 10 years, if it didn’t occur during the boom?
“not perfect but willing”
Bob’s gonna use that the next time he talks to a tall blonde at the bar
Here’s a link to some condo meeting minutes from 2010. I can’t access them through our firewall at the moment:
http://www.shoemakerlofts.org/meeting-minutes
I know the building has problems. Not sure you can get financing. I don’t mind the location at all and I might have taken the risk and bought at the right price, but I was outbid on a short sale a few months back. There are a ton of short sales and foreclosures here.
Milster, this has you written all over it. You should go for it!
Thanks, Icarus. I actually bought another place a few weeks ago though. Honestly, although I like the units and the location is really not that bad, I would advise anyone to proceed with EXTREME caution with the Shoemaker Lofts due to the financial health of the HOA. I can’t find my notes, but I seem to remember they had nothing in reserves and some large repairs coming up and they were skimping on maintenance. There are a TON of defaults in the building. My ceiling was extremely low for this building and I would have done a ton more due diligence if my offer had been accepted.
Though priced well below “replacement cost” in insurance parlance, this is still a bad buy for a condo that easily appears to “cash-flow” at first glance. I suspect daily life in this building is in disarray, with a “Voyage of the Damned” mix of foreclosures, vacant units, delinquent owners, dubious tenants, and fervently praying hold-out owners. Likely this condo building already has security and bad-tenant problems. Due diligence on status of both condo association AND other condo owners is extremely important these days.
Downtown Oak Park has a new construction condo high-rise with many financial problems too, include construction flaws, delinquent owners, and now bankrupt developer. These are scary buildings.
John Mousser at Janssen must have been late for the Monday morning meeting where they handed out listings. Not a lot to work with.
“John Mousser at Janssen must have been late for the Monday morning meeting where they handed out listings.”
Yeah, clearly not a Glengarry lead. He’ll be lucky to get the steak knives.
Milkster, your findings are exactly what would scare me from this building. Who wants to live in a ghost building where only a few units are occupied and people care about them? While $79,900 is an attractive price, I don’t want to be the only one in the building!
I know a holdout owner.
HD, can you tell us what kind of unit your friend owns and an idea of how much they paid and approximately when they bought?
Are they keeping the building clean and safe these days? Are most of the units rented and are the tenants well-behaved?
And why is your friend holding out? They made a large downpayment? They love their apartment? For the principle of things? Very curious to get the scoop.
Well they aren’t exactly my friends but they’re people I see often enough. They bought when the building was converted, they had a down payment, they do fairly well for themselves actually. i’m a little afraid to ask them about the building because I heard from other’s it’s a very sore topic. Plus I don’t talk about real estate much outside of this blog or work because you know it’s kind of a boring topic for most people.
I can imagine it is a sore topic! It isn’t easy to purchase a house and see the down payment disappear and to be one of the few owners left in the building. I find it hard enough to imagine that if I were to try to sell my place now that I’d have to lose my entire downpayment, all equity “gained” and probably have to still bring money to the table. It’d at least be less sore if I just lost my downpayment….
This is a sore topic to me because Dubin got something like $8 million in TIF funds.
I could never quite understand why any developer would think that this nabe was ripe for invasion by the condo-loving population. Like most of the Northwest and Southwest sides, there’s still a strong “ethnic” element here for whom there are two ways to live – your own single-family or two-flat residence, or a rented apartment. The “condo compromise” I always figured would be a hard sell to people who would be attracted to this area, and it turns out I was right.
The yuppie-puppies who formed the bulk of the condo market in recent years want easy public trans and “hip” restaurants/bars; both of which are not found here.
They overshot the steady encroachment of yuppies up Milwaukee. Had the housing market not been so bubblicious, this likely would have been pretty hot right about now. As it stands, it’s another 5 – 8 years before the rejuvenation we’re seeing on Milwaukee at the California stop gets this far NW. There is a LOT of blight on Milwaukee between Logan and this corner.
hit submit too fast…
Groove is right about the death of the Jewel being a problem. Pros and cons of the nightlife are that a lot of the folks attracted to this area from Wicker & Logan (the dirty “H” word!) actually prefer discovering the weird little places in these hoods over well-established ones.
How many of these folks are buying condos? Questionable.
Signs of life:
Late Bar
Kozy’s Cycle superstore
don’t know the name, but a brand new public school is right here as well.
“The yuppie-puppies who formed the bulk of the condo market in recent years want easy public trans and “hip” restaurants/bars; both of which are not found here.”
“There is a LOT of blight on Milwaukee between Logan and this corner”
fun groove fact #362;
when i waited tables i used to buy gold jewelry on the blighted strip of milwaukee for the undocumented help. I would let them pay me by week like a layaway plan but would give them the jewelry once they got 50% vested.
funny part every single one paid on time and were paid in full. my make up wasnt “highway robbery” but it was worth the risk and hassle.
I am about a week away from closing on a unit in this building. Foreclosure, with an original list price around $240k. I am picking it up for $98k. 2bd/1ba corner unit, just over 1000 sqft. Previous posters here are correct, you can’t get a conventional loan in this building. I am getting a Fannie Mae Homepath Renovation loan, which works similarly to a 203(k) loan.
Here is a link to a listing:
http://www.urbanrealestate.com/property/3963-W-Belmont-Unit-241-CHICAGO-IL-60618-IEPDJZOYXCKU2.html
I was surprised at how favorable the appraisal was, but a few things have made me nervous through this process.
1. I am a first time buyer, so there’s that.
2. The HOA does have very low reserves, as Milkster pointed out. However, the disclosures I obtained indicated that there are currently no special assessments on the horizon.
3. I have been scouring the internet, attempting to find more information and posts about people who have considered buying or who live in this building, but I can’t find anything but speculation and people saying “be careful.”
Does anyone here live in or know someone who lives in the building? Either renters or owners? I feel like this is a pretty fantastic deal, but if the building is falling apart, then maybe not so much. Any input would be greatly appreciated by a nervous first-time home buyer!
How many other units are in foreclosure? What are they saying in the condo board minutes about people not paying back assessments? Or about special assessments? The condo board should be able to tell you SOMETHING.
Anyone else have any other advice?
I’m assuming you’re planning on living in this building a long time to ride out all the foreclosures/distress sales that will likely occur (since many are happening right now.)
If you go to sell- who will buy it if you still can’t get a conventional loan in the building?
Out of 175 units, last I heard 11 were being sold. Of those, many short sales/foreclosures.
30 or so units are in delinquency of their assessments. Many of the units are still developer-owned and being rented. There is a high percentage of rentals in the building, just in general.
No special assessments coming up, according to the condo disclosure.
Yes, I would plan on living here until I decide (if I decide) to move to another city, at which point I would probably rent or have to take a cash offer if I wanted to sell.
Other people are mostly telling me they think it’s a great deal, but I just get this generally sort of “spooky” feeling about the building. I’ve been there many times and it seems to be fine. Common areas clean and air conditioned, security staff, everything works, nice fitness area where people are usually working out… I just don’t know. I’m trying to think of the worst case scenario here.
The mortgage payments are very reasonable. The assessments can only go up a certain percentage each year, which makes me feel more comfortable. I am having the place renovated before I move in, and I think it’s going to be really beautiful.
If I sound like I’m drinking some bad Kool-Aid here, please let me know!
“If I sound like I’m drinking some bad Kool-Aid here, please let me know!”
Nervousbuyer: nearly all first time buyers are “nervous” no matter what the market.
Only you have to live there- so no one else can really give you any advice. You’ve checked into all the issues so you have as many facts about the building as you’re probably going to get.
Good luck!
Unit #506 – a 1 Bedroom / 1 Bath – just closed for 70K:
http://www.redfin.com/IL/Chicago/3963-W-Belmont-Ave-60618/unit-506/home/18980623
Hopefully, eventually all the distressed units in this building will sell to some active and interested resident-owners and the HOA will get over its tough times. I like the history, space and location of this condo.
That’s still 20k too high in my opinion.
I’ll stand by my earlier assertion that this area will be considerably different in 5 – 8 years, in a good way (less vacant shop on Milwaukee, more night life, etc).
best of luck re: the assessments, etc.!
“That’s still 20k too high in my opinion.”
But that’s less than a week’s work for you.