Is There a Bubble in the West Loop? A 1-Bedroom Loft at 110 N. Peoria
This 1-bedroom loft at 110 N. Peoria in the West Loop came on the market in March 2018.
This is an industrial loft building with 25 units and a heated parking garage which was converted into lofts in the 1990s.
This loft has 15 foot concrete ceilings and exposed brick walls.
It has a unique old, original elevator shaft in the middle of the unit which has a grated steel staircase which leads to a small office space and a private rooftop 20×21 deck.
There’s a skylight in the elevator shaft for natural light, otherwise the only other windows are in the living room.
The bedroom doesn’t have a window.
The kitchen has wood cabinets, granite counter tops and stainless steel appliances.
It has the other features buyers look for including central air, washer/dryer in the unit and heated garage parking is included.
Recently, this loft sold in March 2017 and then was relisted for 42% more just 12 months later.
It doesn’t appear any significant renovations (kitchen or bathrooms) were made.
Since March, it has been reduced twice but it’s still listed for $134,999 more than just a year ago.
A bubble is an economic cycle characterized by the rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive sell-off occurs, causing the bubble to deflate.
Is the West Loop showing signs of bubble-like behavior?
Maria Boncza at Baird & Warner has the listing. See the pictures here.
Unit #407: 1 bedroom, 1.5 baths, 1500 square feet
- Sold in March 1996 for $195,000
- Sold in September 2001 for $327,000
- Sold in March 2006 for $386,000
- Sold in June 2013 for $401,500
- Sold in March 2017 for $515,000
- Originally listed in March 2018 for $725,000
- Reduced twice
- Currently listed for $649,999 (includes the parking)
- Assessments of $383 a month (includes exterior maintenance, lawn care, scavenger, snow removal)
- Taxes of $6,000
- Central Air
- Washer/dryer in the unit
- Bedroom: 17×11
- Den: 9×8 (second floor)
- Deck: 21×20 (second floor)
When it actually closes at a significant premium we can talk about a bubble.
If there is a recession this cave could be back in the 400s in no time. Buyer beware.
I hate almost everything about this place except for the roof deck. With 1500 square feet the developer couldn’t even fit in 2 full bathrooms? I wonder where else they skimped on the conversion.
The West Loop has lost all appeal to me due to the construction. If you can stand to live in a construction zone for many years to come, the West Loop might be a good place for you.
I’m not necessarily sure it’s a bubble because so many companies are moving here and people want to live near where they work.
Noting ventured nothing gained, maybe they aren’t in a hurry to move and are trying to sucker someone into it.
Cave? But there’s a skylight haha…. This place is unique and nice, but not $650k nice.
This one is also asking 63% above last sale, right?
the west loop has changed a lot since march 2017!!!
Just wait until 2017 taxes are in…
$550 tops with parking that some dumb ass out of school lawyer who was able to get a $120k job will pay.
Can’t say whether there’s a bubble, but I’ve got a perch overlooking the WL for a few days, and I’ve never noticed the twin rows of trees that runs through the middle of Randolph. It’s nice.
“the twin rows of trees that runs through the middle of Randolph”
There is talk about getting rid of the outside driving lanes, which would, imo, be a great thing.
“With 1500 square feet the developer couldn’t even fit in 2 full bathrooms? I wonder where else they skimped on the conversion.”
Many of the 1990s conversions were done first to apartments and then to condos. I don’t know if this particular one was, however.
But it was converted in 1995-96 into condos. 22 years ago.
If the developer had cheaped out, the condo association would already know about it.
Also, given the neighborhood at the time, I don’t think the developer much cared if it was 1.5 or 2 baths, especially with the 1 bedroom. Remember, nothing great about the West Loop in the 1990s. Pretty abandoned, actually.
A/I
Hello All,
We have officially closed at $625,000.
Yours Truly,
Listing Broker,
Maria Boncza