Lakeview Penthouse With Hot Tub Views of Wrigley Field Sells: 1131 W. Addison
We chattered about this newer construction 3-bedroom duplex penthouse at 1131 W. Addison several times in the last few months.
See our early October 2010 chatter and pictures here.
It recently sold for $100,000 under its original October 2009 list price and $22,000 under the 2007 purchase price.
If you recall, the unit had a private rooftop deck complete with a hot tub and electricity which basically overlooks Wrigley Field.
Did someone get a deal for the square footage and finishes?
Nancy Gaspadarek and Catherine Brennan at Sudler Sotheby’s had the listing.
Unit #3: 3 bedrooms, 2 baths, 1 car parking, 1500 square feet
- Sold in June 2007 for $552,000
- Originally listed in October 2009 for $629,900
- Withdrawn
- Was listed in March 2010 for $609,000
- Reduced
- Was listed in May 2010 for $589,999
- Reduced
- Was listed in October 2010 for $579,999
- Sold in October 2010 for $530,000
- Assessments of $176 a month
- Taxes of $7605
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 12×12
- Bedroom #2: 10×9
- Bedroom #3: 20×11
“Did someone get a deal for the square footage and finishes?”
Of course they did – again, it’s not all financial. I’m sure the buyer probably is ecstatic and excited about moving into this place – you can’t put a price on peace of mind and a sense of stability that comes when you finally make your decision and actually buy a place. Also, most buyers are unwilling to compromise – so even if there were cheaper alternatives out there, something about this place may have “spoken” to the buyer. Good for them for having the balls to go out and buy a place (instead of crying, whining and complaining about how everything is terrible in real estate and we are all going to lose money, etc. etc. like so many on this website like to preach).
It sold for 4% under the peak-of-the-bubble purchase price. After 3 years, the sellers had likely paid at least $22k toward principal (assuming it wasn’t an interest only). While I doubt the sellers are celebrating (they obviously wanted to make a quick $50k), given the low assessments, I’d say they just about broke even (applying the tax deductions over three years against the sale costs). All things considered, they did fine.
” I’d say they just about broke even”
What?!!
After realtor fees and closing costs, they are in the mid 490s – these folk probably lost about 60k (assuming that they didn’t upgrade the unit). In retrospect, when you add in assessments, taxes and mortgage they paid, they spent about 123k to live in this place (including the losses). When you consider mortgage interest and real estate tax deduction, their loss would probably be about 108k. This is the same as renting a place for 3000/month for 3 years – which, is not that far off from what is would be to rent a place like this. So, even though we came to the same conclusion (that they came out even) our reasoning is different.
I mean, if they like the place and all, then does the price really matter if they are going to stay for 10 plus years? I wouldn’t pay more than 500k for it, but if I was a Cubs fan than it might be a little different. They should try to get those property taxes reduced, they seem a tad high.
“I mean, if they like the place and all, then does the price really matter if they are going to stay for 10 plus years?”
Yes, definitely. Assuming 4.5% interest rates on a 30-year loan, each $100,000 difference in the loan amount works out to about a $500 dollar difference in payment each month. That’s $6000 a year that could be used for savings, downpayment on a car, a nice new TV set, or whatever. And of course the price affects how much money someone will gain or lose when they sell the home at the end of the 10-plus years, which could make a large difference in how much someone has to retire or what kind of house they can buy after this one.
Clio, are you bipolar?
“Assuming 4.5% interest rates on a 30-year loan, each $100,000 difference in the loan amount works out to about a $500 dollar difference in payment each month”
Most people would gladly pay 6000/year for peace of mind and live in a place they actually like!!
I would venture to say “most” people don’t have an extra 6k/yr to spend.
Unless you mean most people in some small demographic that you’re not specifying.
“Most people would gladly pay 6000/year for peace of mind and live in a place they actually like!!”
Clio, from a cash buyer’s perspective I can find your argument a little more plausible, but for the reasons above over paying has a very bad compounding effect. Besides, isn’t one of the reasons we are in this mess is that people could and did throw crazy money around “for piece of mind?”
“Besides, isn’t one of the reasons we are in this mess is that people could and did throw crazy money around “for piece of mind?”
People throw away a lot more money on more ridiculous things than real estate (think vacations, cars, clothes, spas, massages, private schools – where public schools are just as good, if not better, nice restaurants, bars, etc). Collectively, there is a lot of waste out there. The problem is that people don’t realize that (because much of this waste goes unnoticed – kind of like taking a few dollars out of your checking account every day – you don’t recognize the slow bleed). Once people realize this, they won’t feel so bad about housing. The pleasure a house/home gives is worth the premium paid for that priviledge.
Let’s not forget that the buyer likey incurred the costs of that extra special roof deck, added roof support, as well as the cost of the hot tub, electrical, and plumbing connections after that closing in 2007. My guess is that at this selling price they may have suffered more than it appears.
From a follow up post on the initial thread on this property, statements about upgrades. Mostly I’m disappointed about the lack of parties and limited hot tub usage:
“Just to set the record straight…it was a couple who lived here, the roof deck is absolutely private and not open to the other tenants of the building. There were a TON of after-purchase upgrades, including bringing the exterior steps up to the roof level and accompanying stone work to make it a ‘legal’ roof deck as well as installing the electrical and water and tv on the roof, too. This is in addition to all the many upgrades inside. The hot tub was used by the owners only. Sorry, to ruin your imagination but there weren’t any parties as some of you have suggested. The owners, who relocated for family reasons, kept the home in immaculate condition. Hope you can all sleep at night now knowing the real facts, but then that won’t be as exciting as your imagination, now will it?”
http://cribchatter.com/?p=8359#comment-100069
“The hot tub was used by the owners only. Sorry, to ruin your imagination but there weren’t any parties as some of you have suggested. The owners, who relocated for family reasons, kept the home in immaculate condition. Hope you can all sleep at night now knowing the real facts, but then that won’t be as exciting as your imagination, now will it?””
That just means you *really* need to scrub out that hot tub before moving in.
“That just means you *really* need to scrub out that hot tub before moving in”
This is more psychological fear-mongering! Exposure to germs is actually healthy and most often will lead to a stronger immune system. Those ridiculous neat/clean freaks and parents that want to have their children grow up in a sterile environment are actually doing harm by not letting their immune system build up natural antibodies.
Clio, I don’t know if it is necessarily germs anon (tfo) is concerned about… Think more along the lines of General Ripper from Dr. Strangelove..
Can we just rename this site?
cliochatter.com
“Can we just rename this site?
cliochatter.com”
sorry – I guess my job really isn’t that challenging!!! (although my support staff love “cribchatter” from keeping me out of their business and asking them to do things!!).
BTW the new owners are screwed. One of my friends just rented the place next door. They will be sitting on this elegant rooftop wishing that they could get invited over to his low end deck to hang out with all of the 20 somethings at his party. It will also go late into the evening keeping the rich new neighbors up late.