Crib Chatter

 

The Caravel at 635 N. Dearborn is a nondescript River North high rise that was built during the hey-day of the new condo mania (when buyers were waiting in lines to get new condos and they were selling out in only days.) One of the unique features is that all of the units in the building are 2 bedrooms or larger.

It wasn’t built as a luxury building, per say.  The kitchens have granite, but it was thin granite and the kitchens were small.  Some have upgraded their appliances to stainless steel but many of the original units had white or black.  The picture above is Unit 1703 one of the small 991 square foot two bedroom units with the original kitchen.

Several resales in the building tell the story for the owners, most of which will be lucky to break even and many which will lose money on the sale.

But I thought real estate only went up?  I thought it was better to own rather than rent? 

Some in the Caravel would have been far better off renting over the last 4 years.

Unit #1703: 2 bedroom, 2 bath, 991 square feet, listing says “Brand New Unit- Never lived in!”

• Sold in January 2004 for $373,500
• Currently listed for $395,000 plus $35,000 for parking (two spaces available)

If true that this unit hasn’t been lived in in nearly 4 years (that the owner got no rental income from it) this owner is going to take a large loss on this investment when you factor in paying assessments, taxes etc. over that time period. 

• Assessments at $548 a month (total of $6576 a year)
• Taxes of $4833 a year

This owner is paying $11409 a year to hold a losing investment.  There is no guarantee it will sell for even what they paid for it four years ago – the $373,500.

Unit #702: 2 bedroom,  2 bath, 1250 square feet, large wraparound terrace

• Sold in April 2004 for $421,500
• Currently listed for $449,500 plus $35,000 for parking

Unit #1402: 2 bedroom, 2 bath,  1214 square feet

• Sold in June 2003 for $420,500
• Currently on the market for $439,900 plus $35,000 for parking

Unit #901: 2 bedroom, 2 bath, 1326 square feet (among the largest floorplans)

• Sold in June 2003 for $423,500
• Currently listed for $434,900 plus $35,000 for parking

Unit #906: 2 bedroom, 2 bath, 1250 square feet

• Sold in April 2004 for $360,000
• Sold in July 2006 for $417,500
• Currently listed for $419,900 plus $35,000 for parking

These prices don’t seem to be an aberration (i.e. there isn’t just one unit that is selling for less.)  It appears that most of the building has not appreciated in the last three to four years.  Many of the original owners will take a loss (after paying realtor and closing costs) if they sell now.