Crib Chatter

It used to be a given that an older apartment building would eventually “go condo.”

But 10 years after the housing bust, the pace of “deconversions” has picked up with several of the largest deconversions in Chicago history moving forward.

River City, the Bertrand Goldberg building on the Chicago River in the South Loop at 800 S. Wells, recently became the latest building to agree to a buy out.

It has 449 residential units, work and retail space which makes it the largest deconversion in Chicago history to date.

It was originally apartments, then went condo during the boom, saw a lot of foreclosures due to investor owned units, and now is set to return to apartments.

It’s now located in the up-and-coming River Line development which will create a more vibrant river front.

The buyers will do a full redesign and renovation of the lobby, common areas, units and retail area.

“With more than 250,000 square feet of office and retail, this is an incredible opportunity to maximize the space to create experiences and daily conveniences for both the renters and South Loop community,” said Ruttenberg Gordon Investments managing partner, David Ruttenberg. “We look forward to renovating this space to fit today’s office and retail landscape with a heavy emphasis on building community.”

“Apartments are being designed by Devon Grace Interiors, and Luxury Living Chicago Realty is the exclusive marketing and leasing brokerage. The redesign will feature a lobby with multiple lounges and co-working spaces, a party room, an acre of outdoor space with lush landscaping, outdoor grilling stations, bocce ball, shuffleboard courts and a convenient dog run. Units range from studios to four-bedroom penthouses. Apartment rental rates have yet to be announced. Leasing should begin in early February.”

They expect move-ins in March.

Another prominent building which may deconvert is 1400 N. Lake Shore Drive in the Gold Coast.

It recently approved the sale, which, under state law, must be approved by at least 75% of the owners.

But the buyer may pull out.

From Crain’s:

Now the sale is in jeopardy because ESG can’t line up financing. ESG sent the condo board a letter Dec. 7 saying it was terminating the transaction, meaning it will forfeit a $50,000 earnest money deposit, according to the board’s letter to owners.

An ESG executive didn’t return calls, nor did the president of the building’s condo board. CBRE, the brokerage representing the condo board in the sale, declined to comment.

If ESG can find another equity partner, it plans to submit another offer for the property, which would require yet another vote by the building’s condo owners, according to the letter. The board expects to hold another vote in early January, with an anticipated closing in late February or early March, as previously planned, the letter said.

With thousands of more units still expected to come on the market through new apartment construction, is there still demand to continue the deconversions in 2019?

Will we all become renters now?

With the US economy still chugging along 10-years after the last recession, and Chicago’s downtown job machine still adding high paying jobs from the likes of Salesforce and Google, developers have been adding luxury condo units by the dozens.

The most high profile luxury condo project is The Vista at 363 E. Wacker Drive in Lakeshore East.

The combo hotel and condo building will be 101 stories.

It will be the third tallest building in Chicago upon completion in 2020.

In July, the sales office announced a $18.5 million contract on a full floor unit on the 71st and 72nd floors, complete with an 8,000 square foot outdoor terrace. From the Chicago Tribune:

The record local home price remains at $58.75 million, which Ken Griffin, head of the Citadel financial empire, paid in late 2017 for four floors at the top of No. 9 Walton. A Winnetka home traded between members of the Crown family in 2015 for $25 million and was recorded in property records as a conventional sale.

The third-highest price is $19.5 million, which Groupon CEO Eric Lefkofsky paid for a Glencoe estate in 2014, and fourth is the $18.75 million sale of a Park Tower condo in 2015 to a firm with ties to “Star Wars” creator George Lucas and his wife, Mellody Hobson, president of Ariel Investments in Chicago.

At the moment, the condo combo is the highest-priced home in Vista Tower. The top residential unit, on floors 91 and 92, is priced at $17.4 million, according to Jim Losik, Magellan’s marketing director. At about 6,800 square feet, it’s smaller than the 71st/72nd-floor combo.

If other buyers combine floors, their purchase prices might eclipse the $18.5 million unit, Zammatta said. From the 71st floor to the top, all condos are full floors. With the two new contracts, those upper-floor units are half sold, Losik said.

But out of 396 units, just 40% were sold as of July 2018. There were still 222 units for sale, with starting prices of $1 million and up.

Usually the luxury condo market moves in tandem with the stock market.

With the stock market suddenly on the decline, what will happen to Chicago’s luxury condo market in 2019?

Will it be a slowdown or a bust?

The Illinois Association of Realtors is out with November home sales.

As we’ve discussed on Crib Chatter the last few months, sales have slowed from 2017’s strong pace.

The city of Chicago saw year-over-year home sales decrease 8.5 percent with 1,793 sales in November, compared to 1,959 a year ago. The median price of a home in the city of Chicago in November was $262,000 up 2.3 percent compared to November 2017 when it was $256,000.

Here is the November sales data for the last 9 years (thanks to G for some of the data):

• November 2007: 1859 sales and median price of $290,000
• November 2008: 1093 sales and median price of $222,500 (16% short/REO sales)
• November 2009: 1905 sales and median price of $215,000 (29% short/REO sales)
• November 2010: 1144 sales and median price of $182,500 (39% short/REO sales)
• November 2011: 1429 sales and median price of $157,000 (43% short/REO sales)
• November 2012: 1750 sales and median price of $180,000
• November 2013: 1844 sales and median price of $200,000
• November 2014: 1638 sales and median price of $230,000
• November 2015: 1661 sales and median price of $233,500
• November 2016: 1937 sales and median price of $260,000
• November 2017: 1959 sales and median price of $256,000
• November 2018: 1793 sales and median price of $262,000

A year ago, November’s sales were the second best in 10 years but the numbers are always revised later and now 2017 is going down as the strongest November in a decade.

“The seasonality of the market is clearly at play,” said Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “Prices are fairly stable, market time is on par from last year and while inventory is still slightly down compared to last year, it’s evening out, as well. This bodes well for both buyers and sellers heading into the holiday season.”

“Prices continue to grow modestly, but the forecast for the next three months suggests a slowing trend,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Consumer sentiment indicators suggest concerns about the short-term outlook with volatility in the stock market and rising interest rates dampening expectations.”

Statewide inventory dropped to 54 days from 58 days in November 2017.

Total statewide inventory fell 2.4% to 53,929 from 55,276 last year.

The average 30-year fixed rate mortgage was similar to October’s rate at 4.9%, up from 4.83% in October but considerably higher than the 3.9% average in 2017.

“The headwinds that homebuyers have confronted all year are no less evident as we prepare to close out 2018,” said Ed Neaves, Illinois REALTORS® president-elect and managing broker of Berkshire Hathaway HomeServices Snyder Real Estate in Bloomington. “Median prices continue to post strong growth, but the increases are occurring against a backdrop of continued inventory contraction.”

Are the slowing sales due to rising mortgage rates, the rocky stock market or simply really low inventory?

Or all of the above?

Illinois home prices climb higher in November; sales shift lower [Illinois Association of Realtors Press Release, December 19, 2018]

This Victorian 2-flat at 2509 N. Halsted in Lincoln Park came on the market in October 2018.

We last chattered about this property in September 2010. See our chatter here.

Back then, the property was being marketed as a 3-flat, though the garden unit wasn’t being vouched for as a legal unit, and also a teardown possibility, as there was already a new construction building next door.

Many of you thought it should have been torn down, given it’s condition.

But it was saved!

Built in 1886, this property is on a standard 25×125 lot and has a 2-car garage.

It has returned to the market 8 years later “recently remodeled” as 2-units plus an in-law unit.

The building still has some of its vintage features including an ornate metal sliding fireplace screen and ceiling medallions.

There are hardwood floors and Bullseye moulding.

The kitchens have stainless steel appliances.

Here are the units:

• Unit #1: 1 bedroom, 1 bath, mother-in-law unit rented at $1400 a month (no rent given in 2010)
• Unit #2: 1 bedroom, 1 bath, rented at $1750 a month (was rented at $2000 a month in 2010)
• Unit #3: 2 bedrooms, 1 bath, rented at $2200 a month (was rented at $1300 a month in 2010)

There’s a washer/dryer in the lower level for the building.

The units also appear to have wall unit/window unit air conditioning.

There isn’t much pre-1900 construction left on this part of Halsted.

Is this vintage building still on the chopping block or has the strong rental market, and recent renovations, saved it from the wrecking ball?

Judi Weintraub at @Properties has the listing. See the pictures here.

2509 N. Halsted: 4 bedrooms, 3 baths, no square footage listed

• Sold in January 1988 for $185,000
• Sold in July 1992 for $200,000
• Sold in April 1998 for $400,000
• Sold in November 2013 for $679,000
• Originally listed in October 2018 for $950,000
• Currently still listed at $950,000
• Taxes of $16,072
• No central air
• Tenant pays gas/electric
• Washer/dryer in the basement
• Unit #1: rented at $1400 a month
• Unit #2: rented at $1750 a month
• Unit #3: rented at $2200 a month

This 2-bedroom vintage duplex up at 1408 W. Belden in Lincoln Park came on the market in August 2018.

We have chattered about this unit twice in the past, including in October 2018 and in 2011. See the 2011 chatter here.

The building has 5 units and was built sometime between 1881 and 1900 (the two listings had different dates).

Two of them, including this one, have private entrances on Belden. The other 3 simplex units have a common entrance on Southport (see our 2011 chatter for the realtor’s notes on the building set-up.)

This unit has some of its vintage features including 12 foot vaulted ceilings and crown moldings on the first floor.

The October listing said it has had a “2017 interior renovation” but it now calls it a “newly renovated condo.”

If you recall, the first floor has a dining/sitting area, the living room and the kitchen along with arched doorways and a private back deck.

The kitchen has white cabinets, stainless steel appliances, a white tiled backsplash and what look like stone counter tops.

There’s some exposed brick walls.

The second floor has two bedrooms and a laundry room.

The master suite has a stand-up shower and a walk-in closet.

The unit has an enclosed garage parking spot that the 2011 listing said was in the old carriage house.

Originally listed for $780,000 in August 2018, it has been reduced $105,000 to $675,000.

Since our October chatter, there haven’t been any price reductions.

Will 2019 be a contest of wills between owners holding onto prior pricing and the new market conditions?

Joe Green at Keller Williams Chicago-Lincoln Park now has the listing. See the pictures here.

Unit #1: 2 bedrooms, 2.5 baths, duplex up, now 1800 square feet (last listing didn’t have the square footage)

• Sold in May 1991 for $258,000
• Sold in August 1994 for $265,000
• Sold in February 1997 for $282,000
• Sold in August 2003 for $469,500
• Sold in September 2007 for $573,500
• Originally listed in June 2011 for $550,000
• Sold in November 2011 for $468,500
• Sold in February 2017 for $601,000
• Originally listed in August 2018 for $780,000
• Reduced several times
• Was listed in October 2018 for $675,000
• Re-listed in November 2018 at $675,000
• Assessments are now $258 a month (they were $209 a month in October and were also $209 a month in 2011)(includes lawn care, scavenger, snow removal)
• Taxes are now $10,831 (they were $11,232 in October 2018 and were $7445 in 2011)
• Central Air
• Washer/Dryer in the unit
• Looks like it’s now a gas fireplace but it was wood burning in 2011
• Garage parking included in 1881 carriage house
• Bedroom #1: 14×16 (second floor)
• Bedroom #2: 10×13 (second floor)
• Living room: 31×22 (main floor)
• Family room: 15×15 (main floor)
• Kitchen: 15×15 (main floor)

This high first floor 3-bedroom at 640 W. Fullerton Parkway in East Lincoln Park just came on the market.

This 4-unit building has front balconies and a garage in back.

If it looks familiar, that’s because we chattered about this actual unit back in October 2016. See our chatter here.

It has many vintage features including crown molding, wainscoting, ceiling medallions and a wood burning fireplace in the living room.

French doors lead to a small balcony in the front of the building. The unit also has a private deck off the kitchen in the back of the property.

There’s a full size dining room and built-ins.

The third bedroom has converted into a family room which is open to the kitchen.

The kitchen has modern wood-style cabinets, black counter tops and stainless steel appliances. Those cabinets extend into the family room.

In the 2015 chatter, we debated what those cabinets were with some of you concluding they were a walnut finish from Ikea. Still true?

There’s a master suite with a bathroom and walk-in-closet.

It has central air and garage parking but there’s no in-unit washer/dryer. The listing says there’s one in the basement and there’s a “possible” hook-up in the kitchen area.

The listing says the seller needs to close in December.

Listed at $675,000, it has been reduced $15,000 to $660,000.

That’s just $10,000 above the 2015 selling price of $650,000.

In 2015, it went under contract the first week it was on the market and sold for $1,000 over the list price.

Has Lincoln Park price appreciation stalled?

Emily Sachs Wong at @Properties has the listing. See the pictures and floor plan here.

Unit #1: 3 bedrooms, 2 baths, no square footage listed (but the old listing said it was “over” 2000 square feet)

• Sold in June 1992 for $302,500
• Sold in September 1994 for $323,500
• Sold in July 1998 for $425,000
• Sold in June 2013 for $425,000
• Was listed in October 2015 for $649,000
• Sold in December 2015 for $650,000
• Originally listed in October 2018 for $675,000
• Reduced
• Currently listed at $660,000
• Assessments are $325 a month (they were also $325 a month in 2015) (includes heat, water, exterior maintenance, scavenger, snow removal)
• Taxes are now $8,820 (they were $8425 in 2015)
• Central Air
• Washer/Dryer in the basement but listing says there may be a “possible” hook-up in the kitchen area
• Garage parking included
• Wood burning fireplace
• Bedroom #1: 13×12
• Bedroom #2: 11×14
• Family room/den/Bedroom #3: 11×14
• Deck: 10×20

This 3-bedroom duplex in Jackson Tower at 5555 S. Everett in Hyde Park came on the market in June 2018.

Jackson Tower was designed by Walter W. Ahlschlager, who also designed other vintage towers in the city.

Construction was completed in 1922. It has 72 units.

It sits directly across from the Museum of Science and Industry and many units also have Lake Michigan views.

This is one of the duplex units. It has 20 foot ceilings with stunning arched wood beams and huge arched windows which overlook the Museum (those are mirrors on the one living room wall.)

Other vintage features include hardwood flooring throughout, iron work, a gas fireplace, built-in bookcases, and what looks like original wood wainscoting.

There’s a family room with built-in dry bar.

The grand staircase leads to the 3 bedrooms including a master suite with a bathroom and walk-in-closet.

The kitchen has white cabinets, stainless steel appliances and what look like stone counter tops.

There appears to be central air. I’m not sure about in-unit washer/dryer but it appears there’s a hook-up in the unit.

There’s no parking with the building but there’s a rental garage down the street.

It does have a 24-hour doorman.

The monthly HOAs are $2626 a month, which does NOT include the taxes. This is a condo building, not a co-op.

In 2014, Ian Spula at Chicago Magazine discussed the building and its assessments.

“With multiple capital projects come multiple special assessments, which tend to scare off buyers. According to Matson, it appears all of these large projects are completed and there are no special assessments scheduled for foreseeable future.  That’s a big plus for sellers, but the high monthly assessment (over $2,000 for the average duplex) needs as much justification as it can get. Right now, there’s a great level of service in the building, including 24-hour door staff, but there’s no signature amenity to compete with the pools and roof decks that certain luxury towers in Hyde Park and downtown bring to the table.”

Listed at $560,000, can these vintage units hold their own against new construction?

Braden Robbins at Vesta Preferred has the listing. See the pictures here.

Unit #B3-4: 3 bedrooms, 4.5 baths, 3800 square feet, duplex

• Sold sometime before 1987
• Sold in October 2014 for $185,000
• Listed in June 2018 for $560,000
• Currently still listed at $560,000
• Assessments of $2626 a month (includes heat, gas, doorman, lawn care, scavenger, snow removal)
• Taxes of $6341
• Central Air
• Washer/dryer in the unit? (it says there’s a hook-up)
• No parking- rental in the neighborhood
• Gas fireplace
• Bedroom #1: 27×14 (second floor)
• Bedroom #2: 16×15 (second floor)
• Bedroom #3: 15×13 (says main floor in the listing but it also says all three are on the second floor)
• Living room: 25×18
• Not sure the size of the family room as it’s not listed

So sorry for being away.

The site was being attacked by the spammers again. It took a little bit of time to figure out what was going on and to get it fixed but it should be okay going forward.

I know you guys hate to sign in to make comments but some of the spammers have been trying to break into the comments section at the rate of thousands per hour.

We’re so popular.

Because I’ve been doing all the busy work of getting the site back up, I won’t be back to my regular posting until Thursday.

Meanwhile, the New York Times reported over the weekend that the luxury market in both for sale and rental properties has really slowed in Manhattan.

“Through the first three quarters of the year, 84 percent of ultraluxury listings — the priciest 10 percent in Manhattan — sold below the original asking price, up from 65 percent in 2015, when the market was riding high, according to StreetEasy. The median price cut remained unchanged at $500,000, which could suggest sellers need to cut deeper still, said Nancy Wu, an economic data analyst for the company.

“It feels worse when you’re out in the trenches,” said Donna Olshan, the president of Olshan Realty, which puts out a weekly report on contracts signed on properties seeking $4 million and up. That segment has taken an average of 441 days to go into contract so far in 2018, the longest stretch since at least 2013, when similar homes spent 172 days on the market. Through Dec. 2, $4 million-plus homes were reduced on average by 9 percent before a contract was signed, but Ms. Olshan believes that after sellers make additional concessions, the actual discount is closer to 15 or 20 percent.

She predicts that 2018 will finish with 6 to 10 percent fewer $4 million-plus contracts signed than last year, when 1,172 were signed, and roughly 20 percent fewer than during the peak year of 2013.”

Similarly, rent concessions are the norm in the luxury rentals and yoga pop ups are now routinely renting out spaces.

They say that real estate trends start on the coasts and slowly move to the center of the country.

Will Chicago’s luxury market be the next to slow in 2019?

This 5-bedroom single family home at 1652 N. Bell in Bucktown has been on and off the market since March 2012.

If it looks familiar, that’s because we chattered about it in October 2012, after it first came on the market, and again a year ago, in December 2017.

Back in 2012, we were wondering if staging mattered in million dollar properties. In 2012, it didn’t have any furniture or even window treatments.

See our chatter here.

By December 2017, it had finally been staged but it was still sitting on the market unsold. Many of you had strong opinions about it a year ago.

You can read that chatter here.

If you will recall, it was built in 2010 on a larger than normal Chicago lot of 38×125 and it has rare 3-car parking.

It has 4 outdoor spaces including a private patio with a fire pit and a garage deck with a hot tub.

The kitchen has Poggenpohl modern cabinets with Viking and Subzero appliances and white counter tops along with a large kitchen island.

There’s a butler’s pantry and a wine bar with a Subzero wine cooler.

It has heated floors and wainscoting.

There’s full house audio which includes the rooftop deck.

The house has a finished basement with a second kitchen and a wine cellar.

The listing says it’s just a block to the 606 entrance.

If you remember, this is not the first sale of this house. It sold as a foreclosure during the housing bust.

This house has been reduced another $400,000 in the last year to $2.25 million.

Will this house finally sell in 2019?

James Prendergast still has the listing. See the current pictures here.

1652 N. Bell: 5 bedrooms, 4.5 baths, 6200 square feet, 3 car garage

• Sold in June 2006 for $730,000
• Lis pendens filed in April 2009
• Bank owned in May 2010
• Sold in December 2010 for $1.38 million
• Originally listed in March 2012 for $1.775 million
• On and off the market over the years
• Re-listed in July 2017 for $2.65 million
• Was still listed in December 2017 at $2.65 million
• Reduced
• Currently listed at $2.25 million
• Taxes are now $22,188 (they were $21,216 in December 2017 and $17,686 in October 2012)
• Central Air
• Kitchen in the lower level
• Decks on roof and the garage
• Bedroom #1: 28×27 (second floor)
• Bedroom #2: 20×13 (second floor)
• Bedroom #3: 19×14 (second floor)
• Bedroom #4: 16×14 (lower level)
• Bedroom #5: 14×9 (lower level)
• Recreation room: 27×26 (lower level)

This 2-bedroom townhouse at 1005 W. Dickens in Lincoln Park came on the market in October 2018.

Built in 1984, this is a group of 6 townhouses plus detached garage parking.

The picture above is of 1003 and 1004 W. Dickens. You can see the start of 1005 on the far right of the picture.

It has a split floor plan with the master suite on the third floor with vaulted ceilings, a bathroom and a deck.

The second bedroom is on the second floor.

The living room and kitchen are on the main level with a family room on the lower level.

The kitchen has cherry cabinets, stainless steel appliances and granite counter tops. There’s also a fenced in patio off the kitchen.

The listing says there’s a “new furnace and water heater” as of Oct 2018.

It has central air and there is one detached garage parking space included in the price.

It’s just a block away from the shops and restaurants on Armitage and is only a block away from the brown line El stop.

This is a fee simple townhouse. That means there are NO assessments.

The owner must maintain the property themselves.

This townhouse has been under contract once since it was listed but has now been reduced $9900 to $515,000.

Without any assessments, and at a price under $520,000, is this townhouse a deal?

Deborah Ryder at American International Realty has the listing. See the pictures here.

Or go see it at the Open House on Sunday, Dec 9 from 12 – 2 PM.

1005 W. Dickens: 2 bedrooms, 2 baths, no square footage listed, townhouse

• Sold in February 1990 for $230,000
• Sold in May 1991 for $235,000
• Sold in July 1999 for $330,000
• Sold in June 2006 for $510,000
• Sold in August 2011 for $440,000
• Originally listed in October 2018 for $524,900
• Under contract
• Reduced
• Re-listed at $515,000 (includes 1-car garage parking)
• No assessments- fee simple
• Taxes of $9115
• Central Air
• Wood burning fireplace
• Bedroom #1: 15×14 (third floor)
• Bedroom #2: 15×10 (second floor)
• Family room: 17×16 (lower level)
• Patio: 14×16