Crib Chatter

Crain’s is reporting that rental rates on Class A buildings in downtown Chicago hit a new record high of $2.63 a square foot in the first quarter of this year.

Class A buildings are the luxury apartment towers like The Streeter.

For example, the rent on a 700-square foot 1-bedroom apartment would be $1841 a month in a Class A building.

But as many renters get priced out of that price range, they are trading down to Class B buildings. That has meant greater demand at that level, which has also pushed those prices up to a record of $2.32 a square foot.

That same 700 square foot apartment in a Class B building would rent for $1624 a month.

Occupancy is high in the Class A buildings. It ran at 95.3% in the first quarter.

Yet supply will soon catch up with demand and could, some fear, even exceed it. A construction wave will add seven new high-rises totaling 2,895 apartments to the downtown market this year, with another 2,330 units to be completed in 2014, according to Appraisal Research.

Most observers agree that the new supply will make it harder for landlords to hike rents. In a best-case scenario, rent growth will only taper off; in the worst, rents will fall as competition for tenants intensifies.

“Right now is a great time to be leasing up a building,” said Appraisal Research Vice President Ron DeVries. “The question is what happens August, September, when we start to hit the fall.”

But Mr. DeVries doesn’t expect trouble, predicting rents will rise about 4 percent to 5 percent in the 12 months through March 31.

Yet according to Appraisal Research, the market has only absorbed an average of 1540 units a year over the last 3 years. Nearly double that is expected to be completed this year.

There are also a significant number of projects in the works, although many may not obtain financing. And some will be in the neighborhoods like Lakeview or Bucktown.

The hot market has attracted a mob of other developers trying to get in on the fun. Beyond projects already under way, 26 developments comprising 6,292 apartments are in the works in greater downtown, according to a partial list compiled by Appraisal Research. Of course, the number of completed projects will be much lower because many developers will never secure financing to break ground.

The list of expected buildings includes the Residences at Wolf Point, a 507-unit building on Wolf Point being developed by a joint venture of Hines Interests L.P., the Kennedy family and Magellan Development Group LLC. The venture already has lined up financing for the $153-million tower from the AFL-CIO Building Investment Trust and Bank of America Corp., said Greg Van Schaack, Hines senior vice president. He expects to break ground sometime this summer.

Is there any danger that the apartment market will be overbuilt?

And if they do so, can’t they just convert buildings into condos, where demand seems to be strengthening rather quickly?

Downtown apartment rents hit new high, but supply surge to come [Crain’s Chicago Business, Alby Gallun, May 20, 2013]

A couple of years ago a few of you wrote me wondering about this 1-bedroom cottage at 2151 N. Magnolia in West Lincoln Park.

Back in June 2010, it had come on the market at $905,000 but was quickly reduced to $829,000.

It never sold and was withdrawn in July 2011 listed at $829,000.

Built in 1886 on a standard Chicago lot measuring 25×125, the house is just 1425 square feet.

It lists the one bedroom as being on the main floor and measuring 20×5. But there’s also a second story loft (which appears to be being used as a bedroom according to the listing pictures).

The listing says the cottage has been “rehabbed.”

It doesn’t have a garage, but one can be built.

But the house is really being marketed as a teardown as the listing says you can “build your dream house” and that the “opportunity is incredible.”

It is in the Oscar Mayer school district.

Obviously, the market is hotter now than in 2010-2011.

The seller is asking for $949,000, or $44,000 more than the highest price it was listed at in 2010.

Will this piece of land sell for nearly a million dollars in this part of Lincoln Park?

Suzanne Gignilliat at Coldwell Banker has the listing. See the pictures here.

2151 N. Magnolia: 1 bedroom, 2 baths, 1425 square feet

• Sold in September 2002 for $785,000
• Originally listed in June 2010 for $905,000
• Reduced in July 2010 to $829,000
• Withdrawn in March 2011 still listed at $829,000
• Currently listed for $949,000
• Taxes of $12042
• Central Air
• No garage- but one could be built
• Bedroom: 20×5 (main level) (typo? Should it be 20×15?)
• Loft: 16×11 (second floor)

We’ve chattered several times about the 5-bedroom single family home at 336 W. Wisconsin in Lincoln Park, also known as “the Fugitive House.”

See our November 2012 chatter here.

It went under contract in August but then came back on the market a few weeks later.

The listing says “Nothing else compares!”

If you recall, it was built in 1981 on a larger than average Chicago lot of 32×126, it has a lot of features you don’t normally find in single family homes including a sauna, an elevator and an indoor pool.

It also has a 3 car garage.

The kitchen has white cabinets and a stainless steel refrigerator.

There are 3 master suites.

The house was withdrawn from the market in December listed at $3.699 million. It has come back on the market listed at the same price. 

Remember, last fall it was also available to rent for $17,000 a month.

Will this house find a buyer in 2013?

Margaret Wilczek at Prudential Rubloff still has the listing. See the pictures here.

336 W. Wisconsin: 5 bedrooms, 5 baths, 6129 square feet, 3 car garage

• Sold sometime before 1994 (?)
• Originally listed in June 2011 for $3.95 million
• Reduced
• Was listed in March 2012 at $3.699 million
• Under contract briefly in August 2012
• Was listed in November 2012 at $3.699 million
• Again listed at $3.699 million
• Taxes of $48,774
• Central Air
• Sauna
• Elevator
• Indoor pool
• Bedroom #1: 15×19 (third floor)
• Bedroom #2: 12×22 (second floor)
• Bedroom #3: 13×16 (second floor)
• Bedroom #4: 13×14 (second floor)
• Bedroom #5: 14×18 (fourth floor)
• Family room: 17×20 (main floor)

This 2-bedroom coach house at 3042 N. Wolcott in North Center just came on the market.

It’s a bit unusual for a coach house, however, because it’s not behind a main house.

The listing says it fronts Wolcott on the corner but it doesn’t list how big the lot size is.

The listing also says there is NO association, so you’re on your own for repairs, snow shoveling and all the other stuff.

The house was built in 1896, has central air and 1-car parking- although I haven’t been able to figure out where that is. Is it a garage on the side of the house?

The kitchen has newer cabinets, granite counter tops and stainless steel appliances.

The listing has the bedrooms on the main floor but from the slanted ceilings in the pictures, they must both be on the second floor. There is also an unfinished basement.

It has come on the market at $399,000.

Is this a good townhouse alternative?

Melissa Byrns at Jameson Sotheby’s has the listing. See the pictures here.

3042 N. Wolcott Unit #CH: 2 bedrooms, 2 baths, no square footage listed

• Sold in March 1992 for $60,000
• Sold in June 1999 for $230,000
• Sold in March 2003 for $349,000
• Sold in September 2005 for $414,000
• Currently listed for $399,000
• Taxes of $6370
• No assessments
• Central Air
• 1-car parking (garage?)
• Bedroom #1: 16×12
• Bedroom #2: 14×10

I don’t know if anyone else saw Crain’s luxury residential real estate report yesterday but I was struck by the three listings.

House #1: A 6-bedroom 6400 square foot vintage greystone on Cedar in the Gold Coast.

• Sold in 2000 for $4.5 million
• Sold in 2013 for $3.1 million

House #2: A 6-bedroom 7100 square foot home in Barrington Hills.

• Sold in 1996 for $1.2 million
• Currently listed for $1.78 million

House #3: A 6-bedroom 6500 square foot home on Sheridan Road in Lake Forest.

• Sold in 2004 for $2.38 million
• Sold in 2013 for $1.88 million

We’ve been chattering a lot recently about what is happening in the housing market. The general consensus is that it is hot and prices are rising again.

But what does that mean?

2 out of these 3 homes which were in A+ locations sold for significantly less than their prior purchase prices. It’s unclear the outcome for the third home.

Is taking a loss on the house still the norm, even on the luxury end of the housing market?

Is inventory simply still too high for this price bracket to see much price appreciation (even though luxury sales have picked up)?

These are just 3 examples. Clearly, others in the luxury bracket who bought in the last 10 years have made some money.

If you’re not making money in A+ locations, what does that say for all the others?

Well known lawyer sells Gold Coast greystone [Crain’s Chicago Business, David Lee Matthews, May 16, 2013]

We’ve chattered about this 2-bedroom penthouse in Contemporaine at 201 W. Grand in River North several times over the last 5 years.

See the June 2011 chatter here.

Two years ago, when it came back on the market at $3.4 million, most of you thought that was overpriced for a 2-bedroom, garden or not. Some of you guessed it would probably sell around $2 million.

This unit finally sold this month for $2.4 million.

If you recall, it was originally listed in September 2007 for $3.95 million, 2 years and one financial crisis later, it had been reduced by about a million dollars to $2.99 million before being withdrawn from the market.

It was also available to rent for $15,000 a month.

This unit was best known for the 3000 square foot patio landscaped as a Japanese garden with 12 foot tall Bonsai trees. The Chicago Tribune did an extensive story about the gardens in 2007. Check it out here.

It had 2-story windows in the living room overlooking the garden.

The kitchen had modern cabinetry with stainless steel appliances.

2 car parking was included.

This listing was among the first that I ever covered here at Crib Chatter.

Is this sale a sign that sellers are getting realistic about pricing, even in this hotter market?

Debra Dobbs at Koenig & Strey Real Living had the listing. You can still see the pictures here.

Unit PH2: 2 bedrooms, 2.5 baths, 2 parking spaces included, 3000 square foot terrace, no square footage of the interior listed

• Sold in April 2004 for $1,700,000
• Was listed in September 2007 for $3.95 million
• Withdrawn from the market 
• Was listed in April 2008 for $3.79 million (2 parking spaces still included)
• Reduced
• Was listed in July 2008 for $3.59 million (2 parking spaces still included)
• Reduced
• Was listed in September 2009 for $2.999 million (2 parking spaces still included)
• Withdrawn
• Re-listed in April 2011 for $3.4 million
• Sold in May 2013 for $2.4 million
• Assessments of $2000 a month (includes cable and water)
• Taxes of $29,975
• Bedroom #1: 23×20
• Bedroom #2: 13×10 

Now that the 700 square foot 2 bedroom, 1 bath unit in Gaslight Court has sold, this first floor 1-bedroom at 1407.5 N. Wells in Old Town has come on to test the market.

It is a “raised” first floor unit with a unique multi-tile floor in the main living space.

The kitchen is also not what we normally see (i.e. cherry, granite, stainless). It is open to the kitchen and has a country kitchen sink (but where’s the refrigerator???).

The listing says it has new central air and a new washer/dryer which is in its own 6×6 laundry room.

There’s no parking, however, as it’s just rental in the neighborhood.

It has come out of the gate $65,000 higher than the 2008 purchase price, at $315,000.

That’s the same price that the second floor 2/1 which was just on the market originally listed at. It sold for $277,500.

The 2/1 is currently on the market as a rental.

Will an investor buy this one to rent too?

What percentage of condo sales right now are to investors?

Steven Malone at Coldwell Banker has the listing. See the pictures here.

Unit #2W: 1 bedroom, 1 bath, no square footage listed

• Sold in September 2000 for $180,000
• Sold in February 2008 for $250,000
• Currently listed at $315,000
• Assessments of $369 a month
• Taxes of $3586
• Central Air
• Washer/Dryer in the unit
• No parking
• Bedroom: 13×11
• Laundry room: 6×6

We last chattered about this 3-bedroom Georgian at 6244 N. Kirkwood in Sauganash in January 2013.

See our prior chatter here.

At that time, it was listed at $829,000 which many of you thought was simply too high for a home that needed updating.

Since that chatter, it has been reduced several times and is now listed at $724,900.

Built in 1949, the house is on an oversized irregular lot measuring 109×128.9×73.2×124 and has a rare attached 2.5 car garage.

It has several bay windows and 2 fireplaces.

There’s a first floor family room and 2 wet bars.

There’s also a recreation room in the basement.

The last time, some of you thought this would ultimately sell in the $600,000s.

Is this property a cautionary tale about starting out too high on the price?

The price has been reduced nearly every month so far in 2013.

Quin O’Brien at 4 Sale Realty still has the listing. See the pictures here.

6244 N. Kirkwood: 3 bedrooms, 3 baths, 2238 square feet, 2.5 car garage

• Sold before 1988
• Originally listed in July 2012 for $899,000
• Reduced
• Was listed in January 2013 at $829,000
• Reduced
• Currently listed at $724,900
• Taxes of $10,066
• Central Air
• 2 fireplaces
• 2 wet bars
• Bedroom #1: 15×15 (second floor)
• Bedroom #2: 12×20 (second floor)
• Bedroom #3: 10×12 (second floor)
• Recreation room: 24×15 (basement)
• Family room: 9×36 (main floor)

We’ve chattered about this 5-bedroom full floor unit at 2344 N. Lincoln Park West across from Lincoln Park several times over the last year.

See our October 2012 chatter here.

It’s still available. Originally listed at $2.8 million, it has been reduced several times and is now listed at $2.25 million.

Many of you have stated over the last year that while you love the location you thought it should sell closer to $2 million.

If you recall, it was built in 1916.

It commands the entire floor of a 6-unit building with 4 exposures, including Lincoln Park and the lake front.

The building has an elevator and there is rare 2 car parking with the unit.

It has the features you would expect from construction in this era including crown molding and wainscoting.

The unit has a 35 foot foyer and a formal dining room.

It also has space pak cooling and a washer/dryer in the unit.

The upper bracket has been hot in 2013. What’s holding this one back?

Berg Properties now has the listing. See the pictures here.

Unit #3: 5 bedrooms, 4 baths, 4250 square feet, 2 car parking

• I couldn’t find a prior sales price
• Was listed in March 2012 for $2.8 million
• Reduced
• Was listed in October 2012 at $2.6 million
• Reduced
• Currently listed at $2.25 million
• Assessments of $1890 a month (includes heat)
• Taxes now $20,594 (they were $17398 in October 2012)
• Space pak cooling
• Washer/Dryer in the unit
• Bedroom #1: 19×14
• Bedroom #2: 13×13
• Bedroom #3: 14×11
• Bedroom #4: 16×13
• Bedroom #5: 11×10

This 3-bedroom brick English Tudor at 4852 W. Catalpa in Forest Glen recently came on the market.

Built in 1939, it is on an oversized 30×164 lot and has a back deck and 2-car garage.

Two bedrooms are on the second floor with a bathroom while the master bedroom is on the main floor.

This is also a lower level family room with its own bathroom.

The kitchen looks like it has been recently renovated. It has white cabinets, stainless steel appliances and granite counter tops.

The house has central air.

Is this house a smart way to get a starter home in an upscale neighborhood?

Lucy Kozlowski at Coldwell Banker has the listing. See the pictures here.

4852 W. Catalpa: 3 bedrooms, 3 baths, 1400 square feet, 2 car garage

• Sold in December 1989 for $330,000 (not sure I believe the sales price- maybe $230,000?)
• Currently listed for $379,000
• Taxes of $5257
• Central Air
• Bedroom #1: 15×10 (main floor)
• Bedroom #2: 18×8 (second floor)
• Bedroom #3: 11×11 (second floor)
• Family room: 22×20 (lower level)