Crib Chatter

Crain’s recently analyzed the downtown Chicago condo market over the last 5 years and put together a report on the Great Chicago Condo Bust.

According to Crains, 4 out of 10 condo projects proposed or under way in 2007 wound up in financial distress.

In retrospect, 2007 “was the beginning of the end, and stupid deals were going on,” says Garry Benson, president and CEO of Garrison Partners Inc., a Chicago-based residential consulting and marketing firm. “Stupid deals fall first, and they were exceedingly stupid at the end.”

No surprise, the South Loop was hit the hardest.

Of the 129 downtown condo projects on the market five years ago, 53, or 41.1 percent, have run afoul of their lenders. The greatest concentration of distress has been in the South Loop, widely recognized as the city’s most overbuilt neighborhood. Twenty-six of 44 South Loop projects, or 59.1 percent, have been financially troubled at some point in the past five years. That includes three condo towers in the Central Station development taken over recently by a group of lenders and New York-based developer Related Cos.

The good news is that the market, though far from healthy, is in the early stages of recovery. Condo sales in the city are rising again, and developers have chipped away at the glut of unsold units in recent years, either by slashing prices or renting them. In 25 buildings being marketed in 2007—19.4 percent of the total—all or some units have been rented rather than sold, according to Crain’s analysis.

The number of projects in loan trouble has fallen, too, as lenders have seized failed developments or restructured defaulted construction loans.

“I think distress is something that is going to be behind us very shortly,” says Gail Lissner, vice president at Appraisal Research Counselors, a Chicago-based consulting firm. “There are very few buildings left in the market that still fall in that category.”

According to Appraisal Research, sales contracts on new downtown condo units actually peaked in 2005. It appears they hit a bottom in 2011.

• 2005: 8162 units
• 2007: 3724 units
• 2011: 410 units
• First 6 months of 2012: 377 units

But never fear, the experts are saying baby boomers will spur demand.

As the market recovers, rented units in condo buildings will be the first to go on the market, Mr. Benson says. And he doesn’t think that day is too far away: Demand will come from baby boomers who want to sell their homes in the suburbs and move downtown and young professionals who are tired of renting, he says.

“It’s a demographic issue like it’s never been,” he says. “We can’t avoid it. We’re going to have another run.”

Will those of you holding onto those 1-bedroom starter condos in the South Loop be able to sell sooner than you think?

The complete guide to Chicago’s condo collapse [Crain’s Chicago Business, Alby Gallun and David Lee Matthews, October 8, 2012]- be sure to check out the map of all the developments.

We last chattered about this 4-bedroom modern “colonial” style single family home at 6312 N. Louise in Old Edgebrook in May 2012.

See our prior chatter here.

Most of you didn’t care for the modern architecture style, especially after realizing it didn’t have a basement.

But many of you love the neighborhood and were willing to overlook some needed updating.

Back in May, when it was listed at $529,000, no one really had a guess as to what it would sell for.

The house sold in August 2012 for $491,000– pink kitchen counter tops and all.

If you recall, the house was built in 1963.

It had 2840 square feet and a 2.5-car garage, but no basement.

All four bedrooms were on the second level. The master suite had vaulted ceilings and his and her walk-in closets.

There was also a second floor laundry and central air.

The house was also located in the top rated Edgebrook Elementary school district.

The neighborhood is popular with buyers at all price points. 

In some cases, does location trump “newness”?

This picture below is from the Edgebrook Forest Preserve, which surrounds this neighborhood. The area is simply gorgeous right now.

If you want a real treat of fall foliage, drive on Devon through the forest preserve from Milwaukee to Central. I saw people out of their cars taking pictures, myself included.

Jami Brenner at @Properties had the listing. You can still see a video of the property here (warning- music!)

6312 N. Louise: 4 bedrooms, 2.5 baths, 2840 square feet, 2.5 car garage

• Sold sometime before 1985
• Was listed in May 2012 for $529,900
• Sold in August 2012 for $491,000
• Taxes of $9515
• Central Air
• Bedroom #1: 15×14 (second floor)
• Bedroom #2: 13×12 (second floor)
• Bedroom #3: 12×11 (second floor)
• Bedroom #4: 12×11 (second floor)

This 4-bedroom farmhouse at 5655 N. Newcastle in Old Norwood Park came on the market in September 2012.

Built in 1919, it is on an enormous 50×231 lot with a 1.5 car garage.

The listing says the house has been owned by generations of the same family for 80 years.

It also says you can “step back into time” with the house as many of its vintage features are still intact.

It has stained glass windows, the original wood buffet in the dining room and an amazing looking wall of wood cupboards in the kitchen. One of the bathrooms also has a clawfoot tub.

The house has central air and an unfinished basement.

It is located in one of the top school districts in the city.

The house was reduced $20,000 to $425,000 after it was on the market for just 2 weeks.

Will a developer buy this house to tear down and build a new million dollar mansion or will a vintage lover snatch it up and restore it to its glory?

Susan Brigg at Baird & Warner has the listing. See the pictures here.

5655 N. Newcastle: 4 bedrooms, 2 baths, 1.5 car garage, no square footage listed

• No prior price located- has been owned by the same family for 80 years
• Originally listed in mid-September 2012 for $445,000
• Reduced
• Currently listed at $425,000
• Taxes of $1186 (senior exemption)
• Central Air
• Bedroom #1: 11×10 (main floor)
• Bedroom #2: 11×10 (main floor)
• Bedroom #3: 14×13 (second floor)
• Bedroom #4: 14×13 (second floor)

This 2-bedroom loft in the Ontario Street Lofts at 411 W. Ontario in River North recently came on the market.

This loft is in the concrete portion of the building so it has concrete ceilings, exposed brick and hardwood floors.

It is a duplex, with the two bedrooms on the second floor connected by a spiral staircase.

The main level has the main living area plus a den. There are two fireplaces.

The listing says the kitchen has been remodeled with white cabinets, stainless steel appliances and “gleaming” counter tops.

The listing also says it has north views.

The loft has all the features buyers look for including central air, washer/dryer in the unit and parking.

At 2500 square feet, is this the type of property boomers will be looking to buy when they move to the city from the suburbs?

Barbara Sapstein at Baird & Warner has the listing. See the pictures here.

Unit #328: 2 bedrooms, 3 baths, 2500 square feet, duplex

• Sold in April 1995 for $339,000
• Sold in September 1997 for $387,500
• Currently listed at $699,000 (parking included)
• Assessments of $926 a month (includes cable)
• Taxes of $10330
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 22×19 (second floor)
• Bedroom #2: 17×16 (second floor)
• Den: 13×11 (main floor)

We last chattered about this 4-bedroom bungalow at 4050 N. Mango in Portage Park in May 2012.

See our prior chatter here.

It was listed as an estate sale and was being sold “as-is.”

If you recall, it was built in 1921 on an oversized 33×125 lot and was just 2 blocks from the park.

But it also had interesting choices of wallpaper and carpeting. The listing said there were hardwood floors under the carpets on the main floor in the living and dining room.

There was a full unfinished basement.

Two of the bedrooms were on the main floor and two were on the second floor with what looked like an enormous closet.

The house had central air and a 2-car garage.

Will we be seeing this house come back on the market as a complete re-do and priced in the $400,000s just in time for the spring buying season?

Cindy Weinreb at Coldwell Banker had the listing. I couldn’t find an old listing, but you can see a picture of one of the rooms on Curbed’s site here. Trust me, that should trigger your memories of what this house looked like inside.

4050 N. Mango: 4 bedrooms, 2 baths, no square footage listed, 2 car garage

• I couldn’t find any prior sales history
• Estate sale
• Was listed in May 2012 for $259,000
• Sold in August 2012 for $217,500
• Taxes of $5197
• Central Air
• Bedroom #1: 13×10 (main level)
• Bedroom #2: 11×9 (main level)
• Bedroom #3: 14×12 (second level)
• Bedroom #4: 17×12 (second level)

We last discussed this 3-bedroom vintage mediterranean at 5749 N. Manton in Jefferson Park (although the listing is calling it South Edgebrook) in October 2010.

See our prior chatter here.

Back then, it was a short sale listed at $324,900 but Homedelete peered into his crystal ball and had this to say:

“Not only is it a short sale but it is also a foreclosure
10 CH 21621 on a $306,000 first mortgages; there is also a second mortgage for $55,000 (refi’d from a $34,000 about 7 months after moving in!); this is a B of A first mortgage so it’s subject to the foreclosure moratorium – good luck trying to close this decade. Default hearing is scheduled for December but it’s up in the air whether or not it will actually go forward. Not only that but it has been listed for 257 days making it more stale than the 6 month old open bag of Doritos in my pantry.

The house is one story, the rooms are small, the family room is in the basement (and it was recently remodeled probably with the cash out refinance in 2007) – nothing like a once in a 10 year flood to short out all of your electronics in the basement ‘family’ room. I’ll pass on this. I predict it sells as a foreclosure late next year or in 2012 for $200k.”

It’s 2 years later and while it’s not a bank owned property (yet), the lis pendens foreclosure filed in May 2010 is still out there.

But the price is getting closer to HD’s prediction.

It is again listed as a short sale at $230,000.

Built in 1926, there is nothing else in this style in its immediate neighborhood.

It has a spanish clay tile roof and what looks like its original spanish style fireplace in the living room.

The house is built on an oversized 45×125 corner lot and has a 2-car garage.

It also has central air.

Will this house sell before the bank takes it?

And an even bigger question- does the bank even WANT to take it back? It seems like short sales are more profitable anyway.

J. Anthony Rodriguez at Coldwell Banker now has the listing. See the pictures here.

5749 N. Manton: 3 bedrooms, 2 baths, no square footage listed, 2 car garage

• Sold in July 1997 for $175,000
• Sold in August 2006 for $380,000
• Lis pendens foreclosure filed in May 2010
• Was listed in October 2010 as a “short sale” for $324,900
• Withdrawn
• Currently listed as a “short sale” at $230,000
• Taxes now $4832 (they were $4268 in October 2010)
• Central Air
• Bedroom #1: 17×11
• Bedroom #2: 12×12
• Bedroom #3: 12×10
• Family room: 15×9 (lower level)

This 2-bedroom authentic loft in The Sexton at 360 W. Illinois in River North came on the market in September 2012.

It has high timber ceilings, exposed brick and large industrial windows.

The duplex unit has one bedroom on the main level and the second bedroom on the second level, along with a private terrace.

It looks like this unit still has the original kitchen from when these were converted, with black appliances and “corian-like” counter tops.

The unit faces north so you aren’t looking into the new apartment high rise that is going up across from the building and the East Bank Club.

The loft has all the other features buyers look for including central air, washer/dryer in the unit and garage parking.

These duplex-up top floor units have been popular in this building but this unit has been reduced $26,000 in the last month.

With inventory almost non-existant, will this loft sell for over $500,000?

Barbara Sapstein at Baird & Warner has the listing. See the pictures here.

Unit #626: 2 bedrooms, 2 baths, no square footage listed, duplex

• Sold in February 2000 for $320,000
• Originally listed in September 2012 for $575,000
• Reduced
• Currently listed for $549,000 (parking included)
• Assessments of $675 a month (includes doorman)
• Taxes of $5753
• Chandelier excluded
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 22×13 (second floor)
• Bedroom #2: 11×12 (main floor)

This 3-bedroom at 1550 N. Lake Shore Drive in the Gold Coast has been on the market since June 2012.

Many of you would recognize this building because it’s at the end of the wall of buildings up Lake Shore Drive in the Gold Coast. It’s where the Gold Coast ends and Lincoln Park begins.

You have the best of all worlds with the park and the lake and the exclusivity of the Gold Coast.

This unit has views north, which is of the park, south, west and some of the lake (though it doesn’t appear to have east dead-on lake views.)

It has been renovated and has new cherry floors and crown molding.

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

There are new marble and granite baths.

The building was built in 1960. It has valet leased parking.

The unit doesn’t have central air (wall units only) and doesn’t have in-unit washer/dryer.

The unit, #29G, is listed $100,000 under the 2007 price at $775,000.

Unit #23G is also on the market. It appears to have gotten a similar 2007 renovation as the kitchen looks similar to the one in this property.

It is listed as a short sale for $595,000.

Will the short sale property set the comp for this unit?

Cindy Wilson at Koenig & Strey Real Living has the listing. See the pictures here.

Unit #29G: 3 bedrooms, 2 baths, 1900 square feet

• Sold in October 2006 for $570,000
• Sold in April 2007 for $875,000
• Originally listed in June 2012 for $799,000
• Reduced
• Currently listed at $775,000
• Assessments of $1196 a month (includes heat, doorman, cable)
• Taxes of $8959
• No central air- wall units only
• No in-unit washer/dryer
• Parking is valet- and leased
• Bedroom #1: 18×14
• Bedroom #2: 15×13
• Bedroom #3: 15×14

We last chattered about this 4-bedroom Victorian at 1805 W. Cornelia in the Roscoe Village neighborhood of North Center in April 2012.

See our prior chatter here.

Back in April, most of you voiced concern over having the El on one side of the house and the Metra train on the other. Most of you were looking at the value of the land.

The house has now been re-listed with the land listed separately. Each is on a 25×125 lot.

Does this mean bye-bye to the koi poind, pergola with fire pit and dog run?

If you recall, there is no garage or off street parking with the property.

In the house, two of the four bedrooms are on the second floor with two on the main floor.

The house has a cathedral beamed great room with skylights.

The listing says there is hardwood floors under the carpet on the main floor.

It also has a partially finished basement and central air.

The properties are now listed for about $100,000 more than when it was listed as a combined property 7 months ago.

Will this separation technique be more successful in selling this property?

Kenneth Marier at Prudential Rubloff still has the listings.

See the pictures of the house here.

See the pictures/listing of the land here.

1805 W. Cornelia: 4 bedrooms, 3.5 baths, no square footage, no parking

• Sold in June 1989 for $58,000
• Sold in September 1995 for $93,500
• Sold in April 2002 for $335,000
• Was listed in April 2012 for $899,000
• Separated from the land next door
• Just the house is now listed at $599,000 (combined now listed at $989,000)
• Taxes are now $10,054 (was $9965 in April 2012)
• Central Air
• Bedroom #1: 17×25 (second floor)
• Bedroom #2: 15×14 (second floor)
• Bedroom #3: 8×12 (main floor)
• Bedroom #4: 11×11 (main floor)

1809 W. Cornelia: 25×125 vacant land

• Sold in June 1997 for $185,000
• Sold in May 2005 for $410,000
• Currently listed at $399,000
• Taxes of $6279

Some of you may remember the penthouse unit at 550 W. Wellington in Lakeview from several years ago. It had professional interior design.

We first chattered about it in June 2009. See our chatter and pictures here.

That unit is no longer on the market but its sister unit is.

The 2000 square foot 3-bedroom also has upscale finishes including a Bulthaup kitchen.

It has 14 foot walls of glass with south, east and north views and 3 outdoor spaces with landscaped terraces.

The unit has the other features you would expect including central air, washer/dryer in the unit and heated garage parking.

It is listed $125,000 under the 2006 price at $975,000.

These “true” penthouse units don’t come on the market very often in this neighborhood.

With low inventory, will we see a quick sale of this property?

Bard Lippitz at Prudential Rubloff has the listing. See the pictures here.

Unit #PH-E: 3 bedrooms, 2 baths, 2000 square feet

• Sold in June 2005 for $990,000
• Sold in September 2006 for $1.1 million
• Currently listed at $975,000
• Assessments of $583 a month
• Taxes of $12,401
• Central Air
• Washer/Dryer in the unit
• Heated garage parking included
• Bedroom #1: 17×12
• Bedroom #2: 16×11
• Bedroom #3: 12×10