Crib Chatter

Crain’s recently reported on downtown Class A apartment rents, which were up again in the first quarter of 2011 and are nearing 2007 peak pricing.

“We’re going to see good rent increases for the next two years, and then, when the next wave of supply hits, it will taper back,” says Ron DeVries, vice-president of Appraisal Research Counselors, a Chicago-based consulting firm that tracks the downtown housing market.

Net effective rents at top-tier downtown apartment buildings rose to $2.29 a square foot in the first quarter, up 2.7% from the fourth quarter and 6.0% from a year earlier, according to Appraisal Research. Mr. DeVries predicts that net effective rents, which include concessions such as free rent, will rise 7% at Class A buildings this year.

The Class A occupancy rate, meanwhile, rose to 93.9% in the first quarter, up from 93.6% in both the fourth quarter and a year earlier. While the occupancy rate remains well below its pre-recession peak of 97.5% in 2006, effective rents are nearing their 2007 high of $2.35 a square foot.

Demand for downtown apartments is red hot because no one wants to buy condos.

“There’s still no pressure to act,” Mr. DeVries says. “When people feel prices are going up, they feel the need to buy something so they don’t miss out.”

Demand for apartments typically depends on the job market, which remains weak. But the unemployment rate for people in their mid- to late 20s — a key demographic for downtown landlords — is much lower than that for the population as a whole, one reason the market is so strong, Mr. DeVries says.

In one key indicator of demand, downtown Chicago now has 5,226 more renters than it did in first-quarter 2008, a 35% increase, according to Appraisal Research.

There are several new high rises that are already under construction, including the first new rental building in Old Town that I can even remember (maybe in like 30 years) and a few more proposed. Developers can’t build apartment buildings fast enough.

“It’s amazing that spigot turned on that fast,” Mr. Stern says. “So we do have some concern over the new construction.”

But Mr. DeVries doubts that downtown landlords will face a glut a couple years from now. Appraisal Research projects that developers will complete about 2,200 units in 2013.

“I think the (rent) increases will slow down,” he says, “but I don’t think we’ll be in an oversupply situation.”

Will there be a glut of apartments in a few years or will they simply be converted into condos, once the condo market bottoms and starts to recover?

Downtown apartment rents approach 2007 high [Crain’s Chicago Business, Alby Gallun, May 16, 2011]

We last chattered about this 2-bedroom penthouse at 919 N. Wolcott in West Town in December 2010.

See our prior chatter here.

On the market since August 2010, it has been reduced $50,000 in that time.

It is now listed $39,500 under the 2008 purchase price.

The unit has been converted from a 3-bedroom to a 2-bedroom but it also has two outdoor spaces including a private 9×15 terrace off the master bedroom and a large 11×26 terrace off the great room.

It also has a top of the line Arclinea kitchen with Miele and Gaggeneu appliances. The massive kitchen island also has a modern stainless steel counter top.

There is central air, an in-unit washer/dryer and parking.

Interestingly, we’ve chattered about this building before and specifically about the “sister” penthouse, Unit #301.  It had similar luxury finishes.

That unit sold in May 2010 for $675,000.

Given what’s happened to the Chicago housing market in just the last year, what will this ultimately sell for?

Robert John Anderson at Baird & Warner still has the listing. See the pictures here.

Unit #302: 2 bedrooms, 2 baths, 2 car parking

• Sold in March 2004 for $430,000
• Sold in July 2008 for $707,500 (included the parking)
• Originally listed in August 2010 for $700,000
• Reduced
• Was listed in December 2010 for $689,000 (plus $18,000 for parking)
• Reduced
• Currently listed for $650,000 (plus $18,000 for parking)
• Assessments of $284 a month (includes water)
• Taxes of $6959
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 14×14
• Bedroom #2: 10×12
• Family room: 10×11

We’ve chattered about this vintage 3-bedroom penthouse at 220 E. Walton in the Gold Coast several times since it was first listed in October 2007.

See our last chatter in July 2009 here.

Since October 2007, it has been reduced over 50%, or $1.75 million, to $1.5 million.

The listing says it is the first time on the market- and the building was built in 1919.

But it’s really all about the terrace which wraps around the unit and measures 2145 square feet.

The unit has south, east and west views.

While it has space pak cooling, it doesn’t appear to have a washer/dryer in the unit and there is no parking.

“Creative owner financing” is still available.

It also has a private elevator entrance with a private vestible.

How low will this go?

Mary Bennett at Koenig & Strey still has the listing. See the pictures here.

220 E. Walton #11E: 3 bedrooms, 3.5 baths, 3900 square feet (not sure if that includes the 2145 square foot terrace)

• I couldn’t find any original sales price – since it is the first time it’s been on the market in decades
• Was listed in October 2007 at $3.25 million
• Reduced
• Was listed in August 2008 at $2.9 million (no parking)
• Reduced
• Was listed in July 2009 for $2.65 million (no parking)
• Reduced
• Currently listed for $1.5 million (no parking)
• Taxes of $25,192
• Assessments of $3,624 a month (includes heat and doorman)
• Space pak cooling
• No in-unit washer/dryer
• Bedroom #1: 35×16
• Bedroom #2: 12×10
• Bedroom #3: 15×8

We last chattered about this 3-bedroom at 4055 N. Greenview in Graceland West in October 2010.

See our prior chatter here.

We first chattered about the unit when it was originally on the market in June 2007 and then sold in July 2008.

It then came back on the market 2-years later, in February 2010, for $75,000 over the 2008 purchase price.

The listing agent told us in the prior chatter that in-unit laundry and new front and back porches were added as well as new paint and trim between the 2008 sale and the 2010 re-listing.

After 15 months on the market, it finally sold for $10,000 above the 2008 purchase price.

The kitchen had white cabinets, white counter tops and black appliances from the previous sale.

This unit had 800 square feet of lower level space that was available for storage and/or to duplex down.

There was deeded parking included but no central air.

The listing says that the property was in the Blaine school district.

Trevor Engelhardt at Baird & Warner had the listing.

Unit #1S: 3 bedrooms, 2 baths, no square footage listed

• Sold in October 1989 for $119,000
• Sold in June 1996 for $158,000
• Originally listed for $399,000 in June 2007
• Numerous price reductions
• Listed in May 2008 for $299,999
• Sold in July 2008 for $295,000
• Originally listed in February 2010 for $370,000
• Numerous reductions
• Was listed in October 2010 at $353,700 (parking included)
• Sold in May 2011 for $305,000
• Assessments of $590 a month (includes heat)
• Taxes of $4200
• No central air- window units
• In-unit washer/dryer
• Bedroom #1: 13×12
• Bedroom #2: 10×9
• Bedroom #3: 12×9
• 800 square feet of unfinished storage space on the lower level

This 2-bedroom duplex up in Carmichael Place at 1034 W. Monroe in the West Loop has been on the market since April 2010.

It is now listed $24,500 under the 2005 purchase price.

Built in 1997, it lives more like a townhouse with both bedrooms and a 10×9 den on the second floor with the main living and dining areas on the first floor.

The unit also has a 600 square foot roof top deck.

The kitchen has stainless steel appliances and a kitchen island.

There is central air and an attached garage.

The unit also has multiple exposures as it’s in the higher portion of the building.

Is this a deal?

Jason Vondrachek at Quest Realty has the listing. See more pictures here.

Unit #1: 2 bedrooms, 2 baths, den, no square footage listed

• Sold in August 2005 for $413,500
• Originally listed in April 2010
• Was listed in February 2011 for $409,900
• Reduced
• Currently listed for $389,900 (parking included)
• Assessments of $245 a month
• Taxes of $5278
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 20×12 (second level)
• Bedroom #2: 15×13 (second level)
• Den: 10×9 (second level)

This 3-bedroom modern penthouse at 2154 W. Division in West Town recently came on the market.

The building was built in 2007 and is one of two nearly identical buildings on either side of Division that book end the street right before the hospital complex.

With northwest exposures, it has modern features such as floor to ceiling windows and ceiling heights of 10.5′.

The kitchen has mocha Archlinea cabinets and stainless steel appliances by SubZero and Miele.

There is also Ann Saks tile in the master bathroom.

The unit has several outdoor spaces including a second level private deck measuring 24×23 and a landscaped terrace off the living room.

The unit is currently listed under the 2007 purchase price.

Is this a good townhouse or single family home alternative in this neighborhood?

Robert John Anderson at Baird & Warner has the listing. See the pictures here.

Unit #402: 3 bedrooms, 2 baths, 1750 square feet

• Sold in August 2007 for $751,000 (included the parking space)
• Currently listed for $699,000 (parking is extra but the public listing doesn’t say how much)
• Assessments of $320 a month
• Taxes of $11011
• Centra Air
• Washer/Dryer in the unit
• Bedroom #1: 14×11 (main level)
• Bedroom #2: 11×11 (main level)
• Bedroom #3: 11×10 (main level)
• Deck: 24×23 (second level)

This 6-bedroom well-known greystone at 1111 N. Hoyne in the “real” Ukranian Village in the West Town neighborhood recently came on the market.

Many of you wrote me requesting discussion about it due to its unusual interior, the size of the property, its location and that it was now bank owned.

The greystone was originally built in 1905, but none of its interior vintage features remain.

The house now spans 3 lots measuring 75×105 and that includes a 5-car heated garage.

It also has 2-story ceilings in some parts of the house and a contemporary interior including glass block framing the staircase.

At 9700 square feet, 5 out of the 6 bedrooms are on the second level with the 6th in the lower level.

It also has a lower level great room and exercise room.

If you’re looking for an in-law suite, it has that too.

And, interestingly, the listing says it has 6 furnaces.

Yes, it also has central air.

There are no pictures of the kitchen (though you can maybe see it through a doorway in one of the pictures.) So we don’t know if it is intact.

The listing says “drama throughout.”

The house was last purchased in 1993 when the Ukranian Village was a much different place than today.

Any thoughts on what a triple lot “as-is” 1905 greystone, but with contemporary alterations, will sell for in 2011?

(You’ll also notice it took the bank 11 months to put the property on the market once it took possession.)

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

1111 N. Hoyne: 6 bedrooms, 6 baths, 3 half baths, 9700 square feet, 5 car garage

• Sold in February 1993 for $228,000
• Lis pendens filed in October 2008
• Bank owned in June 2010
• Currently listed for $1.975 million
• Taxes of $20,264
• Central Air
• 6 Furnaces
• Full in-law apartment
• Bedroom #1: 31×24 (second floor)
• Bedroom #2: 14×14 (second floor)
• Bedroom #3: 10×11 (second floor)
• Bedroom #4: 14×10 (second floor)
• Bedroom #5: 15×11 (second floor)
• Bedroom #6: 11×8 (lower level)
• Great room: 19×20 (lower level)
• Exercise room: 22×19 (lower level)

We last chattered about this 3-bedroom duplex down at 1849 N. Cleveland in Lincoln Park in January 2011.

See our prior chatter here.

At that time, it was listed at $749,000, which was $13,000 above the 2005 purchase price.

Many of you thought it was overpriced and would “sit” for a long time.

Lots of you thought it was too much to pay for a duplex down and that there were others in the $400k-$500k range in Lincoln Park and Lakeview that were better deals.

If you recall, the unit had crown molding and 2 fireplaces.

The kitchen was open to the living area and had granite counter tops and stainless steel appliances.

2 bedrooms were on the main level and the third was in the lower level along with the family room and a wine cave.

The unit had a landscaped private patio and an assigned parking space.

The unit recently closed for just $24,000 under the 2005 purchase price at $712,000.

Karen Peterson at Coldwell Banker had the listing.

Unit #1N: 3 bedrooms, 2.5 baths, no square footage listed

• Sold in July 2002 for $615,000
• Sold in August 2005 for $736,000
• Originally listed in April 2010 for $779,000
• Reduced
• Was listed in January 2011 for $749,000
• Sold in April 2011 for $712,000
• Assessments of $240 a month
• Taxes of $7995
• Central Air
• Washer/Dryer in the unit
• Parking included
• Bedroom #1: 17×12 (main level)
• Bedroom #2: 12×12 (main level)
• Bedroom #3: 11×10 (lower level)
• Family room: 25×18 (lower level)

One of the biggest stories in 2011 have been the investors who have been buying foreclosed properties, especially single family homes, fixing them up and reselling for big profits.

This 3-bedroom home vintage home at 1710 N. Rutherford in Galewood was bank owned in December 2010 and is now back on the market.

Built in 1942 on an oversized 40×135 lot, this tudor home has a distinctive turret and a rare front garage in addition to a 2-car detached garage in the back.

The listing says the house has a “complete new kitchen” including stainless steel appliances and what looks like granite counter tops.

It also has new first and second floor bathrooms.

Some of the vintage features remain such as the original wet bar and built in wood cabinets in the basement.

2 out of the 3 bedrooms are on the second floor with the third on the main level.

If you’re thinking that this is far west Chicago, you would be right.

This house is just a block from the border of Oak Park which the listing touts saying “feel like you’re living in Oak Park w/o paying high taxes.”

Bought from the bank in December 2010, the house is now listed $125,500 over the 2010 purchase price.

Will the new kitchen and baths make the sale?

Michael Torresso at Realty Connection has the listing. See the pictures here.

1710 N. Rutherford: 3 bedrooms, 1.5 baths, 1734 square feet, 1 car attached and 2 car detached garage

• Sold in April 1988 for $125,000
• Sold in September 1994 for $190,000
• Sold in January 2003 for $275,000
• Lis penden filed in October 2007
• Lis penden filed in October 2008
• Bank owned in March 2010
• Listed in September 2010 for $172,900
• Sold in December 2010 for $173,500
• Listed in April 2011 for $339,000
• Reduced
• Currently listed at $299,000
• Taxes of $4989
• Central Air
• Bedroom #1: 14×15 (second floor)
• Bedroom #2: 12×11 (second floor)
• Bedroom #3: 12×13 (main floor)
• Family room: 25×12 (basement)

We’ve chattered about this bank owned 2-bedroom unit in The Barry at 3100 N. Sheridan in Lakeview several times.

See our January 2011 chatter here.

It has been bank owned since June 2010.

The bank first listed it in September 2010 and has been lowering it since then but there still haven’t been any takers.

In January 2011, HD thought it would sell between $150,000-$160,000 (or just over the 1997 price.)

Gesco thought it would sell around $240k. Laura thought it would go for $236k.

As of March 2011, it had been listed $31,100 under the 2001 purchase price, at $204,900.

Then the bank apparently gave up and is now offering it for auction.

If you recall, the unit has dark hardwood floors throughout, french doors and some crown molding.

There is no in-unit washer/dryer, parking or central air (window units only.)

The listing says there is a new kitchen and bath and the pictures indicate that the stainless steel appliances are still in the kitchen along with granite counter tops.

Several years ago, when it originally came on the market, it was called a “maisonnette in Paris.”

What price will finally sell this property?

Coya Smith at Smith Partners & Associates still has the listing. See the pictures here.

Unit #1B: 2 bedrooms, 1 bath, no square footage listed

• Sold in September 1995 for $114,500
• Sold in September 1997 for $131,000
• Sold in May 2001 for $236,000
• Sold in January 2003 for $245,000
• Sold in March 2006 for $309,000
• Sold in May 2006 for $325,000
• Sold in July 2007 for $336,500
• Lis pendens filed in August 2008
• Was listed in October 2008 for $389,000
• Lis pendens filed in August 2009
• Bank owned in June 2010
• Was listed in September 2010 for $296,900
• Reduced
• Was listed in January 2011 for $252,500
• Reduced
• Was listed in March 2011 for $204,900
• Now listed for auction
• Assessments of $691 a month (includes gas, heat, cable)
• Taxes of $3158
• No central air
• No in-unit washer/dryer
• No parking
• Bedroom #1: 15×11
• Bedroom #2: 15×9