Crib Chatter

Contrary to popular belief, the million dollar north side new construction home market is not completely dead.

This 5-bedroom new construction home at 2159 W. Berteau in North Center recently went under contract.

It has been on the market since April 2009 but was recently completed. I’ve been told it received multiple offers the week construction was completed.

The all brick and limestone house has a wine cellar and a built-in outdoor fireplace.

Timothy Sheahan at Conlon: A Real Estate Company has the listing. See more pictures here.

2159 W. Berteau: 5 bedrooms, 3 baths, 3 half baths, 4350 square feet, 2.5 car garage

• Prior house sold in June 1996 for $153,000
• Prior house sold in June 2004 for $342,500
• Originally listed in April 2009 for $1,349,900
• Currently listed for $1,349,900
• Under contract
• Taxes are “new”

Crain’s has several articles out this week describing what is happening on the front lines of Chicago real estate.

I thought several comments made by the developers were worth chattering about.

On The Legacy, highly anticipated 72-story new high rise overlooking Millennium Park at 60 E. Monroe, the developer appears optimistic.

Developer James Hanson says the economy has to get better before the market does.

“We’re looking for a recovery in confidence,” says Mr. Hanson, a principal at Chicago-based Mesa Development LLC. “We need people to feel good about their life and the economy and spending their money on real estate.”

Mr. Hanson is preaching patience, even though he has no plans to halt sales or cut prices at his 72-story Legacy at Millennium Park high-rise, near Monroe Street and Wabash Avenue.

About 90% of the tower’s 356 units are under contract, and the first wave of closings began in September. As that process continues, Mesa expects to lose a few sales to would-be buyers who fail to obtain financing amid tighter credit markets or who lose their jobs and find they can’t afford a new condo.

Still, he is optimistic that the housing market is slowly crawling out of its hole and expects to sell out the Legacy by next summer, an ambitious but achievable goal if the market keeps improving.

Public records currently show only 2 units have closed in the building, both in early October. But sometimes developers take time in submitting closing information. Stay tuned.

Things aren’t as positive at Metropolitan Tower, at 310 S. Michigan, right down the street.

The developer of the East Loop’s Metropolitan Tower credits discounts of at least 25% on selected units with boosting sales at the 30-story project. Buyers have now purchased about 80% of the 242 condos at the two-year-old development at 310 S. Michigan Ave., says Louis D’Angelo, president of Metropolitan Properties of Chicago LLC.

While Mr. D’Angelo is still trying to sell about a dozen discounted units, he may opt to take all of the tower’s unsold condos, even the discounted ones, off the market if the economy doesn’t improve.

“It’s not an easy decision to make,” he says. But by mothballing sales, “you’re betting on where the market will be in 12 to 18 months.”

Real estate on brink: reviving the faith [Crain’s Chicago Business, Andrew Schroedter, Oct 26, 2009]

We haven’t chattered much about The Silver, the new construction high rise in River North at 303 W. Ohio.

Current stats in the building (out of 233 units):

• 45 have closed per public records through Oct 5 (closings began in July 2009)
• 13 are currently on the MLS for sale
• 1 is currently on the MLS for rent

Some units may be both for sale AND for rent. Also, developers don’t list all their current available units on the MLS.

A few re-sale units have recently appeared on the market.

Unit #1803, a southeast corner 2 bedroom re-sale has been listed since August.

It has already been reduced $10,900.

The listing says it is “upgraded”. It has stainless steel appliances and a granite island. One of the bathrooms has a walk-in shower.

 Elizabeth August at @Properties has the listing. See the pictures here.

Unit #1803: 2 bedrooms, 2 baths, no square footage listed

• Sold in August 2009 for $476,500
• Originally listed in August 2009 for $499,900 (parking $35,000 extra)
• Reduced
• Currently listed at $489,000 (parking $35,000 extra)
• Assessments of $410 a month
• Taxes are “new”
• OR you can rent it for $2300 a month plus $200 a month for parking
• Bedroom #1: 13×10
• Bedroom #2: 12×10
• Living room: 18×18
• Kitchen: 9×10

This 4-bedroom townhouse at 1713 W. Surf in Lakeview is large enough to be a single family home but is listed at a lower price than many single family homes in that neighborhood.

The 2004-built property has the newer construction bells and whistles, with a gourmet kitchen with a stainless steel appliances and granite counter tops. It also has a large master suite bathroom with jacuzzi.

The townhouse has two decks, a two car garage and is located on a cul-de-sac.

Will first time buyers be buying townhouses in Lakeview as their first homes in the neighborhood instead of the single family home?

Ricardo Jimenez at Prudential Rubloff has the listing. See more pictures here.

See the property website here:

1713 W. Surf: 4 bedrooms, 4 baths, 3033 square feet, 2 car garage

• Sold in November 2004 for $695,000
• Originally listed in August 2009 for $769,000
• Reduced
• Currently listed at $749,000
• Assessments of $243 a month
• Taxes of $9570
• OR you can also rent it for $3650 a month

We’ve chattered about distress sales several times in 201 N. Westshore, The Lancaster, in Lakeshore East.

The Lancaster, which was built in 2004, was the first of the Lakeshore East high rises.

See our March 2009 chatter about short sales on 08 tier units here.

The unit mentioned in the March chatter, Unit #1008, finally went under contract recently.  Here’s its history:

Unit #1008: 2 bedrooms, 2.5 baths, 1295 square feet

• I couldn’t find an original sales price (the records on this building are awful)
• Originally listed in August 2008 for $539,900
• Several reductions
• Was listed in March 2009 at $450,000 (plus $35,000 for parking)
• Several reductions
• Currently listed as a short sale at $415,000 (plus $35,000 for parking) 
• Under contract
• Assessments of $537 a month
• Taxes of $6260
• Siri Laurin at ABA National Realty has the listing. See the pictures here.

Now, a bank owned 2 bedroom has just come on the market. It is priced similarly to some of the 1-bedrooms currently on the market in the building. It is the cheapest 2-bedroom currently for sale.

There are no pictures with the listing so the condition of the unit is unknown.

But given what other 2/2s are going for in the neighborhood, is this a deal?

Katy Elliott at Great Lakes Realty has the listing. See the listing here.

Unit #605: 2 bedrooms, 2 baths, no square footage listed

• Sold in December 2004 for $474,500
• Lis pendens in November 2008
• Bank owned as of August 2009
• Currently listed for $400,950 (includes 1 parking spot)
• Assessments of $573 a month (includes heat, cable, ac)
• Taxes of $6016
• Bedroom #1: 14×12
• Bedroom #2: 11×11
• Living room: 16×16
• Kitchen: 10×9

We last chattered about this full-floor art gallery district loft at 215 W. Huron in River North in August 2008.

See our prior chatter and pictures here.

It never sold but is now back on the market and reduced by $100,000.

The unit has a private keyed elevator, hardwood floors throughout and Snaidero cabinets in the kitchen. The ceilings are 11 feet.

If you don’t want to buy it, the unit is also available to rent.

Cheri Cho at MC Realty Group has the listing. See the pictures here.

Unit #2: 3 bedrooms, 2 baths, 2400 square feet

• Sold in April 1997 for $335,500
• Sold in November 1998 for $310,000
• Sold in March 1999 for $419,500
• Sold in March 2001 for $599,000
• Sold in July 2003 for $600,000
• Was listed in August 2008 for $750,000 (parking included)
• Cancelled
• Re-listed in September 2009 for $699,900 (parking included)
• Reduced
• Currently listed at $649,900 (parking included)
• OR you can also rent it for $2950 a month
• Assessments of $375 a month
• Taxes of $6931
• Central Air
• Washer/Dryer in the unit

We chattered about this brick and concrete duplex loft at 20 N. State in the Loop in June 2009.

See our prior chatter and pictures here.

The loft is still available 5 months later and has been reduced by $8,100. The seller is now “motivated.”

Back in June it was also the cheapest 1-bedroom available in the building and now it is only the second cheapest.

The loft has 18 foot ceilings and the bedroom has been lofted to make space for a separate dining room. It also has central air and washer/dryer in the unit.

There is no parking available with the building but in this neighborhood, who needs it?

Why isn’t this loft selling to a buyer using the first time home buyers tax credit? It seems geared towards first time buyers.

Linda Hoffman at Prudential Rubloff has the listing. See more pictures and a virtual tour here.

Unit #1002: 1 bedroom, 1 bath, 716 square feet

• Sold in May 2003 for $123,000
• Was listed in June 2009 for $198,000
• Reduced
• Currently listed for $189,900
• Assessments of $361 a month (includes heat, AC and the internet)
• Taxes of $1866
• Central Air
• Washer/Dryer in unit
• No parking
• Living room: 21×11
• Dining room: 10×9
• Kitchen: 11×6
• Bedroom: 11×9

The September home sales data is out from the Illinois Association of Realtors. For the first time in several years, sales rose year over year in Chicago. However, median price continued to slide.

From the Illinois Association of Realtors:

In the city of Chicago, September total home sales (single-family and condominiums) were up 5.8 percent to 1,918 sales compared to 1,813 homes sold in September 2008. The city of Chicago median price in September 2009 was $225,000 down 16.2 percent compared to $268,600 a year ago in September 2008.

“While we see a significant increase of sales, we continue to see distressed properties moving the marketplace,” said Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey GMAC, Chicago. “The decrease in the median home price is also reflective of this trend as investors purchase short sale and foreclosure inventory in the city. It is more imperative than ever before that legislators extend and expand the homebuyer tax credit, not only to encourage more buyers in the market, but to afford those who are looking to buy in Chicago a tax credit feasible for the urban condo market.”

It appears to be all about the first time home buyers tax credit, as the other industry experts quoted in the IAR’s press release, urged extension of the $8,000 tax credit.

“Buyers taking advantage of the first-time homebuyer tax credit were clearly out in force in most regions statewide in September and thus building momentum for a recovery in the housing market,” said REALTOR® Mike Onorato, president of the Illinois Association of REALTORS®. “Home sale gains this month show the tax credit is working and should be extended through 2010 as it is helping to stabilize home prices and creating thousands of jobs that rely on housing. Today’s lower prices and interest rates are very appealing to consumers, but it’s the tax credit that is attracting people to homeownership. Not renewing the tax credit could potentially jeopardize a full recovery needed to get the economy back on track.”

The University of Illinois expert sees unemployment as a hindrance to a housing recovery. Illinois’ unemployment rate in September was 10.5%.

According to Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois: “There are signs that the housing market may be signaling a change in direction, although the prospect of continued large numbers of foreclosed properties will continue to exert downward pressure on prices in a market in which supply still significantly exceeds demand. The news on the sales front is encouraging and even the price declines seem to be moderating. However, the prospects of a jobless recovery from the recession will continue to exert restraint on a more robust recovery of the housing market. Illinois tends to enter recessions later than the U.S. and take longer to recover.”

Illinois Home Sales Show First Increase in Over Three Years; Statewide Median Price at $160,000 [Illinois Association of Realtors Press Release, Oct 23, 2009]

The listing for this multi-unit Victorian property at 1516 N. Mohawk in Old Town says it needs to be gutted.

There are no interior pictures of the property but the outside reveals detailed vintage architectural details, including stained glass windows.

The property was built in 1888 and has 9 bedrooms, 6 baths and has a 2 car garage. There is 1500 square feet per floor and each has 10 foot ceilings. There is also a full basement.

It is zoned RM-5, FAR 2.2.

Does someone have the vision to restore this property to its grandeur?

Jane Domurot at Koenig & Strey has the listing. See the pictures here.

1516 N. Mohawk: 9 bedrooms, 6 baths, 2 car garage

• I couldn’t find an original sales price but sometime before 1990
• Originally listed in August 2009 for $835,000
• Reduced
• Currently listed for $725,000
• Taxes of $14,196

Want unique? This tri-level brick loft unit on the market at the Hale Lofts at 14 N. Peoria in the West Loop is in the building’s old elevator shaft.

It’s the only unit on the 8th floor of the building.

Here are the dimensions for the rooms:

• Living room: 14×14 (first floor)
• Kitchen: 11×10 (second floor)
• Bedroom: 13×15 (third floor)

It has two private outdoor spaces with one that has direct downtown views.

The unit has hardwood floors and the kitchen has stainless steel appliances and granite counter tops. The bathroom also has a custom “cement troft bathroom sink.”

Because of its location on the roof of the building, the listing says it has its own private entrance.

Anyone been to this property to really understand what that means? Do you go outside to enter your unit? Please report in.

Tracy Gola at Prudential Rubloff has the listing. See the pictures here.

Unit #8PH: 1 bedroom, 1 bath, 1050 square feet

• Sold in October 2000 for $179,000
• Sold in September 2003 for $275,000
• Lis pendens in June 2004
• Bank owned in January 2006
• Sold in June 2006 for $276,500 (included the parking)
• Originally listed in May 2008 for $309,000
• Cancelled
• Re-listed in March 2009 for $309,000
• Reduced several times
• Cancelled
• Re-listed in August 2009 for $279,000
• Reduced several times
• Currently listed at $274,500 (parking $25,000 extra)
• Assessments of $251 a month
• Taxes of $2980
• Central Air
• Washer/Dryer in the unit
• Deck: 13×7
• Balcony: 10×5