Crib Chatter

For the second time this year, a South Loop new construction high rise is going to use an auction to sell remaining units.

1400 S. Michigan, or Michigan Avenue Tower II, expects to auction 40 out of the remaining 97 units available in the  257 unit building on November 15.

This is a tactic that was used by the developer of the Vetro, at 611 S. Wells, back in March. In March, the Vetro also auctioned off 40 of its remaining units and then reduced prices on the 51 that remained (lowered prices to the auction prices.)

Of those 51, according to the Tribune, less than 10 remain. So the building has, obviously, still not sold out (even with the reduced prices.)

From the Tribune:

“Buildings that were competing needed to re-price if they wanted to gain some market share. There was a ripple effect,” said Gail Lissner, vice president at Appraisal Research Counselors. “The bottom line is no one is selling if they’re not discounting.”

The same scenario may play out again, said Jon Gollinger, co-founder and East Coast CEO of Accelerated Marketing Partners, the Boston-based firm that handled Vetro’s auction and will conduct the event for developer Russland Capital Group’s Michigan Avenue Tower II.

“Today, with the declining market that’s occurring, there’s a failure to understand what market value is,” Gollinger said. “Today, all purchases are elective purchases. The consumer rules, it’s as simple as that.”

Some of the minimum bids are as follows:

Studio: 580 square feet

• Last asking price of $135,900
• Minimum bid of $99,000

1 bedroom/1 bath: 692 square feet

• Last asking price of $252,900
• Minimum bid of $120,000

2 bedrooms/2 baths: 1027 square feet

• Last asking price of $395,900
• Minimum bid of $175,000

2 bedrooms/2 baths: 1259 square feet

• Last asking price of $446,900
• Minimum bid of $235,000

3 bedrooms/3 baths: 2100 square feet (only one of these available)

• Last asking price of $682,000
• Minimum bid of $375,000

Find out more information at 1400 S. Michigan [website]

We also chattered about flips in this building in September 2008, specifically about Unit #708.

See the chatter and pictures here.

This was the sales history as of last September. I can’t find any record that this unit ever re-sold.

Unit #708: 1 bedroom, 1 bath, 751 square feet

• Sold in September 2008 for $357,500
• Was listed in September 2008 for $329,900 plus $40,000 for parking = $369,900
• Assessments of $380
• Taxes are “new”
• The den is 5×6
• Or- you could have rented it for $1750 a month without parking or $2000 a month with parking

Will this auction set off the same kind of frenzy that the Vetro auction did 8 months ago?

More condos on the block in the South Loop [Chicago Tribune, Oct 21, 2009, Mary Ellen Podmolik]

This 4-bedroom home at 3037 N. Seminary in Lakeview looks more like a southern home than the north side of Chicago with its big front porch.

This 1890s farmhouse has all the modern amenities while keeping its vintage pedigree intact. It has the original crown moldings but space pak cooling.

Three out of the four bedrooms are on the second floor, including the master bedroom which has a balcony overlooking the backyard.

The eat-in kitchen has white cabinets and black honed granite counter tops.

Is this a single family home alternative to those looking at duplex down condos or townhouses in the $700,000 to $800,000 range?

Debra Dobbs at Koenig & Strey has the listing. See the pictures here.

3037 N. Seminary: 4 bedrooms, 2.5 baths, no square footage listed, 2 car garage

• Sold in October 1992 for $190,000
• Sold in August 1997 for $329,000
• Sold in July 2004 for $762,000
• Originally listed in September 2009 for $850,000
• Currently listed for $850,000
• Taxes of $10,354
• Space pak cooling
• Bedroom #1: 14×16
• Bedroom #2: 16×12
• Bedroom #3: 13×10
• Bedroom #4: 7×13

This 3-bedroom vintage unit at 2044 W. Farwell in West Rogers Park was built in 1920 but converted into condos in 2004.

It has all the bells and whistles of modern living including central air, in-unit washer/dryer, a completely renovated kitchen with stainless steel appliances and a garage.

Additionally, the condo has all the vintage features of 1920s architecture including huge living spaces, crown molding and a built-in custom pantry.

The unit also has 500 square feet of unfinished basement space that could be duplexed.

If you have guests come to town and they want more privacy, the listing says there is a common studio guest suite available for no extra charge.

Is this a single family home alternative?

Deborah Hess at Conlon Real Estate has the listing. See more pictures and a virtual tour here.

Unit #1E: 3 bedrooms, 2 baths, 2650 square feet

• Sold in August 2004 for $326,000
• Originally listed in July 2009 for $364,900
• Reduced
• Currently listed for $349,900
• Assessments of $342 a month (includes heat and gas)
• Taxes of $1240
• Central Air
• Washer/Dryer in the unit
• Private deck
• Bedroom #1: 13×14
• Bedroom #2: 14×12
• Bedroom #3: 10×10
• Living room: 23×18
• Dining room: 18×15
• Kitchen: 13×10

We’ve chattered often about authentic loft condos but never before have we chattered about a loft single family home like this one at 330 N. Ashland in the West Loop.

Converted from a former industrial building, the building is now a 10,000 square foot single family home with exposed brick, beams and timber ceilings and an open living layout.

It has a massive master bathroom (check out the picture of the tub) as well as a “rooftop oasis.”

The listing says the basement is currently configured as a dream playroom (for kids, not adults).

Peter Angelo at @Properties has the listing. See the pictures and a virtual tour here.

330 N. Ashland: 4 bedrooms, 4 baths, 10,000 square feet, 4 car garage

• Sold in July 2005 for $1.1 million
• Currently listed for $2.27 million
• Taxes of $8,338
• Central Air

We chattered about this bank owned single family home at 2823 N. Racine in Lakeview back in July.

It is still available and has now been reduced another $43,000.

It is now listed for $238,200 under the 2003 purchase price.

Anyone been in it?

Jason Shapiro at Rising Realty LLC still has the listing. See the pictures here.

2823 N. Racine: 3 bedrooms, 2 baths, 1536 square feet

• Sold in April 1998 for $355,000
• Sold in May 2003 for $747,000
• Bank owned as of March 2009
• Was listed in July 2009 for $551,800
• Reduced several times
• Currently listed for $508,800
• Taxes of $9289
• Listing says there is 1-car assigned parking
• No central air
• Bedroom #1: 16×12
• Bedroom #2: 10×11
• Bedroom #3: 13×13
• Living room: 15×14
• Kitchen: 10×9
• Dining room: 18×10

This 2-bedroom unit at 1313 N. Wood in Wicker Park has a vintage facade but the interior has been completely updated.

With the wall for the second bedroom removed, the unit has an even larger open concept feel, such as you might find in a loft.  (The listing says the wall can be replaced.)

The kitchen is far from cookie cutter with upgraded professional kitchen appliances such as a Thermador Series 6 burner range with 2 ovens and a Sub Zero refrigerator.

If you just want to give it a test drive, it’s also available for rent.

Bob Satawake at Keller Williams has the listing. See more pictures here.

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

• Sold in January 1994 for $180,000
• Currently listed for $524,900 (includes one parking space)
• Assessments of $200 a month
• Taxes of $4800
• OR you can rent it for $2950 a month (parking included)
• Central Air
• Washer/Dryer in the Unit
• Bedroom #1: 25×15
• Bedroom #2: 16×10
• Living room: 30×30
• Kitchen: 25×15
• Office: 8×8
• Dining room: 17×11

Just a month ago we chattered about this vintage East Lakeview greystone at 657 W. Roscoe that seemed to have it all except parking.

See our prior chatter and pictures here.

It went under contract shortly after our chatter and just closed for $25,000 under the 2002 purchase price.

The 3-bedroom home had a renovated kitchen, central air and an extra long, lush backyard.

Mario Greco at Prudential Rubloff had the listing.

657 W. Roscoe: 3 bedrooms, 2.5 baths, no square footage listed

• Sold in September 2000 for $565,000
• Sold in October 2002 for $925,000
• Was listed in September 2009 for $999,000
• Sold in October 2009 for $900,000
• Taxes of $11,297
• Central Air
• No parking
• Living room: 17×12
• Dining room: 16×11
• Family room: 16×12
• Bedroom #1: 15×13
• Bedroom #2: 12×9
• Bedroom #3: 11×9
• There is a basement-but it appears from the listing to be unfinished.

We’ve chattered several times about the foreclosures and distressed sellers in 1620 S. Michigan in the South Loop.

This 2-bedroom unit has been on the market for 9 months but the listing says you should “hurry” before it’s gone.

This unit is also subject to lender’s approval and has been reduced by $70,000.

It has hardwood floors, stainless steel appliances and views of Michigan Avenue.

Is the South Loop market reaching the point where even the reductions aren’t enough to lead to a sale?

The last reduction on this unit was 5 months ago.

Kaloian Kouzmanov at Top Realty Group LLC has the listing. See the pictures here.

Unit #409: 2 bedrooms, 1 bath, 900 square feet

• Sold in August 2006 for $294,000 (parking included)
• Originally listed in February 2009 for $300,000
• Multiple reductions
• Reduced to $230,000 (parking included) in June 2009
• Currently still listed at $230,000 (parking included)
• Assessments of $280 a month
• Taxes of $3625
• Central Air
• Washer/Dryer in the unit

This 2-bedroom top floor unit at 3835 N. Greenview in Southport is listed as a short sale. It is apparently under contract (but I’ve been told it’s been under contract several prior times as well.)

It is currently on the market for $108,000 under the 2005 purchase price.

According to the listing, the unit also suffered “fire damage” which has since been repaired.

The buyer also has to pay back assessments and a $10,000 special assessment (which apparently is to guarantee that the private rooftop deck is deeded to the new unit owner.)

Is this a deal for this neighborhood?

And are you ready to buy a not-perfect property in order to get a steal?

Matt Garrison at Coldwell Banker has the listing. See the pictures here.

See the listing that describes the fire damage and special assessment here.

Unit #3: 2 bedrooms, 2 baths, 1700 square feet

• Sold in December 1996 for $325,000
• Sold in March 2005 for $475,000
• Originally listed in January 2009 for $349,900
• Raised
• Listed in June 2009 for $367,000
• Raised
• Listed in September 2009 for $380,000
• Reduced
• Currently listed for $367,000 (parking included)
• “Short Sale”
• Under contract (for the third time)
• Assessments of $226 a month
• Special Assessment of $10,000
• Taxes of $6503
• Central Air
• In-unit Washer/Dryer
• Skylights
• Private Rooftop deck

The Chicago Tribune reported over the weekend what Crib Chatter readers have known for over a year: the upper bracket market is dead.

And now there’s a glut of million dollar homes with no buyers in sight.

From the Tribune:

In Oak Brook, it’s a $5.75 million stone castle. In Burr Ridge, it’s a Middle Eastern-influenced home named Villa Taj, once priced at $25 million and headed for the auction block next month. In Barrington Hills, it’s a nearly 12,000-square-foot home sitting on five acres. In Chicago, it’s an unfinished, four-story, bank-owned home with an elevator. And in Lake Forest, it’s an elegant country home whose already trimmed price was just slashed by another $1 million.

All are newly constructed, ultrahigh-end homes, reminders of the housing market’s headier, healthier days. And all are additions to a market that is bursting with multimillion-dollar homes waiting for that very discriminating buyer with very deep pockets.

What’s interesting is that while the article discusses the upper bracket inventory in Lake Forest, where most people would assume it would be, it doesn’t address all the million dollar homes in neighborhoods and cities that rarely saw houses priced that high before the boom.

While no one is surprised at a $2 million home in Lincoln Park, maybe they should be about a $2 million home in West Bucktown.

In Lake Forest, for example, more than 50 homes are listed for sale for at least $3 million, not counting homes that are being privately marketed. In the past 12 months, 11 residences in that price range sold, and it took, even with significant discounts, an average of almost 500 days to sell those properties.

Move up to homes listed for at least $5 million and there are more than 20 Lake Forest properties for sale. In the past 12 months, one home in that price range sold, which means if the supply and market held steady at their current level, it would take 20 years to whittle that inventory.

The luxury home builders quoted in the article are sticking to their guns and show no regret about sinking millions into luxury spec homes.

Longtime homebuilder Don Ciaglia plowed ahead with the spec construction of one of his largest luxury homes, on a wooded hilltop in Barrington Hills, despite the industry’s darkening skies a year ago.

“We weren’t going to stop building,” he said.

Adds his wife, Ruth Ciaglia, an ERA Countrywood Realty agent who listed the home, “At the time, a house like this was really a good idea. There were houses like that that were selling. Who knew?”

Ciaglia has lowered the price by $50,000, to $5.39 million, but doesn’t plan any more reductions.

One builder who’s decided to see the glass as half full is Adel Tarakdjian, who in December started building a 23-room home in Glencoe that’s listed at $5.995 million.

Tarakdjian, who constructs a spec home every two to three years to use as a marketing tool, has no plans to drop the price of the home that is loaded with features, starting with the 1,200-pound, heated, steel front doors. In fact, in July, before he’d finished the project, he increased the price by $295,000.

“I believe in my product,” he said. “Of course there’s risk involved. There is risk involved in everything we do in our lives. If I cross the street, there is risk involved.

“I do sleep. I sleep well.”

Ultrahigh-end homes slow to sell in crowded market [Chicago Tribune, Mary Ellen Podmolik, Oct 18, 2009]