Crib Chatter

This question was posed to me by a reader and I thought it was a good topic to simply put out there to discuss over the long weekend.

I am looking to buy a condo in the south loop, and am currently renting an apartment in the same neighborhood. As most of your readers may be aware, there is an ample supply of new rental apartments in the area, and a similarly ample supply of new construction condos.

Here’s the problem: my current rent, in a luxury high-rise apartment, is $X/month. If someone was to buy one of the equally nice condos I am considering (finishes, view, location, size, amenities in my rental are similar in all respects) at list price and rent it out for $X, they would be losing a bundle each month. In fact, in order to be able to break even (not even cash flow – just tax+interest+assessments), they would have to buy the condo at a 40% discount.

I thought this massive rent/own imbalance was something reserved for bubble times in california, but when I asked the seller’s agent about it, his response was simply that that’s how it is. “You’ll always lose money (monthly) renting out a condo, but it is still a good investment, due to appreciation.”

Will renting and owning ever reach parity downtown?

What will happen with the imbalance: will rents rise or will prices fall?

And yes, there’s the other question- if you’re renting for 40% less than buying- why buy at all?

This 6-bedroom vintage single family home at 10829 S. Wood in the Morgan Park neighborhood on the South Side became bank owned in June 2007.

It has been on the market since November 2008.

The bank has been following the market down ever since.

It is now priced just $20,000 over the 1992 purchase price.

The house has no central air, but it does have 2 fireplaces.  The bedroom sizes are also quite large, as is typical in the vintage homes. Additionally, it has a three car garage.

Will this house sell for under the 1992 purchase price?

If anyone has been in it- please fill us in on the details.

Michael Olszewski at Area Wide Realty has the listing. See the listing and exterior picture here.

10829 S. Wood: 6 bedrooms, 5.5 baths, 3 car garage, no square footage listed

• Sold in October 1989 for $189,000
• Sold in December 1992 for $199,000
• Lis pendens in July 2006
• Bank owned in June 2007
• Originally listed in November 2008 for $595,000
• Reduced numerous times
• Currently listed for $219,000
• Taxes of $4082
• No central air
• Bedroom #1: 33×27
• Bedroom #2: 17×10
• Bedroom #3: 13×13
• Bedroom #4: 13×13
• Bedroom #5: 15×12
• Bedroom #6: 11×9

540 N. Lake Shore Drive in Streeterville is the only loft building located directly on Lake Shore Drive in the city.

Converted into condos in the early 1990s, before the condo craze, the brick and timber units are extra large.

This south facing 1-bedroom unit is 1128 square feet and has 12-foot ceilings.

Do you have a lot of clothes? It also has an enormous walk-in closet.

The loft has central air but no in-unit washer/dryer (although the building does allow them to be put in in the kitchen.)

Parking is rental in the building.

Ryan D’Aprile at D’Aprile Realty has the listing. See more pictures here.

Unit #607: 1 bedroom, 1 bath, 1128 square feet

• Sold in April 1994 for $175,500
• Sold in December 2000 for $265,000
• Sold in July 2006 for $288,000
• Currently listed for $319,000
• Assessments of $604 a month (includes heat, air conditioning, cable, doorman)
• Taxes of $3859
• Parking is rental
• Central Air
• No in-unit washer/dryer

This 4-bedroom new construction modern single family home at 1549 N. Honore in Wicker Park has been on the market since May.

It is now in short sale and has been reduced by $699,000.

According to the pictures and the listing, the home is not completed. The listing says three appraisals have said it would take between $365,000 to $459,000 to finish the project.

The property is being sold “as-is.”

The listing also says not to be afraid to make an offer and to “please insult” the agent.

Will someone bite at this reduced price?

Jack Bogun at Keller Williams Success Realty has the listing. See the pictures here.

1549 N. Honore: 4 bedrooms, 5.5 baths, 5600 square feet, 2.5 car garage

• Sold in January 2007 for $565,000
• Originally listed in May 2009 for $1.499 million
• Reduced numerous times
• Short sale
• Currently listed for $800,000
• Taxes are “new”

We last chattered about this 30th floor 2-bedroom unit in 8 E. Randolph, otherwise known as MoMo or Joffrey Tower, depending on who you ask, in the Loop in October 2008 when it was being flipped.

See our prior chatter and pictures here.

Unit #3008 never sold and has now returned to the market reduced by $45,000.

The kitchen and baths have been upgraded with custom tile and the unit is painted.

It has west facing city views.

There is no parking listed for sale with the unit. Parking is very limited in the building. It was sold with only a select few 2-bedroom units. I don’t know if parking would even be available for purchase with this particular unit.

The last time this unit was the on the market, Lehman Brothers had just collapsed.

Will it have a better chance to sell this time around?

Anita Constant at Coldwell Banker once again has the listing. See the picture here.

Unit #3008: 2 bedrooms, 2 baths, 1348 square feet

• Sold in June 2008 for $485,000
• Was listed in October 2008 for $595,000 (no parking)
• Cancelled
• Re-listed in September 2009 for $545,000 (no parking)
• Assessments of $635 a month
• Taxes are “new”
• Central Air
• Washer/Dryer in the unit

Trying to find space under the conforming loan limit?

This 3-bedroom tri-level unit at 1624 W. Ontario in West Town is listed under $400,000 and that includes an attached parking space.

It has 2-story windows, stone baths, and two outdoor spaces. The kitchen has stainless steel appliances.

It’s also listed $6,000 under the 2005 purchase price.

Is this priced to sell?

Robert Safranski at Saffron Realty Group has the listing. See more pictures here.

See the listing here.

Unit #1W: 3 bedrooms, 2.5 baths, 1 car parking, no square footage listed

• Sold in June 2005 for $405,000
• Currently listed for $399,000 (parking included)
• Assessments of $157 a month
• Taxes of $5914
• Central Air
• Washer/Dryer in the unit
• Bedroom #1: 14×14
• Bedroom #2: 11×10
• Bedroom #3: 10×10

200 N. Dearborn, the high rise conversion in the loop, was the last of the American Invsco conversion buildings during the boom.

It has not sold out.

Current stats (out of 308 units):

• 33 for sale on the MLS
• 6 for rent

Some units may be both for sale AND for rent.

Recently, several short sales began appearing in the building.

The cheapest 1/1 in the building is currently Unit #4107.

This is the bigger 1-bedroom unit. The listing says it’s been upgraded. It has granite countertops in the kitchen and the bathroom is renovated. It still has carpeting, however.

The listing also says it is tenant occupied.

Unit #4107: 1 bedroom, 1 bath, 860 square feet, west city views

• I couldn’t find the original sales price
• Currently listed for $275,000
• Short Sale
• Assessments of $429 a month
• Taxes are “new”
• Parking available in the building
• No in-unit washer/dryer
• Jenna Smith at Dream Town Realty has the listing. See the pictures here.

Unit #3507 is also in short sale. From the pictures it looks like it is being used as an office. [UPDATE: This unit was apparently the developer’s sales center- hence the desks.]

It also has an upgraded kitchen and baths but carpeting throughout.

Unit #3507: 1 bedroom, 1 bath, 860 square feet

• There are two original sales prices in the public record (if someone can figure out which is which- as nearly all the units have two prices in the records, please let me know)
• Sold in May 2008 for $252,500
• Sold in May 2008 for $407,500
• Currently listed for $319,000
• Short Sale
• Assessments of $420 a month
• Taxes are “new”
• Parking is extra
• Jenna Smith at Dream Town Realty has the listing. See the pictures here.

Unit #3407, in the same tier, is currently listed for sale from the developer for $464,000.

215  N. Aberdeen, the Blue Moon Lofts, is an authentic brick and timber 77-unit loft building in the West Loop.

This 3-bedroom penthouse triplex unit is currently on the market. It has two outdoor spaces including a 500 square foot private rooftop deck with city views.

It also has a separate master suite with its own bath on the top floor. 

The kitchen has granite countertops and stainless steel appliances.

Peter Tortorello at Koenig & Strey has the listing. See the pictures here.

Unit #609B: 3 bedrooms, 2.5 baths, 1750 square feet, 2 car tandem parking space

• I couldn’t find an original sales price
• Originally listed in July 2009 for $459,000 plus $35,000 for parking
• Still listed at $459,000 plus $35k for parking
• Assessments of $737 (with $273 of that being for capital improvements)
• Taxes of $5894
• Central Air
• In-Unit Washer/Dryer

This bank owned 5 bedroom single family home at 1342 N. Leavitt in Wicker Park is currently listed more than 40% under its last sale in 2004.

And it’s also listed $211,600 under the 2000 purchase price.

From the pictures, it looks as though the kitchen and bathrooms are intact although the listing does say the house is in need of some repairs.

At over 3100 square feet, it has cathedral ceilings, skylights and a sauna.

Is this a steal at this price and location in Wicker Park?

Mark Miles at Dream Town Realty has the listing. See more pictures here.

1342 N. Leavitt: 5 bedrooms, 3.5 baths, 2 car garage, 3154 square feet

• Sold in June 2000 for $961,500
• Bank owned in October 2003
• Sold in October 2004 for $675,000
• Sold in November 2004 for $1.26 million
• Lis pendens filed in October 2006
• Bank owned in June 2009
• Currently listed for $749,900
• Taxes of $13,762
• Central Air

There have been some investors trying to re-sell units in ParkView, the latest Streeterville high rise at 505 N. McClurg.

The listing for this 2-bedroom unit on the 32nd floor says it has “never been lived in.” At 1464 square feet it is one of the larger 2-bedroom floorplans in the building.

Unit #3202: 2 bedrooms, 2 baths, 1464 square feet

• Sold in July 2008 for $746,000
• Originally listed in February 2009 for $849,000
• Reduced
• Currently listed at $848,000 (parking is extra)
• Assessments of $714 a month
• Taxes are “new”
• Martin Fenton at Realatech Development has the listing. See the pictures here.

Or, there is Unit #2402 which has been on the market for 14 months and just reduced again.

Unit #2402: 2 bedrooms, 2 baths, 1464 square feet

• Sold in June 2008 for $795,000
• Originally listed in June 2008 for $869,000
• Reduced several times
• Currently listed for $759,000 (plus $60,000 for parking)
• Assessments of $661 a month
• Taxes are “new”
• Mark Ahmed at Coldwell Banker Leader Realty has the listing. See the pictures here.

Two units in the 02 tier have actually re-sold in 2009.

Unit #2902:

• Sold in June 2008 for $830,000
• Sold in June 2009 for $700,000

Unit #2102:

• Sold in May 2008 for $795,500
• Sold in July 2009 for $640,000

I don’t know if either of those transactions included parking spaces.