Crib Chatter

Tricia Fox of Keller Williams Gold Coast, and one of the city’s top agents, is going to Dubai for the 5th Annual International Property Show in February to try and lure wealthy foreign buyers to Chicago’s luxury condo market.

According to the Chicago Tribune, Tricia has been working with Australian clients and members of her sales team have been assisting Russian buyers, so the city is already attracting some foreign buyers.

The election of Barack Obama and the possibility of the Olympic Games are putting Chicago on the world’s stage.

But can foreign buyers really fill the gap in the luxury downtown market?

“People overseas are saying to me, ‘I didn’t realize you have the Third Coast, with nearly an ocean.’

“For the first time, they’re giving us a serious look,” Fox said.

Previously, she said, international buyers have shopped for properties primarily in San Francisco and New York.

“They wanted waterfront, and they wanted city. We have both, and our prices are better than those two markets.”

Although economic conditions certainly have affected the very high end of the market that she specializes in, she said that bracket tends to operate in its own little world, and some properties are doing well.

Nonetheless, she sees a change in what buyers are seeking at that level—$1 million and up in downtown Chicago and the Gold Coast.

“The majority of our buyers have two or three homes,” Fox said.

“They’re price-conscious, for sure. It used to be location, location, location, and now it’s price, price, price.”

No longer, she said, is it likely that those buyers will pick out a condo and plan on an extensive renovation.

“They don’t seem to be in the mood for a gut job, or something they have to redo,” Fox said.

And, perhaps, they’re looking at real estate anew.

“A client I met said, ‘I’ve lost $3 million [in the stock market]. I wish I had put it in real estate.’ ”

The economy also inspired the client to decide maybe it’s time to live a little, Fox said.

“She also went out and bought herself a Bentley.”

Willing to go the extra mile for a sale [Mary Umberger, Chicago Tribune, January 25, 2009]
 

We last chattered about The Vic Lofts at 3150 N. Sheffield in Lakeview in May 2008.

At that time, we discussed 4 different units. Since then, 2 of the 4 have sold for under their prior 2006 sales prices.

2 others are still on the market, with both significantly reduced by $30,000 and $35,000, respectively.

See our chatter and the pictures here.

One poster, Happy in Loft, who allegedly lives in the building, said back in May:

“I think the loft units were priced very reasonably by the developer. I watched the building sell out quickly. I wasn’t in a position to buy when I first found it, and I consider myself lucky to have ended up able to buy the last unit with the floor plan I wanted. I don’t plan on selling any time within the next few years, so I could really care less what it’s worth right now.”

These two units sold. 

Unit #610: 1 bedroom, 1 bath

• Sold in November 2005 for $265,500
• Was listed in May 2008 for $269,000
• Sold in September 2008 for $260,000
• Assessments of $282 a month
• Rental parking next door only- for $195 a month

Unit #411: 1 bedroom, 1 bath

• Sold in February 2006 for $213,000
• Was listed in May 2008 for $219,900
• Sold in July 2008 for $208,500 
• Assessments of $255 a month
• Rental parking next door

Unit #409 had furniture in the pictures back in May but the pictures now show the unit empty. It has been reduced by $30,000.

Unit #409: 2 bedroom, 2 bath, 720 square feet (yes that square footage is correct)

• Sold in February 2006 for $238,500
• Was listed in May 2008 for $299,000
• Reduced
• Currently listed for $269,000
• Assessments of $281 a month
• Taxes are “new”
• Rental parking next door
• Bedroom #1: 13 x 8
• Bedroom #2: 10 x 8
• Urban Real Estate has the listing. See the pictures here.

Unit #301, a duplex unit, has reduced $35,000. The listing now says “Dramatic $50k reduction! Will not last at this price!”

Unit #301: 1 bedroom, 1.5 baths, duplex, 15 foot ceilings

• Sold in March 2006 for $265,000
• Was listed in May 2008 for $274,900
• Reduced several times
• Currently listed for $239,900
• Assessments of $320 a month
• Taxes are $3200
• Rental parking next door
• Jennifer Vogel at Century 21 Sussex & Reilly has the listing. See the pictures here.

This authentic brick and timber loft at 1701 N. Damen in the heart of Bucktown is one of those buildings that was converted in the early 1990s, back when lofts were meant to be big and spacious and have things like spiral staircases to rooftop decks.

Since we love authentic lofts AND private roof top terraces, this unit is basically nirvana.

Here are the room sizes:

• Bedroom: 16×11
• Living room: 25×11
• Kitchen: 16×10
• Rooftop deck: 15×10

David Bailey at Baird and Warner has the listing. See more pictures here.

Unit #301: 1 bedroom, 1 bath, no square footage listed

• Sold in May 1993 for $134,500
• Sold in April 1997 for $177,000
• Sold in October 1999 for $210,000
• Originally listed in September 2008 for $325,000
• Reduced a few times
• Currently listed for $299,000 (includes the parking)
• Assessments of $285 a month
• Taxes of $2862
• W/D in the unit
• Central Air
• Fireplace
• Private rooftop deck

Tucked away in last weekend’s Chicago Tribune Magazine article about how more Polish immigrants are returning to Poland than are coming to Chicago, was this tidbit about how easy money and the housing boom is affecting the Polish immigrant neighborhoods.

But these days, the old Polish corridor that stretches along Milwaukee Avenue is looking a little frayed. Many of the Polish families who used to live in the tidy bungalows that line the residential streets have moved out to the suburbs. Others have gone back to Poland. The bungalows are still tidy, but now they are occupied by Mexicans. In the front windows, Our Lady of Czestochowa has been replaced by Our Lady of Guadalupe.

Anna Klocek, a real estate agent, knows these streets well and has a sharp eye for signs of transition.

“Look at all these suitcases on sale,” she says, indicating a sidewalk sale outside a shop on Milwaukee Avenue. “It means that Poles are leaving.

“And look over there,” she says, nodding toward a restaurant on the other side of the street. “It looks like they just remodeled, so probably they are planning to stay.”

She also has taken note of the unusual frequency of “for sale” signs on the residential streets, and the names on the mailboxes, which are mostly Polish.

This, she explains, is the Polish connection to the sub-prime mortgage crisis. Polish immigrants have a long tradition of home-buying—their way of staking a claim in the New World. So when offered a chance to buy a home for no money down and token payments for the first few years, it was hard for these immigrants to say no.

Now they are saying goodbye.

“It wasn’t a calculated move on their part,” says Klocek.

“They really wanted this American Dream. And the real estate agents were pushing them; the mortgage brokers were pushing them. Everybody was making money until the market collapsed.”

“So they have no equity in the house—they look at it as paying rent for 10 years; and they look at Poland, which is doing well, and they say, ‘Forget it, we’re not making it here, we’ll leave.’ Especially if one partner is not here legally,” she says.

Return Trip: Many Poles who once flocked to Chicago are going back to Poland. Life may be kinder there than here. [Chicago Tribune Magazine, Jan 18, 2009]

We recently chattered about the new construction home in Bucktown/Wicker Park that had the burst pipes and water up to the first floor.

You can see the Fox News video here.

But water and weather problems aren’t limited to foreclosures in the harsh Chicago winters.

Thanks to the tipster who sent me info about this 4-bedroom single family home at 1227 W. Wrightwood in Lincoln Park.

The listing says it is in of “repair” and that it was “appraised at $1.5 million pre-damage.”

An agent’s note also says it has “repairable water damage” with 30-40% of the home already gutted and the remainder is “damage free.”

Any takers on this million dollar fixer?

Matt Garrison at Coldwell Banker has the listing. There are no pictures of the interior but see the listing here.

1227 W. Wrightwood: 4 bedrooms, 4.5 baths, no square footage listed

• Sold in October 1986 for $167,500
• Currently listed for $950,000
• Taxes of $16,084
• Central Air

This 3-bedroom duplex down unit at 2057 N. Seminary in Lincoln Park has been on the market for 16 months.

It is now listed $90,000 less than its original listing price and under its 2005 selling price.

It seems to have it “all”- including central air, washer dryer, large square footage- except it doesn’t have parking.

Is this property just a casualty of a falling market?

Bob Safranksi at Saffron Realty has the listing. See more pictures and a virtual tour here.

Unit #1: 3 bedrooms, 2 baths, 1800 square feet, duplex down

• Sold in April 1998 for $194,000
• Sold in February 2005 for $414,250
• Originally listed in July 2007 for $464,900
• Reduced numerous times
• Listed at $399,900 in October 2008
• Reduced in October 2008 to $374,900
• Currently listed at $374,900
• Assessments of $180 a month
• Taxes of $3400
• Central Air
• W/D
• No parking

We last chattered in November 2008 about the developer slashing prices on 3 remaining townhouses at The Wabash Club at 2301 S. Wabash in the South Loop.

At the time, the price cuts were $100,000 to $175,000 and the listing said, “Unbelieveable opportunity* These final units are priced well below prior sales in the complex. Instant equity!”

See our chatter about the location and the price cuts here.

The 3 units are still available and the developer has cut prices another $30,000.

The listing now says it’s a $150,000 to $200,000 price reduction but it’s still an “unbelieveable opportunity” and you’ll have “instant equity.”

Here’s the history again:

2301 S. Wabash: 2 bedrooms, 2 baths, 2035 square feet

• Was listed in November 2008 for $374,900
• Reduced
• Currently listed at $349,900
• Assessments are $168 a month
• Taxes are “new”
• Bear Kaufman Realty still has the listing. See more pictures here.

We last chattered about this 2-bedroom unit at 2944 N. Broadway in Lakeview in September 2008.

Many of you thought it was overpriced in the fall. See our chatter and pictures here.

It’s still available and there has been no price reduction. (Note bedroom sizes below- which were a topic of chatter in September.)

Here’s its history again:

Unit #2N: 2 bedroom, 1 bath, no square footage given

• Sold in May 1999 for $159,000
• Sold in March 2002 for $255,000
• Sold in June 2005 for $295,000
• Was listed in September 2008 for $308,800 (parking included)
• Currently listed for $308,800
• Assessments of $163 a month
• Taxes of $2724
• Bedroom sizes are: 12×9 and 10×11
• Central air
• In-unit laundry
• Re/Max Signature still has the listing.  See more pictures here.

Before you start hyperventilating at the prospect of a $600,000 1-bedroom in Streeterville, please keep in mind that there are actual comps behind the listing of this large 1-bedroom unit in 240 E. Illinois, the Fairbanks at Cityfront Plaza.

Unit #2810 is, according to the listing, an east facing unit. It also has “upgraded” kitchen and baths.

Here are some recent comps:

Unit #3110:

• Sold in May 2008 for $574,500
• Re-sold again in August 2008 for $580,000

Unit #3010:

• Sold in May 2008 for $584,500

I don’t know if these sales included the parking or not (I’m assuming they did.)

Sophia Klopas at Koenig & Strey has the listing. See more pictures and the listing here.

Unit #2810: 1 bedroom, 1.5 baths, 1050 square feet

• Sold in May 2008 for $554,500
• Currently listed for $600,000 plus $55,000 for parking
• Assessments of $450 a month
• Taxes are “new”

This 2-bedroom unit at 1412 W. Division in West Town might be a little too close to the Kennedy Expressway for some people’s tastes, but it’s now bank-owned and on the market for about 40% less than it sold for in 2006.

See the exterior picture and the listing here (unfortunately- no interior pictures available).

Has anyone seen the inside?

This was on the market last year, and from what I can remember, it had fairly standard new construction finishes on the interior.

The bank has recently reduced the price by $27,100.

The listing says “Cash Only” and warns that there is “No HOA.”

Is this a deal?

Linda O’Donnell at Re/Max Signature has the listing.

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

• Sold in September 2006 for $435,000
• Bank-owned as of June 2008
• Was listed by the bank in October 2008 for $289,900
• Reduced
• Currently listed at $261,900 (1 car parking looks to be included)
• Assessments of $150 a month
• Taxes of $6596
• Listing seems to indicate no central air
• Bedroom #1: 13×14
• Bedroom #2: 11×12
• Living room: 13×15
• Kitchen: 5×8