Crib Chatter

One Museum Park at 1211 S. Prairie was supposed to be the epitome of luxury in the South Loop.

It has stellar views of Grant Park and the Lake.

Closings started last spring on the 286 units.

Flippers have been trying to flip since last April. As sales have dried up, many have been trying to rent out the units instead.

But what if you can’t sell AND you can’t rent?

The situation is looking pretty interesting in the building as rents seem to be plunging. Looking for a deal? There are plenty.

We’ve chattered about Unit #1203, a 1460-square foot 2-bedroom twice before. Both the price and the rental price have been reduced since we last checked in on it in July.

Is this a steal at this rental price?

And what does this rental price say about what sales prices should ultimately be in the building?

Here’s the rental listing:

YOU WILL BE AMAZED BY THE VIEWS OF THE LAKE FRONT & MUSEUM CAMPUS IN THIS DELUXE TWO BEDROOM/TWO BATH PLUS DEN. ENJOY THE UNOBSTRUCTED VIEWS FROM EVERY ROOM & BALCONY. HIGHLY UPGRADED THROUGHOUT WITH MARBLE BATHS, GRANITE KITCHEN, WOODMODE CABINETS, FLOOR TO CEILING WINDOWS.

LUXURIOUS AMENITIES INCLUDE INDOOR & OUTDOOR POOL, COMMUNITY ROOM, EXERCISE ROOM, SAUNA. PARKING AVAILABLE FOR $200/MONTH.

Alberto Michel at Coldwell Banker has the listing. See more pictures here.

Unit #1203: 2 bedrooms, 2 baths, den, 1460 square feet

• Sold in April 2008 for $627,000
• Was listed in July 2008 at $869,000 (parking extra)
• Reduced
• Currently listed for $850,000 (parking $40k extra)
• OR– you can rent it
• Was listed in April 2008 for $4000 a month
• Reduced
• Was listed in July 2008 for $3000 a month plus $200 a month for parking
• Reduced
• Currently listed for $2500 a month plus $200 a month for parking
• Assessments of $414 a month
• Taxes are “new”

If a 1-bedroom is more your style, why not rent a 987-square foot one on the 45th floor and wake up every morning with these views?

Unit #4502: 1 bedroom, 1 bath, den, 987 square feet

• Available for rent for $2200 a month plus $200 for parking
• Anita Constant at Coldwell Banker has the listing. See more pictures here.

Currently, the cheapest 1-bedroom rental is $2095 a month plus $150 for parking on the 43rd floor.

Indoor pool. Exercise room.

Sounds like a deal to me.

Crain’s has an update on the status of Waterview Tower, the luxury hotel/condo building on Wacker in the Loop, which stopped construction several months ago.

The Export-Import Bank of China which was apparently going to ride to the rescue of the project with a $400-million construction loan- has now pulled out of the deal.

Crain’s reports that this refusal to approve the loan increases the chances that Bank of America, which took over the loan from LaSalle when it acquired that bank, will foreclose on the project.

What are the options for the building?

The bank’s decision leaves Mr. Dvorak in a tough spot. He has been courting equity partners for the $500-million project for some time, and more recently has been trying to sell off its hotel, condo and parking components separately, according to people familiar with the development.

Under one scenario, the developer would finish the hotel and sell the rights to build the condos later, when the condo market recovers. But running a luxury hotel while construction is under way on the building’s upper floors would be extremely disruptive and a potential deal-killer. Another option: Convert the current structure, a 26-story concrete shell, into apartments.

“They’re looking for anything, any option for a transaction,” says one person aware of Mr. Dvorak’s plans.

One positive development is that Shangri-La Hotels is apparently still onboard for the project.

Buyers have signed contracts for 156, or 67%, of the residential condos in the building, according to Chicago-based consulting firm Appraisal Research Counselors. With an average price of more than $800 a square foot, the condos are among the most expensive in new buildings in the city.

The tower’s 200 hotel units are also being sold off individually as condos; buyers have signed contracts for 80 of the condo-hotel units, or 40%, according to Appraisal Research.

Shangri-La Hotels & Resorts, the Hong Kong-based luxury hotel chain that would run the hotel, remains committed to the development, according to an executive.

The developer “has fulfilled its obligations to us,” says Shangri-La Regional Vice-president Stephen Darling. “We’re excited about the project and we hope that everything will materialize as it should.”

Let’s hope something gets built at this location. It’s awful for the city to have a half-completed shell of a building at that prominent location.

Construction loan on hold for Waterview Tower [Crain’s Chicago Business, Nov 5, 2008]

This 2-bedroom unit at 749 W. Wellington in Lakeview has been on the market since last February and has been reduced several times.

The listing was recently canceled and then re-listed- at a higher price. I’m assuming the price change now includes the parking (and before that parking was “extra”.)

Here’s the listing:

Sunny bright & spacious vintage rehab w/ high ceilings, hrwd floors, s/s appliances, eat-in kitchen & rear deck. Split floorplan allows privacy from one BR to the other. Tasteful decorative touches include decorative antique fireplace, light sconces & custom painting.

Lots of closet space and separate storage. Fantastic location – close to El, shopping, restaurants, nightlife and the Lake. Deeded Gated Prkg included.

Michael Loizzi at Coldwell Banker has the listing. See more pictures here.

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

• Sold in August 2000 for $213,000
• Sold in August 2004 for $270,000
• Originally listed in February 2008 for $310,000
• Reduced several times to $275,000 by October 2008
• Canceled
• Re-listed in October 2008 for $299,000 (parking included)
• Assessments of $363 a month
• Taxes of $3,610
• No central air- window units
• Bedroom #1: 16×13
• Bedroom #2: 11×11

This 2400-square foot brick loft at 1200 N. Wells in Old Town is what a “loft” is supposed to look like.

Tall ceilings, open space and a ton of brick.

Although the listing calls it “loft-like.”

If this unit isn’t a loft- what is it then?

Here’s the listing:

Dramatic, rarely available 2400+ sqft River North/Old Town 3bd/2ba penthouse duplex-up, loft-like home with hardwood floors throughout main level! Eat-in cherry/granite/stainless steel island kitchen opens to separate dining area & huge living room with 23’ ceilings & exposed brick/timber detail. Crisp white baths include separate shower & jet tub in master suite.

Incredible walk-in closets throughout. Unobstructed city views from both floors & from roof deck. Washer/dryer. Professionally organized closets throughout. Dual-zoned HVAC. Listing agent owned. Offsite rental garage parking included!

Mario Greco at Rubloff has the listing. See more pictures and a virtual tour here. See the property website here.

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

• Sold in March 2000 for $383,000
• Sold in December 2002 for $430,000
• Currently listed for $699,000
• Assessments of $230 a month
• Taxes of $6,172
• No parking- but rental available nearby
• Central air
• Roof deck

We last chattered about ParkView, the latest new construction highrise in Streeterville, at 505 N. McClurg, in June as closings began.

Back then, some flippers had already listed units for re-sale hoping to get out of the properties quickly.

Two of the units we chattered about are still on the market. 

One of them, Unit #2102, has been reduced $45,000.

Here’s the listing for Unit #2102 which has been reduced:

ParkView N/E corner w/ gorgeous lake and park views. Perfect floor height. Corner 2 bd/2bth w/ flr to ceiling windows, espresso 42′ cab., espresso HDWD flr, neutral stone finishes. Split br floor plan, open kitchen w/ window and east facing balcony.

Mbth w/tub and sep. shower. Ready to move into. Fitness ctr, outdoor pool, theatre room; new 2-acre park adjacent to bldg. Handicapped deeded pkg. space 60k P#58

Virginia Properties still has the listing. See more pictures here.

Unit #2102: 2 bedrooms,  2 baths, 1464 square feet

• Sold in May 2008 for $795,500 (included the parking)
• Was listed in June 2008 for $799,900 (parking is $60k)
• Reduced
• Currently listed for $754,900 (parking is still $60k)
• Assessments of $640 a month
• Taxes are “new”

This smaller 2-bedroom, Unit #601, is still listed at the same price as June. It remains the cheapest 2-bedroom available in the building. Here’s the listing:

More than $40K below any other 2 BR unit in the building! This beautiful brand new, never lived home offers wood floors, a gourmet kit w/42′ cherry cabs, SS Kitchen Aid apps, gran cntrs, Grohe and Toto baths, floor to ceil windows.

Split floor plan provides great privacy for guests or office. Mstr bath with sep shower, jacuzzi tub, dbl bowl sinks, WI closet. Full amenity bldg in heart of Streeterville. Gar park $60K

Andrea Farley at Baird and Warner now has the listing. See more pictures here (if the B&W link doesn’t work properly.)

Unit #601: 2 bedrooms, 2 baths, 1196 square feet

• Sold in May 2008 for $517,000
• Was listed in June 2008 for $499,000 plus $60k for parking
• Currently listed for $499,900 plus $60k for parking
• Assessments of $413 a month
• Taxes are “new”

Last May we had quite the discussion about this 3-bedroom vintage unit at 522 W. Briar in East Lakeview that was renovated and seemed to have “everything” except parking.

I had asked a simple question: Why isn’t this selling?

Six months later, it still hasn’t sold and has been reduced another $30,000.

Here’s the listing:

Light abounds in top floor vintage renovation. Sought after East Lakeview. Refinished floors, high ceilings with molding, all new lighting and custom shades. New eat-in kitchen with custom cabinets Wolf and Viking appliances, and granite tops with butler’s pantry and wine fridge.

Separate dining room with Juliet balcony, living room wood-burning fireplace and built-in window seat. Generous sized beds and both baths completely renovated. In-unit washer/dryer. Covered rental parking.

Randy McGhee at Koenig & Strey has the listing. See more pictures here.

Unit #3: 3 bedrooms, 2 baths, no square footage given

• Sold in August 2003 for $276,000
• Sold in May 2005 for $385,000
• Originally listed in April 2007 for $599,000
• Canceled in June 2007
• Re-listed in June 2007 for $624,900
• Canceled in December 2007
• Re-listed in February 2008 for $599,999
• Was still listed in May 2008 for $599,999 (no parking)
• Reduced again
• Currently listed for $569,000
• Assessments of $501 a month
• Taxes of $3569

We first chattered about this cute North Center 4-bedroom home at 1750 W. Grace in June 2008.

Agent Eric Rojas, who was NOT the agent on the property but ran an open house there, updated us on the house in September after it was reduced further.

It’s still on the market and has been reduced again.

1750 W. Grace: 4 bedrooms, 2 baths, no square footage listed, 2 car garage

• Sold in May 2006 for $555,000
• Was listed in May 2008 for $669,900
• Reduced
• Was listed in June 2008 at $649,900
• Reduced
• Was listed on September 10, 2008 at $598,500
• Reduced
• Currently listed for $584,900
• Taxes of $8408
• Central air

Remember our chatter?

Bob thought it would sell for $500k. Eric said no way:

“BOB buddy, you have grossly underestimated the single family home market in this area. $500K is way too low. I hope you’re not the guy who predicted 2109 W Montrose chatted about on this site should sell around 350K… and it sold in 23 days for $440K!

My personal number I’d buy the home for is much higher. It will sell for more than they paid (like $550K in 2005 or so). This is a solid, move-in condition home with plenty of space for a family of four. I think I mentioned I had my wife come by with our kid to look at it (to confirm if my instincts were right). She agreed we could enjoy the house. The family room, deck and yard really open up the house. The four bedrooms and finished basement create huge flexibility in how someone can live in the home.

The issue was the price they went on and now… the interior decor. In this location, people expect a dump under $600K… it’s better than a dump! I was slammed at the open house last week and the listing agent as been busy there since going $598,500.

Again, at the current asking price minus a decent negotiated concession, I’d move right in… wait awhile till the kids were over 5 years old… then swap out kitchen and bath finishes, carpet the downstairs, paint and decorate with our current furniture etc…. The house would sell in a week for $629k!”

Joshua Katz at Rubloff actually has the listing. See more pictures here. See the property website here.

Here’s the listing again:

Well-maintained four bedroom, two bathroom cottage with hardwood floors throughout. Three bedrooms on the top floor. Finished basement provides plenty of space with large utility storage area. Great main level family room, separate dining room and fourth bedroom.

Many updates with newer windows, HVAC and roof. Big rear deck overlooks green fenced yard. Solid two car garage. Close to shopping, Brown Line, Southport and more.

Stay tuned.

Not everything is doom and gloom out there.

Remember the $720,000 south-facing 1-bedroom re-sale that was on the market at 340 On the Park in Lakeshore East in September?

It went under contract after only 21 days and has now sold.

Here’s its history:

Unit #1107: 1 bedroom, 1.5 baths, 1186 square feet

• Sold in September 2007 for $649,000 (included the parking)
• Was listed in September 2008 for $720,000 (I couldn’t tell if this included the parking or not)
• Sold in October 2008 for $715,000 (including one parking space)
• Assessments of $327 a month
• Taxes are “new”
• Victoria Carton at @Properties had the listing. (Thanks to the tipster for sending me the closing information.)

340 On the Park continues to be a “hot” building (at least for the south facing units).

This 1-bedroom unit at 1760 N. Wells in Old Town just came on the market but the listing caught my eye.

Just because another unit sold quickly in the building 8-months ago- does that mean this one will sell quickly too?

The listing states that the “last unit like this sold in 1 day this year for $278k.”

The “last unit” it refers to is Unit #1F which sold in March 2008 for $278,000.

Is that a relevant comp or a lifetime ago in this market? This unit, Unit #1E, has been on the market for a little over 2-weeks.

@Properties has the listing. See the pictures here.

Unit #1E: 1 bedroom, 1 bath, 750 square feet

• Sold in November 2001 for $160,000
• Currently listed for $279,900
• Assessments of $156 a month
• Taxes of $2421
• Central air
• W/D in the unit
• No parking
• Bedroom is 11×10

The Chicago Tribune had some interesting housing data in the Sunday Home section.

There was this gloomy statement from Diane Swonk, chief economist at Chicago-based Mesirow Financial, on the housing outlook:

“Sales and starts activity should bottom out before the end of 2009, that’s if we can get the lending apparatus moving again. But the downward pressure on home prices will take much longer, well into 2010, if not the end of 2010 as the credit crunch continues.”

Data from Midwest Real Estate Data LLC also shows that market times are soaring for condos and single family homes in Chicago.

As of October 27, average market time is up to 139 days (for both condos and SFH combined). Compare that with 2000 where it looks to be about 20 days or so and even 2005 where it was about 90 days.

Prices, however, appear to only be leveling off. Median selling price was about $150,000 in 2000 compared to $295,000 as of October 27.

Home Finance Toolkit Section by Suzanne Cosgrove [Chicago Tribune, Nov 2, 2008]