Crib Chatter

There’s already been some price reductions on the one bedroom units at Helmut Jahn’s 600 N. Fairbanks in Streeterville.

But now price reductions are starting on the larger units as the weeks drag on without many re-sales.

I still haven’t seen any of the larger units re-sell in the building. Closings began the first week of November 2007.

Current statistics for the building (out of about 227 units):

• 37 for sale
• 15 for rent on the MLS but there may be more on Craigslist and the Reader

Closings also continue.  It appears that they are about 2/3rds of the way done with the closings in the building. That would mean about 30% of the building is back up for sale.

Unit #1301: 3 bedrooms, 2.5 baths, 1746 square feet (lowest residential floor)

• Sold in November 2007 for $805,000
• Originally listed in January 2008 for $929,000 (plus $60k for parking)
• Reduced and now listed at $895,000 plus $60k for parking
• Assessments of $585 a month
• Koenig & Strey has the listing

There are some neat old mansions in Kenwood/Hyde Park that have been saved in recent years.  The mansion at 4545 S. Drexel is one of them.  Designed by famed architects Burnham & Root, the house was carved up into condominiums in 2002.

But some sellers have had difficulty re-selling for any profit.

Unit #3A sold for $237,500 in December 2003 and re-sold in August 2008 for $237,000.

A large duplex down is currently on the market. It has been on and off the market for nearly two years. Thanks to the Tipster who sent me the market information.

Unit #1E: 3 bedrooms, 2 baths, 2600 square feet

• Sold in June 2004 for $335,000
• Originally listed in May 2006 for $419,000
• Recently re-listed for $324,900 (includes the parking)
• Assessments of $368 a month
• Rubloff has the listing

The Marquee, at 1454 S. Michigan, began closings in January 2008. It was originally marketed as an affordable highrise. It was NOT luxury.

Not surprisingly, there are flips in the building.

Current statistics in the building:

• 21 for sale on the MLS (many are from the developer)
• At least 3 for rent

Some of the low floor closings are coming back on the market including this 2 bedroom.

Unit #505: 2 bedrooms, 1 bath

• Closed in January 2008 for $299,800
• Currently listed for $319,900 plus $30k for parking
• 300 square foot terrace
• Assessments of $242 a month
• Dwell Inc. has the listing

The bedrooms are very small.

• Bedroom #1: 11 x 11
• Bedroom #2: 8 x 11

This unit also appears to have the concrete ceilings that have become popular in new construction even though this building was not marketed as any kind of “loft” or a “modern” building.  If anything, it was marketed as more of a vintage-type building.

In December 2007, Crain’s ran a story about smaller developers who were facing foreclosure on their developments. 

The Ashton Lofts at 1610 W. Fullerton in Lincoln Park was included as one of the developments in trouble in the article. From Crain’s:

In October, LaSalle Bank N.A. filed a foreclosure suit to collect $5.3 million on an overdue construction loan for the Ashton Lofts, a 39-unit project at 1610 W. Fullerton Ave.

Several condo buyers bailed out of the project as it struggled with construction delays, preventing Teiva Hirshon of Premiere Midwest Developers LLC from paying back the loan by a June 1 maturity date. Pushing the due date back to September didn’t help, either.

Yet sales have picked up in the last few weeks. Nineteen units have been sold or are under contract, says Mr. Hirshon, who also is trying to refinance.

“I’m actually quite enthused,” he says.

Apparently, the enthusiasm was short-lived because the buildings remaining units are going up for bulk sale in an auction in April. [Thanks to the Tipster who alerted me about the auction.]

From the listing:

5-STOREY, 39 UNIT CONDO DEVELOPMENT IN PRIME LINCOLN PARK @ FULLERTON/ASHLAND/CLYBOURN. BULK SALE OF 22 REMAINING CONDO UNITS, 4150SF OF 1ST FLR RETAIL, DIVISABLE, 42 GRG PRKG SPCS 15 UNITS & 15 PRKG SPCS HAVE BEEN SOLD & CLSD.

UNSOLD UNITS INCL 1, 2, 3 BDRMS FROM 935SF TO 1700SF. PH W/PANORAMIC SKYLINE VWS & PVT TERRC SPACE. FLR-TO- CLNG WNDWS. 10′ CLNGS BULK SALE ONLY AUCTION DATE SET FOR MID-APRIL ’08.

Here are some pictures of interiors of the units:

Currently, Baird and Warner is handling the listings.

Apparently, we’re not the only ones who noticed that The Sterling is Chicago’s #1 foreclosure high-rise.

Can articles on River City, Millennium Centre and The New York, other notorious foreclosure buildings, be far behind?

We’ve been chattering for months about the foreclosures in The Sterling, at 345 N. LaSalle in River North.  Crain’s has all the dirty details this week:

Over the past three years, lenders have filed 95 foreclosure suits, accounting for about $40 million in loans, on condominiums in the 389-unit high-rise, fueling a big drop in condo values throughout the building.

Completed about six years ago, the Sterling has emerged as the most prominent symbol of the excesses of the downtown condo boom.

“What a nightmare,” says Michael Fields, owner of Jax Realtors & REO Group, a Berwyn-based brokerage that specializes in foreclosures and has two units for sale in the Sterling.

There are 389 units in the building. That means that about 25% of the building has already gone into foreclosure.

And the deluge isn’t over yet.

Whatever the cause, “it’s just a horrible situation,” says Sandra Halliburton, owner of Halli Enterprises LLC, a South Side brokerage hired by banks to sell real estate taken over through foreclosure. “At one point in time, I had five listings in the Sterling that were all in foreclosure.”

She has one listing now for a three-bedroom unit on the 33rd floor priced at $479,700. The owner paid $801,000 for the unit in January 2005. Six months later, subprime lender WMC Mortgage filed to foreclose, claiming it was owed $599,974. The condo is under contract, says Ms. Halliburton, who declines to disclose the sale price.

Adding to the Sterling’s woes is its high percentage of investor-owned condos, which makes it harder for buyers to obtain loans. (Buildings dominated by investor-owned units tend to be viewed by lenders as riskier bets.)

Ms. Halliburton estimates as many as 80% of the Sterling’s units are rented out. She expects more price cuts as foreclosure suits continue.

Who would buy there right now with 80% of the units being rented and 25% of the building foreclosed?

The building also recently had a special assessment to cover repairs to the facade of the building.

“For run-of-the-mill (condos), it’s going to hold down prices,” says Gail Lissner, vice-president of Chicago real estate consultancy Appraisal Research Counselors.

On a per-square-foot basis, resale prices at the Sterling fell 17.4% from 2005 to 2007 as a wave of foreclosures swept through the building, according to Appraisal Research. That’s the biggest decline among 10 newer downtown condo buildings recently surveyed by the consultancy. Prices were flat on average, falling in four buildings and rising in six.

What happens in the future for The Sterling?

The situation isn’t hopeless, says Ms. Lissner of Appraisal Research. With its location and views, “there’s absolutely no reason in the world that that building should not do well over the long term,” she says.

Would you buy in The Sterling?

I’m always on the hunt for authentic lofts. None of this “soft-loft” new construction stuff.

There are four units currently available in a cool building loft building called The Map Factory Lofts,  at 5235 N. Ravenswood, in Andersonville.

Three are listed on the MLS and one is FSBO on Craigslist.

These aren’t the usual 700 square foot one bedrooms.  No, these are the 1,100 square foot and bigger type units.

The building boasts huge windows and several of the units are interesting duplexes. The kitchens and baths are a bit more out of date (no granite here) but they just don’t convert them like these anymore.  These older buildings is where you find the units with the interesting and quirky layouts.

Unit  #29: 2 bedrooms,  1 bath,  1400 square feet, duplex

• I couldn’t find the last sales price
• Currently listed for $324,900 plus $25k for parking
• Assessments of $261 a month
• Koenig & Strey has the listing

Unit #31: 1 bedroom, 1 bath, 1200 square feet, top floor unit

• Sold in March 2002 for $230,000
• Currently listed for $289,900 plus $25k for parking
• Assessments of $266 a month
• Prudential Preferred has the listing

Unit #1: 2 bedrooms, 1 bath, 1100 square feet

• Currently listed FSBO at $319,000
• Assessments of $240 a month
• Not sure about in-unit w/d as some of the listings say it has it and some don’t say anything
• FSBO on Craigslist

If you’ve walked up North Clark in Lincoln Park, you can’t help but notice 2625 N. Clark because it’s one of the few highrises on the street.

Built in 1983, the building is 20 stories with 133 units. It does have an attached garage.

It was an apartment building until it was converted into condos in 2005. As you can see from the pictures below, some of the owners bought the upgrade package and some did not.

There are no washer/dryers in the units.

Several one bedroom units are for sale in short sale. Units #1504 and #1804 have the same owner and the same listing on the MLS:

INVESTORS DREAM POSSIBILE SHORT SALE! GREAT LOCATION & RENTED @ $1600/MONTH W/A LAKE VIEW 1/BED 1BATHCONDO IN STUNNING LINCOLN PARK. CLOSE TO THE CTA, WRIGLEY FIELD, RESTAURANTS, SHOPPING, LAKE & EXPRESSWAY.

BUILDING HAS NEW LAUNDRY, EXERCISE ROOM, 24 HOUR DOOR MAN, BIKE ROOM & SUN DECK W/GRILLS. PET FRIENDLY UP TO 50LBS. DEEDED PARKING AVAILABLE FOR PURCHASE, MUST SELL ASAP!

Unit #1804: 1 bedroom, 1 bath, about 700 square feet

• Sold in August 2005 for $304,000
• Currently listed for $219,900 (parking $30k extra)
• Assessments of $414 a month
• Regal Realtors has the listing

Unit #1504: 1 bedroom, 1 bath, about 700 square feet

• Sold in August 2005 for $304,500
• Currently listed for $234,900
• Assessments of $414 a month
• Regal Realtors has the listing

Or you can rent either of these units:

• Unit #1804: $1395 a month
• Unit #1504: $1380 a month

Why would you rent when your landlord “must sell ASAP”?  Hm…

On the other side is this investor, currently trying to sell two units next to each other on the 18th floor. These two are the most expensive in the building:

CONDO IN THE HEART OF LINCOLN PARK FEATURING GORGEOUS UNOBSTRUCTED VIEWS TO THE WEST. PARKING SPACE AND STORAGE LOCKER INCLUDED IN PRICE!

BUILDING HAS NEW LAUNDRY, EXERCISE ROOM, PARTY ROOM, STORAGE LOCKERS AND BIKE ROOM. PET FRIENDLY UP TO 50 LBS. GREAT EXTRA COMMON PATIO WITH GAS GRILLS.COMBINATION WITH UNIT NEXT DOOR AVAILABLE FOR JUMBO SUITE

Unit #1808: 1 bedroom, 1 bath, 705 square feet

• Sold in August 2005 for $318,000 (included the parking spot)
• Originally listed in August 2006 for $360,000
• Currently listed for $349,900 (includes the parking spot)
• Assessments of $476 a month
• Ownacondo.com has the listing

Unit #1807: 1 bedroom, 1 bath, 671 square feet

• Sold in July 2005 for $301,000
• Originally listed in August 2006 for $350,000
• Currently listed for $349,900 (parking included)
• Assessments of $445 a month
• Ownacondo.com has the listing

There are no interior pictures of Units #1807 and #1808.

Some units on the market have been upgraded.

Unit #1606: 1 bedroom, 1 bath, 671 square feet

• Sold in August 2005 for $303,500
• Currently listed for $284,900 plus $30k for parking
• Assessments of $409 a month
• Mark Cohen and Brenda Lipscher at Coldwell Banker have the listing

[Thanks to the Tipster who sent me listing information for some of these units.]

Despite all the doom and gloom, sales are still happening.  People are still buying condos from flippers. Million dollar homes are still being sold. And even 20-somethings are buying in Lakeview and Lincoln Park for nearly half a million dollars.

From Smart Money Magazine:

INDIFFERENT TO THE bleak real estate headlines, 26-year-old Michael Klauer and his fiancée recently bought a two-bedroom condo in the desirable Lake View neighborhood in Chicago. They weren’t in a rush to buy, but when an opportunity presented itself only a month after they started looking, they jumped on it.

The apartment, listed at $519,000, was theirs for only $480,000 — an initial offer they didn’t back down from, even though they knew the seller had bought the place 10 months earlier for $512,000. Factoring in the broker’s fee and sales taxes, the seller lost more than $44,000 on that deal, according to the couple’s realtor, Jay Michael, owner of the Estate Property Group in Chicago.

“We leveraged the fact that they’d already moved out and were in a [financial] struggle to keep two places,” Klauer says. And even though the condo’s value may drop further, the couple wasn’t concerned since they plan to live in the place for at least three to five years. “It was a good time to buy,” he notes. “Prices are on the down low, and it’s something I could sit on for a while.”

Several things:

Just because you buy something under the price the last owner paid, does that make it a “deal”?

Is three to five years long enough to wait out possible future price drops? The Chicagoland area has seen periods of 5 to 7 years in the past where prices remained flat.

The 20-something’s realtor, however, seems to be lowballing more than his clients did.

Jay Michael, the Chicago realtor, is in the market for a condo himself these days. But when he sold his apartment in December last year, he moved into a rental so he can take his time.

“I’m looking for someone who wants to sell far more than I want to buy,” he says. When he finds that seller, he won’t hesitate to low-ball. A month and a half ago, he made a $750,000 offer on an apartment with a $1.175 million asking price. “The agent told me the client was so insulted they didn’t even want to counter,” he says. “So I told them to keep the offer on file. Further down the line they might find they want to sell at $750,000.”

The Lakeview condo referred to in the story is at 3024 N. Sheffield. Mr. Klauer bought it last June for $480,000.

What’s selling? Units under $400,000.

What’s not? Units over $400,000.

Therefore, to sell, price under $400,000.

That’s what a bunch of owners are doing at 1305 S. Michigan, the Museum Park Lofts, in the South Loop.

The building was built in 2006 but because of all the construction surrounding it, it doesn’t seem to have any really great views.  Mostly, they seem to be of Michigan Avenue or other buildings.

Currently, there are eight 2/2s on the market.

• One unit is listed over $400,000: at $419,000 plus parking
• Seven units are listed under $400,000: the cheapest at $349,000 plus parking

Unit #1605: 2 bedrooms, 2 baths, 1206 square feet

• Sold in May 2006 for $357,000
• Was listed at $409,000
• Just reduced to $399,900 plus parking
• Assessments of $408 a month
• Deborah Thomas at Coldwell Banker has the listing

Unit #1103: 2 bedrooms, 2 baths, plus den, 1318 square feet

• Sold in April 2006 for $366,000
• Currently listed for $399,000 plus parking
• Assessments of $338 a month
• Rubloff has the listing

Many people going into foreclosure attempt to sell first to get out of trouble. 

There was recently a foreclosure auction on 865 N. Hermitage #3 in West Town but it was also on the market prior to the auction.

Unit #3: 3 bedrooms, 3 baths, 1.5 parking, 3 private decks, Bosch kitchen

• Sold in March 2006 for $550,000
• Was listed for $563,000
• Foreclosure auction price of $416,904
• Assessments of $265 a month
• RPV Realty had the listing before it went to foreclosure