Crib Chatter

I last chattered about 635 N. Dearborn in River North in October 2007. At the time, some sellers seemed pretty desperate.

Unit #1703: 2 bedroom, 2 bath, 991 square feet

• Sold in January 2004 for $373,500
• Was listed in October 2007 for $395,000 plus $35,000 for parking (two spaces available)
• Still listed for $395,000 
• Listing says “Brand New Unit- Never lived in!”
• Assessments of $548 a month
• Baird and Warner has the listing

Looks like it will continue to be “never lived in” for quite some time.

Additionally, this two bedroom unit was also on the market last October 2007. Now the listing states: “Price Reduced. Must Sell!”

Unit #906: 2 bedroom, 2 bath, 1250 square feet

• Sold in April 2004 for $360,000
• Sold in July 2006 for $417,500
• Was listed in October 2007 for $419,900 plus $35,000 for parking
• Now listed for $385,000 plus $35,000 for parking
• Assessments of $619 a month
• Keller Williams Gold Coast has the listing

But another, larger two bedroom unit has now gone to the foreclosure auction.

Unit #2206: 2 bedrooms, 2 baths,  1250 square feet

• Sold in July 2003 for $441,000
• Foreclosure auction price of $402,186

In 2007 there were 14 sales in the building.

Crain’s reported on Terrapin’s financial problems a week ago but now the Sun-Times is confirming that the company could be the first of the big condo developers to go out of business.

Terrapin Properties is the developer of 901 W. Madison in the West Loop as well as Burnham Pointe at 710 S. Clark in the South Loop.  Burnham Pointe is scheduled to start closings later this year but is only 55% sold.

The bank is going after one of the company’s properties in Kenosha, Wisconsin:

Indymac Bank, the primary lender on the 162-unit condo development in Kenosha, last month sued Terrapin for more than $13 million in back debts. But the case isn’t a garden-variety foreclosure in which a lender has no recourse beyond getting the keys to the property.

Terrapin’s principals, including James “Jake” Geleerd and Michael Ezgur, personally guaranteed the loan, according to the suit. Indymac is going after them, as well as principals Sherwin Braun and Greg Braun, to collect.

According to the article, Terrapin is looking for a way to stall for time.

Sources said Geleerd begged for time Friday on a conference call with a large number of creditors. They said Geleerd asserted he was close to selling the Burnham Pointe condo inventory to somebody whose cash would prop up the company.

“The atmosphere was pretty intense,” one person said. “And nobody believes that in this market, there’s an investor looking for condos.”

Could he be trying to sell the rest of the condos in the building to one of the vulture hedge funds that have been buying up chunks of condo buildings in Florida? 

Either way, it doesn’t sound good for any of Terrapin’s properties, especially Burnham Pointe.  How many of the flippers will end up closing on units in that building if the developer has gone under?

Stay tuned.

At least one developer is confirming that not all of its buyers are closing on units.

Mark Sutherland, of Sutherland Pearsall Development, developer of 550 St. Clair confirmed that slowing sales was the reason the company is going to build a hotel instead of a second condo tower in Streeterville.  From David Roeder’s column in the Sun-Times:

Influencing the switch was difficulty Sutherland had closing out condo sales in an adjacent building, 550 N. St. Clair. He said less than 10 percent of his buyers have failed to close the sales, thus putting earnest money at risk. But Sutherland said he still has only about 20 units left in the 112-unit building.

The building only started closings two weeks ago.

We have seen the “walk-aways” in other buildings such as 600 N. Fairbanks. In that building, at least a handful of units have come back on the market from the developer.

David Roeder, the Sun-Times Real Estate columnist, wrote this week that a hotel/condo unit on  the 21st floor has been successfully flipped in Trump Tower Chicago, at 401 N. Wabash in River North.

The owners of a hotel unit on the 21st floor sold it for $899,000 after initially asking $1 million, said their agent, Andrew Feldman of Andco Real Estate Group. He identified the sellers as Paul Kotsiopoulos and Deanne Thomas, a brother and sister who have invested in other condominium buildings around town.

Feldman declined to disclose who bought it and said he did not know how much profit Kotsiopoulos and Thomas made on the flip.

Let me get this straight.

The agent selling the unit didn’t know how much it closed for previously- even though that is a matter of public record.

Does anyone else think this is strange?

There are several other flips also on the market, some for much cheaper than $899,000.  One is listed for $755,900 on the 19th floor.  Perhaps the flipped unit has a better view or building location than the others on the market.

The article states that in 2004 Trump was selling them for $553,000.

The sale “shows that there’s a resale market, and that’s good news,” said Tere Proctor, who is sales associate for Koenig & Strey GMAC Real Estate and directs Trump’s sales. She said the sellers “did quite well” on the unit, but wouldn’t get into specifics.

The article also states that it wasn’t Trump who bought the unit.

Closings on the condos are expected to start in 2009.

Thanks to the tipster who sent me the listing information on Linda Rizzuto’s house.

 She is the woman in the Chicago Tribune article who said:

Linda Rizzuto, for one, said she isn’t inclined to come down from the $444,900 she’s asking for the Northwest Side home where she has lived 17 years, though not one would-be buyer has looked at it since she listed it in January.

“My friends think I’m crazy for putting the house up for sale now because the market is bad,” she said. “If I had to sell, I would be panicking, but I don’t have to sell.”

Kenworthey posted a link to her house.

Here it is and some history on the listing:

3813 N. Whipple: 3 bedrooms, 1.5 baths, 2 car garage

• I couldn’t find an original sale price – apparently 17 years ago
• Was originally listed in February 2006 for $475,000
• The listing was withdrawn in July 2006 after it was reduced to $449,000
• Came back on the market on January 4, 2008 for $444,900
• Re/Max Vision has the listing

She couldn’t sell during a much better market in 2006. Will she be luckier this time out? 

Stay tuned.

The developers at 1400 S. Michigan Avenue,  or Michigan Avenue Tower II, in the South Loop are now giving out free parking when you purchase a unit at the building.

Their ad says:

“About 30 units are still available for purchase, so buyers still have an excellent selection, including residences with Lake Michigan views and 2-bedroom corner layouts.”

First occupancy in the 28 story building is expected in September 2008.

Prices from the developer start at $306,990 for 1 bedrooms that are 692 square feet while 2 bedroom, 2 bath units start at $399,990. That price includes the parking space.

The flipper from December 2007 is still trying to sell a 751 square foot one bedroom for $330,000 plus $35k for parking.

Previously, there have been issues with new McMansions in Bucktown going into foreclosure.

The seller of these two houses on West Charleston also appear to be in serious distress.

2322 W. Charleston: 4 bedrooms, 3.5 baths, 2 car garage

• Old house sold in January 2005 for $360,000
• Public records show it sold for $1.5 million in January 2007 (not sure if this is correct)
• Was listed in July 2007 for $1.7 million
• Price was lowered to $1 million in February 2008

2324 W. Charleston: 4 bedrooms, 3.5 baths, 2 car garage

• Original house sold for $346,000 in July 2004
• Public records show the house selling in February 2007 for $1.5 million
• Originally listed for $1.7 million in July 2007
• Lowered to $1 million in February 2008

Real People Realty has both listings.  Both have the following listing:

HUGE PRICE DROP! OWNER SAYS SELL NOW! STUNNING & ELEGANT BRK STONE LUXURY BUCKTOWN SFH W/4 LIVING LEVELS/HWD FLRS/ 3FIREPLACES. GOURMET KITCHEN W/LOVELY GRANITE COUNTERTOPS & CUSTOM CABINETS. SUN-FILLED MBR W/LG WIC/FRENCH DRS TO BAL., SPECTACULAR SPA BTH W/DBL STMSHWR & MARBLE ACCTS. SPACIOUS 4TH LVL W/SKYLINE VIEWS, FRT DECK W/FIREPLACE, WALK THROUGH TO TWO REAR DECKS. 2CAR GAR./GATED LOT.

All of the interior pictures are the same for both homes.

Real People Realty has both listings.

[Thanks to the Tipster who sent me information on these homes.]

The Chicago Tribune has more details on the 34% drop in sales in January in the 9-county Chicagoland area.  It was the worst plunge since January 1998.

Here’s some info on prices per county:

The Illinois Realtors report said that in the Chicago area prices fell the most in McHenry County, where the median was down 9.6 percent, to $194,500 from $215,250 a year earlier. In second and third place in the region were Lake and DuPage Counties, which year-over-year saw prices drop 9.4 percent and 8.2 percent, respectively.

On the upside, Grundy County prices rose 8.6 percent. Cook’s and Kendall’s grew by less than 1 percent.

The article discusses how many sellers are still clinging to outdated prices, which is why inventory is increasing:

“I do think there’s a stubbornness there, particularly in high-priced markets like Chicago,” said Caroline Sallee, an economist for Anderson Economic Group in East Lansing, Mich., who studies Midwest housing. “People aren’t coming down on the price, so the home doesn’t sell and you continue to see inventory [of homes for sale] rise.”

Linda Rizzuto, for one, said she isn’t inclined to come down from the $444,900 she’s asking for the Northwest Side home where she has lived 17 years, though not one would-be buyer has looked at it since she listed it in January.

“My friends think I’m crazy for putting the house up for sale now because the market is bad,” she said. “If I had to sell, I would be panicking, but I don’t have to sell.”

She doesn’t have to sell? Then why is it on the market? What a waste of time.

Here’s the latest update on 600 N. Fairbanks in Streeterville. New listings come onto the MLS weekly.

Here is the current status (out of approximately 227 units):

• 36 for sale
• 14 for rent

Some units may be both for sale OR rent.  Closings still continue in the building.

Prices are all over the place, yet hardly anything is re-selling. There are a lot of one bedroom units in the building, so you’re seeing them competing with one another- even within the same tier.

Unit #2603: 1 bedroom, 1 bath, 873 square feet

• First listed for $419k plus $50k for parking
• Recent price change where they RAISED the price to $429,000 plus the parking 
• Assessments of $323 a month
• Listing calls it “very special”
• Rubloff has the listing

Maybe they raised because of Unit #2703 which just came on the market (and this unit is the same as #2603, just slightly different finishes choices).

Unit #2703: 1 bedroom, 1 bath,  873 square feet

• Currently listed at $450,000 plus extra for parking
• Assessments of $298 a month
• Koenig & Strey has the listing

The cheapest one bedroom on the market is actually:

Unit #1603: 1 bedroom, 1 bath, 873 square feet

• Was listed in December 2007 for $410,000 plus the parking
• Currently listed for $394,900 plus $60k for parking
• Assessments of $262 a month
• Rubloff has the listing

The rentals are also pretty competitive.  Cheapest 1 bedroom rental:

Unit #1604: 1 bedroom, 1.5 baths, 873 square feet

• $2200 a month includes the parking
• Re/Max Signature North has the listing

The Illinois Association of Realtors released the January sales figures for the Chicagoland area (which includes nine counties).  From Crain’s:

In the nine-county Chicago Primary Metropolitan Statistical Area, home and condominium sales in January totaled 3,926, compared with 5,947 in January 2007, the association said Monday in a news release.

The median home sale price in the Chicago area was $239,700 in January, down 2.2% from January 2007.

The IAR attributed the drop to “extreme winter weather.”