Crib Chatter

Perhaps you’ve seen this amusing Craigslist post about a one bedroom unit at 200 W. Grand in River North.

The headline reads:

$439000 1800sf with 900sf private terrace! Must Sell!

Basically, the unit is only 900 square feet but the terrace is also 900 square feet- so that’s how you get 1800 square feet.

Brilliant.

But it gets better.

This is the only condo with a private terrace (900sf) in the building. The view is north and unobstructed. Neighbors on both sides had their terrace down by “While you were out” and HGTV’s “Landscapers Design”.

Sorry- buy YOUR terrace will be a boring slab of concrete, but your neighbors’ will be lovely!

Here are some pictures of your concrete terrace from the ad:

This unit isn’t listed on the MLS. It also doesn’t have a unit number. Asking price is $439,000 plus $30k for parking.

$439,000 for 900 square feet in that building is quite pricey.

Currently, a one bedroom without the terrace is over $100k cheaper.

Unit #1605: 1 bedroom, 1 bath

• Currently listed for $305,000 plus $35k extra for parking
• Assessments of $511 a month
• Options R Us Realty and Management has the listing

The Fairbanks at Cityfront Plaza,  at 240 E. Illinois in Streeterville, has been closing for the past few months.

Flips have started appearing in the building, but not as many as you might think for a building of that size. It has 31 stories.

Current stats:

• 12 units for sale
• 4 units for rent

The “loft” units on the lower floors (the big base of the building), closed many months ago and many of those have already been rented out. Those were floors 3 through 8.

The flippers, so far, seem to be trying for the big bucks.

Unit #1408: 2 bedrooms, 2 baths,  1293 square feet

• Closed in November 2007 for $550,000
• Currently listed for $639,900 plus $55k-65k for the parking
• Assessments of $576 a month
• Centrum Properties has the listing

Unit #1105: 2 bedrooms, 2 baths, 1473 square feet

• Sold in November 2007 for $618,000
• Currently listed for $759,000 plus parking extra ($55k to $65k)
• Assessments of $590 a month
• Baird & Warner has the listing

Unit #801: 2 bedrooms, 2.5 baths, 1595 square feet

• Sold in October 2007 for $628,000
• Currently listed for $799,000 (not sure if that includes the parking)
• Assessments of $715 a month
• Centrum Properties has the listing

Fairbanks at Cityfront Plaza [website]

Some more good news for renters.

Crain’s is reporting that downtown apartment rents fell 4.3% in the fourth quarter, the largest quarterly decline since 2001.

According to the Appraisal Research Counselors, vacancies also dropped to 91.3% from 94.6% in the third quarter.

The Appraisal Research Counselors admit that the excess condo supply will be competing for renters with apartment landlords.

On the supply side, downtown developers will complete 1,676 new apartments this year, a record, with another 2,509 set to open in 2009, according to Appraisal Research.

Landlords will face more competition from the so-called shadow rental market: condominiums that are rented out rather than occupied by their owners. Condo developers will complete a record 5,900 units this year, and many will wind up as shadow rentals.

“With the record-setting 1,676 units coming on-line in 2008, the rise in condo rentals expected with record condo deliveries in 2006, as well as the weakening job market, absorption of new (apartment) units and maintaining net effective rents will certainly be a challenge,” the Appraisal Research report says.

If job growth slows further, that will add another wrinkle into the market. But even without a recession, the competition will be fierce for investors to find renters for their condo units.

“It’s certainly going to be a year of options for renters,” says Appraisal Research Vice-president Ron DeVries.

Downtown Apartment Rents Fall in the Fourth Quarter [Crain’s] (check out the nice chart in the article)

Chicago has an enormous amount of churches but as the congregations dwindle, many religious orders are left to contemplate: what to do with a church that isn’t wanted anymore?

Years ago, Chicago figured out the answer: convert them into housing.

The latest such project is in the McKinley Park area a few blocks from the orange line stop.

The St. Phillipus Lofts, at 3556 S. Seeley, is ten units priced from $259,900 to $379,900. The $259,900 unit is a 1027 square foot 2 bedroom, 2 bath.

There is parking available.

Sorry, no pictures yet of the interior.  Deliveries from February until late spring.

Century 21 S.G.R. has the listings.

St. Phillipus Lofts [Century 21 listing]

I feel for sellers and agents as they try and gauge what the market is this spring. It’s hard to price properties right now.

All sellers want to make money off their sale.  But what is the “market” price and what is listing too high?

333 S. Des Plaines is a 75 year old brick building in the loop/west loop (east of Greektown) that was converted into lofts in 2004. It has 40 units and parking in the building.

This penthouse unit is on the market.

Unit #707: 3 bedrooms, 2 baths

• Sold in July 2005 for $500,000
• Currently listed for $625,000 plus $25,000 for parking
• Assessments of $413 a month
• Keller Williams Realty- West Loop has the listing

It has large room sizes, with the master bedroom at 21 x 13.

The question to ask is, has this property really appreciated over 25% in less than three years?

Only the market knows.

We’ve chattered a lot about 340 on the Park but what is happening in that building is illustrative, I believe, of what is happening all over the Chicago condo market.

The building is popular. It is getting a lot of press. It has “location, location, location” with unobstructed views to the south of Millennium Park, the Lake and the historic Michigan Avenue wall.

Yet, very few units have been flipped in the building since closings began in July 2007. Some units have been on the market for 8 months.

I’m not saying nothing has re-sold, but it’s been a fairly paltry dozen units or so given what is available and the popularity and size of the building. Again, that’s in 8 months.

Here is a list of some re-sales (it is NOT a complete list- but it gives you an idea.)

Unit #206: 1 bedroom

• Sold in July 2007 for $409,000
• Re-Sold in October 2007 for $644,000

Unit #405: 1 bedroom

• Sold in August 2007 for $481,000
• Re-Sold in November 2007 for $600,000

Unit #805:

• Sold in September 2007 for $474,000
• Re-Sold in November 2007 for $645,000

Unit #1200: 2 bedrooms, north facing

• Sold in August 2007 for $481,000
• Re-sold in January 2008 for $635,000

Unit #803:

• Sold in August 2007 for $793,000
• Re-sold in January 2008 for $1.048 million

Victoria Carton, an @Properties agent, who has commented on Crib Chatter in the past, has her own blog about 340 on the Park. She lives in the building.

She recently blogged about the Chicago condo market, in general, and 340 on the Park more specifically. (Thanks to the Tipster who sent me the link.) From 340blog.com:

The National real estate market is definitely seeing some pricing adjustments. Savvy buyers and sellers know that local information is what matters most in real estate. The condominium prices in GREAT AREAS and GREAT BUILDINGS are strong and rising in many cases despite the National trends. Yes, the condominium inventory is rising, but that is because well-informed owners are pricing correctly and waiting for the informed buyer.

One of the biggest determinants of value in the real estate market is “scarcity.” There are simply no more building sites available on the Northern exposure of Millennium Park. Period. The limits to lake and park views, as well as lake and park access are scare as well. There are even fewer locations with proximity to shopping, restaurants theaters and museums. There may be some deep discounting going on in some “overbuilt” sections of the Chicago condominium market, but premium and “scarce” properties will continue to hold their own.

Units continue to close in 340 on the Park. Recently some as high as the 55th floor have come on the market.

But some of the flips of the bigger units are even more interesting.  I haven’t yet seen a successful flip in the upper bracket.

It appears that some are selling nearly at “cost” (pre-construction prices) and others will be lucky to make any profit at all.

Specifically, there are a bunch of units in the O1 Tier. It apparently was one of the most popular tiers, as you can see why from the pictures.

These are from Unit #5501:

Unit #5501: 3 bedrooms, 3.5 baths, 2371 square feet

• Sold in January 2008 for $1.617 million
• Currently listed for $1.86 million
• Assessments of $752 a month
• 2 car parking extra
• Vangel Realty, Inc. has the listing

Here are some other similar units and what they recently closed for.  Unit #5001, five floors below it, closed in January for $1.869 million. And #5201 closed for $1.584 million.

But there are a bunch of the same units all for sale on other floors that show an interesting perspective on what is going on in the building.

Unit #3201: 3 bedrooms, 3.5 baths, 2371 square feet

• Sold in January 2008 for $1.442 million
• Currently listed for $1.725 million

Unit #3301: 3 bedrooms, 3.5 baths, 2371 square feet

• Sold in December 2007 for $1.644 million
• Currently listed for $1.699 million

Unit #4501: 3 bedrooms, 3.5 baths, 2371 square feet

• Sold in January 2008 for $1.588 million
• Currently listed for $1.95 million

Let us recap the current list prices:

• #3201: $1.725 million
• #3301: $1.699 million
• #4501: $1.95 million
• #5501: $1.86 million

Remember, they all have the same finishes (same kitchens, baths etc.) All the kitchens in these units look like this:

Floor DOES seem to matter. This is a picture of the livingroom of Unit #3301. Notice how you can see the building next door.  In the pictures above, with #5501, you have unobstructed views.

It seems to me that some of the flippers on the upper floors are just trying to dump these bigger units and get out.  After carrying costs, closing costs, and realtor fees, what profit will be left?  More importantly, how long will they be able to hold on?

Stay tuned.

Printer’s Row has many of Chicago’s original loft buildings and some of the city’s most “authentic” lofts.

The Mergenthaler Lofts at 531 S. Plymouth is one of those buildings.

Originally built in 1886, it was converted into apartments in 1979 and then into condominiums. There are only 20 units in the building. Some parking is available in an outdoor lot next door to the building.

They just don’t make them like this anymore – with this size and spaciousness.  Great windows.

Unit #502: 1 bedroom, 1 bath,  1300 square feet, corner unit

• Sold in April 2003 for $279,000
• Currently listed for $364,900
• Assessments of $498 a month
• Century 21 has the listing

433 W. Briar Place is a conversion of a 34 unit 1929 highrise in Lakeview. The developer started selling these over a year ago.

I last chattered about this building in October when the developer was trying a sealed bid sale to move some of the units.  From the bid listing:

Fab. Vintage 11 story building at 433 Briar between Sheridan and Broadway. 2 & 3 Bedroom, 2.5 Bath units from 1,650 sf to over 2,600 sf. Developer elects to use Sealed Bid Sale – Bid Deadline Nov. 7. Buyers can pick their finishes on most units with 60 day delivery. Very Private & intimate property that must be seen. The developer will save over $1,000,000 by selling quickly and will pass those savings on to buyers who can move quickly. Originally pre-construction priced from $250,000 to $900,000.

From the public records, I can only find six units that have closed with the last closing occurring in November 2007.

The MLS is showing five units for sale.

• The most expensive is Unit #9A: 3 bedrooms, 2.5 baths listed for $880,000 (parking extra)
• The cheapest unit is Unit #1A: 2 bedrooms, 1 bath listed for $345,000

The units have all been rehabbed and have washer/dryer included. Parking is sold separately.

Unit #3C: 2 bedrooms, 2 baths, 1650 square feet

• Currently listed for $515,000
• Assessments of $315 a month
• Baird & Warner has the listing

Unit #4B: 2 bedrooms, 2.5 baths, 1650 square feet

• Currently listed  for $530,000
• Assessments of $345 a month
• Baird & Warner has the listing

When these first went on the market, I thought they would sell fast.  They are big, vintage units with everything new. They have washer/dryer and, most importantly, you could buy parking.

What went wrong?

Unit #6B sold in November 2007 for $505,000.

The building at 1503 S. State, the former warehouse for State Street’s Boston Store in 1890, was rechristened The 15th Street Lofts in 2006 when the building was converted into 78 condo units.

Two-thirds of the South Loop building is timber, and a third is concrete pier units with 11 to 12 foot ceilings.

The building originally started closings in March 2006.

The developer is still trying to sell original units.  I found six units on the MLS still owned by the developer under the “developer close-out.”  Some say “recently reduced” in the listing.

And now, two years later, we are also starting to see some owners under stress,  as there are two units in the building that are on the market as short sales.

Unit #708: 2 bedrooms, 2 baths, 1146 square feet, corner unit

• Sold in August 2006 for $375,000
• Currently listed for $349,500 (includes the parking)
• Assessment of $331 a month
• Corner unit
• Dylan Hood & Associates Realty Group has the listing

Unit #601: 2 bedrooms, 2 baths, 1101 square feet

• Sold in March 2007 for $405,000
• Currently listed at $305,000 plus $25k for parking
• Listing says “subject to bank approval”
• Assessments of $371 a month
• New Home Experts has the listing

There is also a one bedroom for sale which is NOT a short-sale.

Unit #402: 1 bedrooom, 2 bath

• Sold for $255,000 in July 2006
• Currently listed for $267,900 plus parking for $30k
• Assessments of $281 a month
• American Invsco Realty has the listing

We’ve talked about the prices in the South Loop compared to the North Side before.

But what about a truly classic 1870 mansion and coachhouse?  And I do mean MANSION.  This house puts the new McMansions to shame.

The Elbridge Keith Home at 1900 S. Prairie is 12,000 square feet,  including a coach house.

Here’s an original picture of the house.  Love the horse in front!

Currently, the owner is living only on the second floor.  Each of the first three floors has a kitchen.

The listing says zoning would allow the house to remain as a single family home, become a bed & breakfast or have other commercial applications (restaurant, art gallery etc.).

The two story coachhouse in the backyard has already been renovated.

The rest of the house is a huge “project” (which the listing admits.)

Who’s up for it?

These are pictures from the first floor- which the current owner is not even using and which has the most authentic features.

These are  from the second floor:

1900 S. Prairie Avenue: 7 bedrooms, 7 baths, 2 car garage, 12,000 square feet

• I couldn’t find a prior sale price because it looks like it has been in only two or three families since it was originally built in 1870
• Originally listed for $4.3 million
• Currently listed at $3.35 million
• Renovated Coach House included
• Scott Foster at Keller Williams has the listing

From the listing:

For the first time in many years historic 1900 S. Prairie Avenue is on the market. Built in 1870 it is thought to be the oldest existing mansion on the Avenue. Elbridge Gerry Keith a wealthy banker and wholesaler hired architect Jonathan W. Roberts to design this three story structure and stable.

The main residence is about 7100 square feet. Constructed of top quality materials including Joliet limestone and red brick this home has many of its original details still intact: plaster moldings large windows fire place mantels mahogany woodwork and parquet inlayed floors.

The home has been transformed over the years. The 2100 square foot stable was recently renovated and converted into a two bedroom two bath coach house with beamed ceilings hardwood floors and a family room and an attached two car garage.

Check out the website for more pictures (including pictures of the neat coachhouse):

1900 S. Prairie [Keller Williams property website]

Here’s a link to some more history on the house.