Crib Chatter

Momo, the Smithfield development on the corner of State and Randolph in the Loop across from the old flagship Marshall Fields, is set to begin closings any day now.  The first flips and rentals are starting to appear.

My question on the rentals is: will investors be able to get higher rents in that location?  None of the one bedroom units had parking available for purchase so every renter will have to pay to rent nearby. 

There is one listing for a rental on Craigslist that says move-in is available on February 1st. (The pictures below are of the model unit, I believe.)

It doesn’t list the square footage, but they are asking $1795.

The developer is still trying to sell some units in the building.  There appear to be four one bedroom units left which range as follows (from cheapest to the most expensive):

• 860 square feet for $299,900 on the 14th floor
• 925 square feet for $359,000 on the 31st floor

Those prices are without parking.

There is a two bedroom, two bath unit with 1348 square feet for $460,900 on the 29th floor.  The listing says “rental parking available.”

[By the way- if anyone knows the “real” address of this building, please let me know.  The developer has it listed as 151 N. State, which is the address of the Loehmann’s.  Won’t the actual address be on Randolph Street?]

Maybe you’ve seen this Craigslist ad too.  It’s been posted for what seems to be months now.

It has a title that reads: $399900 Lake Shore Drive 3 Bed / 2.5 Bath Priced $191K Under Market

Who wouldn’t at least click on the post, right?

Here is more:

Lake Shore Drive 3 Bed / 2.5 Bath Priced $191K Under Market

Unbelievable Price! 3 Bed / 2.5 bath LSD Below Recent 2 Bed Sale Recently Showcased on WGN as Deal of the Week! Lake Shore Drive!

This unit was originally priced at $570,000 has now been reduced to $399,900!

3180 N Lake Shore, Unit 4A was recently showcased by Dennis Rodkin from Chicago Magazine as being one of Chicago’s deal of the week. Dennis spoke about this property this morning at 8:40am on WGN.

Check it out!

http://www.chicagomag.com/Radar/Deal-Estate/November-2007/This-Week-on-SpikeaNovember-14-price-cuts/

THIS IS A NO BRAINER! My client has just authorized another price reduction which prices this unit $191,000 LESS THAN THE LAST COMPARABLE 3 bed / 2.5 unit at 3180 N Lake Shore. Now priced less than a 2 bedroom / 2 bath unit which sold this year for $405,000!

My client’s significant price reduction has created an unprecedented opportunity to purchase this knock out 3 bedroom, 2.5 bath 1,800 square foot Lake Shore Drive condo substantially under market.

The last 3 bedroom, 2.5 bath condo at 3180 N Lake Shore Drive, Unit 13H was listed for $599,000 and sold for $590,000!

Are the claims in the Craigslist ad true?

First of all, 3180 N. Lake Shore Drive was built in 1952 as an apartment building and converted in 1974 into condos. It is 23 stories and has 175 units.

1. Was it originally listed at $570,000?

False.

The unit was originally listed in January 2005 for $519,900. It was withdrawn after about 6 months and then re-listed in January 2006 for $515,000 (if at first you don’t succeed, try, try again.)

That listing was also withdrawn after several months, and after several price reductions, which took the price down to $459,000.

In April 2007, the listing re-appeared at $570,000.  The price was lowered numerous times throughout 2007 until it was listed at $419,900 in January 2008.

Finally, that listing was withdrawn and it was re-listed for $419,900 and then recently lowered to $399,000. 

The owner has been trying to sell this condo for three years.

At one point, this unit WAS listed at $570,000- but not “originally.”  (thanks to the tipster who sent me this information.)

2. Is it priced less than a 2/2 that sold for $405,000 in 2007?

True.

Unit 5E sold in February 2007 for $405,000. It was the second most expensive unit to sell in the building out of 9 sales in 2007. However, Unit 5E was also among the most expensive units to sell in 2006.

• Sold in February 2005 for $570,000
• Sold in June 2006 for $598,500
• Sold in February 2007 for $405,000

And no- I don’t understand what was going on with that unit (Foreclosure? Short sale? Or just the market changing?)

3.  The last 3 bedroom, 2.5 bath condo at 3180 N Lake Shore Drive, Unit 13H was listed for $599,000 and sold for $590,000

True.

Unit #13H: 3 bedrooms, 2.5 baths

• Sold in April 2007 for $590,000
• Sold in February 2004 for $327,500

The last three bedroom to sell before #13H was in 2006.  Unit #21H sold in November 2006 for $610,000.  Previously, it sold in May 2001 for $340,000.

As for Unit #4A that is in the Craigslist ad: 3 bedrooms,  2.5 baths, 1800 square feet

• Sold in November 2004 for $283,000
• Listed in January 2005 for $519,900
• Listed in January 2006 for $515,000
• Listed in April 2007 for $570,000
• Currently listed at $399,900
• Assessments of $917 a month

Is this a deal?  Is this truly “$191K under market”? 

Even the listing says: “Market Conditions Dictate New Price.”  Thomas Hall at Rubloff has the listing.

This time, the million dollar foreclosure is in River Bend, at 333 N. Canal St. in River West.  This is the first foreclosure I have seen in that building.

Unit #2205: 3 bedrooms,  2.5 baths, around 2500 square feet

• Sold in April 2006 for $1,308,500
• Foreclosure auction price of $1,106,288

Currently, Unit #1805, which is of a similar size and the same “tier” in the building, is on the market.  It is priced at $1,199,000 which includes one parking space.

Is Unit #2205 a good “deal” at the auction price?  We’ll soon see.

Sometimes there are listings that just seem strange.

There were recently two listings for 1 bedroom units at 30 E. Huron, the 1980 apartment to condo conversion high rise in River North.  They started converting these units in 2004.  The developer website says the building is now “sold out.”

These two listings said they were “potential short sales.”

Unit #2210: 1 bedroom, 1 bath, 780 square feet

• Sold in July 2006 for $292,000
• Sold in August 2007 for $451,000
• Now in “potential short sale” for $399,900
• 1 car parking (not sure if that’s included or not)
• @Properties has the listing (which has apparently been removed from the MLS but was still in their Sunday classified listing)

Unit #3710: 1 bedroom, 1 bath,  780 square feet

• Sold in August 2005 for $285,000
• Sold in August 2007 for $416,500
• Currently listed as a “potential short sale” for $399,900
• 1 car parking (not sure if it’s included or not)
• @Properties has the listing (see above- it is no longer on the mls)

I couldn’t find any other 780 square foot one bedrooms for sale in the building right now.  There is this penthouse 717 square foot 1 bedroom (marketed originally as a “convertible” unit) for considerably less than $399,900.

Unit #PH05: 1 bedroom, 1 bath, 717 square feet

• Currently listed for $368,900
• Assessments of $369 a month
• Crown Heights Realty has the listing

There are several 1 bedrooms plus den units with 900 square feet on the market.  They have renovated kitchens and baths.

Unit #1909: 1 bedroom plus den, 900 square feet

• Sold in May 2005 for $424,500
• Currently listed for $389,000 (deed parking sold separately)
• Assessments of $480 a month
• Century 21 Sussex & Reilly has the listing

These two 1 bedroom units closed less than six months ago and during the height of the “credit crisis” in August.  If you look at the 2007 closings in the building, these units were in the top 10 for the most expensive units that sold for the entire year.

If they’re potential short sales- then they’re already in trouble on the mortgage.  Again, in only about 5 months!

Strange indeed.

Oh- you can also apparently rent some of these condos as hotel rooms.  Check that out here. 

30 E. Huron [website]

For a flipper, it is sometimes good to be on one of the lower floors of a new building.  Not only are those units cheaper but they also usually close first which means your unit becomes available earlier to prospective buyers.  In some cases, you may be able to list and show your unit months before others in the building.

You also benefit from the “buzz” created when a building first starts closings and everyone is eager to see what the interior looks like.

But in a slowing market, being the first to close can also put you at a disadvantage if you don’t price the flip correctly.

Such is the case with a 1 bedroom unit at 340 on the Park, the new high rise that is still closing on units near Millennium Park in the Lakeshore East development.

Unit #307 was among the first units to close in the building in July 2007.  It is one of the prized south  facing units.  The owner has had to reduce the listing price several times.

Unit #307: 1 bedroom, 1.5 baths, 1186 square feet

• Sold in July 2007 for $415,000
• Originally re-listed for $725,000 in 2007 (don’t know if that included the parking)
• Reduced to $649,000
• Just reduced again and now listed at $599,000 (not including the parking which is $50k extra)

The most recent reduction is suspect.  It looks like they probably stripped out the parking and are now listing it with the parking separately- which makes the unit appear cheaper than before when it’s really the same price.  If anyone knows if the $649,000 price didn’t include the parking, please let me know. 

The listing says it’s priced at $505 a square foot and is the “best deal in Millennium Park”.

It’s been on the market for over 200 days.

Or, you can rent it for $3500 a month.  It’s been on the market several months as a rental as well.

Nicholas Colagiovanni at Baird and Warner has the listing.

The Sun-Times is reporting that the developer of The Ritz-Carlton Residences at 664 N. Michigan is going to start construction in February.

The building has been only 40% sold for months now.  Maybe they see something in the market going forward that the rest of us don’t see.

From the David Roeder’s column in the Sun-Times:

Despite the woe in the condo market, the Ritz-Carlton-branded project at 664 N. Michigan is still a go, said Jon Rodgers, principal of Prism Development Co. Rodgers said Germany’s Helaba Bank has promised a construction loan. Work should start in a few weeks once there’s a final agreement with the city over the construction, Rodgers said.

The developers plan a 40-story tower next to the landmark Farwell Building. The Farwell would keep its facade but be grafted onto the new, high-end project. Rodgers said he has contracts for more than 40 percent of the 86 units. That number hasn’t changed much lately, but Rodgers said traffic at the sales site is steady.

Hanig’s Shoestore in the bottom of the building now has signs on its windows saying it will shortly be moving to the John Hancock.

A million dollars used to mean something in the Chicago condo market.  It might not be huge, but at least that price point meant luxury finishes and amenities.

Not anymore- if you believe the asking prices on these condos in the South Loop.

Prairie Pointe at 1600 S. Prairie in the Central Station neighborhood of the South Loop has units ranging from 1 to 3 bedrooms.  It was originally built as a mid-price point building.  Two bedroom, two bath units are going for the mid-$400,000s today.  (Although there are several 1 bedroom units at nearly $400,000 from the developer as well.)

The building started closings in 2006.  The developer, Gammonley Group, still has 11 units remaining for sale.

Two units priced at nearly a million dollars are on the market. 

Unit #2307: 2 bedrooms, 2 baths, 2365 square feet

• Sold in October 2006 for $554,000 (listing states it’s a “combined unit” so this original sales price might not reflect both units)
• Currently listed at $999,900 (parking included)
• Assessment of $655 a month
• Has a 742 square foot outdoor terrace
• Baird and Warner has the listing

Unit #1702: 3 bedrooms, 2 baths, 2231 square feet

• Sold in September 2006 for $775,000
• Currently listed at $949,000 (don’t know if this includes the parking)
• Assessments of $935 a month
• Chicago Exclusive Properties has the listing

Aren’t you at least supposed to get stainless steel for a million bucks?  Or maybe subzero or viking appliances?  Just wondering.

Prairie Pointe at Central Station [website]

I’m a sucker for a great downtown terrace.  I admit it.  When an interesting one comes on the market, I’m the first one to “ah” over the pictures- especially if it’s landscaped.

A penthouse loft at 375 W. Erie in River North was just listed with a private 1000 square foot terrace.  Check out these pictures and think of summer.

Unit #610: 2 bedrooms, 2 baths, 1800 square feet

• Sold in April 2003 for $560,000
• Currently listed for $680,000 (plus $35,000 for parking)
• Assessments of $511 a month
• 11 foot high ceilings
• Skylights

Prudential Preferred has the listing.  You can also see more at this Craigslist ad.

Forget about Astor Street.  East Lake Shore Drive?  Ho-hum.

The hottest street to live on in Chicago right now is North Wells in Old Town.  Property values continue to rise there, with some buildings rivaling the prices paid to live in top neighborhoods like Streeterville and the Gold Coast.  And it doesn’t seem like the values will be dropping anytime soon.

Take 1414 N. Wells.  Built in 1995, the building is a rather plain but solid brick mid-rise right in the middle of the “prime” part of Wells.  You can walk right out your door and go to a dozen restaurants.

The building also has parking and remarkably low assessments (there is no doorman which helps to keep assessments down.)

Unit #311 is currently on the market. 

Unit #311: 2 bedroom, 2 baths, 1400 square feet

• Sold in October 2005 for $228,000
• Sold in May 2003 for $485,000
• Currently listed for $680,000 (includes the parking)
• Assessments of $398 a month

The kitchen and baths in the unit were remodeled a few years ago.  The unit also has a large terrace off the back that runs the length of the unit (probably around 20 feet.)

Do you think $680,000 is too high for that building and that area?  That’s a pricey $485 a square foot (including the parking).  Unit #312, a 2 bedroom, 2 bath, sold for $675,000 in September 2007.

Jacqueline Martinez at Koenig & Strey has the listing.

Or if you want something more modern, you can take a stroll right across the street to the four unit building at 1445 N. Wells.  There, you can have an elevator that opens directly into your unit.

Unit #2: 2 bedrooms, 2 baths, 1700 square feet

• Sold in June 2006 for $602,500
• Currently listed for $659,900
• Assessments of $200 a month
• Listing states one car parking but I don’t know if this is deeded and/or included

Mary Robbins at Baird and Warner has the listing.

By now,  I’m sure many of you have seen yesterday’s Chicago Tribune article talking about the opening of The Spire’s sales center.  The Spire was also featured on some of the local tv stations.

There were some interesting stats in the article, though, which I thought I’d post here. It seems that interest in The Spire is pretty high:

Already about 600 people have made appointments to visit the sales office at 455 N. Cityfront Plaza.

“In this market, for the Spire to get several hundred contracts to move ahead with construction will be difficult,” said James M. Kinney, president of Rubloff Residential Properties, a Chicago-based, high-end broker.

“If they introduce 600 units priced at $2 million or more, that’s a 71/2-year supply for the downtown Chicago luxury market,” Kinney added.

But sales are slowing in the downtown Chicago condo market:

Through the third quarter of last year, buyers signed contracts to purchase 3,312 newly built downtown condominiums, a decline of 35 percent from a year earlier and off 52 percent from the record year of 2005, according to Chicago-based Appraisal Research Counselors.

“This year we expect sales to fall further from the strong level of 2004 through 2006,” said Gail Lissner, vice president at Appraisal Research. “There is no segment of the market that’s immune from the slowdown.”

But as sales fall, the downtown housing market will be inundated with new units.

This year, the delivery of new condominiums will rise to 6,300 units, up about 50 percent from two years ago, she noted.

We have also already seen some of the new units close and then come back on the market in the form of flips- which is also adding to the inventory.

The Spire’s sales will be watched closely.  Stay tuned.

But, just admit it.  You want to make an appointment to go and see The Spire’s sales center.

I thought so.  Me too.