Crib Chatter

Built 11 years after its sister building to the north, 1000 N. Lake Shore Plaza (not to be confused with 1000 N. Lake Shore Drive) was designed by the same architect and has the same great lake views and gold coast location.

According to Emporis, 1000 N. Lake Shore Plaza, at 55 stories, was actually the tallest building in Chicago to have balconies until Park Tower, near Water Tower Place, was built in 1999.  It is also the tallest building furthest north in the city. 

Prices are ritzier in the Plaza building than in 1000 N. Lake Shore Drive, but it still seems like a deal given the views and the location.

Apparently others think the same thing as there is at least one flip in the building.

Unit #34C: 2 bedrooms, 2.5 baths,  2100 square feet, Southwest facing (no lake view)

• Sold in July 2007 for $525,000
• Currently listed for $869,900
• Unit has central air
• Assessments of $1,502 a month
• @Properties has the listing

Then there are other units that seem downright affordable given their views and location.

Unit #49A: 2 bedrooms, 2.5 baths (was a three bedroom originally), 2330 square feet, lake views

• Sold in November 2006 for $750,000
• Currently listed at $898,000
• Assessment of $1,716 a month
• Central air
• There is a contingent contract on this unit
• Koenig & Strey has the listing

The most expensive unit in the building currently is Unit #43 a 2 bedroom, 2.5 bath duplex priced at $965,000.  Listing says it is sold “as is.”

In case you haven’t noticed, short sale listings have grown in popularity in recent weeks.  In fact, there isn’t a day that goes by where I don’t see at least one short sale listing.

In some buildings, prices are dropping so fast that some sellers – and their mortgage holders – don’t have any choice (or face foreclosure.)

But some are more interesting. 

Take these two listings at 400 N. LaSalle an apartment to condo conversion building in River North that is not yet sold out.

Units #4303 and #4403: studios, 534 square feet

• Both were bought in June 2006 for $218,700
• Both are currently listed for $254,900
• Assessments of $254 a month

The listing states:

POTENTIAL SHORT SALE. NEED TO SELL FAST. BEAUTIFUL UPGRADES, GREAT LOCATION.

Clearly- an investment gone bad.

But how can it be a “potential short sale” if the current price is above what the buyer paid for the unit? Unless, of course, the buyer “took out” over $36,000 in each unit and is now underwater. A short sale, by definition, means that the bank is letting the seller sell for less than that owed on the property in order to avoid foreclosure.

These prices don’t seem like a deal for the building.

Unit #1103 is currently the cheapest studio on the market in the building. It is listed for $212,000.

Another studio, Unit #1006, is upgraded and is listed at $215,000.  It’s cute.

Christina Delgreco at Coldwell Banker has the listing.

@Properties has the listings for Units #4303 and #4403.

By the way, at least one company is promoting short-term corporate rentals in 400 N. LaSalle (with a 30 day minimum stay.)  One bedrooms from $119 a night and two bedrooms from $146 a night.

With all the new construction going up around the city, sometimes older buildings get overlooked.  The gorgeous vintage buildings of the 1920s have held their own.  But anything built between, say, 1932 and 1970 is usually much maligned. 

But location still matters and 1000 N. Lake Shore Drive has it in spades.

Located at the end of Michigan Avenue, where Lake Shore Drive, Oak Street and N. Michigan meet, the 23 story building is located right across the street from what many consider to be the best beach in Chicago, Oak Street Beach.  World class shopping and dining is only blocks away.

But 1000 N. Lake Shore Drive, built in 1953, doesn’t look like much from the outside.  In fact, you’ve probably walked right past it dozens of times without looking up.

The units are big.  No 11 x 13 master bedrooms here.  Instead, they’re 12 x 18.  The building appears to allow in-unit laundry and there is valet rental parking. What’s not to like?

Some of the units are priced at or less than one bedroom condos in the new lake shore drive high rises such as 600 N. Lake Shore Drive.  And you get much more space.

Unit #1005: 2 bedrooms, 2.5 baths, 1800 square feet, direct lake view

• Currently listed for $589,000
• Laundry in the unit
• No Central Air (only window units)
• Assessment of $1,292 a month
• Century 21 Sussex & Reilly has the listing

The smallest two bedroom units seem affordable (but don’t have lake views or have only a slice of lake.)

Unit #2201: 2 bedrooms, 2 baths, 1200 square feet

• Currently listed at $334,500
• Assessments of $1038 a month
• No central air (window units)
• No in-unit laundry
• Koenig & Strey has the listing

There are also some interesting units in the building.  Currently there is a 4 bedroom,  4 bath combined unit with 2400 square feet and a 700 square foot terrace for $699,000. 

John Baer at Coldwell Banker has that listing.

The South Loop, as most of you know, has been on a building boom for over 10 years.  It has been named the #1 fastest growing neighborhood in the United States.  At least a dozen new high rises are currently under construction in the neighborhood, as well as townhomes and lofts.

But apparently the nationwide housing market slowdown is even affecting the South Loop.  The Chicago Journal reports:

Dennis Beninato, real estate tax lawyer and president of the Greater South Loop Association, said development will decrease due to a number of reasons, a few being that loans are harder to get and prices are slow.

“Lending institutions are being much more careful and much more selective as far as who their giving loans to,” Beninato said. “And developers may be waiting until they can sell the units for a higher value.”

Even some developers are sounding the horn that things will be slowing in 2008:

Developer Rick Cavenaugh, president of Fifield Cos., said people are likely to stay renters rather than buy in 2008.

“For people who might be tempted to go from renting to ownership, it’s going to be very difficult to get financing in the future, and cost of financing is much higher than it was two years ago,” Cavenaugh said.

This year will be harder on condo buildings trying to sell units, he said, and developers will likely hold off on other projects.

“I think it’s going to be a cautious year,” Cavenaugh said. “Developers will have to have really good reasons to build new projects. You won’t see some of the marginal deals getting off the ground as you did when we had a real strong market.”

Will more buyers turn into renters in the South Loop? There are some mighty good rental deals in the South Loop right about now.  Stay tuned.

Development Boom Expected to Slow: More ‘green’ development could sprout up [Chicago Journal, 1/9/2008]

There are rarely new buildings built in Lakeview so when there is, you can bet that it sells quickly.

Such was the case with Park View East at 828 W. Grace, a 17 story high rise only a few blocks from Wrigley Field.

Closings started in 2007 and there are several flips in the building.  Currently there are 9 units for sale.  Four of them are developer’s units.

Two penthouse units were recently on the market.

Unit #1710: 3 bedrooms, 2 baths

• Sold in November 2007 for $662,000
• Currently listed for $724,900 (parking is extra at $29,900 a spot)
• Assessments of $430 a month
• Quest Realty has the listing

Unit #1701: 3 bedrooms, 2 baths

• Sold in August 2007 for $608,425
• Currently listed for $769,900 (plus $29,900 for parking)
• Assessments of $475 a month
• Quest Realty has the listing

This two bedroom unit looks like it has been staged.  I couldn’t find a prior sales price.

Unit #509: 2 bedrooms, 2 baths

• Currently listed at $389,000 (plus $29,900 for parking)
• Assessments of $249 a month
• Koenig & Strey has the listing

Park View East at 828 W. Grace [website]

Foreclosures in a building can be worrisome.  They can bring down prices in the entire building.  But there is a solution.  In Chicago, you can buy in a Co-Op building that requires the buyers to purchase in all cash.

Yes, cash is still king in certain cases.

And apparently there are some buyers who have it.

1540 N. Lake Shore Drive was built in 1929 and, if you recall, that wasn’t exactly the best time to be building a luxury high rise.  The 17 story building originally was made up of two 8 room apartments per floor.  Today, there are 28 units in the building.

The building went into receivership during the Depression.  In 1947, the residents bought out the building and returned it to its co-op status.  Apparently, they learned from that time period because they now require all cash in order to live there.

Two units sold in 2007:

• Unit #11N and Unit #4N: both 3 bedroom, 3.5 bath units
• Each sold for $1.2 million

Unit #3S: 3 bedrooms, 2.5 baths

• Currently listed for $2.2 million
• Assessment of $4,377 a month (includes taxes, heat and cable)

There is no parking with the building but washer/dryers are allowed.   And you get the tree top views:

Sure, the assessments are steep.  But if you’ve got the $2.2 million in cash, what’s $4,300 a month?

Rubloff  has the listing.

It might be easier in one of the big highrises to determine the comp on a condo as there are obviously more units coming onto the market.

But what happens if you live in a smaller condo building that hasn’t had a sale in over a year? 

Such is the case with the 433 N. Wells in River North.  This was a new construction boutique building in 2002.  There appears to be about 10 units in the building.

One unit is currently on the market.

Unit #601: 3 bedrooms, 3.5 baths, 4,100 square feet, 2 car parking

• Sold in May 2003 for $940,000
• Currently listed at $1.45 million (parking is extra)
• Assessment of $960 a month

Nothing sold in this building in 2007.  The last unit to sell was Unit #602 in December 2006.  It looks to be a sister unit to #601.  It also has 3 bedrooms and 3.5 baths.  Its sales history:

Unit #602:

• Sold in May 2003 for $968,000
• Sold in December 2006 for $1.575 million

Going off of that comp, #601 seems priced correctly.

But the market in 2006 was very different from the market in 2008.  How do you price this unit?  What comps do you use?  Currently, it’s priced at $353 a square foot.

Gwen Stark at Koenig & Strey has the listing.

Thanks to the tipster who directed me to this modern single family home at 3150 W. Schubert in Logan Square.

The house is 4 bedrooms, 3.5 baths with a three car garage.  It is 4,500 square feet.  I’m assuming it is newer construction as I couldn’t find a prior sale price for it.

From the listing:

Rare opportunity to own a spectacular 4 bedroom, 3.5 bath contemporary home in Logan Square. Sunny oversized corner lot with Traco floor-to-ceiling windows. Solid brick construction with limestone accents. A six foot high solid masonry wall surrounds the property with lush vegetation and privacy. Open floor plan with custom steel and maple stairway. Maple flooring and custom solid maple doors throughout. Elegant.

You can buy it for $1,450,000.

Karen Peterson at Coldwell Banker has the listing.

Or you can also rent it.

From Craigslist:

This home is perfect for the individual or couple who appreciate high design and quality.

* Unbelievable kitchen with Viking, Subzero, granite, cherry cabinets, etc.
* Open floorplan–great for entertaining.
* Huge glass entryways and windows and Southern exposure equate to great natural light.
* Two master bedroom suites.
* Huge home office with two built-in workstations.
* 8′ tall solid maple interior doors.
* Maple floors, slate and designer carpeting throughout.
* Full three car garage.

Rental price? $3750 a month

Yes- there is a difference between owning a home and renting one.  But just from a financial perspective, this seems like a pretty darn good rental deal to me.

It’s time for an update on 600 N. Fairbanks the Helmut Jahn modern skyscraper in Streeterville that started closings the first week of November 2007.

Out of 227 units in the building, the current building statistics are:

• 25 units for sale
• 8 units for rent

This is the highest number so far for the building.  Two units are both for sale or for rent.  That comes out to about 14% of the building either for sale or for rent.  Closings continue.

There appear to be some decent rental deals in the building, such as this one on a 1700 square foot 3 bedroom, 2.5 bath unit on Craigslist from the Chicago Apartment Finders.  They are asking only $4200 a month.  The ad claims it is “way below market.”

3bdrm, 2.5 bath, Laund in unit. Gourmet Ktchn with top of the line appliances,Hdwd floors, Surround sound wired thgroughout. 1 block off Boul Mich, this never lived in top of the line unit is priced to move. $1800 per mo less than identical lower floor units. Walk-in closets, Fitness center, Balcony, Doorman, pool, club room, Sundeck, Heat/A/C Cable included.

This is Streeterville’s finest new landmark building. Be the first to occupy at a price that is way below market. Dont ask why, ask when you can see it. Come ready to rent, this is an oppertunity which will be gone soon and will not come again. Just listed today. Will be gone tomorrow.

Some of the small one bedroom units that are being flipped have been coming down a bit in price probably because of competition.

Unit #1403: 1 bedroom, 1.5 bath, 873 square feet

• Currently listed for $395,000 (parking is $60,000 extra)
• Listing says it is a “Rare developer’s unit”- implying that the buyer never closed because the 1 bedroom units were sold out.  I cannot find an original sale price.
• Schatz Realty LLC has the listing (they were NOT the developer’s agent)

Unit #1503: 1 bedroom, 1 bath, 873 square feet

• Sold in November 2007 for $423,000
• Currently listed for $448,000 plus $60,000 for parking
• Listing says it’s “Ready for Occupancy”
• Koenig & Strey has the listing

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

• Sold in November 2007 for $404,000
• Currently listed for $410,000 plus $60,000 for parking
• Listing says it is “Priced for Buyers- This is not a flip”
• Rubloff has the listing

As you can see, the selling will be tough for #1503 because these three units are basically identical.  (I couldn’t find pictures for #1403- but trust me.)  In this building, everything was pretty much already upgraded.  It’s just a matter of what finishes you chose.

As far as I can tell, NO UNITS have resold since closings began in November 2007.  However, the flippers trying to rent out their units have been more successful.  A half a dozen or so have rented.

The South Loop can be overwhelming for buyers.  There seems to be new construction going up everywhere.  Imagine going to the sales centers down there?  Where would you start?

In a brilliant bit of marketing, one agent, Rebecca Thomson from Re/Max Vision, is now offering the “South Loop Tour.” 

This Sunday, January 13, she is renting a tourist trolley to take buyers around to all of the South Loop developments.  From the website, the southlooptour.com:

I will take you to some of the top projects in the area and save you the hassle without any cost to you! The developments on this tour reflect a wide variety of price points, floor plans, amenities and delivery dates with move-in dates as early as tomorrow or as late as 2010. Whether you are looking for yourself, for a second home, or for an investment, you will find what you are looking for.

Enjoy an informational tour of the neighborhood as well as free parking, great food, prizes, and absolutely no pressure!

You get on the trolley at 1 pm and off you go.  The website says reservations are required.

 In a Craigslist ad, she also touts special deals for those on the tour:

Offering big incentives (Free Parking Space, 10k in upgrades, 5% off list price- by development and only for tour participants)

What she should really do is let the hotel concierges know about the tour. There must be some European tourists who would love to go on something like this and buy an investment property at the same time.

southlooptour.com [website]