Crib Chatter

With 550 St. Clair in Streeterville nearly completed, the developer is getting more aggressive in trying to sell the remaining units.

There was a half page ad in the Sunday Chicago Tribune in the Perspectives Section (interesting that it was not in the real estate section) promoting: “Special Prices on Remaining Units.”

The ad didn’t say what was meant by “special prices”.

But if you go to the website it is promoting: “One Bedroom Homes Under $400K- Including Parking.”

That would seem like a “deal” compared to other nearby newly completed buildings  where the one bedrooms are selling for much more than $400,000 as flips by investors. 

The website says 60 Day Delivery.

Stay tuned.

550 N. St. Clair [website]

The Sunday Real Estate section of the Chicago Tribune had an article titled, “Seers, soothsayers and educated guessers” about what might go on with the Chicago real estate market in 2008 (and beyond).  It had a few interesting tidbits about the Chicago condo market. 

1.  Younger people will be able to buy condos if they have the credit:

Market getting younger: Generation X and Gen Y are taking over the spot of first-time buyers, according to Kay Wirth, president of the Illinois Association of Realtors. (Baby Boomers are in the second-home market now — not to mention move-downs.)

“Younger buyers are seeing amazing opportunities,” Wirth says, adding that fears of being unable to get a mortgage are unfounded. “Money is to be had for those who qualify.”

There’s also hidden inventory in the condo market, Swonk points out. “Cancellations are pretty high in new condo developments,” she says. In addition, “a lot of supply has yet to hit the downtown condo market, which will hold down prices in that market until 2009.”

2. Rents will be picking up at 10% to 12% a year:

“The big story for 2008 is that rents are going up,” says Maurice Ortiz, marketing director for The Apartment People, an apartment-finding service with offices in Chicago and Evanston. “We haven’t seen rates like these since 2000.” Rents are going up as much as 10 to 12 percent in downtown areas, he explains.

“No one’s buying,” Ortiz says. “Everyone’s scared and going to wait a year or two.”

But it also sounds like the excess inventory in new condos will make it easier to get a rental deal on one of those units:

If a prospective tenant is in a position to pick up and leave in 60 days, a typical time for a sale to close, there are rental deals for condos that aren’t selling, adds Swonk.

Is anyone else seeing 10% to 12% rental increases? I know that the new luxury rental buildings in River North and Streeterville are renting very quickly- at high rental rates ($2,000 and up for one bedroom apartments.)

Recently, I highlighted a townhouse in the South Loop in what many consider to be the “new” Gold Coast.

I thought I’d see what you can get for your money in the “old” Gold Coast on the North Side.  As it turns out, quite a bit.

Sutton Place is an interesting townhouse gated community in the Gold Coast that was built in 1978.

1331 N. Sutton Place #: 5 bedrooms, 4.5 baths, 5500 square feet, 2 car parking

• Sold in November 2006 for $1,550,000
• Currently listed for $2,299,000
• Assessment of $750 a month

The listing states that it has been renovated:

THIS SPECTACULAR RENOVATION BOASTS 5500 SQ FT OF SPACE WITH THE FINEST FINISHES AND ATTENTION TO DETAIL. A PHENOMENAL LAYOUT ALLOWS FOR GOURMET EAT-IN KITCHEN, A PRIVATE OUTDOOR PATIO, A FORMAL LIV RM AND DIN RM, A DRAMATIC WHOLE-FLOOR MASTER SUITE PLUS A FAM RM AND LIBRARY AND A 2 CAR ATTACHED GARAGE! MAHOGANY STAINED OAK FLOORS WITH HERRINGBONE ACCENTS LOCATED IN THE GOLD COASTS MOST EXCLUSIVE GATED COMMUNITY.

@Properties has the listing.

A 3 bedroom unit has just been reduced at 1111 S. Wabash in the South Loop.  Developed by the Gammonley Group in 2005, the 34 story building was one of the first new high rises to be built during the South Loop boom.

Is this a steal?  It is the cheapest 3 bedroom for sale in the building. 

Unit #1608: 3 bedrooms, 2 baths, 1300 square feet

• I can’t find an original sales price.  Could it be that the developer still owns this unit?
• Currently listed for $399,000
• The listing says “free parking”- but I don’t know if that means the parking space is included in the price or not
• Assessment of $400 a month
• @Properties has the listing

Unit #2008, also a 3 bedroom 2 bath, is currently listed for $459,000 (also can’t tell if that includes the parking or not.)  The listing says it is 1200 square feet.  Pointer Real Estate has the listing.

Both of these units are also available to rent:

• Unit #1608 for $2595 a month includes the parking
• Unit #2008 for $2600 a month (don’t know if this includes the parking)

Gammonley Group [website]

 It’s back! 

Last September I chattered about a Lincoln Park Mansion at 2440 N. Orchard that appeared on the foreclosure auction list.   It is new construction totaling 9,400 square feet including 6 bedrooms, 6 baths and 3 half baths.

In September of 2007, it had the following stats:

• Listed for $4.6 million
• Auction price of $1,325,655

At the last moment, the auction was cancelled.  I presumed the owner came to some kind of agreement with the banks.  Or maybe not.  The same home is scheduled to be auctioned today at the Daley Center.  The stats this time:

• Currently listed for $4.65 million
• Auction price of $1,435,294

Stay tuned!

The curtains are up in the condo/hotel rooms and closings will begin shortly.

A Trump buyer is trying to sell a 1 bedroom, 1 bath “regular” condo unit on Craigslist right now for $998,000.  Those aren’t set to close until 2009.

Southeast facing the Chicago River and the Lake.

Unit Features Include:

– Floor-to-ceiling windows offering breathtaking views of Lake Michigan, the Chicago River, and the skyline.
– Hardwood floors throughout, and solid wood interior doors.
– Spacious walk-in closets.
– Washer/Dryer in unit.
– Pre-wired for telephone, television, cable, and high-speed internet services.
– Kitchen features Snaidero Italian wood cabinets with stainless steel handles, Sub-Zero refrigerator with freezer, granite countertop with backsplash.
– Kohler fixtures in bathroom.

Building Features Include:

– 24-hour white glove doorman.
– Indoor owner-designated parking.
– Health club and spa. (BR> – Secure storage lockers.
– Dry cleaning and laundry valet services.

PRICED BELOW MARKET VALUE!!!

Call Craig today before it is too late!

I love these agents. “Before it is too late”???  Also, what is the “market” if everyone is pricing “below” it?

A harbinger of things to come for the condo/hotel units could be this ad on Chicago’s Craigslist for Trump Tower Las Vegas. This seller is asking $550,000 for a studio.

STUDIO unit available in fabulous Las Vegas! The ultimate in LUXURY!

26th floor unit East Strip View.

PRICED $40,000.00 below original purchase price. Hotel will rent unit for INCOME to owner.

PERFECT CORPORATE INVESTMENT.

Closes Feb/March 2008

www.trumplv.com for all information

This price is NOT available through sales office.

Trump Tower Las Vegas is set to close in 2 to 3 months. Trump Tower Chicago is set to close in 2 to 3 weeks. 

Trump Tower Chicago [website]

What’s a “deal” these days when there are foreclosures and bank-owned properties springing up all over the city?

This penthouse foreclosure at 933 W. Van Buren in the West Loop caught my eye.  The building was built in 2003.

Unit #913: 3 bedrooms,  3 baths, 2200 square feet, 325 square foot private terrace

• Sold in August 2003 for $589,000
• Currently listed for $535,700 with 1 parking space included or $550,000 with three parking spaces
• Assessments are $601 a month

That’s around $250 a square foot (if you include the price of the 3 parking spots.)

Ernest Pierce at New West Realty has the listing.

Developers of Chicago McMansion homes continue to feel the squeeze from high McMansion inventory and slowing sales.

I stumbled upon these two interesting Craigslist ads for a new construction McMansion in Lakeview.  It is the same McMansion only with different pictures and different prices.

The McMansion is at 1445 W. Wolfram in Lakeview.  It’s a 5 bedroom, 4.5 bath home with 2 car parking.  The first Craigslist ad, dated January 2, 2008, describes the home as “Elegant New Home in Lakeview – 5 Beds/4.1 Baths, 5 Decks!” and states:

PHENOMENAL NEW CONSTRUCTION SINGLE FAMILY HOME! HOME BOASTS TREMENDOUS LIGHT, HWDFLRS, CUSTOM CABINERTY THROUGHOUT, EAT-IN CHEF’S KITCHEN, WALK-IN PANTRY, ELEVATOR, RADIANT HEAT, 5 DECKS & 2 LAUNDRY CENTERS. PROFESSIONALLY DESIGNED, EXQUISITE FINISHES, MASTER CRAFTSMANSHIP & GREAT FLOORPLAN. STEPS FROM 2 PARKS, GREAT BLOCK OF WOLFRAM!!!

The second Craigslist Ad, also dated January 2, 2008, calls the same house a “Once in a Lifetime Opportunity” and describes the house as:

Once in a lifetime opportunity! Developer must get out now! Make an offer!! Being sold “as is” – way under market value 95% complete – you put in last 100k of work (apps, elevator, etc.)! Home boasts tremendous light, hwdflrs, custom cabinets, eat-in chef’s kitchen, walk-in pantry, elevator, radiant heat, 5 decks & 2 laundry centers, exquisite finishes, master craftsmanship & great floorplan.

The price of the house described as “Elegant New House”: $1,999,999

The price of the house described as “Once in a Lifetime Opportunity”: $1,650,000

And yes, both of the Ads are from Danny Glick at @Properties.  The house is currently only listed on the MLS for the $1.65 million price.

Okay- so the trees, the browning leaves and the greystone brick at the bottom of the house give this away.  But this house really is in Chicago and can be found in Bucktown.  Rarely do you see authentic painted ladies in Chicago with the intricate woodwork.

This house is a multifamily building.

2013 W. Cortland: 4 bedrooms, 3.5 baths, 3 car garage

• Currently listed for $849,900

From the listing:

INCREDIBLE VICTORIAN HOME IN THE HEART OF BUCKTOWN. OVER 3000 FT. AVAILABLE IN THIS HOME WITH 1 BED/1BTH ON FIRST FLOOR AND 3BD/2.5BTH IN OWNERS DUPLEX UP. 3 CAR GARAGE PARKING, YARD, ALL ON OVERSIZED 33X100 LOT. REHABBERS DELIGHT. KEEP THE RENTAL OR CONVERT TO A SINGLE FAMILY OF YOUR DREAMS.

@Properties has the listing

Should you rent or should you buy in this market?

The Regatta at 420 E. Waterside Drive in LakeShore East is one of the new highrises in the “new east side”.  It started closings in early 2006 so it has already been dealing with flippers and a rash of renters.

Building statistics out of 321 units:

• 19 for sale
• At least 14 for rent

There are some interesting units for sale or for rent.  We can see the direct comparison.

Unit #2804 is a 788 square foot 1 bedroom unit available to buy or rent.  I don’t have pictures of it but below are pictures of Unit #2304 which is also available for sale and should be the same layout.  Both units are 788 square feet.  Unit #2304 is listed for $399,000 plus $45,000 for parking.

Unit #2804: 1 bedroom,  1 bath, 788 square feet

• Sold in June 2007 for $445,000 (included the parking)
• Currently listed for $488,000 (includes the parking)
• Assessment of $264 a month

Or,  you can rent the same unit for:

• $1,500 a month

From the listing:

PARKING SPACE P-292 INCLUDED IN PRICE. ASSESSMENT PREPAID TILL JUNE, 2008. EXISTING TENANT WILLING TO DO 1 YEAR LEASE AT $1500 PER MONTH.

Or, if you want more space, you can look into this 3 bedroom unit.

Unit #4114: 3 bedroom, 3 bath, probably around 1880 square feet

• Currently listed for $1,250,000
• Assessment of $661 a month
• Prudential Preferred has the listing

Or you can rent it for:

• $5,500 a month

You can see the discrepancy in the rents between the units as well.  Some owners are trying to cover their costs with the rent and others are not.  Unit #1208 is a 2 bedroom, 2 bath unit with 1488 square feet.  They are asking $5,500 a month.

Hm…a 3 bedroom high floor unit for $5,500 or a low floor smaller unit for $5,500?