Crib Chatter

Having just talked about 50 East Chestnut and how that building was reminiscent of the large luxury apartments constructed in the 1920s, there was actually another building that led the way in full-floor condo construction.

Built in 1984, 1418 N. Lake Shore Drive was the first condo building to be built since the 1920s with full-floor residences meant for families.  It’s a small lot, only 44 feet wide.  In fact, you might not even notice it as you drive by.

The building has 27 units with east and west windows.  The angled glass allows owners to have north and south views.  According to the book Chicago Apartments: A Century of Lakefront Luxury, the units are 3,100 square feet and originally sold for $544,000 to $678,000.

Unit #27: 3 bedrooms, 2.5 baths, 1 car parking

• Currently listed for $2.6 million
• Assessment of $2,822 a month
• Listing says it was renovated in 2001

Only 5 units have sold in the last 10 years.  They were priced from $1.43 million to $2.15 million.  Unit #13 was the last sale in August 2007.  It closed for $2 milion.

Rubloff has the listing.

There are a lot of luxury units on the market and more will be coming onto the market next year.  But quietly, 50 E. Chestnut, the 34 unit boutique luxury building in the Rush Street Corridor at Chestnut and Rush has started closing on units.

I’m able to locate only two closings so far, but others have said there have been a handful.

The building is only 50% sold.

These units are full floor units with windows on each side (although the north facing side is almost fully concrete due to it facing into the nearby Bristol.)  They are also big units- ranging from 3,579 to 3,937 square feet.   They are like a “home in the sky”- reminiscent of the luxury apartments built in the 1920s along the lakefront.

Other amenities:

• Private elevator entry directly to your unit
• Library
• Family room
• Subzero appliances
• Dog run
• At least two terraces per unit
• 9.5 foot ceilings

Prices range from $2,476,900 to $3,325,900.  Parking is $65,000 extra.  The two units that have closed already are Unit #2401 and Unit #2801.  #2401 closed for $3,096,000.  #2801 closed for $2,831,500.

These are the pictures put out by the developer of what the units will look like.  They have a full-sized model now open in the building.

Jameson Development is the developer.  Jameson Realty is handling sales.

50 E. Chestnut [website]

Investors who closed on condo units downtown in 2006 continue to have difficulty selling for more than they paid.

Such is the case in 1841 S. Calumet a 22 story high rise in the South Loop that was completed in 2006.  There are 9 units for sale and at least 3 units for rent.

Unit #1708: 2 bedroom, 2 bath,  1085 square feet

• Sold in December 2006 for $399,199
• Currently listed for $379,000 (includes the parking)
• Stephany Oliveros at Re/Max Signature has the listing

Normally, I post only on Chicago real estate but every once in a while a property comes up in the Chicago suburbs that is too interesting to resist.  A few months ago, I chattered about a Hinsdale mansion originally listed for over $3 million that finally sold in foreclosure for half of that price (around $1.5 million). 

This is another one of those kinds of properties.  This mansion is located in Fort Sheridan in Highland Park, a successful conversion and preservation of an old military base.  From the Fort Sheridan website:

Today the Fort Sheridan buildings have been painstakingly and lovingly restored to their original historic beauty. On the inside, however, these elegant structures have been totally renovated to reflect the modern needs of a non-military residential community. The result is condos, town homes, single family residences and even brownstone-like living where 11-20 foot ceilings are the rule not the exception, and eight foot windows give full view to the restored beauty of the Fort. The unique building configuration allows for spacious grounds for play or just plain living, and each living space is totally unique unto itself.

Many of the mansion homes were former officer’s homes which accounts for their size and oppulence.  Many were built in the late 1890s.

One owner is under severe stress.  Or possibly the bank is.  Thanks to the tipster who sent me the listing info:

60 Logan Loop: 6 bedrooms, 3.5 baths

• Sold in January 2006 for $930,000
• Listed in November 2006 for $1,109,000
• Lowered in September 2007 to $509,000
• Just lowered to $399,000

Sold “as is.”  There are no pictures of the interior.

Patricia Furman at Coldwell Banker has the listing.

There are several other Fort Sheridan mansions on the market for much higher prices.

46 Macarthur Loop: 5 bedrooms, 5.5 baths, 6200 square feet

• Currently listed for $1,495,000
• Coldwell Banker has the listing

68 Macarthur Loop: 4 bedrooms, 3.5 baths, 3600 square feet

• Currently listed for $1,275,000
• Milestone Realty has the listing

37 Macarthur Loop: 7 bedrooms,  3.5 baths, Captain’s Mansion, 1 house east of the Lake

• Currently listed for $1,095,000
• Koenig & Strey has the listing

41 Scott Loop: 6 bedrooms, 6.5 baths, 7200 square feet

• Currently listed for $899,900
• Listing says it’s “corporate owned”
• Patricia Furman at Coldwell Banker has the listing

The Town of Fort Sheridan [website]

The Case Shiller Standard & Poor’s Housing Index for October was just released.

The Chicago Metro Area saw a price drop of 3.2% from October 2006.  The good  news is that the Chicagoland Area isn’t as bad off as other Metro Areas that are simply getting hammered.

1. Miami down 12.4% year over year
2. Tampa down 11.8%
3. Detroit down 11.2%

Nationwide, prices were down a record 6.7% year over year in the Top 10 Metro Markets.  The index was down 6.1% in the Top 20 markets.  Several metro markets showed gains including Charlotte (up 4.3%),  Seattle (up 3.3%), and Portland (up 1.1%).

It is the largest nationwide drop since 1991 (during the last housing recession.) From Bloomberg:

“The current state of the single-family housing market remains grim,” Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University, said in a statement.

Motor Row, the landmark historic district in the South Loop which runs roughly from 1400 S. Michigan to 2500 S. Michigan (with some blocks of South Wabash and South Indiana also thrown in), has been touted as the next “hot” neighborhood.  The area gets its names from the number of former automobile showrooms that line the street.

The area reminds me of Printers Row from 10 years ago- with great older mid-rise buildings that are now going to be preserved but with little else in terms of amenities (few restaurants, stores etc.)  In the last few years, developers have been buying up the historic automobile showcases that line the area and converting them into loft condos. 

One of the first conversions was the Locomobile Lofts by Lyonhart Group at 2000 S. Michigan.  The three story building was converted in 2004 into 33 authentic loft condos with 14 to 22 foot ceilings and parking.

The development sold out pretty quickly and there have been a few successful re-sales.  But sales have come to a virtual standstill in the building in 2007.  Only one unit sold in all of 2007 and that same unit is now back on the market only a few months later.   There are currently 5 units on the market. 

Sellers who bought within the last two years are struggling to break even- never mind actually making any money.

Unit #307: 2 bedroom, 3 bath, 2150 square feet, duplex,  1300 square foot private roof terrace

• Sold in November 2004 for $567,000
• Sold in December 2004 for $387,000
• Sold in October 2006 for $727,500
• Currently listed for $749,000
• 2 car parking available for $35,000
• Koenig & Strey has the listing

Unit #107 sold earlier this year and is now back on the market.

Unit #107: 1 bedroom, 2 bath,  1280 square feet

• Sold in August 2005 for $306,000
• Sold in February 2007 for $385,000
• Currently listed for $399,500 (parking included)
• Assessment of $251 a month
• Prudential Partners has the listing

This listing claims this unit has never been lived in (and, as you can see from the pictures above, the loft is currently empty.)  Has this investor really been sitting on it for two years?  Without even renting it out?

Unit #104: 2 bedroom, 2 bath, 1280 square feet, 22 foot ceilings, duplex

• Sold in December 2005 for $338,700
• Currently listed for $349,900 (parking for $35,000)
• Assessment of $322 a month
• Also available to rent for $2,000 a month
• Koenig & Strey has the listing

Unit #102: 1 bedroom, 1 bath, 905 square feet, 18 foot ceilings

• Sold in September 2005 for $240,000
• Currently listed for $249,900 plus $30,000 for parking
• Assessment of $341 a month
• Also available to rent for $1500 a month plus $150 for parking
• Quest Realty Group has the listing

Locomobile Lofts [website]

Motor Row Landmark District [Chicago Landmarks website]

A mansion with a private beach on Lake Michigan.

There are several to choose from- but I kind of like this Kenilworth mansion on the North Shore because it also has the pool- for those months when, frankly, the lake is inhospitable.  And a game of tennis every once in a while would also be lovely.

40 Devonshire Lane: 5 bedrooms, 8 full baths, 2 half baths,  4 car garage

• On 2.2 acres
• Guest cottage
• Tennis courts
• Indoor pool
• Private Lake Michigan beach
• Currently listed for $11,500,000

Barbara Mawicke and Susan Kelly at Coldwell Banker have the listing.

Merry Christmas!

More chattering tomorrow.

Trio, the three building development in the West Loop on Wayman, has started closings.  There are several different addresses for the buildings.  In this post, I’ll talk about 650 W. Wayman, which is one of the 7 story mid-rise buildings (there are two midrises and a high rise.)

Trio was marketed as very modern with European style finishes and located in the “Fulton Market District.”  There are 209 units in the total development.  Each mid-rise appears to have about 53 units each.

The following is the status of 650 W. Wayman:

• 8 units for sale
• 3 units for rent

Unit #505C: 2 bedroom, 2 bath, 1091 square feet

• Originally sold for $260,000
•  Currently listed for $365,900
• Sudler Sotheby’s has the listing

Unit #303C: 2 bedroom, 2 bath, 945 square feet

• Originally sold for $250,974
• Currently listed for $299,900
• Re/Max Vision has the listing

Trio Condominiums [website]

550 N. St. Clair, the new high rise a block east of Michigan Avenue in Streeterville, is set to begin closings in January/February (according to the developer’s ad in the weekend Tribune.)

Yet, there are already several flips on the market including one trying to sell a one bedroom for $469,900, which includes the parking, at what the flipper is calling “pre-construction prices”.  From Craigslist:

Spectacular one-bedroom unit in the heart of Streterville. Floor to ceiling windows. Hardwood floors throughout. Beautiful terrace overlooking Michigan Avenue. Stainless steel appliances. Deeded parking included.

Pre construction prices right now! Current price for the same unit in lower level at $518K. This is a great opportunity! You are saving at least $48K!

Another flipper who is a bit more desperate has also appeared on Craigslist:

I am an investor and I need to sell a few units I bought at 550 n. st clair. This is a beautiful building in Streeterville, close to Michigan Ave where there is an array of shopping and wonderful restaurants. My intention was to live in one and manage the others as high end rentals; however, I have decided not to move forward. I can either lose my earnest money, or sell my units at the price I contracted them at 3 years ago, which in some cases are up to 10% less than what the Developer is asking for now.

I interpret this to mean:

1. I cannot close on these units because I cannot afford to pay the mortgages

2. I also cannot close and then rent them out because I cannot cover my monthly mortgage payments

3. Therefore, I will sell the contracts at my cost before closing begins next month or I will simply walk away from my deposits

550 N. St. Clair has been a successful building. It is not completely sold out, but is about 95% sold.

The Chicago Tribune had an article in the Sunday Business Section called, “‘Bottom’  Proving Elusive” about whether or not now is a good time to buy real estate in Chicago.

There were several examples of people choosing to buy properties now that were priced under 2005 prices.  In some examples the buyers were getting 20% to 25% off of asking prices.

The piece is filled with varying advice. 

One the one side, you have the agents:

“By the end of December, there will have been 93,000 to 95,000 homes that will close this year in the Chicago area,” said James Merrion, regional director for Re/Max Northern Illinois. “The public has the impression that nothing is selling, [so] they’re surprised to hear that.”

“I seem to be having an end-of-the-year clear-out,” said Chris Grayson, a Glen Ellyn Baird & Warner agent. “I’m not floating my own boat, but I’ve sold five houses in the past two weeks, some listings that have sat there since April. It’s been very unusual.”

Chicago-based Rubloff agent Mario Greco said he returned from a three-week vacation a few weeks ago to find that his staff had sold nine homes, which he described as his busiest December ever. “Is it a sign of a hot spring, pent-up demand releasing, or an end-of-the year rush or all of the above? I think it’s all of the above,” he said.

A “hot spring”? “Pent-up demand”? “End of the year rush”?

On the other side, you have various economists and real estate experts:

“If you’re looking at an area where there is job growth and economic growth and thinking about being there for five years, now may be a good time to buy,” said Mark Dotzour, chief economist at the Real Estate Center at Texas A&M University.

“But if you have some likelihood that you would have to move in one to two years, then I would be nervous.”

“No, it is not a good time to buy a house,” said Susan Wachter, professor of real estate at the Wharton School of Economics at the University of Pennsylvania, who sees further turbulence in the economy.

“I wouldn’t say never, but I am close to never. Prices are going to decline in the next period, by another 5 percent or more,” she said. “Without a recession, 2009, not 2008, could see the bottom of the market; with a recession, all bets are off.”

Who will be right?