Crib Chatter

Sometimes to get the “real” authentic loft experience, you have to go off the beaten path a bit.

Such is the case with 2334 W. Polk, known as The Pasta Factory.  Located in Tri-Taylor, it was a 6 unit 1990s conversion.

Unit #3: 4 bedrooms, 2 baths,  2000 square feet

• Sold in September 1995 for $150,000
• Currently listed at $389,000
• Parking seems included with the price
• Assessements of $136 a month

The pictures don’t seem to do the unit justice. 

Attention all agents: pictures DO matter.  Especially in a unique and cool loft unit with “soaring bow trusses” and “huge private rooftop deck with great views.”

What do you do with 4 bedrooms plus a loft?  The listing says all are over the first floor master bedroom.

Bill Altier at Altier Realty has the listing.

The New York Times has an article today discussing the influx of European buyers in the Manhattan condo market.

The number of foreign buyers has doubled in the last two years, according to data from the research firm Radar Logic. In just the last 18 months, they have bought one-third of all new condos that were up for sale, said Jonathan J. Miller, an executive vice president at Radar Logic and its director of research.

“We’d have had difficulty absorbing the elevated level of new development coming on the market without foreign buyers,” Mr. Miller said. “They are a key source of demand for new development.”

Why aren’t they buying here in Chicago? Or are they?

The article goes on:

Diane Ramirez, president of the real estate brokerage Halstead Property, said foreign buyers would make up about 20 percent of the firm’s sales transactions in 2007 in terms of dollars spent compared with nearly 15 percent in 2005. Ms. Ramirez said that five years ago, there were no apartments for foreign buyers because the market was made up mainly of co-ops whose owners would not welcome them into their buildings.

If you’ve been on Michigan Avenue lately, I’m sure you’ve noticed all of the foreign accents. Why aren’t they walking from the Gap, to say, 550 N. St. Clair and buying up a condo?  Our real estate is even more of a “deal” than that in Manhattan (at the current exchange rates.)  And we have condo towers galore and fewer co-ops.

There is a lot of new construction in Printers Row right now with The Vetro, Burnham Pointe, Library Towers and Printers Corner all starting occupancy now and in 2008.  There is something to be said for buying “new” with all the bells and whistles.

But you can live next door to some of these buildings, say, The Vetro, for a fraction of the cost.  Same views.  Same location.  Much more space.

There are several units on the market at 161 W. Harrison, Market Square Lofts, a pseudo-loft building with 78 units that was converted in the late 1990s.  I say “pseudo” because it is lacking exposed brick and or timber/concrete ceilings that you normally find in most lofts.  But it has the big windows, the high ceilings and the exposed duct work to qualify as a loft.

And these units are BIG!

Back in the day, they weren’t building any 1150 square foot two bedrooms.  No siree.  These are 1300-1450 square feet with full-sized washer/dryers (always a nice feature.)

Some units actually have balconies (a rarity for loft conversions in Printers Row) as they were added to the south side of the building.  And the building also has parking- also a rarity in Printers Row.

With The Vetro being built literally right next store, (see picture above) some units will have “blocked” views.  You can see the Vetro in the background of some of the pictures below.  But for the corner units, it’s not awful.  You still have the great north city views.

What’s wrong with this building?  Low assessments.  Parking. Big units.  Good windows/light.  Good location.  Washer/dryers in the units.

Yet, slow sales and little appreciation.

Unit #807: 2 bedroom, 2 bath, 1400 square feet

• Sold in October 2001 for $260,000
• Sold in April 2003 for $255,000
• Currently listed for $339,900 (free parking for one year)
• Assessment of $579 a month
• Rubloff has the listing

Unit #401: 2 bedroom, 2 bath, 1450 square feet

• Currently listed for $359,900 plus $30,000 for parking
• Assessment of $511 a month
• Rubloff has the listing

Unit #701: 2 bedroom, 2 bath, 1450 square feet

• Sold in August 2000 for $295,000
• Sold in May 2004 for $350,000
• Currently listed for $380,000 plus $25,000 for parking
• Assessments of $517 a month
• Baird and Warner has the listing

Unit #408: 2 bedrooms,  2 baths, 1300 square feet

• Sold in October 2000 for $266,000
• Currently listed for $330,900 (no parking)
• Faces south with a balcony
• Assessment of $434 a month
• Also available for rent for $1800 a month
• Rubloff has the listing

Is it simply that buyers will take a smaller space as long as it has new granite and stainless steel?

Some of these units could be “deals” in a few months.

With all of the high rises being built in the South Loop, maybe there is room for a smaller conversion project.  Not everyone wants to live in a huge high rise.

Currently, small buildings are being converted further south in Motor Row at 2200 S. Michigan.  This latest project at 1340 S. Michigan is a much better location. 

The building, which was a Cook County Courthouse, but was known in its earlier life as the Interior Furniture Company Loft Building, will be converted into 1, 2 and 3 bedroom units.  Due to its landmark designation, no changes can be done to the facade of the building but the developer has filed for permits to change the north and the south walls.

Prices will range from the following:

• One bedrooms range from $199,900-$290,900
• Two bedrooms range from $294,900- $365,900
• Penthouses range from $665,000-$859,900

Parking will be available.

Concept Developers is handling sales in the building.  They don’t yet have any floor plans or finishes on their website.

Purchasers should be aware that Concept Developers also is building a mid-rise next door at 1330 S. Michigan.  The Azure Tower will be 18 stories of “luxurious condominiums.”

1340 S. Michigan [Craigslist]

The #1 high rise building for foreclosures in Chicago continues to live up to its name.  Foreclosures and attempted short sales are just crushing condo values in the The Sterling at 345 N. LaSalle.

Case in point:  I currently count seven “01” tier 2 bedroom, 2 baths on the market.  These are 1160 square feet and are on the curve at the back of the building (looking north down LaSalle.)

They are identical units except for any upgrades an owner has done.  Originally, the units came with carpeting (hardwood floors were an upgrade.)  The kitchens also had standard oak cabinets, corian countertops (no granite) and white appliances.

Out of the seven, 2 are short sales and the sellers are “motivated” and 2 other units have gone into foreclosure and are already bank owned.

The Short Sales:

Unit #1801: 2 bedroom, 2 bath, 1160 square feet (for all units, parking is available as rental only in the adjacent public parking garage)

• Sold in September 2003 for $458,000
• Currently listed at $369,000
• @Properties has the listing

Unit #1501:

• Sold in January 2003 for $433,000
• Currently listed for $369,000
• @Properties has the listing

But why buy a short sale when you can get it even cheaper now that it’s in foreclosure?

Bank Owned:

Unit #2101:

• Sold in October 2003 for $452,000
• Currently listed for $349,900
• Century 21 Sussex & Reilly has the listing

Unit #401: Just came on the market

• Sold in January 2002 for $354,000
• Sold in August 2004 for $494,000
• Currently listed for $300,000
• Jax Realtors has the listing

No, the $300,000 is not a mistake.  That’s a two bedroom, two bath condo in River North.  Assessment of $438 a month.

What do you think that $300,000 price does to ALL the other units in this same tier?

Yep- they’re pretty much screwed.

Three others are trying to sell the old fashioned way.

Regular Sales:

Unit #801:

• Sold in December 2002 for $413,000
• Currently listed for $425,000
• Coldwell Banker has the listing

Unit #1401:

• Sold in May 2003 for $424,000
• Currently listed for $449,000
• Rizzo Realty has the listing

Unit #1901:

• Sold in April 2003 for $448,000
• Currently listed for $469,000
• Rizzo Realty has the listing

The odds of these sellers getting anything even remotely close to their asking price?  Slim to none.

The new comp on the “01” tier is going to be under $300,000.  Anyone who buys an 01 tier unit without siginificant upgrades of some sort (gold plated sinks, for instance) for much more than $300,000 (I will concede that is on a low floor with no view) seems not to be a very smart buyer.

What are the options for current Sterling owners?  You either live in the building a very long time and try and ride out the downturn or some will just turn over the keys to their banks and walk away.

Looks like turning over the keys is winning right now.

There were two more foreclosure auctions this week.

Unit #3802: 3 bedroom, 2 bath

• Sold in November 2004 for $842,500
• Auction price of $738,372

Unit #3907: 2 bedroom, 2 bath

• Sold in April 2004 for $606,800
• Auction price of $592,629

Given how fast prices are dropping in the building, I doubt either of these sold at auction.  Stay tuned to see what the bank lists them for.

Also, I’ll monitor to see how quickly Unit #401, the 2/2 at $300,000, sells.

Something is going on at 30 W. Erie, the new mid-rise building at the corner of Erie and Dearborn in River North.

The building only has 20 units (with only two per floor) and has been marketed for several years.  Prices started around $1.2 million for 2200 square feet.

The building was completed earlier this year but only 12 of the 20 units were sold.

Suddenly, 4 more units are under contract, leaving only 4 remaining.

Can someone say “price reduction”?  Or maybe “special incentives”?

The prices on the listing don’t show any reduction, but that doesn’t mean the developer isn’t throwing in some kind of incentives or they won’t close for much less than the list.

I find it too strange that in this slowing market at this time of the year that suddenly four of the units would have contracts at these price points.  Anyone have any inside info?

The remaining four units range from:

• Lowest priced:  Unit #602: three bedroom, 2.5 baths,  2288 square feet, 1 car parking at $1,225,000
• Highest priced:  Unit #1201: three bedroom, 2.5 baths, 2775 square feet, 1 car parking at $1,624,500

The layout on these units is different from what most new construction is offering today.  The kitchen is actually completely separate from the living area and has its own eat-in area reminiscent of the older vintage luxury buildings.

30 W. Erie [website]

I went to the Zoolights last night at the Lincoln Park Zoo (very nice!) and you can’t help but notice all of the vintage condo and apartment buildings that line Lincoln Park West across from the Park.

Some of them are simply stunning at night.

One woman was walking in front of me and pointed to the Parisian looking Belden Stratford apartment building and said, “some day I’m going to live there.”

The Belden Stratford at 2300 N. Lincoln Park West is both a hotel and an apartment building.  The 16 story building was built in 1924 and consists mainly of apartments but there are also 35 guest suites. If she wants, she could stay there for one night for only $119 a night.

Not a bad deal.

The apartments seem expensive (to me) for what you get. Yes, they are very large (as the vintage units almost always have large bedrooms and dining rooms.) But they have carpet and no in-unit laundry.

Prices range from $935 for a studio to $3815 for a two bedroom.

Belden Stratford Apartments [website]

Crain’s is reporting that Walton on the Park, the two tower high rise project near the Scottish Cathedral in the Gold Coast (is that really the gold coast there or River North?) just received its first construction loans so building will commence on the project’s South Tower.

Enterprise Cos. and Mesirow Financial Real Estate, both of Chicago, plan to break ground Jan. 21 on the Walton on the Park development, says Enterprise Chairman Ron Shipka Sr. Chicago-based Corus Bank N.A. has agreed to provide the construction loan, and investors, including Enterprise and Mesirow, are kicking in about $50 million in equity, he says.

Buyers have signed contracts for 85, or about 43%, of the 198 units in the 39-story south tower, at State Street and Delaware Place. Mr. Shipka expects the groundbreaking to provide a marketing boost, showing potential buyers that the project is real.

“On the 21st, as soon as we start digging, we’re going to have a blip in sales,” he says.

Whatever happened to a developer having to have at least 50% sales in order to get a loan?

Walton on the Park has had a sales center since early summer 2007. If their sales are like everyone else’s- they had a big surge at the open (probably from investors) and very few sales since the mortgage crisis hit this fall.

The building is the typical “luxury” units.  The one bedrooms start at $450,000 for around 950 square feet.

They are not even marketing the north tower (which looks directly into the south tower, by the way). And interestingly, on the model of the development they have in their sales center, they don’t even show the north tower. All that is there is the base of it. I had to actually ask the sales agent if that’s where the other building was going. According to Crain’s:

Enterprise and Mesirow will start marketing condos in the north tower when about 75% of the units in the south tower are spoken for, probably next fall, he says. The developers will need to raise more equity and secure another construction loan to finance the second high-rise.

Prices run from $450,000 to $1.25 million. They are also selling the historic vintage homes that line the front of the property on Dearborn. They are great vintage houses directly across from Washington Square Park but they need to be totally gutted.

And no, these aren’t “old” pictures.  Interesting use of the black and white photography.

The last I saw, they hadn’t sold any of the vintage homes.  Anyone else know?

The Thompson Home at 915 N. Dearborn: 7 bedrooms,  6.5 baths,  10,041 square feet, 3 car garage

• Currently listed at $3.47 million
• The Habitat Company has the listing

The Mansions on the Park [website]

Walton on the Park [website]

Finally there is some re-sale data at 340 on the Park at 340 E. Randolph overlooking Millennium Park.

The building started closings in July but the building is huge so closings are continuing.

The current state of the building (out of 344 units):

• 29 units for sale
• At least 25 units for rent (maybe more, as it’s hard to keep track of them on Craigslist and the Reader)

At least two units have been flipped.

Unit #405: 1 bedroom, 1 bath

• Originally sold for $441,000
• Recently sold again for $600,000
• I don’t know the direction this unit faces.  Anyone know?

Unit #1804: 2 bedroom, 2 bath, 1902 square feet

• Originally sold for $830,000
• Flipper listed it for $1,200,000
• Re-sold for $950,000
• North facing

Here are some pictures of Unit #2104 (which is currently on the market.)  I’m assuming it would be similar to Unit #1804.  #2104 is listed for $1,070,000.

At least 14 units have rented. A tipster sent me the info off of the MLS, but as we know some people rent off of Craigslist or the Reader so that information would not be included. Combining the successful rentals with those that are currently listed, that would be 40 rental units in the building, out of 344 total units, or about 12% of the building is in some form of rental.

Some flippers are getting creative in trying to rent out their units.  This landlord is offering a free plasma tv on Craigslist.  All for only $2200 a month.  That is among the cheapest I’ve seen in the building.

The number of foreclosure filings against developers are piling up.  So far,  it has been the smaller developers that are in distress.  We haven’t yet had a filing against one of the big highrises.

Crain’s reports that the latest is a foreclosure filing on 417 S. Dearborn, an 1889 historic building just north of Printers Row, that was being converted into 30 loft condos.  You can see a historic picture of the building from this book on Chicago architecture (it is the short one in the middle of the block).

The developers, a group that includes investors Charles Everhardt, Lawrence Nesis and Donald Kindwald, owe $2.9 million on the loan, which matured on Nov. 17, according to a foreclosure suit Broadway filed at the end of November in Cook County Circuit Court.

The developers are converting the 11-story building at 417 S. Dearborn St. into 30 condos, but construction delays prevented them from finishing the project on time, Mr. Everhardt says. Buyers have signed contracts for about 15 units in the former office building, he says.

Though he was “a little surprised” by the foreclosure suit, Mr. Everhardt is confident Broadway will agree to restructure the loan.

“Everything will be back on track in another 30 days,” he says.

There has been a sign saying “Condos for sale” on the side of the building for forever. Crain’s states that the investors bought the building in 2005 for $2.5 million.

The building may not end up in foreclosure after all- but what of sales going forward?  All  of the units are one bedrooms and are selling for around $270,000 with no parking available.