Crib Chatter

Lots of investors bought in the massive Park Millennium conversion at 222 N. Columbus near the Lakeshore East project (is this in Streeterville?).  There are 480 units in the former apartment building.  Parking is rental only (and runs around $225 a month.)

The units do have in-unit laundry.  Many of the units look as if they were bought “as is” (i.e. apartment style) and have not had any upgrades.

There are lots of rentals in this building as well as lots of condos for sale.  And now, apparently, there are some pre-foreclosures as well.

Unit #2209: 2 bedroom, 2 bath, 1120 square feet

• Currently listed for $399,000
• The pictures above are of #2209

Unit #2308: 2 bedroom, 2 bath, 1225 square feet

• Currently listed for $419,000

Here is the Craigslist ad for #2209:

Pre-foreclosure sale. Motivated seller must sell! Priced below market. Millennium Park location. Steps to Mag Mile, Grant Park and Millennium Park. Granite counters, stainless steel appliances, maple cabinets and floor to ceiling windows. Lots of closets; walk-in Master Bedroom closet. View of lake and Navy Pier. 15 minute free parking to tour unit.

I wasn’t able to find original sales prices for these units so I don’t know if these “pre-foreclosure” prices are really “deals” or not.  Unit #3503 is apparently the cheapest two bedroom in the building.  It is also in pre-foreclosure according to Craigslist for $374,000.

These particular units aren’t anything to write home about originally (if you know what I mean.)  But some of them did have pretty nice city and lake views (if you were on a high floor.)  Not sure how long that will hold up with Aqua being built in Lakeshore East nearby.

1720 S. Michigan is the new CMK building in the South Loop.  It looks like most of the other CMK buildings (white, modern, lots of glass.)

Units are still available from the developer but closings have begun.

That means the flippers are out to play!  Craigslist has several units and several are on the MLS:

Unit #906: 2 bedroom, 1 bath, 836 square feet

• Currently listed at $279,000 plus $36,900 for parking
• Was originally listed for $284,000 on Craigslist a few weeks ago
• Sold for $279,500

Unit #812: 2 bedroom, 2 bath, 911 square feet (with 400 square foot terrace)

• Originally listed at $419,000 plus $35,000 for parking on Craigslist
• Already lowered to $399,000 plus $35,000 for parking
• Sold for $367,000

Many of the two bedrooms are very small.  Craigslist has several of them for rent.

Looks like these investors are going to either barely going to break even or take a loss.  It’s brual out there with the South Loop flips.

According to Crain’s, Greektown in the West Loop could see another 146 condos for sale as soon as the end of next year.

My question:  why?

They are still selling The Emerald, the two building development right in the middle of Greektown that is already under construction.  The developers can’t even sell many of the projects that are already out there. According to Crain’s, this new project would be two 12 story buildings at 111 S. Peoria.

From Crain’s:

New condo sales in that area this year have suffered along with the rest of the downtown market. Sales during the first half of 2007 fell 35%, to 246 units, in the West Loop/River West neighborhood, compared to the same period in 2006, according to a second-quarter report by Appraisal Research Counselors. For the entire downtown market, sales have fallen 36%, to 1,800, the firm says.

The article implies the developer is aiming for next year because things will rebound. Is there anyone out there really clamouring for more product in the West Loop?

There are several developers that are playing on the “green building” phenomena to set themselves apart in a crowded downtown condo market.  First there was The Emerald in the West Loop, near Greektown.

Recently, a building to announce it was going all “green” was Eco 18 at 1830 S. Wabash in the South Loop.  But Eco 18 is going far beyond what The Emerald is marketing.  The Emerald is calling itself “eco-friendly” – meaning they are using bamboo flooring, among other “eco” materials, and trying to make it as energy efficient as possible. 

Eco 18 will have an 11,000 square foot accessible roof garden and a geothermal heat pump system that will provide over three fourths of the building’s heating and cooling needs.  They will also use energy efficient flourescent lighting and other water conservation techniques.

The building got a lot of buzz when it opened several months ago by environmentally savvy buyers.  But even with all the publicity, the project is only 25% sold.  Their website actually provides a pricing list with what is sold (more developers should put this on their website, by the way) and the probable assessments.  The developer believes assessments will be lower due to the cost savings from the “greening” of the building.

Prices range from around $250,000 for the smallest 800 square foot one bedroom units to $615,000 for a 2 bedroom, 2 bath plus den unit with 1583 square feet.  Parking is $29,900 but they are running a “pre-construction special” of $18,900.

The Emerald has two buildings and sold many in the first.  They have been offering “incentives” for many months, including $5,000 in upgrades upon signing and requiring only a 5% deposit.  The Emerald’s prices range from $273,000 for one bedroom units to $526,000 for two bedrooms.  Parking is $35,000.

Are these flippers getting burned or original owners suffering through the pain of the syndrome known as “no appreciation in two years”?

Probably a bit of both.

2000 N. Lincoln Park West is a two year old conversion of a 1931 vintage apartment building right on Lincoln Park.  The developer offered an upgrade package on the kitchen that was wood cabinets, stainless steel and granite countertops.  It wasn’t anything spectacular but the building sold quickly. 

Several owners are now selling at or below 2005 prices.

This two bedroom, two bath owner is certainly feeling the squeeze and the unit’s realtor isn’t mincing words in the Craigslist ad:

Listed below market value – MOTIVATED SELLER! Seller trying to avoid foreclosure! Help him out! Seller offering to pay for rental parking for 1 year! Beautiful vintage 2BR/2BA with unobstructed views of the park, lake and city in recently converted luxury building originally built by Wrigley. Unit features original parquet floors, built-in hutches, decorative fireplace & 9ft ceilings. Full amenity building offers doorman, exercise room, roof deck and on-site management. Central location near busses, LSD, restuarants, shops and nightlife.

Unit #1002: 2 bedroom, 2 bath, 1250 square feet

• Originally sold for $501,500 in January 2005
• Was listed for $585,000
• Currently listed for $499,500
• There’s no parking or in-unit laundry
• Susan Pope and Susan Duffy at Keller Williams Lincoln Park have the listing

This seller is having similar problems:

Unit #512: 1 bedroom, 1 bath, 1100 square feet, south and east exposure

• Originally sold for $447,500 in March 2005
• Currently listed for $450,000
• Motivated Sellers!
• Toussaint and Associates has the listing
• The pictures above are of Unit #512

What hurts resale of these units is the lack of a washer/dryer (especially at that price point) and, of course, lack of deeded parking.  Also, the assessments are quite pricey (probably due to the old age of the building.)

How low will the prices fall in River City at 800 S. Wells in the South Loop?

Ever lower- so it seems.  And the foreclosures continue to mount.  This building is in serious trouble.

The latest foreclosure:

Unit #554: likely a 3 bedroom, 2.5 bath duplex (I don’t have the exact size of the unit but likely around 1600 square feet)

• Last sold for $504,500 in December 2005
• Auction price of $403,600

Other units in distress are the following:

Unit #508: 3 bedroom, 2.5 baths, 1600 square feet, sold “as is”

• Last sold for $498,100 in August 2005
• Currently listed for $279,900

Unit #542: 3 bedroom, 2.5 baths,  1600 square feet, duplex, sold “as is”

• Last sold for $500,000 in July 2005
• Currently listed for $318,000

And this unit is priced at 50% less than what it sold for 3 years ago.  Yikes!  Brutal.

Unit #551: 3 bedrooms, 2.5 baths, sold “as is”

• Last sold for $511,700 in December 2004
• Currently listed for $254,900

You have to ask yourself- if the 3 bedrooms are all listed for $260,000 or so (and STILL not selling) what are the one bedrooms in the building worth?

Oh- and the “opportunity of a lifetime” that was 42% off  its original sales price – that I wrote about a few weeks ago?  Still for sale- and not so much of an “opportunity.”  That unit was listed for $268,000– a full $13,000 more than #551 above (also a three bedroom, 2.5 bath).  Seems that #551 is now the “opportunity” (if you want to call it that.)

It shouldn’t come as a surprise that foreclosures are starting to pop up in the newly developed Lakeshore East condo buildings given the number of investors in those buildings and the ease of loans in the past few years.

This week a foreclosure has popped up at the Lancaster at 201 N.  Westshore Drive.

Unit #1208: 2 bedroom, 2.5 baths

• I can’t find a record of what it originally sold for in 2006
• Auction price of $516,000
• Unit #1907 is a two bedroom, two bath currently on the market for $675,000

Is this just the beginning of more foreclosures to come in these buildings that had closings in the last year or two?  If some of the other River North buildings are any indication, there should be more to come.

433 W. Briar in Lakeview is a conversion of an 11 story vintage building with 34 units.  It hasn’t been selling very long- maybe six to eight months or so.

It’s a nice building with two bedroom and larger units and there is parking available (rare for vintage buildings.)

But apparently the developer wants to try a new tactic on selling the remaining units.  The building is about 65% sold.

From Craigslist:

Fab. Vintage 11 story building at 433 Briar between Sheridan and Broadway. 2 & 3 Bedroom, 2.5 Bath units from 1,650 sf to over 2,600 sf. Developer elects to use Sealed Bid Sale – Bid Deadline Nov. 7. Buyers can pick their finishes on most units with 60 day delivery. Very Private & intimate property that must be seen. The developer will save over $1,000,000 by selling quickly and will pass those savings on to buyers who can move quickly. Originally pre-construction priced from $250,000 to $900,000.

An example of one of the units is the following:

Unit #7B: 2 bedroom, 2.5 baths, 1620 square feet

• Listed at $565,000 with parking deeded but extra

Here’s the listing:

UNIQUE OPPORTUNITY – THIS AND OTHER UNITS IN THE PROPERTY ARE BEING OFFERED FOR SALE VIA SEALED BID. BID DEADLINE NOVEMBER 7, 2007. DEVELOPER WILL SAVE OVER $1,000,000 IN COSTS BY SELLING QUICKLY, AND IS WILLING TO PASS THOSE SAVINGS ON TO BUYERS WHO CAN ACT QUICKLY. CALL UNIVERSAL FOR TERMS, CONDITIONS AND OPEN HOUSE DATES AND TIMES.

Will we see more of these auctions from developers trying to move units? And will these auctions even work?

Stay tuned.

The Olympics are hot.  Craigslist has dozens of ads telling you to buy in now before the Olympics.  This is especially true of the area around Washington Park on the South Side of Chicago near Hyde Park where, if Chicago is awarded the 2016 games, the temporary Olympic arena will be built.

But would you pay a million dollars right now to live in a restored mansion (yes, it’s lovely) to be near Washington Park?  The Olympics, if they even happen, are 8 years away.  It is pretty dicey in that area.  Many of the older mansion homes are down on their luck on that side of the Park (this mansion is located on the west side and Hyde Park/University of Chicago Hospital is on the east side.)

And then what happens if Chicago loses its Olympic bid?

5228 S. King Drive: 7 bedrooms, 5.5 baths, 8000 square feet, 2 car parking

• Sold in August 2006 for $530,000
• Currently listed for $999,000
• The house is on Craigslist

This flipper is hoping you’ll want to be right near the Olympic action.  Are you willing to pay an extra $450,000 more than what the flipper paid last year?  How much ARE Bosch appliances really worth anyway?

Not every building is a sure fire winner in Chicago over the last five years, even in the once booming loft market.  One River Place, or 758 N. Larrabee in River North, was a conversion of one of the old Montgomery Ward storage buildings in 2002.  It sits on the North Branch of the Chicago River and the units facing west have direct river views.  The building is rather famous for the statute of a 17 foot tall woman, called “Spirit of Progress,” on the roof of the building.

The lofts are concrete with 12 foot to 15 foot high ceilings.  The building has 407 units of various sizes (from studios to large three bedroom units.)

What’s wrong with the picture?  I’ve been in the building and it’s quite nice.  The units have nice layouts.  But a tipster has told me that there is ongoing litigation with the developer which has resulted in a quite substantial special assessment.

Some of the units are selling for less than 2004 pricing.

Unit #407: 2 bedroom, 2 bath, faces the river

The picture above is of Unit #407.

• Sold in November 2006 for $372,000
• Currently listed for $369,000 plus $30,000 for parking
• The unit is under contract

Unit #826: 1 bedroom,  1 bath, seller to pay special assessment

• Sold in November 2003 for $210,000
• Currently listed for $224,000
• The unit is under contract

Unit #813: 2 bedroom, 2 bath

• Sold in March 2004 for $390,500
• Currently listed for $389,000 plus $35,000 for parking
• Koenig & Strey has the listing

These owners are listing for less than what was paid several years ago (or, in the case of #826, barely higher than over 4 years ago.)

Who would have thought in 2002 when this building was originally selling that it would become a “tainted” building with little to no appreciation only 5 years later?  Just goes to show you, with new construction or conversions, you never know what is going to happen.