Crib Chatter

The Caravel at 635 N. Dearborn is a nondescript River North high rise that was built during the hey-day of the new condo mania (when buyers were waiting in lines to get new condos and they were selling out in only days.) One of the unique features is that all of the units in the building are 2 bedrooms or larger.

It wasn’t built as a luxury building, per say.  The kitchens have granite, but it was thin granite and the kitchens were small.  Some have upgraded their appliances to stainless steel but many of the original units had white or black.  The picture above is Unit 1703 one of the small 991 square foot two bedroom units with the original kitchen.

Several resales in the building tell the story for the owners, most of which will be lucky to break even and many which will lose money on the sale.

But I thought real estate only went up?  I thought it was better to own rather than rent? 

Some in the Caravel would have been far better off renting over the last 4 years.

Unit #1703: 2 bedroom, 2 bath, 991 square feet, listing says “Brand New Unit- Never lived in!”

• Sold in January 2004 for $373,500
• Currently listed for $395,000 plus $35,000 for parking (two spaces available)

If true that this unit hasn’t been lived in in nearly 4 years (that the owner got no rental income from it) this owner is going to take a large loss on this investment when you factor in paying assessments, taxes etc. over that time period. 

• Assessments at $548 a month (total of $6576 a year)
• Taxes of $4833 a year

This owner is paying $11409 a year to hold a losing investment.  There is no guarantee it will sell for even what they paid for it four years ago – the $373,500.

Unit #702: 2 bedroom,  2 bath, 1250 square feet, large wraparound terrace

• Sold in April 2004 for $421,500
• Currently listed for $449,500 plus $35,000 for parking

Unit #1402: 2 bedroom, 2 bath,  1214 square feet

• Sold in June 2003 for $420,500
• Currently on the market for $439,900 plus $35,000 for parking

Unit #901: 2 bedroom, 2 bath, 1326 square feet (among the largest floorplans)

• Sold in June 2003 for $423,500
• Currently listed for $434,900 plus $35,000 for parking

Unit #906: 2 bedroom, 2 bath, 1250 square feet

• Sold in April 2004 for $360,000
• Sold in July 2006 for $417,500
• Currently listed for $419,900 plus $35,000 for parking

These prices don’t seem to be an aberration (i.e. there isn’t just one unit that is selling for less.)  It appears that most of the building has not appreciated in the last three to four years.  Many of the original owners will take a loss (after paying realtor and closing costs) if they sell now.

I used to live in California and loved the Spanish style house architecture there.  When I moved to Chicago I thought my dream of owning my own spanish hacienda was dashed and I would have to buy a brick bungalow or a tudor.

Much to my surprise, the 1930s spanish architecture (which was the peak period for building in that style) didn’t completely bypass the Chicago area and there is still a chance to get my spanish dream.

All that is missing is the palm trees.  (Not sure the big pine tree in the picture above is the kind of tree you’d want near a Spanish Hacienda after all.)

Such a spanish beauty is available right now in Beverly – the small enclave on the south side of Chicago that was the first Beverly Hills (when cows were still roaming in California).  It is so named because it is actually the hilliest part of Chicago (and the highest point in the city.)  It is also famous for its architectural variety.  From the Ridge Historical Society:

The community is rich in examples of Stick, Italianate, Queen Anne, Colonial Revival, Tudor, French Provincial, Prairie, Craftsman, Italian Renaissance, Neoclassical, Art Moderne, International Style, Ranch and Contemporary houses.

And, of course, the spanish hacienda.

9021 S. Leavitt: 4 bedrooms, 3.5 baths, doesn’t seem to have a garage but has a carport.  It was recently de-listed and listed again.  It has been on the market for forever.

And yes, obviously, it needs some renovation.  But look at the spanish tiles in the bathroom and kitchen!  This is what a “real” spanish style home in California would have.

• Currently asking $598,000
• There are no sales records going back the last 10 years

I’m assuming most buyers are turned off by the renovation and, yes, maybe even the spanish tiles themselves.  The spanish style is not common in the Chicago area. It’s too bad.  These homes have real “style.”

Also, the $598,000 price tag seems a tad too high for Beverly (and a house in this condition.)  But maybe that’s just me.  (And also maybe why it hasn’t sold in seemingly forever.)

Lots of people were excited about Case Study, an 11 unit boutique building at 156 W. Superior in River North that was finished in 2006.

It was a completely modern building, with concrete floors and gray Italian kitchens.  It won accolades from various architecture firms and magazines.  The units sold out pretty quickly.

The first re-sale has appeared on the market.

Unit #201: 3 bedroom, 2 bath, 1560 square feet and a nice terrace

• Currently listed for $819,000 with $25,000 for the parking
• Sold in April 2006 for $767,760

They’re not going to make much money off the sale.  There is also a lot of competition now in the “modern” category with Helmut Jahn’s 600 N. Fairbanks and 550 N. St. Clair.  Both have similar looks with the Italian kitchens and use of concrete.  Both are full amenity buildings with doormen, whereas Case Study is small and on a quiet River North street.

But there is something just nice about this unit.  Maybe it is because it isn’t in a high rise.

Kathleen Tannyhill at Baird & Warner has the listing.

After suffering through construction delays (it seems that the windows took forever to arrive), the St. Clair at 550 N. St. Clair in Streeterville is set to begin closings early in 2008.

The flippers have started appearing on Craigslist – no shock there.  The building’s website says that it is only 80% sold.  In addition, this building will join the mix of buildings located nearby that are also closing in the next few months- which should provide quite a bit of competition.  Located just blocks from each other, 600 N. Fairbanks and Avenue East, will be closing at about the same time and in a similar price range.  Which building will find more buyers for these flips?

Craigslist currently has two flips: the always popular one bedroom and a bigger 3 bedroom, 2 bath model.

3 bedroom, 2 bath unit: Doesn’t list what floor the unit is located on and which direction it faces.  Nor does it list square footage.  Here is the description:

Floor to ceiling windows with panoramic views,10’ ceiling, open floorplan, Walnut hardwood flooring,integrated ambient lighting,European designer cabinets,solid core and pocket doors,pre-wired for satellite TV and high-speed Internet,full-sized front loading washer/dryer in residence,Bosch appliances,Sub-Zero refrigerator with built-in icemaker,stainless sinks and granite countertops, GROHE faucets,marble bathrooms.

Ho-hum. Another building, more subzero appliances.

• Asking price $935,000 plus $50,000 for parking
• Anyone know what pre-construction prices would be on this type of unit?
• The builder is selling a three bedroom, three bath for $958,500 (again, no idea of floor or view or how they compare)

One bedroom unit: this listing has even fewer details than the bigger unit.  Again, the floor is not listed, nor square footage.  We know even less about it.  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.

It’s impossible to judge what the “market” is with so little information.

• Asking price of $469,000 which includes the parking
• Ad claims that a similar unit on a lower floor from the developer is listed at $518,000
• Ad also says this is “pre-construction prices”

Anyone with any info on what these would have sold pre-construction?  Unit #1002 is a one bedroom listed from the developer on the MLS for $416,000. 

If you’re a developer and you’re about launch a new luxury building during what some would argue is the worst housing market in 20 years and into a Chicago market that is already saturated with that product, you’d think you’d have all of your ducks in a row. Right?

You’d launch with an ad in the Sunday Tribune and you’d have a website ready to go that offers all of the information: prices, renderings of the building, floorplans.

So why was it so hard for the developer of The Winchester, the latest “luxury” building in Chicago to get it right?

On Sunday, the Winchester had a half page ad that stated:

“Luxury Living in Lakeview. Gracious. Sophisticated. Elegant. The Winchester welcomes you to grandeur that has not been created on Lakeview’s gold coast in over half a century. Featuring graciously proportioned and finely appointed 1, 2 and 3 bedroom homes with lake and city views. Classically styled residences with full service amenities and all of the conveniences of the 21st century.”

There is no address listed for the building in the ad. Just go to the website, right? (which is listed in the ad.)

So I went to the website and expected to see, at the least, a picture of the building (which is not listed anywhere in the ad- there is only a coat of arms in the Tribune.)

What did I find? The worst website I have seen in a long time. It is simply a one page site with no links. It offers absolutely no information- except the address of the building which is apparently 3175 N. Hudson (for those who don’t want to mapquest it yourself, it’s on the corner of Hudson and Belmont, near the Belmont Harbor.)

The website does list the Koenig & Strey’s agent names. Thank goodness for that! That’s what I want to know as a buyer.

This is the worst launch of a building I have ever seen. Seriously. “Lame” doesn’t even begin to describe it.

Why would you shoot yourself in the foot so badly? You only have one opportunity to launch. You only get one chance to lure people to your website so it had better be fantastic. What marketing memo didn’t this team of agents understand?

Maybe they think it will add to the mystery.

Unfortunately for them, on the opposite page in the Tribune from their ad that says nothing, there is a full page ad for 2520 Lincoln Park, the “first” new building built on Lincoln Park in decades. They have a strong marketing plan, complete with a detailed website.

And the Winchester is going to compete with that? This is no longer 2005.

There comes a time in every condo building’s life when it is no longer the “new” kid on the block.  What once seemed like a “prestige” building in a “great” location, no longer is, once a newer,  even more prestigious building with even better views is built up the street from you.

And the once “in” cabinets, even four or five years later, are now “out” and dated.  Same with the baths.

Such is the case with 530 N. Lake Shore Drive.  There was buzz about this building when it was originally sold in 2003.  It was the first “new” construction building to be built right on Lake Shore Drive in Streeterville/Gold Coast in decades.  Many of the units had stunning lake views. 

But in the last several years, other buildings have taken away some of its sparkle- including its under construction neighbor to the north, 600 N. Lake Shore Drive, which has not yet had any closings.

Sellers are finding that appreciation is not as great as they thought it might be in the building. 

Unit #1801: 3 bedroom, 3 baths,  2772 square feet, two terraces

The pictures above are of this unit.

• Originally listed for $1.397 million
• Reduced to $1.249 million
• Originally sold for $1.044 million in December 2003

In nearly four years, this owner will be lucky, after realtors fees, to make much more than $100,000 or $150,000.  But hey- at least they’re still making a profit, right?  But after a booming market the last few years, I’m sure the sellers in this building thought they’d be doing a bit better on re-sale.

The market is not good for the larger units in the upper bracket.  But what about something a bit more affordable?

Unit #2003: 2 bedroom, 2 baths, about 1300 square feet, parking included

• Currently listed for $649,000
• Originally sold for $513,500 in January 2004

Again, depending on the ultimate sales price and realtor’s fees- the appreciation for owning this unit hasn’t been all that you might imagine.

Will price appreciation decelerate more quickly once 600 N. Lake Shore Drive’s units come onto the market?  I imagine it will.  Buyers want “new.”

There is clearly nothing wrong with 530 N. Lake Shore Drive.  But what was once “hot” is now, clearly, “not.”

A few weeks ago I posted about this River City 1500 square foot duplex that originally sold for $543,000 and was now bank owned and being sold for $268,800.  That’s a 49% reduction.

The “once in a lifetime opportunity” is still available.  According to this post on Craigslist, they are holding an open house this weekend.

Maybe the “deal” isn’t so great of a “deal” after all. 

Remember the news last year that Vince Vaughn had bought the penthouse in the Palmolive, at 159 E Walton in Streeterville/the Gold Coast for $9.5 million (original list price of $10.5 million)?

It was, at the time, touted as the most expensive condo unit ever sold in Chicago.  The Palmolive penthouse had been for sale for several years.

Imagine my surprise, then, when I was reading the Tribune’s coverage of the Chicago Spire’s $40 million penthouse and James Kinney, President of Rubloff Residential Real Estate said the following:

He said the highest sale price recorded in the multiple listing service is $8.27 million, paid in November for a 10,950-square-foot penthouse at 800 N. Michigan Ave. There might be condominiums that are worth more than that, Kinney said, but they have not yet been marketed.

I thought – maybe he had just gotten it wrong. Maybe he forgot about Vince Vaughn!

But, surprisingly, the public records do not indicate a sale of the penthouse at the Palmolive.  The most expensive unit ever sold in the building was #22A, which sold in 2006 for $6.2 million.

What happened to Vince?  And what has happened to the penthouse?

It is no longer on the market.  But yet it never sold.  Could the developer be renting it to Mr. Vaughn?  It would be good PR for the unit.  People love living where celebrities have lived.  Case in point: the couple from Texas who just overpaid for Paris Hilton’s LA home.

Maybe the “news” of the sale was really just planted rumors.  You get it out there that Vince Vaughn bought your penthouse (when he really is just renting it for a few years.)  Then in a few years time, it comes back on the market at a crazy high price and everyone knows it as “the condo that Vince Vaughn lived in” which would be the truth.

Better than having it sit empty, and unsold, for several more years, right?

It’s a mystery.  For now, then, 800 N. Michigan holds the title of “most expensive condo” that has ever sold.  Other condos are trying to unseat it, however.  The most expensive re-sale unit currently on the market is at  209 E. Lake Shore Drive for $9.2 million.

Recently, I talked about closings beginning at The Columbian, at 1160 S. Michigan, which anchors South Michigan Avenue at Roosevelt Road.  The renovation of Metropolitan Tower further up the road and the recent re-opening of the sales center at 6 North Michigan (it had been closed for years due to financial problems with the original developer) all show that demand is still there for new construction condos in this part of the city.

Everyone wants to be near Millennium Park, Grant Park and have the lake views.

But it wasn’t that long ago that people would have said you were crazy for wanting to live on South Michigan Avenue.

One of the original conversions on the block was at 330 S. Michigan a 78 unit historic building.  It is a non-descript building.  You could walk by it a dozen times and not even notice it’s there.  Currently, there are four units for sale in the building ranging from $399,000 to $949,000.  The largest and most expensive unit has the dead on lake views.

Unit #1706: 3 bedroom, 3.5 baths, 1835 square feet, washer/dryer, two parking spaces available

The listing states it has been upgraded and the pictures show some nice vintage features and an upgraded kitchen.

• Currently listed for 949,000 (has had at least one price reduction down from $999,000)
• Sold in February 2000 for $411,000

Yep, trying to get more than DOUBLE what they paid for it 7 years ago.  But the price isn’t that outrageous anymore for the location.  In fact,  some might consider it to be a “deal.”

Millennium Park changed everything for South Michigan Avenue.  It used to be no man’s land.  Now it is hip and cool.

Unit #1706 is a lot of unit for the money.  There is no outdoor space, due to the historic nature of the building.  But otherwise, buyers looking in The Heritage, 910 S. Michigan, and some of the newer buildings like Metropolitan Towers and The Legacy might want to check out the slightly older product.  Same great views. Sometimes better prices.

Melinda Jakovich of Coldwell Banker has the listing.

It is not a secret that Ivanka Trump, Donald Trump’s oldest daughter, is heavily involved in the marketing and selling of Trump Tower Chicago.

But in the last two weeks in the Chicago Tribune, Trump International seems to have shifted sales techniques and is now using Ivanka as their “brand.”

Trump has taken out a full page ad that shows Ivanka standing across the Chicago River on the River Walk with Trump Tower Chicago in the background.  She is not in a suit but rather is dressed in some kind of white thigh high party dress and high heels.  The ad states:

“To me, it’s Chicago’s perfect place. It’s the ideal location for an architectural icon. One that really here. Really happening and ready for you to move into next year.” – Ivanka Trump- The next generation of Trump style.

Is that a dig against the Chicago Spire- which will be taller than Trump and which is currently under construction about ten blocks away but has delayed its sales center opening until January of 2008? Sounds like it to me.  But I digress.

Even if Trump thinks he may lose some sales to the Spire, the use of Ivanka is interesting. She is also prominently pictured on the Trump Chicago website. You see her picture before you ever see the Donald’s and she is featured front and center in several of the links within the main menu.

Are they trying to appeal to a younger new money crowd?  I would think, given the price points in Trump Tower which range from  $580,000 to $9 million for the residential condominiums, that the demographic is going to be skewed on the older side and that many residents will have a daughter Ivanka’s age- and not BE Ivanka’s age.

It’s an interesting sales technique for a building that is partially completed (the hotel on the bottom half of the building is slated to open in December 2007 but the spa, pool and other features won’t open until March 2008.)  Several news sources have put sales of the condominiums at only 70% as of this month.  With the real estate market slowing dramatically, how long will it take to sell the other 30%?