Crib Chatter

 There are some buildings that are meant for greatness and CMK’s Contemporaine, the 28 unit modern concrete building in River North at 201 W. Grand is one of them.  Only a few years old, the building has already been added to the Architectural Foundation’s walking tours as an example of outstanding modern architecture.

Units rarely come on the market in the building, although a 1200 square foot two bedroom, two bath was on the market last year for over a year without a sale.  In my opinion, it was overpriced (even for Contemporaine.)

Now, one of the penthouse units has come on the market.  You might know it from seeing its distinctive trees in the distance.  I know I’ve wondered, “who lives in that unit with the great terrace?”

The pictures above don’t do it justice.

In May, Chicago Tribune Magazine had an article devoted to those very Zen gardens, which consist of 12 foot pine trees, Japanese ponds and waterfalls.  Check out the pictures there.  It’s completely unique in the city.  The current owners live full-time in St. Charles with their four children.  But they said in the article:

“It’s our special romantic getaway. To have a garden like this in the middle of the city – we just love it.”

But apparently they don’t “love it” enough to continue to own it.  Just weeks after the multi-page article appeared in the Tribune (where thousands read about the “amazing” gardens) the home was then listed.  Coincidence?

Ah, a realtor’s dream (to have THAT kind of coverage about a property.)  But I digress.

These owners are apparently trying to make quite a bit of profit out of their Zen garden in the sky.

201 W. Grand, Unit PH2: 2 bedrooms, 2.5 baths, 3000 square feet, 2 parking spaces included, 3000 square foot terrace

• Currently listed for $3,950,000
• Last sold in April 2004 for $1,700,000

Is the terrace really worth a nearly 50% gain in 3 years?  And how do you maintain it?  The expense of upkeep must be pretty high.  The unit is also “only” a 2 bedroom whereas most properties in this price range are much larger and have more bedrooms.

But still- it is Contemporaine.  And those trees and the gardens are just amazing.

Koenig & Strey has the listing.

The foreclosure brigade continues.   Sometimes they provide deals, sometimes they do not.

This week a 2 bedroom, 2 bath unit is going to auction at Tower II at Museum Park in the South Loop at 1335 S. Michigan.

Unit #503: 2 bedroom, 2 bath, 1384 square feet, 2 parking spaces (unclear if they are included in the price or not)

• Currently listed for $550,000
• Last sold for $469,518 in June 2003
• Auction price of $355,708

Will someone get a deal at auction?  Or will  the bank get it and continue to list it higher?

Stay tuned.

Other 2 bedroom, 2 baths in the building are listed from $424,000 to $674,000.

Let’s say, for whatever reason, you’ve decided to sell your downtown Chicago condo right now.  The peak buying period has passed (which is March through August in Chicago).  To add insult to injury, the housing market is flat in the city and inventory is still very high.

How do you sell it?

You price it with a “drama price”- meaning it is such a good deal people will HAVE to come and look at it.

Take a newly listed unit at 200 W. Grand- Unit #1304.  200 W. Grand is a newer high rise in River North that first closed on its units in 2004.  There are a dozen units for sale in the building ranging from a 4 bedroom penthouse priced at $2.295 million down to a one bedroom priced at $309,000.  There are also a handful of 2 bedroom, 2 bath units in the mid-$400,000s.  Unit 1304 has decided to just go for the drama pricing right out of the gate.

Unit #1304: 2 bedroom, 2 bath, 1250 square feet

• Currently listed at $399,000
• Sold in December 2004 for $394,000

This seller is going to take a loss.  He’ll likely sell below what he paid for it (even before subtracting realtor’s fees.)  But this unit is also the only 2/2 priced under $400,000.  It’s priced $40,000 below Unit #1504, which is the same tier, which is listed for $439,500.  Presumably they are the same floor plan. 

If you were a buyer, which unit would you look at first?

Exactly.  In this market, you have to drama price to get noticed.

I was reading New York Magazine a few days ago and stumbled upon its real estate section which has a “featured property.”  The realtors discuss what they like or don’t like about the property and try and estimate what it should list for.

This issue had a Tribeca loft.  The pictures of the loft are above.  Here are its stats:

Tribeca Loft,  Castiron Loft Building, 55 White Street, Apartment 4A:

• 591 square feet studio
• Slightly older gallery kitchen
• Marble bath
• Washer/dryer in the unit
• Assessment and taxes of $546 per month

The realtors all liked the big window in the living space and said the building was well run.  Tribeca is also VERY popular with new buyers, for obvious reasons.  Said one of the realtors:

Alan Pfeifer, Halstead Realty: Pfeifer notes that “there aren’t many small loft spaces [here], and there’s more demand than supply,” which should mean a quick sale. “It should attract the starter buyer who wants to get into Tribeca.” Still, “it’s a comfortable space for one person, maybe two, but it would be a challenge for more.”

The list price?

• $785,000

Corcoran Group has the listing.

So I got to thinking what you would get for your money here in Chicago for a similar loft. Granted, there is no loft neighborhood equivalent to Tribeca in Chicago. You could, however, look in River North, the West Loop or Printers Row.

I decided to choose Printers Row because its loft style is most similar to Tribeca’s (no parking, old industrial buildings, no balconies.)  Pictures of the Printers Row loft are below:

Printers Row Loft, The Donohue Building, 727 S. Dearborn #612:

• 1500 square foot one bedroom
• 2 baths, limestone in the master
• Washer/dryer
• 12 foot ceilings
• Corner Unit so numerous windows, including in the master bath
• Renovated kitchen with subzero
• Assessments of $655 a month

The listing price?

$469,000

Obviously, Chicago is not New York and makes no claims on being so.  But Chicago lofts, per square footage, easily beat New York lofts in terms of affordability.  And the Chicago lofts are pretty darn cool looking.

Rubloff has the listing.

There is  a lovely vintage building at 1255 N. State Parkway called The Churchill which is in a great location right in the middle of the Gold Coast.

The units are large, have the crown moldings and some of them have interesting interior terraces,  not visible from the street.

Prices in the building have been steadily rising, along with the housing market, the last several years.  But when do prices rise so high that when you combine it with a high assessment it becomes a hindrance to buying the unit?

Unit 2J: 1 bedroom, 1 bath,  1000 square feet with a 12 x 8 terrace, no washer/dryer in the unit

• Currently listed at $339,000
• It is “under contract”
• Previously sold in 2004 for $278,000

The assessment and taxes, however, add up to quite a bundle:

• $817 a month
• Taxes of $304 a month

The assessment covers everything except phone- but what does that mean exactly?  Cable, heat, maintenance of the building etc.  Does that add up to over $800 a month to you?

Your taxes and assessments are basically a mortgage payment unto themselves.

Let’s say this buyer gets the condo for $320,000.  If they put down 10% and get a 30 year fixed mortgage on the $288,000 balance at 6.25%, their monthly payment is $1773.

Add on the taxes and assessments and you have a monthly payment of: $2894

And $800 of that is not a help on your taxes.  If you have a car and need parking, you can add on another $250 for a total well over $3000 a month.

Again, this building has some really nice units.  Unit 2J has a great terrace.  But $3000 a month for a one bedroom?

It would make more financial sense to rent it instead.  But that is why housing is an emotional purchase.  Many times, even if it doesn’t make any financial sense, buyers go forward anyway.

Still, the high assessments have to be a hindrance to selling many of the units in this building.  Unit 8AC, a 1825 square foot 2 bedroom, 2 bath unit,  is also for sale, with no terrace but it does have the washer/dryer, for $699,000.  The assessment on that unit is $1845, plus $654 for taxes.

Hefty premium indeed.

When you think of a loft, you think of the ones you see in the movies or on television with spiral staircases, massive ceilings, brick, timber and unique features.  In recent years, the lofts that have been renovated and marketed in Chicago have not really been close to this old loft ideal as developers rushed to fill demand by building smaller sized units and many times taking out the uniqueness.

After all, many people want walls in their condo, right?

But there are still remnants of the old loft culture alive and well in Chicago.  You just have to know where to look.

3155 S. Archer #1 is such a loft.  Total square footage is 3700 with 2600 square feet being the actual living space (1100 is unfinished first floor footage, according to the listing.)  It is a duplex unit with a back patio.  It also has two car parking.

• Current list price $499,000

Look at those tin ceilings!  The extend the entire length of the loft.  It’s not everyday that you see a loft like this.

This unit is not far from Chinatown and the South Loop.  Rubloff has the listing.

Some buildings just don’t quite make it- even in a booming market.  420 W. Ontario is one of those.

It was converted into lofts only about 4 years ago and is an authentic brick and timber building with only 28 units.  Those of you familiar with River North know it as the Reza’s building.

The top floor of the building has great skylights that provided a lot of light to the bedrooms which were in the back of the unit and didn’t have windows.

The units, unfortunately, have never held their value. Prices have actually declined in the building since the first closings. 

Unit #402: 2 bedroom, 2 bath, 1400 square feet, deeded parking, skylights

• Currently listed for $369,900
• Auction price $323,232

The listing is already a short sale. 

SHORT SALE IN RIVER NORTH! Large Top Floor 2B/2B timber loft with 14′ ceilings just a few blocks to the L, and Kennedy Expy access. Price Includes deeded/heated parking space. Beautiful hard wood floors throughout. Washer/Dryer in-unit, Balcony facing Ontario. UNIT ALSO COMES WITH 750 SQFT OF ROOF RIGHTS TO BE BUILT OUT AS YOU WISH. All offers subject to lender approval. Pre-approved and serious only.

There are a couple of other 2 bedroom units also for sale in the building (neither on the top floor). Unit #309 is listed for only $319,900 ,which doesn’t include the parking.

Are any of these a deal? Doesn’t seem like it to me.  We’ll see if this unit even sells at the foreclosure sale.

If you watch the real estate scene intently enough, every so often deals appear (especially in this housing market.)

Such was the case on a recent 2 bedroom, 2 bath that came up for sale in the Millennium Centre at 33 W. Ontario.

Unit #15H: 2 bedroom, 2 bath, 1289 square feet

• Sold in October 2003 for $476,500
• Currently listed for $369,900
• It is “under contract”

The listing says the unit is sold “as is” which probably means it was foreclosed on at some point.  I also don’t think this price includes a parking space.  But American Invsco, the developer, is selling spaces in the building for $25,000.

A two bedroom, two bath at nearly 1300 square feet in a prime area of River North for under $400,000?

That’s a deal (even if it’s in bad condition.)

This ad on Craigslist about 1727 N. Clybourn #1 caught my eye:

$484000 Bought for $440,000 in 2001!!! Duplex 3 Bed 2.5 Bath Garage Parking

Is this headline true?

1727 N. Clybourn, #1 is a 3 bedroom, 2.5 bath duplex, with 2400 square feet and garage parking.  It has an interesting history:

• Sold in April 2000 for $397,000
• Sold in October 2002 for $440,000
• Sold this last May 2007 for $329,900
• Put on the market shortly after the May purchase for $500,000
• Recently lowered to $484,000

The May 2007 sale appears to be a foreclosure purchase.

Did the unit sell at one point for $440,000 in or around 2001/2002?  Yes.  But it’s a bit disingenuous to say that $485,000 is a great price (aka, a low price that is near pricing from 6 years ago) when it sold a few months ago for $150,000 less.

$150,000 in only five months time. Now THAT’S price appreciation.

We’ll see if they can get it.  The condo is also available for rent.

You don’t see million dollar condos go into foreclosure that often (not yet anyway) but there is one this week.

Millennium Centre at 33 W Ontario was built at the beginning of this decade by American Invsco. The building has had some difficulties since closings began in 2003.  For instance, the building is still not sold out by the developer.  There have also been several foreclosures of smaller and cheaper units.  A  lot of units are rented because of the developer’s 2-2-2 deal (which was two years of assessments, two years of taxes and two years of guaranteed rental income for the unit.)

There were a lot of investors in the building.  Additionally, as I talked about in a prior post, the developer is also still trying to sell extra parking spaces and has cut the cost on those by $15,000.

Unit 14F: 3 bedroom, 3 bath duplex with gated access to the pool, 2600 square feet

• Sold in March 2005 for $1,350,000
• Auction price of $1,259,998

Stay tuned to see if this sells at auction.