Prices Continue to Fall in River City: 800 S. Wells
We last chattered about River City, the American Invsco conversion at 800 S. Wells in the South Loop, in March 2008. At that time, foreclosures were selling at 55% off prior sales prices.
Were buyers who bought the 3-bedroom duplexes in the last year a bit too early? What about buying now?
Prices have continued to fall in the building on those size units.
To Recap: there have been a bunch of 500-numbered 3-bedroom duplex condos that have been on the market either as short sales, in foreclosure, or reduced. Most of these units sold originally in the $500,000 range.
One of them re-sold in December 2007:
Unit #551: 3 bedrooms, 2.5 baths, 1600 square feet
- Sold in December 2004 for $511,700
- Was listed in October 2007 for $254,900 (bank owned)
- Sold in December 2007 for $221,000
Unit #542 was on the market when we last chattered about this building in March.
Unit #542: 3 bedrooms, 2.5 baths, 1600 square feet
- Sold in July 2005 for $500,000
- Bank owned
- Was listed for $318,000 in October 2007
- Was still listed in March 2008 for $318,000 (fee parking available)
- Reduced
- Currently listed for $229,000
- Assessments of $856 a month
- Taxes of $3,535
- Chicago Realty Partners has the listing
Currently, there are 3 other duplex units on the market.
- Unit #525: Listing says rented until 7/1
- Unit #536: Short Sale
- Unit #552: Short Sale- is under contract
Unit #525: 3 bedrooms, 2.5 baths, 1600 square feet
- I couldn’t find a prior sales price
- Currently listed for $354,000 (fee parking)
- Assessments of $978 a month
- Taxes of $1,288
- Kale Realty has the listing
- “Investors: Amazing 2 Level Duplex Townhome Style Condo in Booming South Loop”
Unit #536: 3 bedrooms, 2.5 baths, 1600 square feet
- I couldn’t find an original sales price
- Short Sale
- Currently listed for $199,000
- Assessments of $862 a month
- Taxes of $6,380
- The Lake Shore Drive Group has the listing
Unit #552: 3 bedrooms, 2.5 baths, 1600 square feet
- I couldn’t find an original sales price
- Short Sale
- Currently listed for $199,000
- Under contract
- Assessments of $884 a month
- Taxes of $6,541
- CJ George-Wolff at Koenig & Strey has the listing
I am really surprised to see prices so low, so soon, on any building with the location this place has. $199K for a 3 bed 2 bath in a fairly modern building downtown?
Even though this building is ugly and undesirable, these prices are very low. Expect more really steep price drops of 50% or more in older buildings in “marginal” areas such as Rogers Park, Edgewater, Uptown, or Hyde Park; or in really overbuilt areas like the South Loop.
I’m beginning to see stuff in Lincoln Park and Lakeview listed at prices prevalent in Rogers Park at the peak.
These prices are a good indication of where the housing market is still going, especially when the next big wave of resets hits, which will be in a few months.
These prices are so low, I really feel for the sellers/banks. Although I would never have paid the original purchase price $300+/sf for these units, I would never have thought they’d have to drop to $125/sf to sell.
I really wish I was a situation I could buy right now. I personally love this building, alot of the units require some love on the inside, but where the prices are going you would actually have the money to do so. With Roosevelt Collection going up a lot of retail and density is coming to the immediate area, which will only improve the livability of the area.
The one thing that really bothers me is I am sure there will be a special assessment in the near future and I’m sure the condo board is a mess.
SSDD
Another fine property brought to you by American Invesco!
I think this is actually AI’s biggest nightmare project of all. The colossaly overpriced units aimed at the investor market had units at enormously inflated prices, and little in the way of true amenities to add to the living environment, not to mention the tucked in a corner location cut off from the rest of the world.
Have you been inside? The lobby hasn’t been updated since construction in the 80s and the place looks like a dumpy regional mall with all it’s crome plate tackyness.
How sad for the few that purchased units to actually live there…. They are not likely to recoup their investment for years and years to come.
“Investors: Amazing 2 Level Duplex Townhome Style Condo in Booming South Loop”
OK, let’s assume for a minute that the South Loop is booming. An investor would already know this. An investor is not interested in the fluff – the investor just wants the details. It’s a money-oriented deal. No emotions. So keep “Amazing”, “Booming”, etc out of it. And they certainly aren’t interested in realtor spin.
If the target market really is investors, then the realtor is an idiot. But perhaps that’s not it. Perhaps the target market is made up of people that would like to think of themselves as professional real estate investors, but just don’t know what they are doing yet. What’s happening to that market? They can’t get loans. They don’t have large amounts of cash laying around for purchases such as these. Therefore, these units just sit. And crater in value.
It’s not rocket science.
Moreso than the pricing of new, much nicer units in the south loop being cost prohibitive to me right now, what is keeping me on the fence is fear of buildings like this setting the comps. No way can I justify paying $250-$300/sf in the South Loop with this building listing units for $125. Potential for financial disaster is too great in the South Loop.
I’m not sure what the rental market is like in the south loop, but with taxes and assessments reaching almost $1400 a month, how much would you have to charge in rent to cover the mortgage, taxes and assessments?
I think that the renter who is looking for a 3 bd, 2bth unit is probably looking for something nicer.
“These prices are so low.”
You can’t just look at the cost of the unit. Look at those assessments, they’re insane!!!! What are you getting for that money? You can’t just look at the listing price of a place and say, “Wow, it’s cheap. I can afford that.” Taxes and assessments can kill you. You have to tax into consideration your total monthly obligation to the bank, the city and the association.
I took a tour there when they were apts several years ago. the building is pretty cool I think, very unique. It kind of reminded me of being on a ship. that probably hurts resale value though. The location is good, just off printers row, nice and quiet. I suspect when all the construction is complete down there (movie theaters, etc) it will become a headache, clusterjam of traffic etc.
This is NOT a good comp for anything in the south loop, in fact there is no comp on this planet. How can you comp something this unique? Not many people have the desire to live in a pod.
These condos will appeal to less than 1% of buyers, so before you all start salivating and getting weak in the knees that $125 is the new benchmark, go down and tour the building.
This is probably my least favorite condo building ever. While I find the exterior interesting, I find the inside creepy. Concrete and creepy. I felt like I was in a giant ant colony, or a spaceship. It’s definitely not warm and cozy. From what I understand, they’ve tried to create a community with shared common areas – – but it never worked.
You’d need to pay me to live there.
Its another American Invesco conversion.
STAY AWAY.
Units in their newest conversion are already sitting on the market not renting let alone selling.
Can someone explain why taxes for #525 are at $1288 and the others are around $6500?
Also, what would these duplexes rent for? In my opinion, these units seem to be priced purely for investors to profit from renting these units out (because there are no buyers who want to live here to pay a premium price).
The owners in this dump need to get together and appeal the taxes.
The entire building must appeal.
Amazes me that so many buildings in this city have condo boards so stuffed with squirrels that they don’t know to do this.
$6500 for one of these units is absolute extortion. I’ve seen large, beautiful single family homes that could actually sell for $700K with cheaper taxes than these. This is horrible.
But I guess some would figure it’s a Stupidity Tax, for paying a premium for a building famous for having big problems and nightmare assessments.
I’m glad SOMEBODY loves this place, but I sure hope you get a gift price if you buy here.
I’m strangely drawn to this building. It’s a good example of something I feel I should love because no matter how odd it is, it’s better than something generic. With that said, I have to wonder what sense it makes to buy in a building where the ONLY good thing anyone has to say about it is “the units are cheap.” How will you ever get a good return on your investment if the only carrot you can dangle for buyers is that your place is way cheaper than anything else around? Also, does anyone know what’s the worst case scenario for buildings like this and the Sterling? Could they really become total slums full of bad renters? Can the price per sq. foot possibly get much lower than it is now? Does the city step in and do something if a building is being really poorly managed or has no money for basic upkeep?
How much Secton 8 is in that building?
Anybody have the current foreclosure numbers for this building. I’ve heard stories that there were over 50, but I don’t necessarily trust the source.
Well consider me a potential owner in the future*
*If I ever hit it big I’d certainly be interested in buying a boat slip here, along with a nice boat of course 🙂
YES, this building could become a slum, and I believe that it is destined for slumhood in a couple more decades.
YES, I know of a couple of old condo buildings that have devolved into total slums of really bad renters. The bad thing about marginal condos is that you don’t have one owner of a big multi-family, where the landlord-tenant ordinance applies and where there usually is professional management- instead, you have a collection of individual owner-investors who are amateur landlords who don’t know or care to screen tenants properly, and don’t have the legal muscle to enforce leases and rules. These buildings are badly-regulated free-for-alls whose boards tend to be dominated by investor-owners who get the most voice because they own multiple units in the place.
Another thing about a building with renters is that, now that lenders are once again adhering to normal rental standards, you can’t get a place financed in a building that is heavily rental, so the price you can get will tend to be in lock-step parity with the rentals the place commands. Lenders these days demand that a building be at least 70% owner-occupied.
Just reminds you of how many complications condo ownership can bring. One thing is very clear: unless the unit is a really exceptional place in a really upper-bracket building, it should be priced rent-parity. I recently saw a lovely old courtyard condo in Edgewater that was being offered for sale AND for rent. Offer price: $249K. Rent: $1400 a month with heat and maint and everything else included, which makes ownership look like one helluva raw deal. I love this place and would like to spring, but you can believe that any offer I submit will be for a price where I could rent it out for $1400 and still cover the mortgage, maintenance, taxes, and essential repairs.
Better dwell on those foreclosures, too. You had absolutely better know how many there are and just what your ownership liabilities will be for assessments in arrears- and there is certain to be a substantial amount of back assessments due- on foreclosed units.
Many honest folks who would otherwise have no problems paying for their units are being absolutely blindsided by huge utility bills and repairs due on their buildings because of massive unpaid assessments owed by foreclosed units. If this place has anything like 50 foreclosures, you shouldn’t take a unit here as a gift. The potential hit from unpaid utilities and deferred repairs, could bury you even if you got the place as a gift.
Watch out.
“Anybody have the current foreclosure numbers for this building. I’ve heard stories that there were over 50, but I don’t necessarily trust the source.”
I don’t have the absolute current foreclosure numbers but Crain’s did an article about foreclosures in this building in June and they had the following numbers:
River City, 800 S. Wells, 58 foreclosed out of 448 units
Read the post here: Crib Chatter Post on Crain’s American Invsco article
in the winter they have pumps that keep the water moving in the boat slips so it doesn’t freeze. that way you can keep your boat there year round.
at least this is what they said on the architecture boat tour ten years ago.
Taxed may be very high because of the inflated sales prices from the developer.