River North Vintage Reduced $25k and Now Available to Rent: 55 W. Erie
We last chattered about this 2 bedroom renovated vintage unit at 55 W. Erie in River North in June.
See our prior chatter and pictures here.
Since then, the unit has been reduced by $25,000.
It also recently came on the market as a rental.
This is no cookie-cutter new construction property. The unit has been extensively renovated and has a massive kitchen with a custom stone island.
It has all the bells and whistles, including central air and an in-unit washer/dryer, but is missing the deeded parking space.
Elizabeth August at @Properties still has the listing. See all of the pictures and a virtual tour here.
Unit #4W: 2 bedrooms, 1.5 baths, 1700 square feet
- Sold in August 2003 for $335,000
- Originally listed in April 2009 for $524,900
- Reduced
- Was listed in June 2009 for $499,900
- Reduced
- Currently listed for $474,900
- OR available to rent for $2600 a month
- Assessments of $414 a month
- Taxes of $3726
- Central Air
- In-unit Washer/Dryer
- No parking
I think this is a pretty cool place – love the fact that it is a top floor unit. Bummer about the parking, but I guess that’s not as big of a deal to some people that live in this area (I’d be lost without a car…) Isn’t $279/square foot pretty good for this area? Especially when it’s nicely appointed like this place? I think it will sell for about $450.
No parking and only 1.5 baths are the Achilles heels for this place.
Looks great. Will they leave it furnished for the renters?
That renovation money should have been spent on getting a full 2nd bath. However, 1.5 baths isn’t bad. Not often you have guest that actually need to use a shower/bath. Emotionally though, people want 2 full baths even if that full 2nd bath only gets used maybe once or twice per year. The lack of parking makes it that much worse though.
It is a cool place, but I think it is goign to have to get back to $425k or less to sell.
I also like this unit. IMO parking isn’t the giant deal breaker is used to be especially now that City Hall is so money hungry.I’d be more worried about the noise levels on weekends if you live on the 3rd floor.
4th floor. I’m not sure what goes on in this hood that’s particularly noisy, but I live in the 4th floor and don’t hear much.
$2,600 rent or buy for $2,793.50 per month (assuming 5.125% mortgage, 20% down, not including taxe benes). This is at rent parity, it might even be cheaper than renting if you include the tax breaks. This is a steal. Somebody’s going to snap this property up quick at this price – maybe even a bidding war! A property where it’s cheaper to own than rent, in the green zone? What has the world come to? Are dogs and cats sleeping together? Has hell frozen over? maybe rent is too high….even if rent were $2000, still, the price is damn near parity. Amazing, just amazing, this blows my mind.
RILF too
omg HD exploded…..
its not bad, looks good but since I can’t afford it should I say its over priced or predict its going to get worse, they are overpaying…
homedelete – I think the rent price is pretty fair for these finishings and 1700 sq ft. Plus they would probably take $2500 or even a little per month. If a couple rents they won’t care about a 2nd full bath, so I think it’s a fair comparison for your rent vs cost analysis. I too think it will get snatch up within 5% of asking price.
Also $2600 a mo. for a 1700sqft 2br in RN is pretty right. Most people are paying $2400 for a 1100sqft 2/2 further west than this place.
no elevator? Seems like a hike to the 4th floor…
RILF? Hilarious. “August”. She has a great last name too … I suppose I would even let her keep it.
Bonus! I just noticed from the kitchen you can see one of the arches of the world famous Rock and Roll McDonalds.
This is a great rental but parking is an issue.
You can probably rent a space at 55 E Erie or perhaps (less likely) 60 W Erie.
The 24hr Walgreens and Kerryman bar are right down street.
those assessments seem kind of low for that size a place. though i guess no doorman helps.
“world famous Rock and Roll McDonalds.”
I HATE RNRMCD’s!!!!! Beyond what words can possibly describe… it burns deep within my soul as I have been scorned many times by that place. Yet its siren’s call beckons me back still when I am severly hungover.
I mean if this is such a great deal I don’t understand why it hasn’t been ‘snapped’ up. As people have said before, buying real estate doesn’t need to make sense. People buy based on emotion and buying will always cost more than renting, especially in a big city like Chicago. Yet, here, with this unit, it is listed at or below rent parity; but it’s been listed for 126 days with no sale. I’m confused. According to the rules of real estate this should have been ‘snapped’ up a long time ago.
The proximity to the Golden Arches is another nice amenity as your budget might be a bit stretched from a $2,800 mortgage payment (not including taxes).
The ‘Extra Value Menu’ indeed offers up a plethora of healthy food options for the budget conscious.
homedelete – Maybe it hasn’t sold because too many people have been busy booking the listing agent for showings…
“According to the rules of real estate this should have been ’snapped’ up a long time ago.”
The price reduction was recent was it not?
The June price reduction was only 5%
I’d like this unit for myself; that said, it still is a tough sale. Unit doesn’t conform to 2/2 formula, has no doorman, no on-premises parking garage, has a small (read: likely to be time-consuming and aggravating) condo board, and the sleek city look doesn’t overcome those obstacles. This unit will sell around $400,000, once an architect or related-field professional finds it AND can still afford it. Architectural firms are downsizing for past year; those still employed are worried about their job security. A doctor, lawyer, or “chief” is less likely to go against market-expectations for a 2 bedrm downtown condo. Pity.
I think this place has issues that are preventing people from renting or buying it. Rental parity doesn’t always make sense and even just renting a place for $2600 could seem crazy imho. I wouldn’t pay $2600 to live in that place. It is nice and all but I bet the lack of parking is what is making it hard to rent too.
To pay $2600 in rent means it most likely needs to be a couple or a roommate situation. Dare I say room mates aren’t going to want to share a bathroom…
Surprised! 1700 sq ft and its not sold? i dont get it? someone explain to me
I would love to come home to this place everyday, It vintage gorgeous amongst all the modern high-rises.
the only negitives i see, this area is insane weekend nights and other nights too, and do you really need a car there?
i would have loved this place in my clubbin days!
If a property isn’t selling it is usually either 1) over priced 2) has some serious flaws or 3) lack of financing
I don’t know what is on that street, but there could be something turning off potential buyers. We also know it is only a 1.5 bath and doesn’t have parking. Not only that, the place is pretty expensive. You can get some pretty nice places in the mid 400s these days, so buyers aren’t likely to accept flawed properties.
Two reasons I can think of that this isn’t moving: no outdoor space and it’s a fourth floor walk up. Anybody not in good shape will get winded walking up to the showing. If you live there, you’re trapped four floors up with no outdoor space. I would feel confined. It’s a really nice looking place, but it takes a special buyer. Certainly not any couple with kids on the horizon. Imagine carrying the baby, the stroller, etc. up and down four flights.
Forgot about that fourth floor w/o elevator. I lived on the top floor (3rd) of a six flat when I had my condo. It was cool until you went grocery shopping or had to let the dog out. God forbid you couldn’t make the trip with the groceries in one shot…
“I don’t know what is on that street, but there could be something turning off potential buyers.”
It’s right next door to a night club perhaps…
http://www.thejoyntchicago.com/
“Certainly not any couple with kids on the horizon. Imagine carrying the baby, the stroller, etc. up and down four flights”
shoot i have only four stairs and doing that stuff is tricky.
I usually disagree with people about outdoor space cause my rebuttal is “go to a park” butt i dont think there is a park near by?
would you really want outdoor space here? the noise and traffic!
i can see the showing if i went on a hot summer day i would get to the unit be out of breath and sweaty. walk ups suck, i hated my 3rd floor when i was 20 years old i can imagine it now 🙂
i still see parking as an issue but the others russ, and j pointed out well i think the price is reflecting that.
Lets see why it isn’t selling:
1) Fourth floor walkup
2) No parking
3) No outdoor space
4) Next to nightclub (and it looks pretty toolish)
5) Only 1.5 baths
6) Its priced near half a mill.
Russ I am so sick of the contrived excuse “difficulty of financing”. Guess what if they have 20-25% down and good credit lenders will give them a loan. If they don’t maybe they don’t need to be buying right now. Russ’ “difficulty obtaining financing” excuse = wahhh financing isn’t as easy as it was during the RE orgy/boom where anybody who could fog a mirror got a zero down loan.
In Europe four and higher floor walkups are common in vintage buildings. Stop ur bitchin’.
Financing shouldn’t be a problem with 20% down because the result is a conforming loan.
This isn’t selling is because buyers are stupid. They better buy now or be priced out forever. buyers wouldn’t know a good deal if it fell from the sky and hit them in the head.
Bob:
Not whining; just pointing out the reality of the situation. Example, did you know that Fannie & Freddie just curtailed lending on properties with greater than 20% commercial space? Of course not.
However, all the folks in LV/LP/BT that live in 3 unit walkups with a bakery or whatever on the first floor are about to find out. A 20% down payment doesn’t mean a hill of beans if that loan isn’t salable to Fannie or the secondary mortgage market.
HOA engaged in a lawsuit? Sorry, no mortgage for you.
Some banks don’t like buildings with less than 10 units.
The difficulty of financing in Chicago has nothing to do with qualified borrowers, but some of the mundane underwriting issues that most people never realize matter when purchasing a property.
HD,
This isn’t Europe, Americans are fat and lazy.
And Chicago is the capital of corn fed units.
That’s true, buyers in Europe probably wouldn’t mind a four floor walk up. Also buyers in Nome, Alaska don’t need parking so the lack of parking here is probably no big deal.
put this place in LP, LV or eewwww bucktown and watch the price be 700k with nobody beatchin about walking up, or parking, or outdoor space, or next to a night club. Seriously most places in LP are next to a bar or club.
this place is unique, would be an honor to own and entertain in.
Move it to bucktown? What? This is two blocks from some of the most expensive RE in town. I don’t think location is holding back the price. And I think everyone has a greed, architecturally it quite nice, but don’t dismiss all of the other practical problems. After all, we are trying to guess what’s been urning people off for 126 days. Clearly it’s something.
“This isn’t selling is because buyers are stupid.”
LOL, no its just a flawed property. Always something you should consider before plopping down over 500k on a place. I would wager that if it was a full 2 baths, had even a small outdoor space, and an elevator, it would have sold already at today’s asking price.
“I would wager that if it was a full 2 baths, had even a small outdoor space, and an elevator, it would have sold already at today’s asking price.”
As it would if the association had a private beach out the back door. Add $50-75k in amenities to most places, they would sell more quickly for the price being asked before adding the amenities.
Russ,
Thanks for clarification. Most of that stuff is stuff I don’t even read about in WSJ–they did mention the 25% down on condos or else a .75% increase in the rate some time back but not those other things.
Its amazing our government’s ability to further mess up the mess they are partly/largely responsible for creating in the first place. It really seems like a jungle out there.
People into vintage in these close in neighborhoods get used to listings with no parking. It is not uncommon. I personally own vintage with no parking. I rent a spot nearby. It’s not perfect, but it’s not the end of the world.
People into vintage are usually NOT into living next to thejoynt. Or the Rock’n’Roll McDonalds. Or the Rainforest cafe. Etc. Etc.
The more I think about it the more I think location is hurting this place. The location isn’t bad per se, but it may be bad for what would be the typical buyer for this kind of property.
though close, mcd’s and rainforest are on other blocks. but this place looks like it backs up to an alley shared with Excalibur. my head hurts thinking of that place.
oh wait i remember now its not selling cause its Haunted by the ghost that haunts excalibur/vison.
“This is two blocks from some of the most expensive RE in town”
ak495156532689766,
sorry i thought i put gold coast
Bob, your instincts about “lack of financing” are correct. Standards are just returning to where they were prior to the bubble for condos. That is why condo development wasn’t as varied, and rampant, in the past.
Fannie/Freddie/FHA were always strict back then on condos. It was local banks that picked up the slack by taking the time to dig deeper into local condos in order to choose to take greater risks (at higher rates) with their money. Govt meddling now means all risks are too great for the banks’ money, and they only want to lend with the govt guarantees (and regs.) Funny, isn’t it, that the relaxing of standards killed the market in yet another way?
I told people throughout the bubble that buying without concern for historical lending standards was playing with fire. Be it cheap money, no docs, 100%ers, or loose condo standards – their demise spelled obvious doom in the future. There was no avoiding this day when that nonsense was allowed to happen.
As someone who is close to the target audience for this (updated vintage, doesn’t mind the walk-up, half bath, or even no parking), I can attest that the location ruins it for me. However, I think the building is gorgeous, and the interior beautifully done, despite the absence of any real remaining interior vintage details. I will say the agent did an excellent job with the photos, using great light to make the colors quite rich and inviting.
The lighting was made easier by the $10k in tolmeo lamps!
Why are people talking about rental parity and ignoring taxes and assessments?
Regardless, I’m not sure this would rent for 2600/month.
nobody is ignoring taxes and assessments; only ignoring tax benefits for simplicity. Do the math and you get $2,700 PITI+HOA
“Why are people talking about rental parity and ignoring taxes and assessments?”
J, good point about the tolomeos, but it’s the soft, natural light that makes the first shot in Sabrina’s post (not sure where it comes from actually, since I didn’t see it in the agent’s pics)
loved to own the whole building. I disagree the location not a negative, i’d bet a those rich foreigners take this one, it would fit and be unique in Chicago for apprx 2600/mo.
I’d take it in a flash, renting or buying if not for the stairs. Great renovation…
This just rented for $2400/month!