Short Sales and “Motivated” Sellers at 10 E. Ontario in River North
Ontario Place Private Residences, at 10 E. Ontario, is a massive River North high rise with 467 units. The building was a rental building until a few years ago when it was converted by American Invsco into condominiums.
The building was built in 1982 and has a rooftop pool.
American Invsco is still trying to sell units in the building.
It was also marketed to overseas investors. Several years ago, a friend sent me an advertisement for the building out of the Irish Times newspaper that she saw when she was visiting Dublin.
It has parking available for purchase (or rent) in the building but no washer/dryers in the units.
There are several short sales in the building and I’ve also seen several foreclosures. A lot of other sellers are “motivated.”
Current building statistics:
- 60 for sale
- 6 for rent on the mls (but also more on Craigslist)
Most expensive one bedroom currently on the market (from the developer):
Unit #802: 1 bedroom, 1 bath, 995 square feet
- Currently listed for $504,000 (includes the parking space)
- American Invsco Realty has the listing
The listing states:
LOCATION-LOCATION-LOCATION, PRICE INCLUDES INDOOR DEEDED PARKING SPACE! DEVELOPER WILL PAY ASSESSMENTS FOR 2 YEARS! WOW!
ONTARIO PLACE HAS IT ALL-NEW CONDO CONVERSION – ALL UNITS HAVE GIANT 150SQ FT BALC, LARGE LUXURIOUS ONE BED WITH OPEN KITCHEN! UNIT-AMENITIES INCLUDE HEALH CLUB,POOL,DECK, PARK,PARTY RM & DOORMAN.
Assessments are $465 a month.
Here is a unit where the listing states: “Well Below Market Value!”
Unit #3810: 1 bedroom, 1 bath, 765 square feet
- Sold in December 2005 for $334,000
- Currently listed for $250,000 plus $40,000 for parking
- Assessments of $377 a month
- Keller Williams Chicago Properties- River North has the listing
Unit #1010 is also on the market. The listing states it is “as-is” and “possible short sale.”
Unit #1010: 1 bedroom, 1 bath, 765 square feet
- Sold in November 2005 for $302,630
- Currently listed for $250,000 plus $40k for parking
- Assessments of $310 a month
- Exit Realty Group has the listing
This is another short sale:
Unit #3605: 1 bedroom, 1 bath, 965 square feet
- Sold in February 2006 for $458,900
- Currently listed as a short sale for $367,000 (includes the parking)
- Assessment of $471 a month
- Century 21 McMullen has the listing
A lot of the kitchens look like they are white with the white appliances such as this one for Unit #1708 which is NOT a short sale:
Unit #1708: 1 bedroom, 1 bath, 845 square feet
- Sold in July 2006 for $418,500
- Currently listed for $389,000 plus $42,800
- Listing states: “OWNER IS VERY MUCH MOTIVATED. ALL OFFERS WELCOME.”
- This is not a short sale.
- Assessments of $400 a month
- Re/Max Villager has the listing
Ontario Place Residences [website]
This building will be one to watch as closings began in 2005, which was the peak of the housing mania.
Sabrina, this is “one to watch”, because we ain’t seen nothing yet.
In the past 6 months (9/19/07-3/18/08) the mls only shows 6 closings in the building. The sales were unit #1409, 4305, 3302 4703, 5108 & 5101. All but #5101 sold from the developer. #5101 appears to have been combined from two units and sold to a flipper but I could not locate the prior sale for each unit (one sold for $393,500).
The mls currently shows 57 active and 2 contingent listings, and all of the developer units may not be listed. At the current absorption of 1 unit/month, that comes out to just under 5 years of inventory.
I think in the next 2 years when the developer stops paying the assessments and taxes, we will see a lot of foreclosure units like in 345 Lasalle, 440 Wabash or any of the other American Invesco Projects. A lot of people were brought into these deals by agents who were attracted by the 3 or even 3.5% commission that they gave to the buyers agent. I know a couple of people who bought these products and are now suffering. They had no clue about Chicago real estate but were told of this “great investment” by an agent and how they developer would pay for the assessment, taxes and even a renter at inflated rents so that the buyer would be positive cash flow from day one.
These units, especially on higher floors, were always overpriced. They sold for prices (the one bedrooms at least) which were seen at building like “The Pearson” and “The Fordham” at the time. If people were silly enough to overpay for these it is their fault. They were never as nice as these other units, even at the time. Good luck when the windows need replacement, etc!
I can’t stand the exterior of this building. I think its an eyesore.
Invesco again; Can some smart attorney bring a class action lawsuit against these guys?
I would also note that units 2208, 2408, 5106, 2803, and 3003 all recently had foreclosure suits filed against them.
3810 was model unit for invsco. In that units case they showed comps that compaired it too much larger units in the city, They added in the funiture to make the deal sweeter to the investor. Invsco is good about marking up the prices of the units. Has a buyer it is easy to be confussed and misslead by there selling talents. Two of there agents showed comps that compaired this building to the Park Hyatt, Fordham and 55 East Erie, to sale 50 some units to investor group that was from out of state. What a sneaky way to do business.
Basically, it’s the old story of “buyer beware” and that every buyer needs to do their own homework.
When you see the prices that most of the units in this building originally sold for two years ago, there seems no doubt that Chicago experienced the housing bubble.
When you see that the unit sold in the $100’s in 2002, and see the price now, yeah, Chicago looks pretty bubblelicious.
And for this kind of money, could you at least get a built-in cooktop and oven? The chintziness that has the nerve to call itself “luxury” stupefies me.
Laura,
These particular units were part of a conversion so they were still rentals in 2002.
Are you speaking generally?
I’m speaking of this unit particularly, but generally, too. I see too many new condos and houses costing more that $500K with bottom-of-the-line appliances shoved into niches; junk particle board cabinets, cheap wire closet racks, 18″ deep sheet steel bathtubs, and other stuff that belongs in a cheap subdivision house somewhere in the outer burbs.
Premium-grade built-appliances don’t need to cost that much more, and neither does decent wood cabinetry. You don’t have to use stuff like Viking or Subzero. Just a better grade of good, reliable medium-priced appliances, and medium-grade wood cabinets. But I only see stuff even that good in places listed for $1MM or more.
That’s why I’d want to offer “rehab” price for many of these units, because it’s going to take $10K worth of upgrades at minum to make the place decent. Frankly, I’d rather have an un-rehabbed vintage apt with a really trashy kitchen, so I could get the place cheaply enough to do things MY way.
Unit 4008 & Parking #620 are now being foreclosed on….
Thank God I am out of the real estate market.
Thanks for the foreclosure updates, Cash Donkey. I imagine those will be the only “sales” happening here.
That would put the absorption for resales at what, infinity?
Caveat emptor.