Short Sales and Other Stresses Remain: 310 S. Michigan in the Loop
We’ve chattered before about short sales in 310 S. Michigan, the renovated historic building across from Millennium Park, even though the building only started closings about a year ago.
See our September 2008 chatter and pictures here.
Other owners are still trying to get out of the building.
This 1-bedroom unit has been on the market since July 2008. It’s been reduced $36,000.
Here’s its history:
Unit #806: 1 bedroom, 1 bath, 791 square feet
- Sold in March 2008 for $374,500
- Listed in July 2008 for $335,000
- Reduced
- Currently listed for $299,000 (parking is extra)
- Assessments of $340 a month
- Taxes are “new”
- Pam Sullivan at Coldwell Banker has the listing. See the pictures here.
Unit #1206, which was in short sale in September 2008, has been reduced by $28,000.
Unit #1206: 1 bedroom, 1 bath, 791 square feet
- Sold in February 2008 for $358,500
- Was listed in March 2008 for $349,000
- Reduced
- Was listed in “short sale” in September 2008 for $298,000 (parking is extra)
- Reduced
- Currently listed for $270,000 and “new price approved by bank”
- Assessments of $305 a month
- Taxes are “new”
- Exit All Pro Realty still has the listing. See more pictures here.
Unit #806 appears to be listed at $270,000 now.
Nevermind looked at the wrong link.
374K for a generic 1/1 in 2008? Not to beat a dead horse …. but what were these owners thinking?
It’s nice to see the banks are chasing the market down a bit faster now.
This building will see a lot of debt slavery. The following unit owners are currently yearning for freedom (in addition to the developer’s remaining units.) The prior sales appear to include parking and the listings have “parking extra”. The numbers in parentheses are current market time in days:
806 Sold 3/17/2008 $376,136
806 Listed 7/21/2008 $335,000 reduced to: $299,000 (220)
1109 Sold 7/11/2008 $522,562
1109 Listed 10/27/2008 $599,000 reduced to: $579,000 (83)
1109 Listed 1/26/2009 $579,000(114)
1206 Sold 4/8/2008 $358,438
1206 Listed 2/27/2008 $349,000 reduced to: $324,000 (156)
1206 Listed 8/29/2008 $299,000 reduced to: $285,000 $270,000 (337)
1209 Sold 5/7/2008 $927,774
1209 Listed 6/16/2008 $1,100,000 reduced to: $995,000 (216)
1209 Listed 1/26/2009 $949,000 (247)
1409 Sold 4/16/2008 $931,050
1409 Listed 2/9/2009 $899,000 (17)
1802 Sold 3/28/2008 $1,056,839
1802 Listed 2/13/2009 $1,130,000 (13)
1803 Sold 3/28/2008 $1,018,758
1803 Listed 5/22/2008 $1,150,000 reduced to: $1,050,000 (280)
1804 Sold 3/27/2008 $870,407
1804 Listed 7/28/2008 $1,199,000 (158)
1804 Listed 1/27/2009 $1,097,000 (30)
1810 Sold 4/15/2008 $364,785
1810 Listed 11/7/2008 $385,000 reduced to:$369,900 $365,000 (111)
2011 Sold 6/30/2008 $375,692
2011 Listed 6/26/2008 $379,000 reduced to: $369,000 (245)
2101 Sold 7/25/2008 $2,075,622
2101 Listed 10/24/2008 $2,199,000 (125)
Here are the two I could find which have escaped bondage:
1006 Sold 4/5/2008 $317,677
1006 Sold 4/25/2008 $370,000
1108 Sold 4/8/2008 $496,376
1108 Sold 4/23/2008 $537,000
G- Thanks for my afternoon laugh. What’s going on with #1804. They upped their price by 20% in a crap market???!!!
Start listing at or around 200k or you’re going to lose a lot more money in the long run.
The owner of 1804 is just trying to get their 10%+ annual appreciation they are entitled to. Don’t you know, real estate always goes up!
I’m a bit confused by 1206 versus 806. They both have the same sq footage and look to be identical, but 1206 has lower assessment. What’s that about?
So this morning gov’t projects 1.75 bil deficit for 1 year. Does the average American realize they themselves are spending an extra 6k a year each? Insane!
Ze – T, not B?
Kim – My two best guesses? There has been an increase and no update to the MLS (1206 has been on the market for a year)? Or, 806 includes the parking assmt?
Slowly and reluctantly these units inch closer true market value…
“Does the average American realize they themselves are spending an extra 6k a year each? Insane!”
I think I read somewhere that 40% pay no income taxes at all. So the average American might not care too much.
“40% pay no income taxes at all”
Considering the way FICA dollars are used, that’s really an income tax, too. But don’t take that point as me starting an argument; I have no interest in fighting about who pays what in taxes.
Ze, its 1.75 TRILLION! Not billion. 1.75 billion would be a miracle without raising taxes considering all the crap the government has earmarked!
Also did you guys hear that Obama is going to do away with the mortgage interest deduction?
That’ll help home sales… what an idiot!
Sonies,
I didn’t hear that but its about time. The mortgage interest deduction was another one of the factors responsible for the bubble. Remove it and we have lower real estate prices.
Plus it rewards people for borrowing more money. Not a beneficial incentive to society.
He’s lowering the MI deduction to 28% for the two highest tax brackets as opposed to what, 35 and 38%
It seems a lot of you guys have concerns about taxes, gov’t bailouts and a lot of important stuff. The media thinks there are much more important things out there. Like yesterday, Obama girls got a dog. That was the top story.
“I didn’t hear that but its about time. The mortgage interest deduction was another one of the factors responsible for the bubble. Remove it and we have lower real estate prices.
Plus it rewards people for borrowing more money. Not a beneficial incentive to society.”
Yeah but its counter productive to all this money we’re pissing away on banks. So whatever. It doesn’t sound like its much of a reduction anyway if what HD says is correct.
“Obama is going to do away with the mortgage interest deduction”
That’s not the proposal. The proposal is a limitation on the value of the deduction for those with marginal rates higher than 28%. The mortgage interest deduction will be limited to 28%, rather than your marginal rate.
Of course, most (yeah, probably not you, but most, including me) who are at the top mariginal rate are already either hit by the phaseout of deductions or AMT anyway, so I don’t think this is even as big a deal as it seems.
And, I agree with Bob, even tho interest deductibility currently helps me.
“Like yesterday, Obama girls got a dog. That was the top story.”
Where was it the top story? It’s picked up everywhere–because people like dogs and why-the-hell-not–but I didn’t catch anyone giving it “top story” status.
anon(tfo) you, mr highest tax bracket, best prepare for some pain because you are going to get whacked under changes in the tax code proposed by OBwan.
““He’s being so generous at the lower-income level that making $200,000 is going to be like falling off a cliff,” said Dustin Stamper, an analyst in the National Tax Office at Grant Thornton LLP. “Say what you want about the Bush tax cuts favoring the rich, but this is just becoming punitive.” ”
http://bloomberg.com/apps/news?pid=20601087&sid=a.9fZg9MKKGk&refer=home
Listening to pundits on bloomberg cry that the sky is falling because their marginal tax rate is going from 35->42%. LOL!
Oh noes looks like it’ll just be a 5-series for X-mas for the misses this year, no more 7-series due to the evil congress!
HAHAHA!
Now what I don’t understand is how raising wage based income taxes on the so called wealthy (but of course just a little increase on investment income), in a recession, is going to help the economy and the housing market. Can someone explain this to me? If the wealthy, those earning more than $200,000 per year, are expected to buy all the expensive $600k+ houses for sale around the city, and their income tax bill goes which means less money for housing….who is supposed to buy all the housing?
“He’s being so generous at the lower-income level”
But Bob tells me that the lower-income level doesn’t pay any tax anyway, so what’s the difference?
It all looks like a 9% (33->36) and 14% (35->39.6) increase in marginal rates, which don’t apply to most of our income. I ain’t living off dividends and don’t have any carried interest, so the bigger whacks don’t affect me directly. Whatever. Someone has to pay for the past-and-continuing absurdity of social security, medicare, Part D (thanks, Georgie), defense spending, farm subsidies and all the rest (not to even mention the latest $3T)–we’ve already spent it and, unless you’re willing to really renounce my citizenship and run away from America, it’s your problem, too.
“marginal tax rate is going from 35->42%”
?? Where’s the 42% coming from? Uncapping FICA? That’d make it closer to 46%.
“who is supposed to buy all the housing?”
Wealthy Foreigners. Duh, HD. Besides, with historically low interest rates, now is a great time to get off the fence and buy. Because I believe everything the NAR tells me.
Look at the chart on the front page of drudge:
http://drudgereport.com/
You can’t blame that sized deficit on Bush. Let’s face it this is history repeating itself. If Bush is analogous to Coolidge then Obama is clearly Hoover. But that’s neither here nor there. What is there is that fact that real estate and our economy as a whole is toast, just toast, except for those with gubmint connections (construction contracts), gubmint jobs or living off the gubmint dole. The rest of us are totally f’d, seriously f’d, and with that the real estate market. Including this 310 S. Michigan, at 1 bedroom, 1 bath, 791 square feet for $270k. Who will be able to afford this place?
I’m not sure on the 42% somewhere someone wrote that with the itemized deductions phaseout for the rich their highest marginal tax rate is really 42% but I’ve not seen anything further to substantiate that.
Oh and HD with my modest five figure salary I could definitely afford this place. Its just that I’m not a kool aid drinker and wouldn’t want to. Why should I pay more (close to double, actually) for the ‘privilege’ of ownership?
Anybody without any financial sense is now priced out of the market due to inability to get financing or already chained to another property. Anybody with financial sense never drank the kool aid during the boom and isn’t going to get lured off the sidelines for crap tolkien gestures like an 8k tax credit. Whoopdee.
“crap tolkien gestures”
What’s that? Some sort of Hobbit thing?
Haha yeah…its when a token gesture looks like Gollum.
“Look at the chart on the front page of drudge:”
Drudge is an entertainer more than a journalist. He’s the Olberman/Limbaugh/whoever of the web.
“You can’t blame that sized deficit on Bush.”
FY 09 budget was approved in 08. So, factually, sure you can. But that’s the extent of political commentary, as it always goes downhill here, and it’s VERY off-topic.
Drudge links to other sites. I don’t want to go too far off-topic.
“unless you’re willing to really renounce… citizenship and run away from America, it’s your problem, too.”
Anon… Sounds like you are onto something 🙂
And the right left arguments are funny. They are all self serving whores.
Ze:
Not like Brasil!Brasil! isn’t in for some pain, too. It’s just a matter of degree.
“self serving whores”
Definition 3 of Politician. So, of course they are.
The mouths are all just in it for $$ and fame. They’d sell whatever someone was willing to buy.
We looked at 1206 this weekend and considered making an offer. What would be your suggestion as far as what price to offer? (assuming that it would be a cash offer with no financing required).
Are there any other developments that are better value in the same area?
“We looked at 1206 this weekend and considered making an offer. What would be your suggestion as far as what price to offer? (assuming that it would be a cash offer with no financing required).
Are there any other developments that are better value in the same area?”
It depends on how many foreclosures and short sales come down the pike in all of these buildings.
Closings are just starting in 65 E. Monroe- right down the street- and the Legacy is expected to start closings in 2010. There were lots of investors who bought in both buildings.
The Columbian also has dozens of units from the developer and closings started in there 2 years ago.