Short Sales Springing Up in The 15th Street Lofts: 1503 S. State
The building at 1503 S. State, the former warehouse for State Street’s Boston Store in 1890, was rechristened The 15th Street Lofts in 2006 when the building was converted into 78 condo units.
Two-thirds of the South Loop building is timber, and a third is concrete pier units with 11 to 12 foot ceilings.
The building originally started closings in March 2006.
The developer is still trying to sell original units. I found six units on the MLS still owned by the developer under the “developer close-out.” Some say “recently reduced” in the listing.
And now, two years later, we are also starting to see some owners under stress, as there are two units in the building that are on the market as short sales.
Unit #708: 2 bedrooms, 2 baths, 1146 square feet, corner unit
- Sold in August 2006 for $375,000
- Currently listed for $349,500 (includes the parking)
- Assessment of $331 a month
- Corner unit
- Dylan Hood & Associates Realty Group has the listing
Unit #601: 2 bedrooms, 2 baths, 1101 square feet
- Sold in March 2007 for $405,000
- Currently listed at $305,000 plus $25k for parking
- Listing says “subject to bank approval”
- Assessments of $371 a month
- New Home Experts has the listing
There is also a one bedroom for sale which is NOT a short-sale.
Unit #402: 1 bedrooom, 2 bath
- Sold for $255,000 in July 2006
- Currently listed for $267,900 plus parking for $30k
- Assessments of $281 a month
- American Invsco Realty has the listing
Question: What are the pros and cons for a buyer in a short sale situation? or are there nothing but positives? Thanks.
Right now, I don’t think there are any positives. The obvious negatives are the long delays in getting bank approval for a contract and the risk of catching a falling knife.
Take Unit #601 above, for example. Last sale for $404,900 (with parking) on 3/20/07 with 100% financing and already a lis pendens filed by the lender. Currently under contract as of yesterday 3/5/08 after listed as a short sale for $305,000 plus parking. It will be interesting to see if a sale is made. Anything near the asking will result in a painful lesson for the “bargain” shopper.
Let’s take a look at the sales history for the “01” units, which appear to be similar:
#301 appears to be unsold by the developer
#401 sold 3/27/06 for $301,000 with parking. Orig mortgage of $251,000 and then cash-out refi for $262,000 in 12/8/06.
#501 I found an 8/25/06 sale for $298,000 with parking in the MLS but I could not confirm it. The unit has recently been marketed as a “developer closeout” for $305,000 plus pkg and closed on 2/29/08 for $282,500. The public records have not yet included this sale so I do not know if pkg was included.
#601 The 3/20/07 sale for $404,900 with pkg makes no sense relative to the other units. Of course, it was 100% financed and defaulted quickly. Funny thing is, I also found a prior sale in the MLS for this unit on 8/28/06 for $304,000 with pkg, but it does not appear in the public records and the 3/20/07 seller was the developer.
#701 sold 3/20/06 for $308,500 with pkg and 100% financing. The original 2 notes were refinanced in full on 6/14/07.
#801 sold 3/21/06 for $340,500 with 2 pkg spaces and 100% financing. The original 2 notes were refinanced for $329,000 on 8/31/07 and again on 2/7/08.
I think it is fair to say that everyone is upside down on their purchase prices here. I almost feel sorry for the owner of #401 since they are the only ones who have any skin in the game. At least they got a little back with their cash-out refi.
It will be interesting to see if/when any of the negative-equity positions here begin to crumble. It shouldn’t be hard to walk when renting is so much less and they never put up any money to begin with.
By the way, this situation is repeated throughout the condo market.
Also there is a jr-1 brdrm unit for sale here with 733 square ft for $140k which someone mentioned as a short sale, which equates to below$200/sf. This I think is reasonable for the area. Unfortunately I’m not in a position to buy right now..nor should I be I suppose.
How is this a negative for the buyer? I realize it’s a bad break for the seller, but it appears the buyer is getting something for alot less than what it’s worth.
Do you not think that Unit #601 would be a good deal if acquired under the $305,000 with parking included????
Interesting stuff. I own a unit in the building, I wonder when and if I will ever get out of it for what I put in. I own a 900 sf unit on the 7th floor at 265k with parking. It doesn’t seem too far out of line with some of the short sales now even.
Unit 313 is a 1,000sqft 1 bedroom 2 bath foreclosure listed for 145.5k. Fannie Mae homepath property too = low down payment financing.
Unit 313 had it’s ask price cut to $131,313. I guess the bank was unable to sell it at initial ask of $145,500.
Dear “G”, As an owner of one of the 01 units, I can assure you the information you listed is absolutely incorrect. It was not 100% financed and yes we refinanced to take advantage of the lower interest rates. Our situation is not as dire as you imply …