Some Prices Already Reduced on New Logan Square Development: 3550 W. Lyndale
Shortly after we first chattered about this 7-unit conversion building at 3550 W. Lyndale in Logan Square at the end of March, prices were reduced as much as $25,000 on the larger 3 bedroom units.
See our March 2010 chatter and pictures here.
Maybe the developer took all of your comments about pricing here on Crib Chatter to heart?
The development is offering some interesting financing options including these (from their website):
- Down payments as low as 3.5%
- Below market interest rates, as low as 4.25% on 30-year fixed, zero point mortgage
- No PMI
- No buyer reserves for monthly expenses required (as with some FHA loan programs)
You can see more pictures and information at the development’s website: 3550 W. Lyndale.
Tim Vaughn at Keller Williams Gold Coast has the listings.
3550 W. Lyndale: some of the 7 units
Garden, 2/2.5, 1285 square feet:
- Currently listed for $189,000
Unit #2E, model unit, 3/2, 1370 square feet:
- Was $284,000 in March 2010
- Reduced
- Currently listed at $249,000
- Third floor 3-bedroom units are now $259,000
Unit #1W, duplex down, 4/3, 2110 square feet:
- Currently still listed at $339,000
*Parking is $10,000 extra
From the website, it doesn’t look like any of these units are sold. Does any one know otherwise? Doesn’t bode well to have a price drop with no units sold.
how can you have no PMI unless you’re putting down 20%? is there another way around this that I don’t know about? Please let me know as it would save me like $150 a month 🙂
Strange floorplans. Whats with opening the front door and walking right into the kitchen? No thanks.
Oh nevermind, they’re all internal entry units.
Should have stayed apartments. like most place in the city should have stayed that way.
Don’t cry, don’t raise your eye, it’s onnnlllyyyy transittttt wasteland
@Jon
Not that I know the specifics on the financing arrangement here, but I can add a general comment. ‘Buy Down’ programs are available and you see them typically (if not always) from developers. Usually the developer buys down the rate, by essentially paying discount points. Say with zero points you can get a rate of 5%, if you pay 2 points you can get 4% (arbritary example). Here the developer is doing it for you as an incentive, and it probably costs him less since he’s doing it in bulk.
That explains the lower rate. As for the no PMI, I believe that it an analagous scenario but I’m not sure on the details.
Russ or any other mortgage pros, can you dish the details?
As previously discussed, that area is far from the best part of Logan Sq. And commute is bad.
That said, I didn’t see a lot on the market in this area that was clearly better, which is not the same thing as saying this is fairly priced (I still think this is too upscale for the neighborhood). There were a couple of so so SFHs around or below the price of the 3bdr. And there’s this place that’s much better location, somewhat similar level of finishes (on a very quick look), but is a short sale (although “progressed” allegedly):
http://www.redfin.com/IL/Chicago/2710-N-Kedzie-Ave-60647/unit-3/home/18915570
Tom, you are correct. The developer buys the rate down for the buyer. You can also do the same with PMI. A lot of people don’t know you can pay for it all upfront and it can be a lot cheaper than paying it monthly.
Of course, this isn’t “free” as the cost is probably rolled into the sales price. Usually you will have to use the developer’s preferred lender, but more than likely if the developer would give you the money directly, you can get better mortgage deals. However, that also isn’t likely to happen as a lot of the profits on the mortgage are shared between the mortgage lender and the developer as well. Developer incentives like this are more common out in the burbs with the tract developments.
A good sign that a place is over priced right now in this market is the developer offering special financing imho.
“A good sign that a place is over priced right now in this market is the developer offering special financing imho.”
I think another good sign that a place is over priced right now is if it’s new construction.
@Russ,
thanks for the details. I gree with your opinion that special financing tends to indicate overpriced list. If it wasn’t overpriced then there would be no need, the property would sell at (or near) the price it was listed.
Here’s the real problem, what about resale? The second buyer doesnt get the benifit that the first did, thus impacting the price they are willing to pay (obviously not for all rational buyers, but we live in a ‘how much a month’ mentality nowadays).
If the first buyer was willing to overpay due to the savings on the rate & PMI, then they will have to repay that benefit at resale. Either by a decreased difference in resale and original sale price, or by having to buy down the rate of the resale.
Russ, are you experiencing a lot of individual sellers looking to lock in ‘special’ finaincing terms in order to incentivise their resales?
What do the cost look like (generally, and assuming full doc, prime credit, owner-occupied, etc)???
“That said, I didn’t see a lot on the market in this area that was clearly better”
Seriously? Just take a closer look. . . the one you listed is only moderately better, but there are currently several condos available in vastly better areas of logan. Check out 2628 n spaulding, 2433 & 2441 N sawyer, and, lo and behold, 3003 W Logan #2. Any of these are “clearly better.”
I do agree with Groove that many condos like this should be rentals. . . but there are also some sweet, large, vintage units that I think have good enough value to buy.
As for these units. . . I think they’re a really tough sell and probably need to come down further. Theres no doubt this area of the hood has improved, but there’s also no doubt it’s still the sketchiest of LS.
Its too bad – these look like nice units in a good building, but its just too far from the blue line and the best parts of logan square.
I’d love to know which bank was crazy enough to lend the developer the money. . .
“Seriously? Just take a closer look. . . the one you listed is only moderately better, but there are currently several condos available in vastly better areas of logan. Check out 2628 n spaulding, 2433 & 2441 N sawyer, and, lo and behold, 3003 W Logan #2. Any of these are “clearly better.””
I agree on the better areas point. But I was looking for a 3bd/2ba place that was around the $250K list of the one above, that was clearly better in some way. The places you’ve listed are all 2 bds, some only have 1 ba, one is at $300K. They may well be a better deal taking everthing into account, but it’s not easy to say e.g. they are at least as good as the Lyndale place in all important respects and clearly better because of XXXX (lower price, better location, etc.).
Don’t get me wrong, I’m absolutely not saying that the Lyndale one is a good price (I wouldn’t buy this unit nor would I buy a SFH in this part of Logan), but I would be interested in a unit that clearly dominates the 3bd/2ba listing around Logan.
DZ you are right, if the 3rd BR is a must, that’s tricky and it’s one of the only things unique about these units at this price. You’ll need a lot of luck finding a good 3/2 anywhere half decent for $250k.
To me, getting a 2 BR condo that has the same sq footage as a comparable 3 BR makes them almost equivalent– or worth swapping for a major upgrade in location.
But if you really need the third, no doubt that’s a tougher question.
As far as including $300k ask prices when you’re looking to pay $250k. . . a solid $250k bid is not offensive at a lot of 2 BR condos listed for $300. You gotta ask for it to get the deal!
Looks like this building went off the market (i.e. rental), but check out the sales activity across the street at 3555 (a relatively comparable, only slightly less nice large multiunit bldg):
I see unit 2D just closed for. . . $45k!
And 3A appears to be under contract for the same price. 1D went for $36k. I also notice unit GB went for $142,500 in Feb.
Fascinating context for the pricing we saw here at the 3550.
“I see unit 2D just closed for. . . $45k!”
Yeah but some bozo is going to use a 3.5% down FHA loan to pay 245k instead of 45k because this place has granite countertops and stainless steel appliances. Probably an early 20-something teacher or someone like that.
“*Parking is $10,000 extra”
In Logan Square? LMAO!
Actually I saw this as pretty good evidence that some bozo is NOT going to do that– that the building will go/stay renter, foreclose, or capitulate on price due to the comps across the street. . . and/or all of the above.
Wonder if those places across the street were FHA’d. I could almost support the policy of 3.5% down on a place that costs $45k.
“Wonder if those places across the street were FHA’d. I could almost support the policy of 3.5% down on a place that costs $45k.”
Probably not, as it certainly doesn’t meet o/o requirements.
What’s rent over there for a place like this? With the assess+taxes, about $700/mo justifies $45k, not accounting for currently necessary repairs..
“Probably not, as it certainly doesn’t meet o/o requirements.”
Hmm. . . I don’t know that I see the 2 buildings as very different, in that regard, but I’m sure I’m missing something (like the gumption to just lookitup).
“What’s rent over there for a place like this?”
I would think you’d get it rented at $700 (sticking point being heat/utilities), but unsure how much more you could get.
Biked through this immediate area 2 weekends ago and there were many for rent signs. . . but a lot of 2 and 3 bdrooms for $1200 or so, which is different. Many of those weren’t rehabbed, and both these buildings are.
Then again much of that $1200/mo stuf was N of fullerton, which is a huge difference in this area.
“Actually I saw this as pretty good evidence that some bozo is NOT going to do that– that the building will go/stay renter, foreclose, or capitulate on price due to the comps across the street. . . and/or all of the above. ”
Do you really think the people that can only bring a 3.5% downpayment to the table are going to be aware of current comps?
They are going to place this thing in a different league as it has nicer finishes. Its going to be placed in the league of 2007-2009 full price comps.
When you have low downpayment loans like 3.5%, you draw in entry level homebuyers and a lot of renters who shouldn’t be homebuyers. A lot of people with no financial sense. And they impact the market.
Can you get an FHA loan on at least two of these places on a starting CPS teacher’s salary? More than likely.
“Hmm. . . I don’t know that I see the 2 buildings as very different, in that regard, but I’m sure I’m missing something”
Held for sale and vacant is diff from occupied by renters, for FHA purposes, unless I misunderstand something (which is possible).
“Held for sale and vacant is diff from occupied by renters, for FHA purposes, unless I misunderstand something (which is possible).”
I’m with you there. . . I was thinking 3550 went through a conversion to condo, and so might be eligible on that basis.
Now I see 3A is a short sale, so, obviously no FHA, my miss.