The President’s Neighbor Tests the Market: 5040 S. Greenwood in Kenwood
Would it be cool to live on President’s Obama’s block in Kenwood? What about right next door?
That scenario is now a possibility as 5040 S. Greenwood, which sits directly north of the President’s home in Kenwood, just came on the market.
Photos by: Wayne Cable/Selfmadephoto.com
Matt Garrison, at the Garrison Group at Coldwell Banker, has developed a unique marketing plan for a unique property. It is not being listed on the MLS.
Because, after all, it’s not like they can just let anyone move in next door to the President. Security is an issue.
From the Chicago Tribune:
Interested buyers will be vetted to determine whether they’re financially capable of spending at least $1.5 million on a home and why they want to live there. The names of people who pass the initial screening then will be given to the Secret Service before a showing is arranged.
Bill Grimshaw, a political science professor at the Illinois Institute of Technology, said he and his wife opted to sell because they want to downsize from the sprawling three-story, 6,000-square-foot home. He’s not sure whether the proximity to those world-famous next-door neighbors, and all the trappings that come with it, will be a help or a hindrance to the sale.
“It’s had its ups and downs,” Grimshaw said. “Initially, having to go through justifying being on the block is a little awkward. I used to tease these [security] guys it was easier to get into East Berlin. Now when I look at it, it’s the safest block in town, it’s the most prestigious block in town. I say this to myself a couple times a day when I’m going through the barricades.
“There are people on the block that say they really don’t like this. It doesn’t faze me at all, and I think my wife gets a kick of out it.”
There is no list price as that will be determined through negotiations- but the Tribune article states that homes in the neighborhood sell for anywhere from $1 million to $2.5 million.
The Tribune article also states that the house needs “substantial renovation” in the kitchen and bathrooms.
But it has the great vintage woodwork, included beamed ceilings, stained glass, and a large lot.
See the interior pictures and floorplan here.
5040 S. Greenwood: 8 bedrooms, 3 baths, 2 half baths, 6000 square feet, 2 car garage
- Sold in 1973 for $35,000
- Currently listed for ???? (between $1.5 million and $2.5 million)
- Taxes are unknown
- No central air (window units- at least that’s what it looks like with the window unit in the front of the house)
President Barack Obama’s next-door neighbors put house on the market [Chicago Tribune, Mary Ellen Podmolik, Sep 12, 2009]
wow, moving into that home in 1973 must have been interesting.
So how could Barack afford such a house on a senator’s salary again?
Book royalties.
I am a fully qualified cash buyer at the 1973 price.
What premium are people typically willing to pay to live next to a president? If I pay some 30-40% above comparable sales and the Obamas move…then what?
You could say you lived next to the president’s former house? These sellers are smart and will find some stupid shills.
Got news for you…Obama will probable never live in this house again…
First I will be very surprised if the price doesn’t get bid up quite a bit higher. I don’t think Obama can give up the house at least not while he’s in office as spending more would not play well and I can’t believe he would live in anything less. So buying this place means you probably get to meet him occasionally when he is back in Chicago.
Oh and he bought the house based on his book advances/royalties. Then of course Michelle got a $200k raise shortly after he got into the senate. Even so he still had to do some funny land shuffles with Rezko to get the mortgage approved.
“So how could Barack afford such a house on a senator’s salary again?”
“Book royalties.”
Yeah, he rich, just like 3 of our last 4 Prez when they were elected (and the 4th about 3 weeks after he was done).
2008 Gross income was ~$2.7mm, down from 2007 income of ~$4.2mm and 06 income of $983k and 05 income of ~$1.6mm. Before that, they were in the mid-$200k’s from 2000-2004.
Also, before he started running for Prez, MO was making ~$350k (staring in 05, I think), so they qualified for the mortgage at ~3x gross.
Oh yeah I forgot about the book he wrote and Michelle’s “raise”
“Even so he still had to do some funny land shuffles with Rezko to get the mortgage approved.”
C’mon. *Rezko* did some funny land shuffles, which BO may or may not have known about (I have no strong opinion on this, but what would you do if, at the closing table, you found out that a crook helped grease your house purchase? You’d be out the earnest $$ and still accused of being complicit, just getting cold feet, so what do you gain?). Rezko had his *wife* buy the vacant lot, for full boat, which allowed BO to buy the house for what they wanted/could pay. Then BO paid 1/6 of the purchase price (plus legal, engineering and fence building costs) for 1/6 of the lot–>i.e., more than the 10′ was worth, so, post hoc, BO treated the vacant lot purchase as a legit sale (I would bet many $$ that Rezko offered to sell him the strip for less, maybe even nothing).
Anyway, anyone who says “Rezko wouldn’t have done that w/o telling BO in advance and/or some QPQ” just doesn’t understand how most high level public corruption operates–the “donor” does something for Public Officail X w/o telling them, and later points out how they are owed a favor. No QPQ, no “bribery”, much closer to blackmail, but P.O.X. won’t ever say anything, b/c then they have admitted to being involved in a shady transaction (therefore, reasonable doubt if there was a crime, therefore no jail).
The crap that G-Rod and the Aldermen get nailed for is petty crap that’s just as damaging (in the aggregate), but guys with Rezko’s disposable cash usually don’t stoop to dealing with the likes of Andrea Troutman and Ike Carouthers (and now they should know to avoid crazy people like G-Rod, too).
Tommy Carcetti would be at home next to Obama in Kenwood.
Carcetti would be there Homedelete!!
Some rich investor that has millions upon millions of dollars is going to by this place just to say they lived next to B-Rock. The seller of this place is going to make out like a bandit. Bc when B-Rock moves, the house isnt going to be worth nearly as much.
G-Rod should buy it and mow BO’s lawn and rake the leaves, hoping for a pardon in return. He could turn it into a boarding house for Illinois’ indicted politicians to help pay for the mortgage. I’m sure the bank owned by the family of a certain Illinois constitutional oficial would be happy to make the loan to him–>G-Rod wouldn’t be the shadiest customer of recent years.
“G-Rod should buy it and mow BO’s lawn and rake the leaves, hoping for a pardon in return. He could turn it into a boarding house for Illinois’ indicted politicians to help pay for the mortgage.”
I don’t think a 17 room house would be enough space for all those guys 🙂
This is going to cause a bidding war. There are def people who will want this and can afford it.
“The seller of this place is going to make out like a bandit”
so true, i am surprised it took the seller this long to realize the $$$ he was sitting on.
Blago is on Howard Stern today! woot woot
Don’t know why it says it is not on MLS – I DID see it in the Sunday’s edition of the Tribune in the Home Section. Coldwell Banker is listing it & they had it listed like every other listing.
I am def. curious to look at this, mostly to get to actually walk on that block for the first time in a couple of years. But, I don’t think I can credibly make a case that I can pay “at least” 1.5 mil. Which–sorry, neighbor–it just ain’t worth.
““at least” 1.5 mil. Which–sorry, neighbor–it just ain’t worth.”
Altho the house one door further north probably is. Looks great from aerial + birdseye.
You get approved to buy the home, move in…go to the library and check out the “wrong” book and all-of-a-sudden the FBI is knocking on your door at 2AM 🙂
8 bedrooms, 3.2 baths? Of course you’re not filling up every bedroom, but that seems like a bad ratio to me.
The Secret Service Eric. And they’re given much more leeway and under less scrutiny than the FBI. Ever seen a government official in a suit with a non-standard Desert Eagle at their hip? Secret Service gets to pick their own weapons, as far as I can tell.
If your music is too loud, they come over and tell you to turn it off, they don’t ask. Disobey them and you’re facing more than a mere noise violation.
I read they attempted to lease out this residence from the owners for the duration of the Presidency and they refused. Of course a year later they’ve realized how much their life is going to be impacted by this and want out (or more likely an attempt to try to capitalize on living next to a very big celebrity/pol).
Heres to hoping they don’t get crazy appreciation from somebody enthralled with living next to the Prez when he’s in town. However I have a feeling they just might. Heck the SS might buy it themselves just to keep it vacant.
I live in a small 2 bed apt just 5 miles from the president’s house. You can buy my place and have the same chance (zero) of running into BO and MO. Let’s start the bidding at say … $1.3 M. Any takers?
to whoever buys this house, make sure that your kids aren’t playing ‘cops & robbers’ in the back yard.
Having the family over for Christmas must be fun, after they go through a background check and their vehicles are searched at the checkpoint on the way in.
On the plus, you don’t have to worry about any boys coming over to pick up your daughter ever.
Does anyone know when the O’s were last back at that house. I’m sure it would have been in the local papers. Has he ever been in this house since inaguration (sp?)???
“Does anyone know when the O’s were last back at that house. I’m sure it would have been in the local papers. Has he ever been in this house since inaguration (sp?)???”
Yes- they’ve been back at least one time. They came back for Valentine’s Day.
I just thought about something -Assuming the buyer needs a jumbo loan for this place- Would a bank approve a loan way over the home’s value just because of who the neighbors are? Do famous neighbors really push home values up on the street they live in? The Obama factor may be huge for the agents/sellers but I wonder if the Bank will be that excited, especially since people can move.
“I wonder if the Bank will be that excited”
If it’s Citi or BofA (or a certain Chicago bank with a connection to a certain political protege of the Prez) of course they would. You’re talking about the neighbor of the de facto Chairman of the Board.
Article in the NYT…
http://www.nytimes.com/2009/09/15/us/15chicago.html?_r=1&ref=us
burt,
the article states;
“will reveal that the house is also a fixer-upper. The Grimshaws did not tamper with its original fixtures or woodworking. The electrical switches are from 1907. The kitchen and bathrooms are worn. The third floor probably needs to be gutted”
can you imagine the headaches the buyers contractor will have to go through? and the headache from the bill your contractor gives you from his headaches?
“can you imagine the headaches the buyers contractor will have to go through? and the headache from the bill your contractor gives you from his headaches?”
It’s a total non-starter. The house is probably worth no more than $500-600k ($35k inflated is $169k, add in the ‘hood improvement and the Obama factor, for good and ill), considering the condition and the headaches of repairing the place.
Considering that these folks wouldn’t lease it to the secret service, I doubt they’ll be really reasonable, notwithstanding that Jacky is a dem appointee-type (she’s currently on the CTA board). They’re looking at is as their retirement fund.
Wouldn’t be surprised if the secret service finds a straw buyer and then either leases or buys it from them.
Did you know seller’s car also used to belong to John Voight?
Just think of all the contractors that wouldn’t touch that job with a 10′ pole. You’re gonna have to get OSHA certified union guys to work on that place… lol
“They’re looking at is as their retirement fund.”
Exactly why I hope they are unsuccessful selling it at anywhere near the ask price. Their greed is very plain to see after declining the SS offer to lease it. Then again this is still America…
“Exactly why I hope they are unsuccessful selling it at anywhere near the ask price”.
to be the devils advocate, why shouldn’t they get ask or higher? the have been there since the 70’s before BO and now have to live in supper lock down block where if they have any vistors will be screened and their house is probably bugged (ok the last one is from watch to many movies but could happen)
“to be the devils advocate, why shouldn’t they get ask or higher?”
Because we all know without this celebutician living next door this place would be worth much, much less. Also what are the odds that BO stays back into this house after the presidency?
“Also what are the odds that BO stays back into this house after the presidency?”
50/50, at least. I expect they’ll move back to Chicago, but there’s a distinct chance they trade in the big house for a more secure, private and manageable condo/coop in a prestige building.
“Also what are the odds that BO stays back into this house after the presidency”
ahh good question, which makes the seller even more of a genius. make out like a bandit now before BO sells.
its like the place in south old town, where johnny deep took a massive unflushable steamer in the bathroom.
“Exactly why I hope they are unsuccessful selling it at anywhere near the ask price. Their greed is very plain to see after declining the SS offer to lease it.”
Why would you have a problem with them selling for more than it’s worth? It’s not greed, it’s being rational. Bob if your car is worth $5,000 and someone is willing to pay $10,000 are you going to say “No, only give me $5K cuz that’s what it’s worth”? Hell no.
And I think it’s safe to say that anyone who buys the place knows that they are overpaying in order to say they live next to BO, even if only for a few years. They will be aware of it yet willing to do so because they value that. I think it’s dumb but some people will think it’s worth it. And if they have big money they probably don’t care.
In fact, I will say that if they are ready to move away from this place in the next few years anyway it would be irrational to NOT sell this place now, while they can get double it’s value in the midst of a depressed market.
Only they know if they truly want to downsize or if that’s their excuse to cash in, but either way I don’t blame them.
Why, if you are old like them would you lease to the secret service? Then in 4 years or 8 years the secret service moves out and you need to sell, which is probably more inconvient because you are much older.
I think the renovations would be worth the effort, if not for the woodwork and windows alone. I’d gut the top floor anyway, to put in a non flat roof (isn’t that a huge issue in Chicago?) and make the rooms more functional. It’d be a great nanny suite and a great place to stash the screaming kids.
“a non flat roof (isn’t that a huge issue in Chicago?) ”
Seriously, this is the second time this has come up in recent weeks–who that has a (properly constructed and maintained) “flat” (they aren’t really especially flat on 20-30′ wide houses, if they’re done right) roof in the city has had any problem with it?
I think flat roofs are some sort of a wierd suburban myth
“I think flat roofs are some sort of a wierd suburban myth”
Oh, no, they actually exist.* I even have one.
And there are actual problems with improperly constructed flat roofs, especially when they are on an addition to a pitched roof house–they are frequently improperly pitched and the seam with the existing house is often insufficiently watertight.
Also, in areas with *really* heavy snow fall, they are potentially at risk of collapse. If we ever have another winter like the late 60s or the late 70s, I wouldn’t be shocked to see some of the newer condos have roof-collapse issues (unless they don’t have any attic insulation–which I’m sure many don’t).
And, of course, there are industrial/commercial flat roofs that collapse on occassion, but there’s little similarity (as far as failure risk) b/t a 22′ span roof and a 200′ span roof.
*Yes, I knew what you meant.
a seinfeld and a wire reference in the same section? Absolutely phenominal.
Flat roofs [are more prone to leaks or collapse] is a wierd suburban myth, I meant to say… But I see you get what I meant
The speculation about the sellers and their motives here is – wildly off base.
I was at the home today and shot video of the block, a bit of the house, and an interview with one of the owners. See it at YouTube:
http://www.youtube.com/view_play_list?p=462098114D48D949
The list price has been established – 1.85 million!
http://www.chicagobreakingnews.com/2009/10/want-to-live-next-to-the-obamas-itll-cost-185-million.html
Wow Joe, you’re like my hero and stuff.
CNBC reported that this was sold for 1.4M in an all cash deal.
Yes I can confirm sold 1.4 million to a normal buyer, no Saudi Prince or anything. this property would have commanded a better premium in the 2006 market (if it had been next to the President then). But this was a very good price given the condition of the property. At the end of the day it sold on fundamentals, it was the best home on the market for renovation on a big lot in this neighborhood.
“this property would have commanded a better premium in the 2006 market (if it had been next to the President then).”
Uh no shit sherlock, you get paid to say this stuff? God i’m in the wrong business.
Sonies-
I get paid to give my clients really good advice on real estate and that’s what I do. If you want to get in the business come out of your cubicle and bring it on. I have forgotten more about real estate then you will ever know.
MGG