The West Ridge Multi-Unit Building: 6337 N. Rockwell
This vintage 4-flat building at 6337 N. Rockwell in the West Ridge neighborhood was built at the end of one of Chicago’s big real estate booms: in 1929.
Three of the units are huge 3 bedroom/2 bath units with 2000 square feet. The listing says the 4th unit is a legal 2 bedroom/1.5 bath unit with just 850 square feet.
The bigger units have vintage character with hardwood floors and fireplaces.
The listing says the units have new electric, plumbing and the building was recently tuckpointed.
It also has a 3-car garage.
Here are the rental rates given for the units:
- Unit #1: $1400
- Unit #2: $1350
- Unit #3: 1350
- Unit #4 (smaller unit): $850
Can an investor make this building work?
Mirela Birsan at Century 21 Hometown has the listing. See the pictures here.
6337 N. Rockwell: 4-unit multi-unit building, 3 car garage
- Sold in April 1989 for $240,000
- Sold in June 1994 for $295,000
- Sold in September 2002 for $560,000
- Originally listed in January 2009 for $639,900
- Reduced
- Currently listed for $599,900
- Taxes of $8677
- No C/A
- No Washer/Dryers in the unit
Looks like for whatever reason the previous investor couldn’t make it work at 560k. Probably because those rent numbers are suspect and its hard to be cash flow positive when you plunk down 560k.
Similar units in West Ridge are listed for $1,200:
http://chicago.craigslist.org/chc/apa/1256631298.html
Also I suspect the rent on the 1BR is closer to 750.
So 4,350 gross rent before taking into account vacancies, capex and maintenance/repairs..bleh.
How can you say the rent on the 1BR ‘is closer to $750’ when they say it is $850. You think they are lying in their listing?
Oh, I get it – because it is vacant, right? Never mind…
I say it is closer to 750 because I’ve found comparable rentals online for that amount. Just because a current tenant is paying 850 doesn’t mean the next one will.
Real time rents via craigslist are a better indicator of rental yields if a lease were signed today vs. someone who may have signed a lease a year ago at 850.
The only problem with craigslist is that you never know what the final renting is; the ad just disappears; but you see the same over priced apartment ads over and over again, and that skews the perception of what rents really are
Totally unrelated but I assume you’re interested…Have you folks been following the trading on the Macroshares Major Metro Housing Shares? The Up shares have been dropping like a rock. The closing price today implies a further 10% drop in the 10 city composite index. Only thing is that you can’t tell the time frame because of the early termination triggers. If you are interested in the structure of these instruments I’ve done some research:
http://blog.lucidrealty.com/2009/07/07/buying-and-selling-houses-on-the-stock-exchange/
Pretty interesting stuff.
Some Jr. Trump will probably overpay for this place… those rents are dream rents… I can’t believe that they can post that garbage on the MLS!
The smaller unit is listed as a 2/1-1/2 bath. I lived very nearby, kept that condo and now rent it at $900 for a 1/1 (inc parking so really $850). I think that $850 for a 2 bedroom, on the ground level, with wall units, is pretty generous. My friend live in a 2/1 garden nearby and he pays $1050 w/ no parking. His is a bit neicer than these pics. I’ll stand by the $850 being fair and reasonable
Gary,
I think I need to read up more on these. I thought they were supposed to be perfect inverses of each other, but looks like today UMM dropped 18% and DMM gained only 9%, so so much for that idea!
..and if anyine says that the rent I charge is out dated, tenant resigned last month. There is another rental in the building for almost the same price.
Bob,
If anything they should move by equal dollar amounts. The percentage change will be equal on a cumulative basis based upon the cumulative change in the index X 3.
If you’re doing your criticism on rents in this area based upon typing West Rogers/West Ridge/etc. into Craigslist than you’re out of touch with the rental market. These rents are likely achievable and the size of the units will place downward pressure on the CAP and upward pressure on the GRM – pushing value. I could sell this all day long for 7.5 times the gross or around $450k. The reason that this hasn’t sold yet is because the most qualified/probable buyers are buying similar buildings in East Rogers, Albany Park, etc. in some form of distress from the bank directly at .40 cents on the dollar from the first mortgage. Looks like great bricks – although cutting out slots in the front of the units for A/C units reminds me of yucky modern construction. That’s bizzare…
I’m very familiar with this neighborhood.
Devon-Western-California neighborhood is not on anyone’s radar screen as “trendy”. It’s a solid lower middle-class very ethnic community with a large amount of multi-family housing stock. Whereas CPS’s Boone and Clinton were stellar elementary schools up to the early 80s, both are undistinguished now with large transient student populations. Residential “overcrowding” can be an issue here too, given many extended family multi-generational households. This is not a target neighborhood for DINK (dual income/no kids) renter-households with stellar credit, Room & Board furniture, and a high-brow spending habits.
Yes, this neighborhood includes many of these jumbo three-flat buildings, with large units with some architectural character, constructed shortly before Depression. But these rentals units have had 80+ years of wear. Large units often attract large family-renters, increasing maintenance costs and wear, noise, and (foot and car) traffic. Imagine an entire block of these 3-flats, each apartment housing a large multi-generational household. It’s not a good match for a gentrifier’s ambitious renovation project, no matter the “good bones” of the building itself.
And I suspect that seller reached this same conclusion.
Bob and Sonies,
I know, for a fact,(being an owner occupant of a three flat nearby) that the rents listed are pretty normal for jumbo three bed vintage apartments which are in very good condition in this neighborhood.
The listing says ‘new electric and plumbing’ Usually one would rehab the kitchens and baths when redoing plumbing, yet this listing shows pics of neither-very suspicious.
Bob, the ‘comp’ you chose from craigslist looks like a dump, which might account for the low rent.
AaronErg makes a great point about all of the distressed properties going for far less in the neighbrohood.
I may not be intimately familiar with west ridge rents but I have reasons to belive that a jumbo 3 bed would probably go for slightly less than the purported asking price.
“Architect on July 7th, 2009 at 5:02 pm
I’m very familiar with this neighborhood.”
you woulnd’t be the same west ridge architect that took on Ald. Bernie the last election, would you?
This is a beautiful building with lovely apts, in a neighborhood that has been very nice until recently.
Unfortunately, this neighborhood with its big stock of really beautiful three flats and courtyards is becoming blighted. The past five years have seen an influx of “problem” people, and a couple of big buildings have become Section 8 buildings.
Shame. I’d love to have a building like this if I could count on collecting rents from good tenants that would cover the mortgage and expenses. However, I have friends in that area who are renting units similar to these and were able to talk the landlord down to $1200, because it is so difficult to get desirable tenants over there who can pay these rents. Meanwhile, purchase prices for comparable condos are dropping like decabling elevators.
Tom, I’m not Greg Brewer, but I do know who he is. He has a blog called “West Ridge Bungalow”, and I think his own restored bungalow is for sale. It’s beautiful and certified as architecturally correct, but my comments re: this 3-flat are relevant to his immediate block/neighborhood as well.
This looks on the outside almost exactly like a 3-flat I saw in Lincoln Square in 2002. And it was also on Rockwell, just on the 4200ish block. If the interiors are similar, this it is probably a beautiful family sized unit.
I would love to own such a building. I’d live on the first floor and duplex down to the ground/garden level. I’d have a wonderful owner’s unit and still have two more income units above me.
These types of buildings are the definition of livable medium density urban living. I love it.
” 3-flat I saw in Lincoln Square in 2002. And it was also on Rockwell, just on the 4200ish block”
Must be North of Montrose, so at least 4400.
Yeah, anon you’re right.
Greetings all,
My husband Greg and I have no plans to sell or move, we’re very happy in West Ridge. My blog is called West Ridge Bungalow Neighbors at
http://westridgebungalowneighbors.blogspot.com/. Greg maintains a website called Citizens for Responsible Development at
http://www.crd50.org/index.html
Regards,
Maribeth Brewer