Vintage Lincoln Park 2/2 with a Private Garage Returns: 2221 N. Lincoln
This 2-bedroom at 2221 N. Lincoln in Lincoln Park came on the market in January 2022.
Some of you may remember it from 2 years ago, however. As it came on the market in February 2020, went under contract fairly quickly, but fell out of contract in March (just as the pandemic was hitting).
You can see our 2020 chatter here.
I still can’t find the age of the building but it has 5 units, with two commercial spaces and three residential.
The listing states: “Financing restrictions with HOA, inquire with listing agent for details.”
It was converted into condos in 1999.
As you may recall, this unit has the only private garage for the building, which is down the side alley. That garage includes some additional storage.
The unit has many of its vintage features including original oak mill woodwork with custom, solid oak built-ins including a hutch in the dining room.
It also has ceiling medallions in several rooms and bay windows in the living and dining room.
The kitchen was renovated “a few years ago” and has white cabinets, stainless steel appliances and stone counter tops.
The bathrooms were also renovated.
The primary bedroom has an en suite bathroom, which is rare in a vintage unit.
It has the features buyers look for including washer/dryer in the unit and central air, along with the garage parking.
It’s close to Oz Park, the shops and restaurants on Lincoln and everything else that Lincoln Park has to offer.
In 2020, this unit was listed at $449,000. It has come on the market this time at $425,000.
In 2015, this unit was newly renovated and went under contract so quickly I couldn’t even crib about it.
In 2020, it went under contract in 12 days.
In 2022, with near record low inventory, how long will it take to go under contract this time?
Mariah Dell at Compass has the listing again. See the pictures and floor plan here.
Unit #1N: 2 bedrooms, 2 baths, 1500 square feet
- Sold in June 1999 for $129,000
- Sold in May 2001 for $250,000
- Sold in August 2014 for $268,000 (included garage parking)
- Sold in June 2015 after renovation for $395,000 (included garage parking)
- Was listed in February 2020 at $449,000 (includes garage parking)
- Went under contract but fell out in March 2020
- Currently listed at $425,000 (includes garage parking)
- Assessments are still $295 a month (includes exterior maintenance, scavenger)
- Taxes are now $6878 (they were $6338 in 2020)
- Central Air
- Washer/dryer in the unit
- Bedroom #1: 14×13
- Bedroom #2: 13×12
- Living room: 17×12
- Dining room: 15×14
- Kitchen: 13×11
Million dollar question – does it smell like either the taco shop or greasy spoon brunch spot downstairs?
Great looking space
As much as I love Tacos, I’m not living above a taqueria.
Wonder how many of the other units are rentals and if thats the root of the financing issue
This is almost too nice for a college rental, get the price down a bit and it would cashflow
“Wonder how many of the other units are rentals and if thats the root of the financing issue”
Only 5 units and 2 are commercial. I think it’s over the limit for commercial in the building that was put into place during the financial crisis. Usually means you have to put at least 20% down.
“Welcome to this charming, exquisite home in an incredible location in one of Chicago’s most prestigious neighborhoods”
LOL! Only a realtor could be so shameless when describing the penthouse in the Burrito Tower.
7 years and they’re only (if lucky) covering transaction costs.
Jun-15+CPI to Nov-20 = $460k
“Usually means you have to put at least 20% down.”
Current owner did not in 2015. 95% loan, all in one.
“describing the penthouse in the Burrito Tower.”
At least they didn’t *also* call it a penthouse.
“At least they didn’t *also* call it a penthouse.”
Welcome to this charming, exquisite home in an incredible location in one of Chicago’s most prestigious neighborhoods. Take in stunning views of a vintage brick wall adjacent to your generous dining room as you sip your morning coffee from the restaurant in the lobby of the building. A rare amenity! The Burrito Tower reeks of sophistication, and it also reeks of burritos! Make this luxurious penthouse your home.
“Only 5 units and 2 are commercial. I think it’s over the limit for commercial in the building that was put into place during the financial crisis. Usually means you have to put at least 20% down.”
^this is correct… also, and more significantly maybe, you are not allowed a fixed rate mortgage with over 50% commercial ownership…
can only imagine how many cucarachas they have as neighbors
“you are not allowed a fixed rate mortgage with over 50% commercial ownership…”
So, it would be illegal for me to lend a Buyer 95% of the purchase price on a fixed rate 8% mortgage on this property?
Cite, please!
In addition to the potential for varmints in this particular location, lack of views, etc. I have to believe street noise is an issue. That said, if my kid were off to DePaul, I would buy this and stick them in it rather than helping them with rent since the monthly nut is about the same. I would make them get a roommate and I would charge said roommate ~$1500-$1750/mo. Provided it still looks like the listing photos and hasn’t been trashed by renters since it was last on the market, it is approaching good deal territory for a niche class of buyer/occupant who is a student / grad student / just starting a career – – or parent of all three.
anon (tfo), the easiest citation is from the realtor themselves within the ‘broker’s remarks’ in the listing…
“the easiest citation is from the realtor themselves within the ‘broker’s remarks’ in the listing”
Link, please?
The realtor is really claiming that a fixed rate mortgage is “not allowed”?? And we would credit that assertion why?
because they want to sell the place…
oh, ok. “Trust her”. Got it.
Aren’t you the architect who insisted that the staircase in the building on Dearborn wasn’t a staircase? (btw, that one is contingent)
Should we also trust you, who can’t be arsed to look at a 3d walkthru, instead of our lying eyes (and common sense)?
try googling “Non-Warrantable Condo Loan”… before you embarrass yourself further…
Again:
The GSEs are certainly the vast majority of residential lending, but they are NOT all of it.
I *can*, personally, choose to lend to the buyer of this place, at 100% LTV, at a fixed rate. Which makes it “allowed”.
But the buyer doesn’t have to come to me, they can just as easily google “Non-Warrantable Condo Loan”, and find lenders like this one:
https://fhmtg.com/product/specialty-financing/non-warrantable-condos/
From the site:
“We offer a range of financing solutions for condominiums, so you can find the mortgage you want – minus the hassles and stress you don’t.
“Highlights of our non-warrantable condo loan offering include:
“*Purchase or Refinance
“*High loan-to-value (LTV) financing and loan limits
“*Choose between fixed and adjustable rate options
“*Flexible qualifying criteria
“*Primary residence, second homes, and investment properties all eligible”
Now, again, should we believe the “architect” who is also a mortgage lending “expert” or our own lying eyes?
anon, you are a very naïve googler… let me know how many people have successfully acquired such loans… none of them are coming from any of the largest mortgage providers… ‘fhmtg’ most likely will not be loaning in Chicago, BTW….
“In addition to the potential for varmints in this particular location, lack of views, etc. I have to believe street noise is an issue.”
Maybe all the rats that used to hang out at the Athenian Room migrated here?
Jack, non-warrantable just means it doesn’t conform to Fannie / Freddie standards in regards to underwriting HOAs.
There are plenty of portfolio lenders who will do these loans at decent rates.
In fact, you can actually get exceptions as well through the agencies for this very scenario. I just closed a condo with this very issue and we had to get an exception that was granted through Freddie due to commercial space exceeding current guidelines.
I have nearly 20 years in mortgage biz.
The good thing is agent is letting buyers know upfront there is a warrantability issue so the mortgage broker/loan officer isn’t surprise and can deal with the issue ahead of time.
^just passing along what the realtor is saying about obtaining financing for this property like I said before, they have as much interest in selling this as anyone…
jack
Are you related to Sabrina?
“In fact, you can actually get exceptions as well through the agencies for this very scenario. I just closed a condo with this very issue and we had to get an exception that was granted through Freddie due to commercial space exceeding current guidelines.”
No way, Russ!
I’d never believe you over a guy who can’t use a 3d walkthrough to find a laundry room.
“just passing along what the realtor is saying”
Unless you are the parent or spouse of that “realtor” or their boss or their client, why stick your neck out? Most brokers are barely functioning morons (I was one).
This unit sold for $395,000.
Same price as in 2015.
Sizzle?
Yep. Market is really hot. This closed within weeks. You really have to move fast right now if you’re a buyer.
So, now zero appreciation (Net loss) in 7 years qualifies a sIZzlE(tm)?
Yep. Every property is unique. Last buyer bought after a renovation. Building has loan restrictions because of the commercial space on the first floor.
The fact that this still sold this quickly tells you just how red hot this market is.
Sizzle.
“This unit sold for $395,000.
Same price as in 2015.”
————————————-
So the 2015 buyer/2022 seller eats closing costs on both ends (gotta be at least $40,000) and has inflation for 7 years (let’s say 10 percent total, which on 20 percent down is about $8,000), and has missed investment opportunities. . .
Sabrina, I am compelled to ask: What is your definition of a cold market?
“Yep. Every property is unique. Last buyer bought after a renovation. Building has loan restrictions because of the commercial space on the first floor. ”
———————————–
All of which is reflected in the price. Difficult financing? — Lower price. Seven year old renovations? — Lower price (assuming 7 year old renovations aren’t now good).
This owner lost his shirt and you know it.
“Sabrina, I am compelled to ask: What is your definition of a cold market?”
Again, there are loan restrictions on the building. Always going to impact. Cash buyers only.
Sizzle.
If you think this is a “cold” market, I have a bridge to sell you in Brooklyn.
“This owner lost his shirt and you know it.”
Doesn’t mean it’s not a red hot market.
Lost their shirt? Come on. They had to pay their realtor fees and closing costs. I don’t think that’s “losing their shirt.” Lol.
“Cash buyers only.”
That was 100% debunked in this thread!
Come ON!!
“I don’t think that’s “losing their shirt.””
That is a matter of interpretation, but this:
“Cash buyers only.”
is patently false.
As you said: “Come on.”
“Cash buyers only.”
If you think this place wasn’t financeable, I have a bridge to sell you in Brooklyn.
“If you think this is a “cold” market, I have a bridge to sell you in Brooklyn.”
————————-
Quit shucking and jiving, Sabrina. You say this is a HAWT market after seven years of zero appreciation and loss of closing costs on both ends. What’s it going to take for you to label a market COLD?
“Cash buyers only.”
If you think this place wasn’t financeable, I have a bridge to sell you in Brooklyn.
Would you throw in a couple of boxes of wine?
There’s always an excuse as to why a negative event is a positive in a Shills world
“Lost their shirt? Come on. They had to pay their realtor fees and closing costs. I don’t think that’s “losing their shirt.” Lol.”
Would you consider it a poor investment?
“Lost their shirt? Come on. They had to pay their realtor fees and closing costs. I don’t think that’s “losing their shirt.” Lol.”
————————————
After seven years? Yes, it is.
Rule of thumb (and I defy you to insult everyone’s intelligence by saying otherwise) is that one should break even after five years — that includes paying both ends of closing costs. This poor sap went seven years and is still under water upon sale ($395K plus expenses out the door to buy, $395 minus expenses out the door to sell).
With no inventory you’re getting a false reading of how HAWT Chicago is.
“inflation for 7 years (let’s say 10 percent total, which on 20 percent down is about $8,000)”
1. CPI was actually +17.8, thru Jan-22. Id this has *only* kept up with CPI, it should have been $465k.
2. Only $20k down. So only ~$3,500 inflation loss on the DP.