What 2-Bedroom Short Sales Are Selling For in the South Loop: 1305 S. Michigan
We chattered about this 2-bedroom unit at 1305 S. Michigan in the South Loop in June 2010.
See our prior chatter and pictures here.
It was a short sale and was listed for $77,600 under its 2006 sales price.
It sold in August 2010 for $9,000 above the June list price.
The unit had 10 foot ceiling, a fireplace and hardwood floors.
The kitchen had stainless steel appliances and granite counter tops.
Did someone get a deal?
Akos Straub at Jameson had the listing.
Unit #1613: 2 bedrooms, 2 baths, 1052 square feet
- Sold in May 2006 for $377,500
- Originally listed in April 2009
- De-listed in March 2010
- Listed in April 2010 as a “short sale” for $264,900
- Currently still listed for $264,900 (parking $35,000 extra) = $299,900
- Sold in August 2010 for $309,000 (included the parking)
- Assessments of $461 a month (includes cable, doorman)
- Taxes of $5068
- Bedroom #1: 13×11
- Bedroom #2: 11×10
I don’t think so. I recently sold a much nicer 2/2 short sale at 41 E 8th for $300K without parking. There is currently another 2/2 for sale in that building (41 E 8th, unit 1003) listed at 335K with parking) and it’s not a short sale. Given sales in that building they are going to have to deal. The market really sucks right now for sellers and there will be deals to be found.
Here is a link to that unit: http://lucidrealty.com/homes-for-sale/Chicago_Loop/condos_townhomes/41-E-8TH-ST-unit-1003/
It’s a southeast corner unit too. Heat and A/C included. Building FHA approved. I think it’s a better location. And I found this with like zero effort.
That place would look SO much better without the concrete ceiling and the open ductwork.
Subtract about $50K to correct these things. This stuff is going to be way out of style in another decade.
it may not be a “deal” in financial terms, but it could have been the right decision for the new owner. Again, in real estate, the financial aspect is only a part of the whole picture – I have seen it time and time again – buyers paying a premium for something that I wouldn’t think deserves the premium (such as paying 50k extra for a corner unit, paying 30k extra for a unit w/ w/d in the unit, paying 40k for a unit with 2 balconies instead of 1 and the list goes on and on). Buyers usually are NOT willing to compromise on several of their “must haves” and almost always will pay the extra amount for these things.
“That place would look SO much better without the concrete ceiling and the open ductwork.
Subtract about $50K to correct these things. This stuff is going to be way out of style in another decade.”
While I am not a total fan of these things in a high rise (love em in brick and timber lofts) they do not bother me that much. How exactly will they be ‘out of style’ in a decade? What happens to all the units that have them now?
I am curious though as to how you came up with subtracting $50k to correct it? Even though there are 10′ ceilings, it would take lowering the ceiling up to nearly 3 ft lear the ductwork…not such a good idea, right? I suppose you could possibly install them hidden by putting the outlet on the wall under a fake column, but still not a good idea aesthetically(?). All of these fixes would not cost $50k nor do I think any owner/bank would agree to such a drastic reduction to correct a cosmetic issue.
This place is fine, I’d just like to comment on the way builders have started putting a nook for the tv over the fireplace. To me, this really restricts what type of TV you can have and/or where you place it. I’d prefer to have a hookup for the tv over the fireplace, but not have it predetermined for me where and how large my tv can be.
“…in real estate, the financial aspect is only a part of the whole picture……”
In the current economic climate, the financial aspect IS the MAJOR consideration for most new buyers. If it is not, why would buyers be waiting on the sidelines for yet more reductions?
I don’t understand how you can question the fact that ‘extras’ cost more money? Like buying a new car, the more options installed that elevates your model to a more luxurious or convenience one do cost $$$. Greater resale value will be realized with the addtion of that corner view, the washer dryer, etc. Just the way RE operates. The more you have available, the more you pay.
“Like buying a new car, the more options installed that elevates your model to a more luxurious or convenience one do cost $$$”
Yeah, I realize my examples were not that great – what I meant to state was that 2 places that were equal in terms of size, amenities, etc. will not be equal in many buyers’ minds. Some prefer higher floors, some prefer lower floors – some prefer eastern views, some prefer western views. My point was that, once a price range is established, most buyers do NOT look at value as the number one factor (especially if it is their own residence) – they look at factors which will enhance and fit their lifestyle (real or imaginary) and buy accordingly.
I too question why builders are starting to place the TV niche above the fireplace but not for the same reason Kevin. Damage can be caused to some models by the heat generated by the FP. Also, there is the fact that you need some sort of air flow to minimize the heat that comes from the TV itself. As many different requests I receive from clients when renovating their homes, I have yet to hear this one.
If you are not happy with having this open niche, it is quite easy to repair it with a few hours of drywall installation…or it can be used for a piece of artwork instead of having a TV there.
“….putting a nook for the tv over the fireplace. To me, this really restricts what type of TV you can have and/or where you place it. ”
Kevin, I totally agree- but most buyers are unimaginative and, believe it or not, LOVE this nook and not only think it is a smart idea, but think it makes the place more “high end”. Crazy… but I have heard it time and time again…
“….most buyers are unimaginative……”
I have found the deeper we get into the current RE mess, the more educated and imaginative new buyers are becoming.
Sad it took the market getting to this point before this all started happening, but at least something good is coming out of it all.
“I have found the deeper we get into the current RE mess, the more educated and imaginative new buyers are becoming”
While you can become more educated, I doubt that you can “become” more imaginative. The bottom line is that if buyers want to get what they want, they usually ARE willing to pay a premium. Nobody is going to live in a crapshack just because it is a good deal. Basically, if you live in a good unit/house in a desireable area/building you definitely can afford to hold on to your price – don’t let the real estate sharks tell you any different.
A bit off topic and I am not sure if this has been discussed here before but my favorite RE website was recently expanded to include the Chicagoland market.
http://www.curbed.chicago.com features articles that would be of use to those interested in what is currently happening in the area. A current article tells of a $3 mil Trump condo now back on the market as a resale for $3.2 mil…and most of their featured props do have floorplans.
While our girl is on vacation and you all are jonesing for some new RE reading material, give the site a read…lots of interesting articles and one click access to the NYC, LA and SF and for some odd reason, the Hamptons RE market.
wetsloop, it won’t let me log in – how do you register?
clio,
I have to disagree with you about ‘becoming’ more imaginative. When a unit comes on the market and includes 90% of what you need your dream home to have, and it is priced at what you think is a great deal, an imaginative outlook will persuade you to go through with the purchase and you will figure out how to get what you really want all at a great price.
Another thing that is off topic, but when I first moved to Chicago a few years ago and thought I would like to go rental during my stay I toured and seriously considered the building next door. There was a penthouse unit available with N & E views that were beyond spectacular. You could see the lake and the entire park from this vantqage point. One of the best views from there and I have to wonder if this place has any sort of view?
Had they accepted my oversized monster of a dog, I would have rented there instead of buying a place in the WL.
westloop,
I totally agree that an imaginative outlook is of great importance and help in buying a place. My argument was that most people don’t have this imaginative outlook or creative thinking. I wish it weren’t the case – things would be a lot easier for everyone, but that is what is out there.
clio,
that is beyond strange that you are not allowed access??!!
Try going to the Curbed NY site and at the top are the other editions….simply click on Chicago and you will be there.
There is a place on the main site to register if you care to post comments. That might be the way in.
http://www.ny.curbed.com
thanks westloop – i can get to the home page, but there may be viruses because it has shut down one of my computers and “frozen” another one.
http://chicago.curbed.com/ (the curbed and chicago were flipped in WL’s post)
Laura,
The exposed ductwork and the concrete ceilings were exactly what I was thinking about when I declared that there were better units out there. There are a zillion of these manufactured “lofts” out there – part of the less is more movement – and I think people are getting tired of them. Someone asked “what happens to all of these?” What happens is that someday they resell at huge discounts because no one wants them.
westloop,
got it – I think it was an issue with my computers- not the website. On a different topic, do you know the rough costs of a tear-off roof? They are finishing my roof today and I got a final bill which was a lot more than what Ithought it would/should be. The main house is 6000 sq feet w/ several peaks/crevices – the coach house is 2800 sq feet – 2 story, simple. There was no rotted wood – used 30 year architectural shingles and gutter guard. No gutters were replaced. The bill was 42,000 which i thought was a bit high. They had originally given me a range of 30-36k which I though was reasonable- but i was in a hurry and only got 3 estimates (all of which were between 25-40k).
That site is interesting westloop, thanks for sharing.
I found the bit on “the 5 neighborhoods that will survive the recession” particularly entertaining as the neighborhoods were: Austin, Uptown, HydePark, Loop, and lincoln park” — hahahaha what a joke – this was obviously written by someone NOT from the Chicago. This article and conclusions were based on hard facts and numbers – now do you agree “G”?: numbers/facts don’t tell the whole story.
I never said they tell the “whole story,” whatever the hell that is.
But they sure did tell another story than your tale, that’s for sure.
Laura/Gary – That is your opinion about the concrete ceilings being not wanted as I’m sure you live in the crate and barrel catalog where everything is painted neutral colors. Some people really like these types of artsy/edgy places because it’s modern and different. Some ceilings, I agree, look better than others but to simply stereotype that all concrete ceilings wont sell is ludicrous.
Oh BTW, have fun with your 9’6″ drywall ceilings…
Indeed, Clio!
In a related story, I crunched the numbers and found out that orders of the Denver omelette at two nearby restaurants were up 20%. Since the Denver is one of the more expensive omelettes, I told my friend Cleetus this was clear, hard data that incomes are on the way up in Chicago. Cleetus just shook his head and said his mama always told him to distrust numbers.
or 8’0″ dry wall ceilings…dont jump
roma, thanks for the laugh…
A-Fed,
I’m saying that the day is coming when these manufactured lofts won’t sell. They still sell today but I sense people are growing tired of them. They’re like avocado green refrigerators – OK for a while.
“They’re like avocado green refrigerators – OK for a while.”
Maybe they’ll sell to hipsters in 2040 due to their “vintage”, “retro” & “ironic” traits. More likely rent to hipsters though.
Concrete ceilings with exposed duct work??? How is this fashionable? What’s next, walls with exposed studs? Bathrooms with missing tiles. Cabinets with no doors? Never understood paying premium for a distressed or industrial look.
Then again, I also don’t know why people pay alot for pre-ripped jeans with holes or tears already cut in.
“Concrete ceilings with exposed duct work??? How is this fashionable?”
Ned have you not been to these new swanky gourmet restaurants such as Chipotle & Jimmy John’s? Now it IS illegal to take up residence in either of these two–however this being America you can indeed copy their design ideas to replicate your residence after theirs. In fact you could possibly even acquire some Jimmy John’s signs as well such as “Smells are Free”, etc to add extra legitimacy.
“Then again, I also don’t know why people pay alot for pre-ripped jeans with holes or tears already cut in.”
Ohhh Ned I think in eras past you’d find that people who drop $200 for pre-ripped jeans weren’t the people spending money on real estate. Then everything changed when downpayment restrictions were removed from mortgages in the middle of last decade.
re: concrete ceilings-
if you hate them, the ceilings are not the end of the world. The ceilings can be drywalled and you would only loose a few inches (if you only cover the ceiling and not the ductwork). If you want to cover the ductwork then you would soffit only those areas.
A weekend job for an experienced crew and a few hours for an electrician to extend out any boxes and require the fixtures.
Re: the TV “nook” I hate having TVs over the fireplace, looks gaudy to me, but absoloutely love the idea of a TV appropriately sunken into the wall like in a bedroom where you might not have the greatest clearance for something protruding 5-6 in (given the bracket and cords) and you’ll just hit your shoulder on it walking by. If you size it appropriate to something that would be put in the room you’d be fine, if not there are lots of bracket mounting options that would help or find a piece of art that does fit. It also takes away the uglu side view you get from some mounts.