When Is a Deal a Deal? A Bank Owned 2-Bedroom at 523 N. Racine in West Town
This 2-bedroom at 523 N. Racine in the Noble Square neighborhood of West Town recently came on the market as a bank owned property at $169,000.
Prior to that, it was listed for several years as a short sale but never sold.
There have been several other foreclosures and distress sales in the building.
Unit #3, also a 2/2, was sold in September 2010 for $175,000.
The listing said there was a “city violation against the building and association. Loose association in place.”
That “city violation” was apparently against the first floor unit.
That unit, also a 2/2, Unit #1, recently sold in July 2011 for $80,900.
That listing said, “For commerical use only. City violation against unit requiring commercial use. See court order in information section.”
Apparently, whomever bought Unit #1 will not be able to live in it.
Unit #2, however, has 1500 square feet with the amenities of newer construction.
From the pictures, the kitchen appears intact with cherry cabinets and granite counter tops. The appliances, however, are missing.
It has central air and parking.
The listing doesn’t say anything about in-unit washer/dryer, but construction of this vintage would have had it.
There have been several foreclosures in the neighboring buildings on Racine (not sure if those are part of the same condo association or not- but they look identical to this address.)
This unit is listed $180,000 under the 2004 purchase price.
Is this a deal?
Ayoub Rabah at Great Street Properties has the listing. See the pictures here.
Unit #2: 2 bedrooms, 2 baths, 1500 square feet
- Sold in December 2004 for $349,000
- Lis pendens foreclosure filed in November 2009
- Bank owned in May 2011
- Recently listed for $169,000
- Assessments of $257 a month
- Taxes of $4707
- Bedroom #1: 11×16
- Bedroom #2: 11×14
tough to call, who knows what the city will do with a property built not according to zoning regulations
can the city kick you out or repo the place and knock the place down?
“tough to call, who knows what the city will do with a property built not according to zoning regulations”
If Sabrina has the full story, the only *zoning* issue is the use of teh first floor–they got to build as tall as they did b/c the first floor is supposed to be a commerical space. Rest of the units should be okay from a zoning perspective.
Can they look into getting the first floor re-zoned for residential space?
“Can they look into getting the first floor re-zoned for residential space?”
They can. They won’t get it, unless (maybe) they know a guy.
the first floor unit is smaller and has a differnt layout than the other units(2nd-4th). it is more loft style since the 2nd bedroom doesn’t have windows. i know the 2nd-4th units rents out for $1850-$2100. so if the units are renting at those prices what would be a good price for these units? good investment property?
” if the units are renting at those prices what would be a good price for these units?”
If that’s real rent (~$2k), and there’s nothing significant lurking as a special, the current ask would be a good price.
“good investment property?”
Only if you *know* the city issues will be resolved and what the timeline is and what remaining costs there are. Don’t want it to be a ten year issue with $100k+ of legal fees and repair costs.
This seems like a nightmare to me…
A first floor that the city is after for not being commercial, a third floor unit that leaked into this one….and it sounds like all three were foreclosures? I’d hate to live here and have the roof go, who else is going to pay for it but you?
It seemed like most of grade school was just going over things I already knew or could learn by reading a book (or in these days, the internet). My family would discuss and analyze the various subjects with me and that’s where I learned how to think critically. What’s the point of learning facts? I would want to raise a kid that would question everything and decide on its own, what to believe. Schools usually do the opposite of that.
I love me some bank owned. About to F up the neighbors comps with some truth.
Side story this weekend I was talking to a guy who bought in time to get the tax credit. He cautioned me away from buying and admitted that he only bought at his wife’s urging. Also his wife wouldn’t even consider distressed properties like short sale or foreclosure as I guess that ruffled her nesting instinct feathers.
Now he’s underwater on his condo and can’t refinance. I hope for his sake his wife is hot.
This condo embodies those issues which concern me about condominium purchases:
1) Easy to buy, hard to sell.
2) Disorganized, likely financially unstable condo association, unlikely to be professionally managed and probably controlled by the strongest (by not necessarily wisest) personalities.
3) New construction of dubious quality.
4) Unresolved zoning/planning compliance violation issues, likely building code violations too. (If developer willing to willfully violate zoning code, then very likely to willfully violate building code too.)
5) “Gentrifying neighborhood” with many non-residential elements, which makes condo’s aspirational pricing (white-collar purchaser target)a greater risk for future sales and pricing stability.
6) Bad design.
I’ve an architect-friend who’s small business focuses on post-sale zoning and building code violations for condo associations in Chicago. This situation is more common than typically disclosed in listings for relatively new condo associations, particularly for the smaller developments.
Also, why do realtors photograph an open toilet? To prove plumbing is likely intact?
“I would want to raise a kid that would question everything and decide on its own, what to believe. Schools usually do the opposite of that.”
Ok, but haven’t you said that you don’t want to have kids? I’m not sure that the opinion of those who don’t have kids and don’t want kids, about how to educate kids, is that useful.
Also, you don’t seem like much of a self-examiner, but you might want to consider whether your recollections of 12 years of education are accurately just “learning how to be manipulative.”
“Can they look into getting the first floor re-zoned for residential space?”
“They can. They won’t get it, unless (maybe) they know a guy.”
No such thing as “knowing a guy” anymore in Chicago. You gotta know alot of guys. And one of their names should be Rahm. And even that probably won’t get you far.
There are still some lingering issues with this building. They have been trying to fire sale units here and next door for years. I am close to this situation and trust me when I say that I do not think that it is a good option for purchase at this price point.
There are many other better options out there to purchase. This owner will be sorting out crap for years.
BTW first floor has been vacant for at least three years. Apparently the developer sold or tried to sell it as a home instead of the commercial office that was spec’ed for this zoning. It will not change back to residential however that is not an issue. An office on the first floor might actually help the unit owners as it would improve the curb appeal. The doors, stonework, and other finishes are showing wear from poor craftsmanship.
I used to live in one of the neighboring units in 2009. I think there are five identical buildings, four floors apiece. When we were there we were told that each of the five buildings were managed individually. Our building, which was not 523, was without a management company for a long time and it showed. (We often had trouble disposing of trash.) The neighboring buildings seemed to be in much the same state. There were a lot of vacancies in all five buildings, as judged by looking for lights and other signs of life. The construction of the buildings didn’t seem very good.
Unit #1 in this building which had been in foreclosure and just sold- just came back on the market as a residential rental unit for $1850 a month.
The prior listing for that unit said: “For commerical use only. City violation against unit requiring commercial use. See court order in information section.”
OK – again, Sabrina, WHY is real estate not a good investment?!! Huh – I can’t hear you…..
Excuse me Clio. Your million dollar education is letting you down.
Read the post. And then read what I posted.
Figure it out.