With The Market Apparently “Improving,” What Properties Will Try To Sell Again? 2000 S. Michigan
Longtime readers will remember this duplex up penthouse loft in the Locomobile Lofts at 2000 S. Michigan in the South Loop.
We chattered about it several times because it originally came on the market in 2007 and stuck around until 2009 before it was withdrawn.
See our May 2008 chatter here (with interior pictures).
(What a difference 4 years makes in our attitudes about price declines and the market. Wow.)
Now that the market is apparently “improving”- I’m not surprised to see some favorites come back on the market to test it again.
This corner loft is one for true loft lovers. It has concrete ceilings and large industrial windows with 15 foot high ceilings.
The listing says there is custom lighting.
The kitchen has maple cabinets and stainless steel cabinets. The loft has dark hardwood floors.
A highlight of the property is the 1300 square foot private roof terrace.
It has the usual newer construction features including central air, washer/dryer in the unit and 2 parking spaces.
Reduced $226,000 since we last chattered about it in 2008, is this priced to sell in the current market?
John Astorina at Keller Williams Preferred Realty now has the listing. See the pictures here.
Unit #307: 2 bedroom, 3 bath, 2150 square feet, duplex, 1300 square foot private roof terrace
- Sold in November 2004 for $567,000
- Sold in October 2006 for $727,500
- Listed in December 2007 for $749,000 (two car parking available for $35k)
- Reduced
- Was listed in May 2008 for $675,000 (parking now $50k for two spaces)
- Withdrawn in July 2009
- Re-listed and currently priced at $499,000 (2 car parking included)
- Assessments of $641 a month
- Taxes of $5715
- Central Air
- Washer/Dryer in the unit
- Rooftop Deck: 25×25
- Bedroom #1: 16×14 (main level)
- Bedroom #2: 16×14 (second level)
Regarding the property,
Now we talking in terms of loft!
Anyone want to check with the realtor on heating disclosure?
$500k with parking seems much more realistic than the previous $725! I really like the place and the outdoor space.
The chatter from 2008 is crazy to read. This isn’t (nor was) an unsafe area. While Ickes is gone, Lexington Park has sat empty (although rentals start soon), The Defender building is still empty along with the 3/4 built condo building a block north and the Wabash town homes have been plagued with foreclosures. While I still like the area and there are many good restaurants around some of the area cheerleaders were a little off.
Bidding wars confirmed!
http://www.bloomberg.com/news/2012-03-27/bidding-wars-erupt-as-u-s-supply-of-homes-for-sale-falls.html
Cool space, but I expect that this is still a good bit overpriced.
“Cool space, but I expect that this is still a good bit overpriced.”
Why do you think it’s overpriced now?
Pretty cool, but with 2150 sf and 3 baths I wish it had a 3rd BR or office.
I think that it’s overpriced because people continue to be very concerned about what real estate is going to be worth in 5 years, and I don’t think that this is a property that someone who can spend $500k is going to buy right now. That’s partly because of the location and party because of the comments in the prior posting about the size and layout. Essentially, this is a nicely-built out somewhat true loft loft. It’s a great place for a young person or a couple, but these days those folks are not buying as many expensive properties, especially when they are in marginal neighborhoods.
Only with the bubble prices as anchors in this list price at all sensible. Well, the bubble sales price were ABSURD. You can see the mindset in the previous comments. People saying that the per square foot value is this and that and anyone saying prices are too high is “bitter.” Some people actually thought that you could put pretty nice, but not phenomenal, buildouts into large spaces with outdoor space and multiple that by $300/sqft. That’s nuts.
I think that this has to get to where someone will be willing to take a bit of a flyer, and that price to me is maybe $425k or less. Also, I wrote all that before I realized that assessments are $641 a month. That’s quite high for what you’re getting for them.
I’ve been in this building and like it a lot. The location is too far south by a block or two though (or even a block east would be an improvement). This area still seems to be a bit of no man’s land and I would be nervous walking a dog at night here. Just a block or two north or east, would make a huge difference.
$300 a sq foot better be a pretty nice place in the city. $300 psf is near the high end of the market in Chicago.
As a loft lover, this place is fantastic. Wide open spaces, lots of light, and authentic industrial character. Exactly what so many look for…..just not in this location. I would agree with JJJ that the location kills any reasonable chance that the sellers get anything close to the current ask. I’d guess this could probably find a buyer at $400 – 425K.
We looked at something similar to this in the area. The problem here is that as you get past 1600s the only access to green space is the 18th street ramp over to the lakefront. Price is about right though. In the end location trumped this and we bought in the 888 S Michigan building
Only thing holding me back from buying right now is the local political climate. If we had clarity on future taxes and deficits in the region it would be much easier to make a real estate purchase in Chicago. CME and other large corporations talking about leaving doesn’t make me bullish on the local job market. At the end of the day local real estate is heavily driven by the job market in the region.
That is a macro call.
Rents have risen significantly. On a rent vs buy argument I would go with buy with current low interest rates. But then you have to believe that the local economy is strong enough and will create enough jobs over the next 10 years to keep rents elevated.
“We looked at something similar to this in the area. The problem here is that as you get past 1600s the only access to green space is the 18th street ramp over to the lakefront”
What? You have the green space right by the ramp, also the Women’s Park and Gardens are even closer, there’s a new park coming behind 1620 S. Michigan and the walk to Ping Tom from this location is closer than getting to the greenery of the lakefront proper. For the more adventurous type, the razed projects have also left quite a bit of green space.
When I think of $300+ psf in the city limits, I think of this:
http://www.redfin.com/IL/Chicago/6310-N-Leroy-Ave-60646/home/13513345
Is that retail space on the ground floor and is it occupied?
With the income from the retail rents the monthly assessments should be lower.
I’m not providing this as a comp because it’s nowhere near the subject property, but just thought it was an interesting space and price:
4807 S Ashland Unit 303
Back of the Yards
2/1 Condo loft
1,750 sqft.
Listed as a short sale for 59.9K subject to lender’s approval and cancellation of existing contract.
Last sold for 200K in May 2005.
http://www.redfin.com/IL/Chicago/4807-S-Ashland-Ave-60609/unit-303/home/12588402
sean: “CME and other large corporations talking about leaving doesn’t make me bullish on the local job market.”
Those threats had nothing to do with the quality of local talent and would have had almost no impact on the job market in Chicago. The majority of workers for the firms and even executives would have stayed in Chicagoland. The two things that would have left were tax revenue and a few executives. It would have been more symbolic than anything.
Moreover, in the case of the CME, it would have had absolutely no effect on the trading operations of firms trading on the CME. Ziltch. The CME’s shiny new colocation facility is in Chicago, most CME traders and members are in Chicago and wouldn’t move.
There may be legitimate concern for the future of Chicagoland, but tax dodging corporate maneuvers aren’t the reason.
“With the income from the retail rents the monthly assessments should be lower.”
What income? The association doesn’t own the commercial space. What condo associations do? Heck, the developers finally got wise during the bubble to exclude the commercial space entirely from many condo associations. That’s why you’ll see many on their own PIN representing their limited air rights.
In the case of 2000 S Michigan, the two commercial condos have their own condo association that is separate from the residential condo association.
“Rents have risen significantly. On a rent vs buy argument I would go with buy with current low interest rates. But then you have to believe that the local economy is strong enough and will create enough jobs over the next 10 years to keep rents elevated.”
You’d actually also have to believe that the local economy will grow enough to absorb the shadow inventory of condos, as well as the new apartment oversupply currently under construction, to keep rents elevated.
Seems like one odd place for a loft, milkster
Have also been in a unit in this building. It was several years ago and may have even been this one — or it looked very similar in structure! These lofts are *gorgeous* — true urban loft with the sleek look of concrete vs all the timber that is plentiful in Chicago. I am actually in the market for a loft now, up to about 500K, and have seen a lot in the city. Ones like these are beautiful, but as others have mentioned, when you can buy similar properties at the same price point in more amenity-rich, safer, or more active neighborhoods (West Loop, Wicker Park, etc), this place at this price point is a hard sell.
Milkster – The unit below your back of the Yards condo sold for $47K in January. Makes even the $60K seem a bit overpriced. Is the Familiy Dollar store on the first level of this building. Not so nice.
“Milkster – The unit below your back of the Yards condo sold for $47K in January. Makes even the $60K seem a bit overpriced. Is the Familiy Dollar store on the first level of this building. Not so nice.”
I would SO rather invest in a neighborhood like Edgewater or Albany Park than Back of the Yards (even if I had to pay a little more.)
So what’s the story with development in this area? Is it on the up? Lots of talk in the ’08 post about Mayor Daley and gentrifying this part of town to link up with Chinatown and whatnot. Totally agree that even just a few blocks farther north/east would make a huge difference…
I’ve been lurking about this website for a couple days as I am in the market for a place. It’s astonishing to me how many comments are tragically misinformed. I see a lot of the same posters discussing every neighborhood in Chicago as though they are experts. How can you possibly be an expert on every neighborhood? You are not and individual agendas are becoming easy to uncover if you scratch the surface even a little. I am very familiar with this building having lived there for over 5 years and continuing to own a unit in the building. The common interior of the building was just recently renovated and looks beautiful. Last I heard the building finances were holding up well, which is not true of several other buildings in the area. There is a fantastic daycare just behind the building, its 3/4 mile walk to the lakefront and a 15 minute commute to the loop by bus. With a little patience, I see the area returning a nice investment, even from my purchase price in 2005. There are too many positives about the location and there is a reason the SL was developed to begin with, too many positives for this area to be down forever. Rents remain strong.
This particular unit is not a “somewhat true loft” as someone put it, it is without question a true loft, with an outdoor space that is incredible. I personally have never had safety issues. The new owners will love this space and as can be seen now, a sale is pending.