Yes, There is a 1-Bedroom Condo Listed for $35,000 in Lincoln Park: 2740 N. Pine Grove
This 1-bedroom unit in the high rise Parkview Tower at 2740 N. Pine Grove just south of Diversey in Lincoln Park just came back on the market for $35,000.
(Sorry for the yucky picture but the weather was nasty. It was so cold/rainy I couldn’t get a good shot so I gave up after 10 tries. But you get the idea.)
It is a short sale.
How low is that price?
It is listed $26,000 under even the 1992 purchase price.
Before you rush to get your checkbook, the listing lays out some hefty assessments that must be paid by the new owner including: “buyer responsible for building’s special assessment ($20,000) & delinquent monthly assessment, legal charges, late fees, etc.”
There is also a tenant in place.
The listing acknowledges that the unit needs some updating. It has carpet and an older kitchen.
The unit has no central air (only wall units), no in-unit washer/dryer and rental parking is available on a first come, first served basis.
Is this a true deal?
Or was this listed artifically low to incite a bidding war?
Christine Placek at Baird & Warner has the listing. See the listing here (no interior pictures).
To see what the units in the building look like, Unit #17G is also on the market and has carpeting. But it is listed for $200,000.
See the pictures here.
Unit #9B: 1 bedroom, 1 bath, 800 square feet
- Sold in June 1992 for $61,000
- Sold in June 2002 for $165,000
- Originally listed in August 2008 for $195,000
- Lis pendens filed in December 2008
- Reduced in May 2009 to $165,000
- Lis pendens foreclosure filed in November 2009
- Currently listed at $35,000 (plus all the assessments talked about in the listing)
- Assessments of $233 a month (includes doorman)
- Taxes of $3042
- No central air- wall units
- No in-unit washer/dryer
- No deeded parking- rental only at $115 to $145 a month
- Tenant in the unit
- Bedroom #1: 12×11
If you want to rent this guy out, then yes this is a deal. However, I can’t imagine anyone wanting to buy this to live there.
I didn’t think it was possible to pass the delinquent assessments on like that. And if there is a $20K special coming up does that mean other units will be walking too?
That type of kitchen is just depressing to me. It’s efficient, but definitely not cheery or cozy.
I’m not so sure they can try to squeeze the back-assessments on the new owner, either. My impression was that the association gets a lien on the property to recover their costs. Maybe that’s a sleight of hand they’re using to not add those costs to the list price?
I saw this one on Redfin – and I thought “bidding war.” Maybe not. It seems like a pretty decent deal, although a warning about the kitchen and bathrooms could mean that they are pretty ugly, but it could also just mean it’s not s/s and granite.
There is the unknown of how many years they haven’t been paying the assessments. And, lawyers don’t come cheap. So, this could be $70K or $80K at least before renovation. It’s not a steal after thinking it through, but it is certainly affordable if you are looking to have a roof over your head in a good location.
And, finally – is the bank really truly going to take $35K?
$20k special on a crappy 1BR? If the association could not borrow the funds for the work needed and collect it monthly, then most of the low down payment buyers are truly screwed. They will not be able to refi for the cash. It is doubtful that their years of paying more than rental equivalent has allowed for sufficient savings. Why should they have been concerned when real estate only goes up?
The other 1BR asking $200k has to be fantasy. If the subject owner couldn’t sell for that much in the more sucker-rich environment of 2008, how can one sell now when greater fools are diminishing rapidly?
BTW, everything is negotiable in a RE deal. Nothing limits the attempt to pass along outstanding liabilities. As long as they are paid off at closing, the condo assn (and state law) could care less who pays.
“BTW, everything is negotiable in a RE deal. Nothing limits the attempt to pass along outstanding liabilities. As long as they are paid off at closing, the condo assn (and state law) could care less who pays.”
The Seller could require that the Buyer pay off their car loan and student loans, too, and there’s nothing in condo decs, local, state or federal law to prohibit it. Hell, the Seller can insist the Buyer feed the squirrels, tho that’s a little harder for the Seller to enforce.
Some plz post a link to the squirrel lady story. I need a good laugh this frigid Monday am.
“Hell, the Seller can insist the Buyer feed the squirrels, tho that’s a little harder for the Seller to enforce.”
Damages only (no specific performance).
Within a month of putting her two-bedroom house in San Francisco on the market recently, homeowner Linda Gao had five offers, each one above her asking price of $699,000. So before accepting the most-attractive bid, she threw in an extra condition: If you want to buy my house, you have to feed the squirrels.
Two weeks later, she and the buyer hammered out a contract that included feeding the backyard wildlife, which Ms. Gao has done three times a week for the past two years. “I don’t think it matters if it’s a buyer’s market or a seller’s market,” Ms. Gao says. “Anyone with a good heart would feed them.”
Indeed, when Susan Butler was negotiating to buy Ms. Gao’s San Francisco property, she was resigned to the feeding schedule. “At that point, I said, ‘Yeah, what the hell, I’ll feed the squirrels,'” she said. She signed a contract in April, paying $815,000 — or $116,000 over the asking price. Will Ms. Butler actually feed her new furry friends? “Probably not,” says the college administrator. “I don’t want to encourage other rodents.”
“In a Booming Market, Sellers Can Be Choosers” by Amir Efrati, Wall Street Journal
so its really a 55k(or more) 1 bedroom
meh still a good deal I suppose… my wager is that investors bid this up to about 100k
“my wager is that investors bid this up to about 100k”
Invsco properties seem to be at the leading edge of foreclosures and finding bottoms. Recently 2625 N Clark had a few one bedrooms cut to below 100k. I think 3550 N Lakeshore has 1 bedrooms for 110k and dropping fast.
“Recently 2625 N Clark had a few one bedrooms cut to below 100k. ”
Still too much. The place is probably worth less than $75k per unit, and that assume a control premium for taking the *whole* thing back to rental. What did I calc the value (based on CL asking rents) of 2625 1-BRs at before? Sub-50k, wasn’t it?
I think out of public interest/service, some of the stat guys here (G, Gary, Sonies) should compile a list if Invsco properties and the % of “trouble”
“Recently 2625 N Clark had a few one bedrooms cut to below 100k. ”
Hi Bob –
Ugh. Don’t bother with this building. It’s not well-run. Also taxes on a 1 BR are over 4K a year and assessments are about $500/mo.
“BTW, everything is negotiable in a RE deal. Nothing limits the attempt to pass along outstanding liabilities. As long as they are paid off at closing, the condo assn (and state law) could care less who pays.”
G is right. The latest snag holding up my short sale purchase is that there are substantial liens on the unit relative to the price we agreed on. The seller’s lender does not want to pay. I spoke to the seller’s attorney last week. He’s a nice guy and said he would ask the seller if she can pay. But I already know how that’s going to go. And I certainly don’t want to pay either.
I’d bet the bank wouldn’t accept the 35k ask price as they likely are incapable of doing the backwards math to see that 35k is actually a reasonable price given the condition of the property and the massive back HOA dues and special assessment.
This is probably a realtor trick to drum up interest and start a bidding war. I’d bet some bidders won’t do the backwards math either and this thing might close for 50-60k.
“The latest snag holding up my short sale purchase is that there are substantial liens on the unit relative to the price we agreed on. The seller’s lender does not want to pay.”
Isn’t it a bit annoying the seller never consulted with their lender on this before wasting everyone’s time? Almost by that being “the price we agreed on” its as if the seller is assuming they can speak for their lender’s interests when its obvious they cannot.
I can’t believe the price. I sold my unit 30 yrs ago for $70k in the same tier a couple of floors higher. I think this is less than the developer price in 1978!
American Invsco is sucha horrible company. They were somehow able to manipulate thing and took the common property of the rooftop deck at 3660 N LSD (the NY bldg) and kept it for years. It was the party room and the outdoor roof. They were going to try to build a unit in the party room. After some internal divorce or something the Invsco kid didn’t make the payment and the property went to the banks. The association recently bought it for #275K. Invsco was originally asking $1.5Million at one time.
American Invsco is THE worst condo company in the country.
“American Invsco is THE worst condo company in the country”
I don’t understand all the harsh words/feelings about American Invesco. I bought 6 units from them between 1998 and 2003 and have done pretty well renting them out to cover my costs. Even with the price declines, they are still worth over what I paid for them. AI didn’t do anything deceptive – the people who bought and got in over their heads have nobody to blame but themselves. Seriously, they should own up to making the bad decision and stop blaming others for their mistakes!!!
As a unit owner at 2740, I would like to point out that there is * NOT * at $20,000 special assm. I own a studio at 2740. There is a special of about $2100 on the studio. I can not imagine a true one bed being more than $3000 or so. I called the listing agent. She said the $20,000 figure was given to her by her owner. I asked if she verified this, and she said no (DUH!).
I called her broker-manager to complain, and to her credit the broker-manager said she would 1) mark the listing TEMP until they had obtained verfication, and 2) remove the $20,000 figure from the remarks until such time as she had an accurate figure, both of which the broker-manager has since done.
To repeat, there is NOT NOT NOT a $20,000 special in the bldg.
clio:
It’s great to have a different perspective of Am. Invesco communicated.
“It’s great to have a different perspective of Am. Invesco communicated.”
The perspective of a personal friend of one of the AI muckities? And probably of one or more of the family? No bias there, but at least it was disclosed.
The listing has gone. Interesting.
Also, speaking of AI, tomorrow is the last day to submit offers on 200 N Dearborn, for their ‘must accept 36 offers by Dec 14th’ deal…
Illinois passed a law about 18 months ago (not sure of the exact time frame) that permits associations to collect up to 6 months of assessments from a buyer.
I lived in this building in the late 90’s and absolutely loved it. The location was great and the assessments/taxes were quite reasonable since it is a no frills building. This building is very stable and can not be compared to the utter mess at 2625 Clark. This unit (even if pretty shabby) will probably sell in the $125K-ish range. Obviously the agent is trying to build up a bidding war – and they will get one.
Pete, many people share your feelings – but what is strange is how come I am doing ok with all of my American invest properties? I had no special connection to them and, other than putting my initial money down have never HAD to put in another penny into the units. They are self sufficient. I really don’t know how all these other people can be in trouble. In fact I actually think that many aren’t in that big trouble – they just dont want to carry the mortgage and find renters so they are walking away. I know a LOT of AI investors and believe me, these weren’t first time poor home buyers. These were multimillionaire investors who bought many of these units through llc and private companies and then simply walked away when they realized theirnreturn wasn’t what they thought it would be. It is the investors who should be thrown in jail.
I’ve owned a rental in this building for nearly 20 years and I’ve seen this unit 9B when the owner was trying to sell it. First of all the one bedroom’s are not 800 sq ft, I don’t think they are 700 unless you count the balcony. At the time I saw 9B (empty) about 2 years ago (owner asking $140K trying to work with the bank for a short sale) it had hard wood floors 3 different ones some attached some popped up, tile in kitchen and bath. The kitchen looked better than the one currently listed for 200k but the view will not be better in 9B (parking lot). I remember thinking the only thing that didn’t have to be replaced was the new hot water tank. The windows were so dirty I couldn’t tell if they cracked between the layers.
During the past several years the building has not been very stable in my opinion. They are trying to build up a reserve and pay off loans. They tuck pointed for 3 summers straight and still had water infiltration problems then released the company and then hired someone who really knew how to tuck-point. My handy man told me the plumbing in the entire building needs to be replaced.
They had special assmt for my 1 BR in the summer that was about 2K one time and currently I am paying about $180 extra monthly for the currently special assmt