November 30, 2010 – Not even Lake Shore Drive Chicago condos are immune from foreclosure. In what is being called the first foreclosure to hit a condo in that exclusive neighborhood, a spacious second floor residence at 189 East Lake Shore Drive was recently sold as a foreclosure by a Prudential Rubloff agent. Chicago Magazine is reporting that the three bedroom condo had 3,800 square feet of living space, a 456 square foot living room, 3.5 baths, renovated kitchen with high-end appliancces and an island plus a large 600 square foot terrace.

The condo was sold on November 17th for $1.9 million. The condo had been listed back in February of 2009 for $2.995 million and then the price was lowered to $2.25 million in March of 2010. By October 2010 it became a foreclosure sale and according to the article, there was considerable interest in it with the agent showing it a couple of dozen times and receiving three offers for it.

The condo was described as being in nearly perfect condition and not a typical foreclosure.

The article went on to say that there are seven luxury towers located to the east of the Drake Hotel that have avoided any foreclosures. They are all co-ops with the exception of the Mayfair and the buyers had to put down a minimum of 50% of the purchase price. That isn’t the case with the Mayfair, which was converted from a hotel to market rate condos in the 1990s.

It certainly isn’t anything new to hear about units or even entire Chicago real estate developments reverting back to a lender. But we may start hearing about more high-end Chicago foreclosures as well.

[tags]Chicago Foreclosures, Chicago Condos, Chicago Real Estate[/tags]

November 29, 2010 – It has been quite a while since we checked to see what kind of Chicago condos were still for sale from the developer at Motor Row Lofts. Jameson Real Estate is marketing the last unsold units at this Chicago real estate development which is located on 2303 South Michigan Avenue in the South Loop. Right now they are listing four lofts and you can see those units during the open house every Sunday from 1pm to 3pm.

The units at Motor Row Lofts come with 13 to 21 foot high ceilings, lots of exposed timbers, brick and spiral ductwork. They have oversized windows and either bamboo, oak or maple hardwood flooring plus carpeted bedrooms. Other features include a ventless gas fireplace with stone hearth, balconies, ceiling fans, designer track lighting, granite counter tops, KitchenAid stainless steel appliances, double bowl undermount sink, under cabinet lighting, stone or glass tiled baths, double bowl vanity, jet shower, washer/dryer hook-up and a private deck with gas grill hook-up.

The units Jameson has listed are below.
Unit #310 / Price $269,900 / 2 beds / 2 baths
Unit #502 / Price $399,900 / 2 beds / 2 baths
Unit #505 / Price $409,900 / 2 beds / 2 baths
Unit #501 / Price $449,900 / 3 beds / 2 baths

Be sure to check out the other Chicago Condo Lofts for sale to compare them with Motor Row Lofts.

[tags]Motor Row Lofts, Chicago Condo Lofts, Chicago Real Estate[/tags]

November 27, 2010 – According to the Illinois Association of Realtors, Chicago homes sales in the nine county reporting area dropped 35.9% in October as compared to October of 2009. There were 4,672 Chicago condos and single-family homes sold durnign October 2010 compared to 7,286 sold in October 2009. The Tribune detailed the IAR report in a recent article and stated that the median price of Chicago area homes also dipped 6.8% this October as compared to last. The median price for October 2010 was $177,000.

For Chicago home sales in the city, there were 1,217 condos and single-family units sold during October 2010. That is 39.5% lower than the 2,012 units that sold in the city of Chicago during October 2009. The median price for homes in the city also fell 14.9% this October as compared to last, with the new number being $183,000.

When we look at just Chicago condo sales for October of this year, the article states that there were 659 units sold. That is a 44.8% drop as compared to sales of Chicago condos during October of last year (2009). The median price of Chicago condos for October 2010 was $250,000 which is 4.9% lower than the median price a year ago.

The expiration of the $8,000 first-time home buyer federal tax credit along with the unemployment rate seems to have really had an impact on sales of Chicago Condos. It will be interesting to see what the third quarter 2010 sales numbers look like in a few weeks.

[tags]Chicago Homes, Chicago Condos, Chicago Real Estate[/tags]

November 26, 2010 – “The next generation of loft living has begun at VB1224.” That’s the sales pitch that the developer of this Chicago real estate project is advertising. Van Buren Lofts was also advertised as one of the last true loft conversion projects in the West Loop, so if you crave lots of exposed timbers, concrete, ductwork and brick, you may want to check out this development.

The one bedroom plus den lofts start at $239,900. For a two bedroom loft with parking included you can expect to pay from $289,900. Floor plans at VB1224 range from one bedroom, one bath plus den; one bedroom, 1.5 baths plus den; two bedrooms, 1.5 baths; two bedrooms, two baths and two bedrooms, two baths plus den.

According to the description on the development site, all of the units now come with a “new contemporary finish package.” The lofts have 12 foot high ceilings, 4 inch wide plank hardwood flooring, Bosch stainless steel appliances, quartz counter tops, a wahser and dryer and marble baths. Building amenities include a fitness center and resident lounge.

The sales center and models are open on Saturdays and Sundays from noon to 4pm.

You can also compare VB1224 with other Chicago Lofts to find the best fit for your budget and lifestyle.

[tags]VB1224, Chicago Lofts, Chicago Real Estate[/tags]

November 24, 2010 – Yesterday we talked about the drop in sales of downtown Chicago condos and townhomes for October. There were just 111 units sold during the third quarter of this year as compared to 150 units sold during the second quarter of this year, as reported by Appraisal Research Counselors and printed in a recent Crain’s article. We also told you that we would highlight a couple of Chicago real estate developments and talk about how they are coping with slow sales.

There have been reports surfacing for a while now that Astoria Tower was going to change ownership or at least sell the large number of units that aren’t under contract to an investor. The Crain’s article claims that Crescent Heights out of Miami is the investor and that they will buy around 200 condos in the 30 story Astoria Tower and convert them to rental apartments. Crescent Heights has been very active in the Chicago real estate market lately.

Another development, 235 Van Buren, is fairing better according to the article. CMK Development president Colin Kihnke don’t have to worry about paying back his construction loan until 2013 and even then has the option to extend it. The developments that are going rental mean that fewer for-sale condos will be up against those at 235 Van Buren.

“There are fewer and fewer competitors every quarter,” he was quoted as saying.

The 46 story high-rise has 714 condos and around 460 are currently under contract. Of those that are sold, around 40% have closed. That leaves around 250 units still up for sale. They have made just 20 sales this past year, but prices there are very competitive with studios starting at $179,900.

With so many units still on the market, it will probably be at least another two to three years before we see any new construction Downtown Chicago Condos hit the market again.

[tags]235 Van Buren, Downtown Chicago Condos, Chicago Real Estate[/tags]

November 23, 2010 – According to the latest numbers released by Appraisal Research Counselors, there were 111 downtown Chicago condos and townhomes sold during the third quarter of 2010. That number of sales is lower than the 150 units that sold during the second quarter of this year, according to ARC data in a recent Crain’s article. In 2009 the number of Chicago townhomes and condos that sold during the third quarter was only 56, so there is certainly some improvement there.

The article and report went on to state that by the end of this year (2010), Chicago real estate developers will have sold around 600 units, which is pretty much the same as the last two years.

Appraisal Research Counselor VP Gail Lissner was quoted in the article as saying that, “Right now, we’re just kind of glued in place. We’re just not seeing a lot of movement.”

She went on to say that the condos that are selling are mostly lower priced units that are being bought by first time buyers. Other condos that are selling are in tower that have drastically cut prices or have had an auction to sell off stagnant inventory.

But even with the slow sales, the mountain of unsold Chicago condos isn’t quite as tall as it was a few years ago. ARC reports that there were 7,689 unsold units at the end of the third quarter in 2007 and now there are 3,402 unsold units at the end of the third quarter 2010.

With no large Chicago real estate projects planned for the near future, that overstock should keep getting smaller. ARC states that Chicago developers pulled 1,041 condos and townhomes off the market last year (2009) and have pulled 1,420 units off the market this year (2010). Some of those units never got past the pre-sales phase and some were rented out instead of sold.

Tomorrow we’ll highlight a couple of developments that are working hard to make sales and one that keeps being pegged as a candidate for a switch to rental. And if you are in the market to purchase a new home, there are still plenty of Chicago townhomes and condos available at lower prices.

[tags]Chicago Townhomes, Chicago Condos, Chicago Real Estate[/tags]

November 22, 2010 – It has been a few weeks since we talked about the rent-to-own promotion at Grand Bend At Green Bay in Evanston. Back in September the sales representatives wouldn’t give an exact ending date for the promotion, only saying that it was limited both in terms of units and time. But the offer must still be good since ads are still running in the Sun Times.

“Own for less than renting,” is the catch phrase used on the Grand Bend at Green Bay ads. The copy goes on to state that the one bedroom suburban Chicago condos in the promotion are being offered on a lease-to-own basis for $1,550 a month. FHA financing is also avaliable at this suburban Chicago real estate development with 3.5% down payment for qualified buyers. The original terms of the promotion were that 25% of your rent would go towards the purchase price of that unit.

The one bedroom condos are priced from the $190,000s and the two bedroom condos start in the $290,000s. For a three bedroom unit you can expect to pay from the $570,000s.

Condo finishes at the 49 unit, six story Evanston tower include hardwood floors, floor-to-ceiling windows, either a balcony or terrace, extra storage space, Frigidair washer and dryer, stainless steel kitchen appliances by GE, Wellborn cabinets, granite counter tops and double bowl sink. The baths come with 12″ ceramic tile on the floors and surround, large soaker tub plus body spray shower head.

Right now there is a large selection of rent-to-own condos in Chicago and the surrounding suburbs, so be sure to shop around before signing a contract.

[tags]Grand Bend At Green Bay, Condos In Chicago, Chicago Real Estate[/tags]

November 21, 2010 – If you’re looking for a new place to rent and like contests, now would be a good time to visit some of Magellan Development Group’s Chicago real estate projects. If you stop one of their Lakeshore East developments that is managed by NNP Residential you can register to win an iPad as long as you get there before December 31st.

According to a recent Tribune article detailing the promotion, the towers that are included in the contest are The Shoreham along with The Tides and Aqua. The leasing center for the apartments at 2555 North Clark street is also included.

Aqua has a very limited number of apartments available for rent, but there are several units available at The Shorham and The Tides. Rents at those two towers range anywhere from around $1,320 to $3,434 per month, according to the article. At 2555 North Clark there are studio to two bedroom units that can be leased for $1,153 to $2,352 per month.

There are also plenty of other Chicago Apartments for rent right now if you don’t find anything that fits your needs at the Lakeshore ast towers.

[tags]Aqua, Chicago Apartments, Chicago Real Estate[/tags]

November 19, 2010 – The latest Chicago real estate development to admit to having financial problems is Baer Lofts in Bucktown. According to a Crain’s report, developer Gabriel Chavez stated that his lender, Harris Bank, is getting impatient.

Mr. Chavez was quoted in the article as saying that the bank hasn’t yet, “foreclosed on the property but they’re on us, putting pressure.”

There are 16 Chicago condos at Baer Lofts, which is located in the old Baer Fireproof warehouse on 1927 North Milwaukee Avenue and 12 of those are sold. Two sales were inked just recently, according to the report. But Mr. Chavez stated that he still owes about $1 million on a past due construction loan that had an original balance of $4 million. Price cuts are in effect on the remaining lofts.

The article went on to state even if all of the units sold, it would take all of that income to pay off the loan and the project would “likely lose most of its equity,” according to Mr. Chavez.

The condos at Baer Lofts have been reduced around 15%. There is a two bedroom condo on floor three that was listed for $325,000 and is now priced at $275,000. A two bedroom condo on the top level that had been marketed for over $600,000 is now priced below $400,000.

So if you’re looking for lofts in Bucktown, you may want to check out Baer Lofts. Or you can find some great deals on other Chicago lofts right now as well.

[tags]Baer Lofts, Chicago Lofts, Chicago Real Estate[/tags]

November 18, 2010 – It has been quite a while, but many may remember that the developer of Pure basically scammed pre-construction buyers and then left the country. Salman Ibrahim and Mohammad Akbar Zahid founded Sunrise Equities Inc., which is the company that was developing Pure. Sunrise went bankrupt in 2008 and according to a recent Crain’s report, a federal grand jury has indicted the men for fraud.

The article states that the men raised and then lost about $44 million in this elaborate scheme. Most of the investors who bought many of the 67 units at Pure were Muslims, as were the developers. The investors were told that Islamic law prohibited any interest being charged, which made the investments more attractive. The money that was supposed to be used for Pure was instead used to pay off other debts and invested in other unrelated businesses, according to the article.

The men also are accused of giving fake documents to the Mutual Bank of Harvey, Cole Taylor Bank and Devon Bank and representing their worth as more than it really was.

As for Pure, Mutual Bank took it over in 2008 but was then shut down by the FDIC and United Central Bank of Texas took over the project. Since just four of the 67 Chicago condos in the 13 story West Loop tower are sold, there is no word on whether the bank will try to sell the remaining condos or rent them. A representative from Appraisal Research Counselors was quoted in the article as saying that, “The bank has not restarted a marketing program yet and the project remains on hold although some of the units have been rented.”

While this is an extreme case, buyers should always check out the track record of Chicago real estate developers before making a deposit on pre-construction units.

[tags]Pure, Chicago Condos, Chicago Real Estate[/tags]