Prices at River City continue to slip-slide away.
Posted by Ted Guarnero on Dec 15, 2010 | 1 commentHow low can you go?
What if your sole purpose in life were to serve as an example to others…for what NOT to do? This seems to be the karma for poor 800 S. Wells, also known as River City. The building looks like a cross between a space ship outside and a submarine inside. The concrete walls can be depressing and the roof over the lobby has been known to leak. A slew of River City properties are currently short sales or in foreclosure.
Comprised of 448 units sitting on 20 acres of land southwest of Printer’s Row, there are studios, one-, two- and three-bedroom units. Currently the lowest-priced available studio is a recently listed short sale offered at $89,000; the lowest-priced one-bedroom is a foreclosure property offered $79,000 which is down from the original asking price of $150,000. The lowest-priced available two-bedroom unit is priced at $116,400. It was originally offered at $128,900. This unit is…wait for it, here it comes…in foreclosure. Ditto the lowest-priced three-bedroom which is now offered at $125,500 after sitting on the market for a total of 348 days.
There must be more than one gobsmacked River City homeowner asking himself, “What happened?”
The answer is: a perfect storm of a developer who over-promised and an economy that was bucking for a giant reset.
When River City converted to condos in 2001, American Invsco offered buyers two years of free assessments and taxes plus a guaranteed renter for two years. Back then banks were happy to underwrite pie-in-the-sky loans to applicants whose eyes were bigger than their checkbooks. So why not jump in?!
We know how that story played out.
But they say there’s a lid for every pot. River City makes sense for buyers with specific goals. Some enjoy the unique architecture. Some like being in close proximity to the Chicago River (great for sailing and kayaking). Some cannot resist the unbelievable condo deals to be had – invest now, keep the property for a few years, and watch the equity build.
So if you’re a hardy soul and a bit of a gambler, River City might be a good bet for you. Want more information? Contact Ted Guarnero at Baird & Warner, (312) 810-6693 or search all homes at www.seechicagorealestate.com
Don’t think you can literally sail on the river…bridges can be a problem:) However, power boats work just fine.