The Sun-Times reports:
"INVESTOR ALERT: Want to load up on condos in bulk? RANY Management hired Kiser Group to market 87 condos and 19 deeded parking spaces at 4180 N. Marine Drive, a building called Polo Tower. The price is $10.25 million.
Polo Tower is a 16-story building on the lakefront, with 189 units in all. “The opportunity is in improving the current cash flow by pushing rents to demonstrable market levels, with the flexibility to sell individual units as the condo market warrants doing so,” said Matt Jones, managing director at Kiser."
This is almost funny when you think about it.ReplyDelete
This bulk offer is one of many made possible with our taxpayer's money and/or by the devices of the Federal Reserve, which is offering O interest loans to investors buying foreclosed condos in bulk, for rentals. The object of the program is to manipulate prices upward, one more lame attempt by our government to keep housing prices levitated at the expense of the taxpayers AND the integrity of our currency and financial system.
Guess what- it's not working, surprise, surprise. You cannot rewrite the laws of supply and demand. We just have many, many more overpriced junk condos than the pool of prospective buyers can support, or than their deteriorating incomes can pay for. Additionally, many hedge funds are discovering that being cash-flow investors is harder than it looks and are beginning to bail.
My guess is that all these bulk-purchased condos and homes will end up back on the market at the prices that reflect the saturated Chicago condo market, which is stuffed with "shadow" inventory of condos being kept off the market to inflate prices.. and the stagnating incomes of potential buyers. I believe this is how Robert Schiller figures that housing could easily drop another 20% in value, something to think about before you get sucked in by the tight visible inventory and go through the bends to buy a place before you get "priced out", har.
To give a proper update, I've lived in the building for 5 years and these bulk purchased condos are not foreclosures. This is actually a deal from the management company who owns these. They are looking to retire from the management game soon so put these up for sell. They are great places, lowest assestment fee in the area and rentable with the high market rent prices. I believe all of the units available are at 100% occupancy for renters right now. Just a quick FYI from an owner in the building.ReplyDelete
Hi jayla, what are the rents like on this building? is it a nice full amenity building?ReplyDelete
Hi Brian, I believe the rent is anywhere from 850 (not a recently renovated apartment) to the newly renovated being 1200 a month. Hallways have been redone, security system is brand new, the gym has been recently redone also. The laundry room is in the process of being redone and I hear will be done by Feb. They have been updgrading the place for the past three years which is nice for all of us.ReplyDelete
Hope that helps.