Foreclosure Comes to East Lake Shore Drive

List Price: $2,195,000
Sale Price: $1,900,000
The Property: The first modern-day foreclosure on tony East Lake Shore Drive is a three-bedroom condo with a large terrace in the Mayfair that sold November 17th…


East Lake Shore Drive condos


List Price:
$2,195,000
Sale Price: $1,900,000
The Property: The first modern-day foreclosure on tony East Lake Shore Drive is a three-bedroom condo with a large terrace in the Mayfair that sold November 17th. The eight-room condo, at 189 East Lake Shore Drive, has three full and one partial bathrooms, a recently renovated kitchen with premium-brand appliances and a large granite-topped island, and a 456-square-foot living room.

“The home was flooded with light from three exposures,” says Sophia Worden, the Prudential Rubloff agent who sold the 3,800-square-foot condo for the foreclosing lender. She described the master bedroom as “palatial.” The terrace, facing south toward Walton Street, is about 600 square feet. The home was in “pristine condition,” Worden says, “not your typical foreclosure that was neglected for a while.”

The condo had previously been listed conventionally, starting at $2.995 million in February 2009 and dropping to $2.25 million by March 2010. Worden put it on the market as a foreclosure in early October, and she says that she showed it to two dozen potential buyers in the first week and got three offers on it. The eventual buyers, whom she would not name (and who aren’t yet identified in public records), weren’t specifically shopping for a foreclosure, she says.

Buying at foreclosure prices is a “once-in-a-lifetime thing on that street,” Worden says. She believes it’s the first there since the advent of the foreclosure crisis, and I could not find any other in the public records. “In their wildest dreams, they didn’t anticipate finding this good a deal on East Lake Shore Drive,” she says.

While foreclosures have hit such exclusive areas as Lake Forest and Lincoln Park, the string of seven elite residential buildings east of the Drake Hotel has largely been protected. All the buildings there except the Mayfair and 219 East Lake Shore Drive are co-ops, and buyers have to put down at least 50 percent—and sometimes 100 percent—of the purchase price. Built in 1924 as the Lake Shore Drive Hotel, today’s building later became the Mayfair Regent Hotel—and the part-time home of Sir Georg Solti, the music director of the Chicago Symphony Orchestra—and was converted to condos in the mid-1990s.

Price Points: The sale price on this second-floor condo is 72 percent of the $2,622,500 that another buyer paid a month earlier for approximately the same floor plan five flights up. That seventh-floor condo, which was sold conventionally, does not have a terrace like this one, which suggests that this condo would be worth considerably more than $2.62 million on the conventional market. The ultimate sale price came to $577 per square foot, or 73 percent of the $788 per square foot it would have captured at its February 2009 asking price of $2.995 million.

Listing Agent: Sophia Worden of Prudential Rubloff; 312-504-8175 or sworden@rubloff.com

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3 years ago
Posted by Joe Zekas

Dennis,

I’m not quite sure what you mean when you say the 7th floor unit “doesn’t have a terrace like this one.”

I haven’t seen this unit or its terrace, but the 7th floor unit I visited and shot video of does have a terrace that I’d guess is about 600 square feet, the size you quote for this one.

The 7th floor unit’s terrace has a bit of a view, which you can see in my video, beginning at about 6:45:

http://www.youtube.com/watch?v=5p12LFTh4vo

The 7th floor unit also has a better view north along LSD than the 2nd floor would have, and that view is highly-prized.

Without having seen the 2nd floor I can’t compare the finish levels, but it’s hard to imagine that it can have been done much better than the 7th floor unit or be in any better condition.

All in all, I’d say the jury is very much out on whether the buyer of this unit got a better deal than the buyer of the 7th floor one. Certainly any small discrepancy in the size of the terraces, if such a discrepancy even exists, wouldn’t add that much value to the second floor unit.

3 years ago
Posted by Joe Zekas

Dennis,

Also for your future reference, 219 East Lake Shore is a condo, not a co-op.

3 years ago
Posted by Rainmaker1

The 2nd floor terrace is larger than the 7th floor balcony as it encompases a portion of the roof of the garage. True, the 7th floor has a better view, but at a $1.9 mil sale price I would say the verdict is in that the buyer of #2E got a considerable better deal than the buyr of #7E. The value is clearly in the per SF sale - period.

3 years ago
Posted by Rainmaker1

F.Y.I.

The 2nd floor terrace is larger than the 7th floor balcony as it encompases a portion of the roof of the garage. True, the 7th floor has a better view (but not $700K+ better), but at a $1.9 mil sale price I would say the verdict is in that the buyer of #2E got a considerable better deal than the buyer of #7E. The value is clearly in the per SF sale price - period.

3 years ago
Posted by Dennis Rodkin

Joe, I've talked to the agent, who has been in both condos. She tells me the 2nd-floor condo's terrace is about two times the size of the 7th-floor condo's terrace. As this other commenter, Rainmaker, notes, the terrace covers part of the garage roof. The 2nd-floor condo also has a newer kitchen than the kitchen in the 7th-floor condo.

We have corrected my mistaken statement that the Mayfair is the only condo building on the block. The copy above now mentioned 219 E LSD, as well. Thanks for pointing that out.

3 years ago
Posted by Joe Zekas

Well, there’s no doubt that $722K is a large price difference, or that the 2nd floor buyer got a great space for the price. I think the 7th floor buyer also did well at the $2.6 price. It was a beautiful unit with great finishes.

Both units had 2 parking spaces, and I’d want to know whether those spaces were included in the final price of both, or neither, or only one.

3 years ago
Posted by Joe Zekas

Well, there’s no doubt that $722K is a large price difference, or that the 2nd floor buyer got a great space for the price. I think the 7th floor buyer also did well at the $2.6 price. It was a beautiful unit with great finishes.

Both units had 2 parking spaces, and I’d want to know whether those spaces were included in the final price of both, or neither, or only one.

2 years ago
Posted by rosafarnandis

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