ChicagoFar North

Distressed properties dominate the market in Rogers Park

by Joe Zekas on 2/22/13

Rogers Park developers periodically fall prey to a state of irrational exuberance. The peak of the most recent mania had already passed in May of 2008 when a 2-day survey of Rogers Park took us to more than 100 active condo conversions. It was already clear that the bubble had popped, and it only remained to determine whether Rogers Park condo values would plunge as steeply as they had after previous market surges, and how long they would remain depressed.

One of the projects we visited was then known as Hoyne Manor, 7401-7411 N Hoyne. Five years ago today reports surfaced that the lender had filed a foreclosure proceeding. Seven of the 30 units were reported sold, and another under contract, with the remaining 2- and 3-bedroom units priced from the $180s to $270s.

The development now goes by the name of the Golden Court Condominium. The lender secured a judgment and an order of possession in the foreclosure case, but the status of the foreclosed units is unclear from public records. They have not been resold.

Unit 1 at 7405 N Hoyne sold in May of 2008 for $214,000. It resold, following a foreclosure, for $37,000 in September of last year, and sold again in November for $75,000.

A 2-bedroom, 2-bath at 7411 N Hoyne is currently on the market as a short sale with a list price of $80,000. It had been purchased in June of 2008 for $214,000.

It took well over a decade for Rogers Park condo values to recover after the condo collapse that followed the boom years of the late 1970s. There were far fewer conversions during that boom than there were in the most recent one.

According to a recent analysis, distressed properties accounted for 73% of all condo and townhome sales in Rogers Park last year. The shadow inventory represented by lender-owned units at the Hoyne property and many others will have an impact on values for some time.

Any guesstimates as to when Rogers Park values might return to the levels that prevailed during the recent boom?

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{ 2 comments… read them below or add one }

Al February 25, 2013 at 4:07 PM

“Any guesstimates as to when Rogers Park values might return to the levels that prevailed during the recent boom?”

Probably never, but inventory (including shadow) is on the decline, so there should be a steady recovery over the next couple of years. Properties in the southern half of Rogers Park (south of Touhy) in particular are being snapped up fairly quickly. Price levels should have never been as high as they were in 2005, nor as low as they were in 2011.

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Kim February 25, 2013 at 6:08 PM

I can’t speak on condos, but as a residential rental property investors, I am putting capital in Rogers Park and Edgewater over other heavily distressed areas to the west. Rents have kept up well and other fundamentals are stronger, eg being surrounded by the relatively stable areas of Evanston, Andersonville, and West Ridge, not to mention the lake. The 70s were a time of white flight, urban depopulation, and high crime. Far north side population has actually grown since the bust (as evidenced by record el ridership) and Rogers Park crime has been on the decline for some time.

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