DealsChicagoNorth Side

Eighteen condos on Belmont sold out in weeks

by Joe Zekas on 6/14/12

When we shot the above video back in February, at 2431 W Belmont Ave, Noah Properties was in the early stages of building three 6-flat condos. The units were 3- and 4-bedroom, 2-bath units that included garage parking and a high level of finishes.

A little over a year earlier Noah had sold similar units two blocks away on Belmont for over $100,000 more than the price of these units, which started at $259,900, parking included, for a 1,500 square foot 3-bedroom, 2-bath single-floor home. Delivery of the units was expected to begin in late May and early June.

Sam Banks and Beata Gaska of Sergio & Banks described the prices at the time as “killer,” and buyers apparently agreed. I spoke to Gaska yesterday and she reported that the project sold out within 2 ½ weeks and closings are about to begin on the easternmost of the three buildings. As you can see from the above photo, the buildings are nearing completion.

Sergio & Banks, one of our sponsors, offers a preview look at new construction projects that have not yet been listed in the MLS, and also offers a sign-up for email alerts for new projects.

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{ 9 comments… read them below or add one }

Jack June 14, 2012 at 9:28 AM

For years I heard how developers sell out new development only to find out that many units were still available for sale. Not sure how many times a developer sells out a building but in 2008-2009 buildings seemed to have sold out many times. Just marketing hype.

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Joe Zekas June 14, 2012 at 9:59 AM

You may have heard that here, Jack, since we’ve frequently made that point.

I don’t think it’s the case with this development, however.

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the urban politician June 14, 2012 at 11:24 AM

I’m a bit skeptical.

We’ll see how many of these close.

What is so special about this particular location? Why would these sell so well yet so many condos downtown remain unsold?

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Jack June 14, 2012 at 11:36 AM

So maybe that is the difference. With new construction, a developer only tells us how many he has sold, not how many closed. So I could buy new construction by putting $1k down and not close. The developer will still advertise as sold because he probably does not have any inventory to sell until the deal falls through. I wonder is there are statistics on what percentage of deals actually close.

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Joe Zekas June 14, 2012 at 1:05 PM

tup, Jack,

Skepticism is always warranted, but probably not merited on this one.

The location is definitely far from prime – just west of Western Ave across from the shuttered police station and the courts.

The big draw on this one was the space, attractive finishes, new construction – and the price point. It’s more than $100K less than a very similar product two blocks to the east from the same builder.

The percentage of deals that fall through is generally higher on larger projects with a longer lead time – and ranged close to 100% on some deals in recent years. The time between contract and delivery was fairly short on this project – and you couldn’t sign a contract with $1K down.

This builder has a track record of selling out similar projects before they’re completed, and closing on the units once they are.

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Joe Houlihan June 15, 2012 at 12:33 PM

The location isn’t that prime right now, but the attraction is the future potential and such low price points. These are simply the next step West in the unrelenting march of redevelopment down Belmont and, frankly, there hasn’t been much of anything in the way of new product built for 3-5 years now in the area. There are still people looking for new construction and willing to pay a premium to not deal the headaches of an older or less-than-new home. At less than $300,000 a brand new condo of this size is a pretty good deal.

Also, let’s not forget that Avondale is the heir apparent to the N-NW push of development and people want to be in this area. They want to be down the road from Kuma’s and Hot Dougs, They like living across the street from a grocery store. Also, I’m sure the developer made sure to mention that the viaduct is on its way out and will probably make these properties more desirable as soon as it is gone.

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Kim June 15, 2012 at 3:25 PM

My daughter bought in the middle building the day after the video hit the web. The first building is fully occupied, second is almost finished. There is a waiting list for anyone who backs out. They wanted to know if my daughter wanted to flip her unit for $40,000 over what she is paid and close within a week. For the money these units are very nice and done by a quality builder.

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muntz June 18, 2012 at 1:44 PM

Kim – Your daughter turned down $40K do-nothing profit in a down real estate market for a property on a busy street, across from a “violent-crimes” police station, in a not-so-great neighborhood (no matter the “perceived value” of this development)? Have we learned nothing from the crash?

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muntz June 18, 2012 at 1:48 PM

OK, maybe the police station has closed, but still…;)

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