It’s been nearly 10 years since we first wrote about Union Lofts in our now-defunct New Homes Magazine. At the time, March of 2002, forty of the 71 units, at 3500 S Sangamon St in Bridgeport, were under contract prior to construction. Paul Marks, one of the developers, was bullish on Bridgeport:
“We strongly believe it’s an up-and-coming neighborhood,” Marks says. “It’s always been a strong community with stable prices, but there has been a lot of price movement there in the last five years. Properties are well kept, and it’s a wonderful place with a strong tradition of homeownership.”
When we next looked in on Union Lofts, in May of 2003, all but 16 of the 71 units had been sold from an on-site sales trailer.
Fast forward to the present, and 20% of the several dozen units we sampled in the project have either been through foreclosure or been liened by the condo association for non-payment of assessments. Several units are currently in foreclosure, and prices have dropped sharply on most of the units that have resold or are listed for sale.
Unit 405, a 980 square foot 1-bedroom, was purchased in 2007 for $232,000 with first and second mortgage financing for 90% of the purchase price. It’s currently listed as a short sale for $90,000. Unit 207 sold for $209,000 in 2004 and resold for $135,000 in December of last year. And so on.
Unit 501, a 2-bedroom, 2-bath sold for $401,000 in 2004 and resold in August of last year for $100,000 following a foreclosure.
Three one-bedrooms are currently for sale in the building at prices ranging from $90,000 for a 980 square foot unit to $209,900 for a 750 square foot unit.
One positive note for Union Lofts owners is that their assessed valuations for real estate tax purposes were reduced by approximately 25% for tax years 2010 and 2011, resulting in a reduction in their property tax bills.
Unfortunately, the Union Lofts was not immune to the crash of the housing market or the down turn in our economy. There were quite a few owners that bit off a little more then they could chew when they took on their mortgages. Mostly, it seems, folks took big loans with 3 and 5 years ARMS, and when it came time to renegotiate the terms of the loans, they couldn’t afford the new rates.
I live in the Union Lofts and am not only one of the original owners, but I was one of the very first people to move in after the rehab was completed. Despite having quite a few foreclosures and short sales, we continue to be a strong association. And even though a few previous owners neglected to pay their HOA fees, we have still managed to keep a healthy balance in our reserves all while being able to make any necessary repairs around the building and take on some beautification projects. We’ve got a great board and management company that are dedicated to making the Union Lofts an awesome building to live in.
Unfortunately, our building is representative of what is happening all over the city and country. This is not a scenario that is specific to the Union Lofts.