I have been doing a lot of thinking as I prepare for a meeting with the owners of a two unit greystone apartment building located in Andersonville in Chicago 60640. I expect they will be pleased with what I have to tell them about values/sale prices in our neighborhood. And I think I understand why demand is strong, even though prices are rising.
Living in Andersonville is a great urban experience. It really feels like a small town in the big city with its locally owned shops, restaurants and entertainment spots as well as sustainable living initiatives like park lets, bike corrals and farmers market. Residents enjoy a ten minute walk to the lakefront or a twenty minute drive to downtown Chicago or a 25 minute commute via the CTA red line. Talk about convenient!
Although prices on two unit apartment buildings in Andersonville (located in the Edgewater neighborhood of Chicago) have risen to a point that buildings are no longer cash flow positive, buyers are still purchasing them, some even in bidding wars. The typical Andersonville apartment has two ro three bedrooms, a separate dining room and living room, kitchen, one bath and sometimes a decorative fireplace and a sunroom. The average monthly rents are $1,500-$1,750.
Thinking about recent buyers, I see several trends. Buyers are often paying cash or converting their recent “paper profits” from their mutual funds into something real. (I guess that is why they call it real property!) I am also seeing baby boomers locating to the area to create a new nest, where they can live a great urban lifestyle while having their tenants help pay the heat, taxes and insurance. Grandparents are moving in to be near their grown children and help with grand children.
Buildings that are in need of work, whether mechanical or remodeling of kitchens and baths, are selling for $375,000 to $460,000. Buildings in good condition are selling for $520,000 to $539,000. Premium buildings, such as greystones or oversized buildings, and those with finished basements with additional living space/baths/kitchens are selling for $530,000 to $595,000. A building located adjacent to the highly valued Lakewood Balmoral historic district recently went under contract with an asking price of $679,000 for two units plus a garden apartment. The recovery in prices is a welcome change after a previous down market that saw two unit buildings in Andersonville selling for $350,000 to $450,000.
Greystones constructed around the turn of the century, in a Victorian style, with lovely bay windows, decorative fireplaces and original hardwood floors are in very strong demand. The master stoneworkers who built them in the 1910-1920’s are no longer around and their trade is only practiced by very high end builders.
For more information on Andersonville, check out our blog on Move With Maggie.