Up-and-Coming Neighborhoods (Irving, Sheridan, Ashland: theater, high school, college)

[Humboldt1]

Sukwoo,

I can't speak to individual cases in east garfield and west haven but funding has largely dried up at many commercial banks for commercial RE. As such, many of these guys qualified for loans they would not get now and are building with hopes the market may rebound. My guess is they will get creamed, a buying opportunity for some, though I am not sure I want to buy some half built 3 or 6 flat, regardless of the price as I am not a builder.

Commercial RE developments often take years to happen so any building going on now may have happened from loan approvals before the liquidity of many large banks dried up. It will be even tougher going forward for new developments to get funded. Developers know this and would rather push forward with questionable projects than be out of business. Personally, I would rather do nothing than fund a money losing project.

[Savoir Faire]

Originally Posted by Humboldt1

Check this out:

There are many other properties just like this one that sold in 2005 and 2006 for big money and now will be sold for pennies on the dollar. Be careful when Business Week ranks your neighborhood.

<< 1 of 9 >> 2848WWilcoxSt
Chicago, 60612
$199,000Two to Four UnitsStatus:PCHGMLS #:06758031Directions: ONE BLOCK WEST OF CALIFORNIA Remarks: Wow! Brick 2-Flat that was Totally Renovated 2 yrs. ago! Appraised and Sold 1 yr. ago for $430,000!! Discover Newer kitchens & baths, New front porch & back-deck, new windows, Newer Central Heat & A/C, Security System, Full Finished basement, 2-Car Garage! 2nd Fl. has 3 bdrms, 1st Fl. is duplexed w/ 4 bdrms & 2 Baths. Foreclosure Special, Guaranteed!! Needs cosmetic work. Easy to Show!! Subject to Bank Approval.

Humboldt, either you need to do more your homework or you have an agenda or personal gripe against EGP. Property values are dropping everywhere, EGP is no exception, however you provided a listing which is only a half truth. You listed a property that sold last year fro $430,000 and is being sold for pennies. If you bothered to do a little more research you would know that the same property sold for $129,000 less than 3 years ago and is in foreclosure and is now going for $199,000. Any investor would tell you that a 35% return in 3 years is not half bad, especially in this market. Regardless, property price decline doesn't necessarily mean an area is not up and coming. Nowhere are prices dropping faster than in California and Florida. Does that mean California and Florida are on the downside? Hardly.

2848 W. Wilcox Av.
Chicago , IL 60612

PRICE: $129,900
NEIGHBORHOOD: East Garfield Park
VIDEO: East Garfield Park

MLS Listing Sheet

[chet everett]

Really not the same to compare entire STATES to portions of rather small neighborhoods.

The fact is that some areas that experienced rapid/frenzied development got WAY overpriced. These generally were the "HOT" areas. Whether you are talking states or individual block the HOTTER an area the more over valued it was -- thus Nevada as whole is dropping more quickly than pretty much every other state.

The some sort of thing may or may not happen on individual blocks, to do say a "neighborhood is in decline" you'd really have to look at the schools, businesses, commuting situation. Weighing all those things together it would be a hard to say that EGP is any thing other than middle of the for City neighborhoods -- many many places face far more challenges and the neighborhoods that were more expensive because of better schools, a more diverse mix of businesses and better overall commuting options are probably going to weather the current economic storm in better shape.

To borrow from the ranking used to evaluate stocks it is useful to consider a "hot" area as a "strong buy", a desirable area that still has some risks of being over priced as 'buy".
Right now just about NO neighborhoods in the City would rate a "strong buy", and only a handful would still be so risky to rate an immeadiate "sell", EGP is in the big group of "hold"...

[Milliano]

Originally Posted by BRU67

Uptown and Albany Park have been "about to pop" for at least a decade now. Also note that "up and coming" neighborhoods often are priced as though they already arrived. Uptown is a good example.

??? Uptown is extremely cheap, considering its location and the prices in the adjacent neighborhoods, both in sales prices and prices per square foot.

[Humboldt1]

EGP, Logan, and United Center and some areas of West Town to some extent were "hot" area 1-2 years ago. Those areas, especially EGP are experiencing huge declines. I am one guy who may be able to buy 2-3 of these formerly overpriced places in the next couple of years at the most. I am not going to influence the market or even try.

EGP is probably too rough for what I am looking for anyways. I am looking in the future for areas in which I can rent to hipsters and aspiring yuppies who will pay rent without calling the city for made up violations and not leaving until the sherriff arrives. I have had such tenants in the past in Humboldt Park, though where I live near north ave is more livable than anything I have seen in EGP, especially west of Kedzie or even California.

That house I cited was an extreme example though the poster forgot to mention that they put 100M into a remodel before selling it for 430M. I would say it is still worth 300M in a normal market but obviously we are in a declining market that does not seem to be abating.

Also, they have since reduced the price on that property with a list of I believe 170-180M. There is no 35 percent gain only a loss when you factor in rehab costs and closing costs. My guess it will sell 150-170M, which really sucks for the fool who bought it and the fool banker who financed it.

[xandra]

I am looking in Uptown, Sheridan Park, and west, I guess that is Lincoln Square. There are great condos in Sheridan Park but I don't know the area and the pedestrianized streets could be a problem. Does anyone have first-hand knowledge of that small historical district? Is that considered Uptown?

[CarolinaBredChicagoan]

Originally Posted by xandra

I am looking in Uptown, Sheridan Park, and west, I guess that is Lincoln Square. There are great condos in Sheridan Park but I don't know the area and the pedestrianized streets could be a problem. Does anyone have first-hand knowledge of that small historical district? Is that considered Uptown?

Can you give us a little more detail on the "small historical district"?

Also, the area directly east of Uptown can be Ravenswood (which is a part of a larger area called "Lincoln Square", but the area most people consider "Lincoln Square" is west of that) or I guess North Center.

[NearWestSider]

I lived on Beacon between Montrose and Sunnyside for three years, but because that was a long time ago ('78-'81) I can't vouch for anything other than the fact that the apartments are really nice around there and that it is DEFINITELY part of Uptown. "Sheridan Park" is one of those rebranding names, introduced a little after I left, to counter the negative connotation and stigma associated with Uptown.

The neighborhood WAS really tough, and Sunnyside (the "pedestrianized" street) WAS a gang hangout to be avoided. The Uptown I lived in featured gunshots, sirens, and arson seemingly every night. It was the only place I've ever lived where I was actually glad when winter came, because the insanity moved indoors and out of my face.

From what I have seen, the neighborhood today is a mere shadow of its former raunchy self, and although I doubt I will be moving back, it is no longer a place that I would caution anyone to avoid. As long as you are getting a good deal, its got enough going for it (proximity to the lake and the Red Line) to have some good upside potential.

[Drover]

Originally Posted by CarolinaBredChicagoan

Can you give us a little more detail on the "small historical district"?

Also, the area directly east of Uptown can be Ravenswood (which is a part of a larger area called "Lincoln Square", but the area most people consider "Lincoln Square" is west of that) or I guess North Center.

I presume you mean the area west of Uptown?

And can someone tell me where "Sheridan Park" is?

As for the neighborhood being a shadow of its former self... I don't know what tihngs are like over by Beacon (seems pretty OK to me) but the Sheridan corridor is going nuts now that the weather is breaking. NWSer, if you're nostalgic for gunshots every night, go hang out on Sheridan and Wilson for a while. Sounds like it's worse over there lately than anyone in the area has seen in a long while.

[BRU67]

Originally Posted by Milliano

??? Uptown is extremely cheap, considering its location and the prices in the adjacent neighborhoods, both in sales prices and prices per square foot.

That's not consistent with my experience while condo shopping a few years ago. 2-bedroom units in Uptown were priced the same, if not a little more, than very comparable units in Edgewater and Andersonville. And you got much seedier looking surroundings to boot. That's what generated my comment. Granted, that's when the market was hot but I doubt the relative prices changed much prior to the RE bust.

Uptown could be more affordable today, I don't know what impact the downturn had or is having on the neighborhood.