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Trouble at Catalpa Gardens: Short sales and price cuts plague Edgewater condos

filed under: Buyers, Developments, Edgewater, First-time buyers, Market conditions, Sellers, Short sales posted on December 12th, 2009

It seems like just yesterday that we were watching that colorful new mid-rise development go up east of Broadway and Catalpa in Edgewater, promising modern kitchens and green rooftops, a cool urban oasis just a few blocks from the lake. Built in 2007, this 126-unit complex is already faltering, with some initial buyers clamoring to get out even as the developer struggles to sell the remaining units.

In the course of researching short sales in the neighborhood, I came across 13 units at 1122 W Catalpa (Catalpa Gardens) where the owner is attempting to sell for less than what he/she owes on the mortgage. There’s a 4th-floor, 1-bedroom condo, which that owner bought in January 2008 for $155,900, now being offered for $129,500. Or a 2-bedroom, 2-bath unit on the 7th floor that went for nearly $440,000 in July 2008 — and is now for sale for $192,000, according to the MLS.

This is a shocking, sad destruction of equity in a very short amount of time! No wonder the building’s developer, Catalpa Partners LLC, recently slashed prices by $50,000 to $150,000 to sell the remaining 14 units. But selling at such steep reductions badly hurts the value for existing owners, probably pushing more of them into short sales or foreclosures.

If you are a buyer, I would be extremely cautious about buying in a troubled building with so many short sales, even if the price seems sweet. Unfortunately, some buyers today are winging it themselves without realtors, negotiating directly with developers (or other sellers) without any information about what similar properties have sold for, how long they have been on the market, what the seller paid for the home, how many short sales or foreclosures there have been in the building, etc.

They may think they are getting a great deal, but they can easily wind up owning something that quickly loses value, making it nearly impossible to sell. Condos can be risky investments, because your fate is linked to that of your fellow residents. If too many of them start to sell short, or fall into foreclosure, it can rapidly wipe out the value of your investment as well.

Please visit Sue Fox’s other blog posts at www.hometochicago.com!

Written by Sue Fox // 2 Comments »

Edgewater celebrates with festive streets and shopping

filed under: Edgewater posted on December 5th, 2009

Edgewater rings in the Christmas season this year with its “Holidays Around the World” celebration next Saturday, Dec. 12. Here are some highlights, thanks to the Edgewater Chamber of Commerce:

Festive Streets, Storefronts, and Shopping
Noon-4pm: Two free trolleys along Broadway & Devon
Enjoy roaming carolers, a storefront decorating contest, and special holidays promotions from area businesses.

Holiday Fair & Community Tree Lighting
2pm-5pm: Broadway Armory Park, 5917 N. Broadway
Join us and local ethnic organizations to celebrate with food, crafts, music, and information about how the winter holidays are experienced around the world and participate in a holiday sing-along! The entertainment program will begin promptly at 4 pm with the tree lighting immediately following.

Edgewater Artists in Motion Holiday Art Fest
11am-6pm: Two locations, 5501 N. Broadway & 6056 N. Broadway
Enjoy an art fair from the Edgewater Artists in Motion and purchase work from local artists for the holidays.

Written by Sue Fox // Please leave a comment.

Edgewater: Give my regards to Broadway

filed under: Edgewater posted on June 18th, 2009

Every third Saturday, the Edgewater Community Council throws a mini-street fair to highlight a different corner of Broadway. With free music, sidewalk sales, special deals from local businesses, and a free trolley cruising up the street, the June 20 event will spotlight the stretch of Broadway between Granville and Thorndale.

That has been a busy strip lately, what with The Clarovista mixed-use development (formerly known as The Granville) stirring up debate as it hunts for commercial tenants in a soft market. Now Aldi is planning a new store there, to the chagrin of some neighbors who were hoping for a Trader Joe’s instead.

But unity will be on tap Saturday, with a raft of local businesses from spas to liquor stores promoting their wares with discounts and giveaways. Among the deals:

Ole St. Andrew’s Inn will be handing out free rib tips on Saturday, and the Ethiopian Diamond restaurant will have free coupons for the taking. The Edgewater Wellness Clinic will be offering free 15-minute massages, and the local farmer’s market is kicking off its summer season.  The Edgewater Green Market runs from 7am to 1pm Saturday at the corner of Broadway and Norwood, just outside True Nature Foods.

For more information about “Third Saturdays,” check out the Edgewater Chamber of Commerce at www.edgewater.org

Written by Sue Fox // Please leave a comment.