The West Town neighborhood is more of an overlay neighborhood that is comprised of a few smaller and very popular sub-neighborhoods (parts of Ukrainian Village, Bucktown, Wicker Park, Humbolt Park and East Village). Property values vary widely across the area but it is highly sought after due to proximity to the Loop, public transportation and the great mix of bars, restaurants and nightlife. The following 5 real estate transactions closed within the last 30 days and represent excellent buys in my opinion. These are in order of price, lowest to highest.
*Short Sale* Decent part of Wicker Park. There are some off-beat streets in the neighborhood that some buyers don't like. The buyer of 1350 N Bell has already re-listed the property for $399,000. The MLS property notes suggest rehabbing as a single-family or tear-down to build a new construction single-family. Note, the MLS sale price of $269,900 may not reflect full purchase price.
*Short Sale* This was hands down a great buy. The building sits on a 25'x 130' lot that is zoned RT-4. Land is a hot commodity in West Town again. Current land value for 1059 N Marshfield is over $400K. Note, the MLS sale price of $270,000 may not reflect full purchase price.
*Bank Owned* This 3 flat at 1825 W Erie is a relatively short building and it was in terrible condition. It probably works well as a multifamily rehab but could actually work much better as a single family conversion. It will be interesting to see what the buyer has planned.
*Standard Sale* Originally listed for $499K, 1312 N Claremont sat on the market for 291 days. $375K is a decent price but look at 1513 N Claremont, another 3 flat on the same block that was purchased in 2011 for $360K. The buyer of 1513 made some improvements and raised the rents substantially. They just relisted for $699K and have already gone to contract.
*Standard Sale* This multifamily building at 1433 W Walton represents a smart buy in a highly competitive market. The neighborhood has a solid renter base and I believe the gross rents can be bumped up. This is only a 6.25% cap if you consider $75K in income and $42K NOI (expenses vary by investor) but the GRM of 8.89 is below that of many recently improved buildings in the area.
What do you think? Were these good deals? Do you know of better deals that went down? Leave a comment and let me know.