Foreclosure Properties Into Tear Downs Becoming A Trend?

By Mike Fourcher | Monday, July 18, 2011

2109 W. Giddings St. Credit: Eric Rojas.

Local Realtor, Eric Rojas, pointed out this foreclosure sale on his blog, last week. The extra-wide lot property at 2109 W. Giddings St., sold for a mere $449,000. According to Eric, a similar property, which was torn down and rebuilt into a luxury home, recently sold for $1.67 million.

Rojas thinks it’s turning into a trend.

“There are few foreclosure ‘opportunities’ in the area and this one will most likely be a tear down, but maybe gut renovation for another new house,” says Rojas. “It’s fairly obvious developers and well-positioned buyers are building new construction and gut rehabbing in Lincoln Square and Ravenswood at a good pace in this market. There is a lot of money coming in.”

Have you seen similar projects on your block, recently?

Tags: , , , ,

Share this now!

  • http://profiles.google.com/ericrojas2 Eric Rojas

    This home is under contract with a  $449,000 asking price.  It’s not the closed price, which will most likely be between $400-$440K.  Most of the city saw a lull in new construction and gut rehabs after the 2008 financial market crash.  However, since 2010 with prices and interest rates low Ravenswood and Lincoln Square is very popular with folks gutting two flats or frame homes for their primary residences. This was nothing new in the past, but after 2008 it stopped. Developers have been back in with a higher profile presence as well.  I’ve also pointed out several multiple lot land/tear down deals in the last year or so that will yield some high end new homes.

  • Anonymous

    The foreclosure problem is actually increasing the size of available teardown properties throughout the country.  What was once salvageable often times has turned into a teardown because of neglect (mold, deterioration, vandalism etc.).

  • http://profiles.google.com/ericrojas2 Eric Rojas

    The vast majority of sales in Lincoln Square Community Area (which includes the Ravenswood neighborhood) are conventional, non-distressed sales.  Many of these are purchased for gut rehab or tear down.  Of  93 single family homes sold in Lincoln Square over the past 12 months, only 5 were foreclosure sales.  Only 2 out of 54 two-four flats (multi-units) were foreclosure sales in the last 12 months.  Most are at the lower end of pricing and challenging locations.  So, there are few “foreclosure opportunities” and many have multiple offers.  You may get a better deal for your needs on a home that can be sold in a conventional sale than short sale or foreclosure. One reason for the post above was to mention the actual rarity of a foreclosure sale on a prominent lot/location and to show how fast they will go if you’re looking for a “deal”.

  • http://www.facebook.com/people/Matt-Ammerman/738129143 Matt Ammerman

    Say goodbye to affordable housing.  And I’m not just talking about Section 8.  A lot of folks can’t even afford a $400,000 house.  Buying them, tearing them down and putting up a million + home will (in my opinion) make Lincoln Square sterile.  And more often than not the new houses are poorly designed and are not harmonious with the typical architecture in the neighborhood.  What can be done? 

  • http://profiles.google.com/ericrojas2 Eric Rojas

    Matt, its hard to say.  Affordable housing set asides and mixed income developments have not been very successful.  The affordability question is the same in any major job center.  The closer you are to the action, the higher the price.  There are many nice three bedroom bungalows in Jefferson Park and Portage Park for $250K-$300K range.  You might say “I don’t want to live way out there”.  Many say the same things so the wealth begins to concentrate in ceratin areas, which compounds investment and demand.  Home prices go up.  You also have suburbs that compound wealth and investment in good school districts (which makes it hard to afford houses in those districts based on average incomes).
     The prices for single family homes and two-four flats will rise if McPherson and Chappell public schools catch on as “buzz” schools which is a good possibility in the next several years.  It’s the market.  People don’t live in two flat apartments with families anymore, thus density and “best use” for properties change. 

    As for Lincoln Square development, I think even some of the most expensive new construction homes have for the most been traditional and blend in well.  This is not the case in Lincoln Park and Lakeview where is was more free wheeling etc.. So like the development or not, Lincoln Square has been much more traditional, mindful and careful in it’s development of houses than most hoods.  Statistically, houses have become MORE affordable (in fact record setting) based on incomes and homes prices since 2008.  Lincoln Square happens to see a concentration of wealth investing in houses due to it’s desirability.  However, a lot of people can now buy a “normal” house in and around Lincoln Square now when they could not in 2005-2008.  You can buy a nice house for $425-$450 that’s move-in quality and send your kid to Chappell school and have everything city life offers.  This was less the case four years ago.

  • http://www.facebook.com/people/Matt-Ammerman/738129143 Matt Ammerman

    Eric.  I hear and understand what you’re saying.  I guess then nothing can be done.  If the housing crisis hadn’t happened, who knows how high condo and single-family home prices would have risen in Lincoln Square.  I used to live in Lincoln Park and it was getting totally ridiculous.  And when I say lived in Lincoln Park, I mean I rented a 450 square foot apartment.  The housing crisis was definitely a game changer.  Though on paper, people can now buy a “normal” house in and around Lincoln Square when they could not in 2005-2008, if you factor in unemployment, job insecurity, tighter lending, increased inflation and the expected increase in interest rates, I really wonder if in reality this is truly the case.  End the end, I understand that the more desirable the location the more competition to live there.  Hence higher rent and home prices.  I get it.  Now, as per new construction and harmony with traditional Lincoln Square architecture, I’d love to start a discussion about that!  Some single-family homes have been getting it right.  However, there are plenty of them that miss the mark big time.  And some that aren’t even trying.  Call it a matter of taste but please explain to me how the Fountain View was considered an attractive addition to the square?  No. offense to anyone if you live there but it looks like a Blood Bank Center compared to the beautiful mixed-used building (home of Café Selmarie) on the other side of Giddings Plaza.

  • http://www.facebook.com/people/NewHomes-America/100001237551415 NewHomes America

    I am curious, can you tell me if http://www.NewHomesAmerica.com is a good thing to do. From what i can tell, they are a directory of home builders that provide a rebate. Too good to be true? Your thoughts?

    For angie’s list

  • http://www.facebook.com/people/Ashraf-Wagdy/100002371749671 Ashraf Wagdy

    Dear Sir/Madam,

    I have the pleasure to brief you on our Data Visualization software
    “Trend Compass”.

    TC is a new concept in viewing statistics & trends in an animated way
    by displaying in one chart 5 axis (X, Y, Time, Bubble size & Bubble
    color) instead of just the traditional X and Y axis. Discover trends
    hidden in spreadsheets. It could be used in analysis, research,
    presentation etc. In different business sectors, to name a few we
    have Deutsche Bank, NBC Universal, RIM,  Vanguard Institutional
    Investor, Ipsos, Princeton University as our clients.

    Link on Drilling feature (Parent/Child) – Just double-click on any bubble:

    NBC presentation on TED using Trend Compass exported Videos on CNN

    Link on our new Geographical Trend Compass (Earthquake in Japan – Mag
    vs Depth vs Time):

    Link on Ads Monitoring on TV Satellite Channels.

    Link on UK Master Card vs Visa performance :

    Links on Funds:

    Link on other KPIs :

    Link on Chile’s Earthquake (Feb 27th 2010):
    Link on weather data :

    Bank link to compare Deposits, Withdrawals and numbers of Customers
    for different branches over time:

    Misc Examples :

    Princeton University project on US unemployment :

    A video presentation by Professor Alan Krueger Bendheim Professor of
    Economics and Public Affairs at Princeton University and currently
    Chief Economist at the US Treasury:

    You can download a trial version. It has a feature to export
    EXE,PPS,HTML and AVI files. The most impressive is the AVI since you
    can record Audio/Video for the charts you create.


    Video on Trend Compass:

    Since we already develop 3D Virtual Reality applications, please find
    below a link on a prototype for a new 3D VR Trend Compass application:


    Trend Compass Team
    Epic Systems

Spread the word