Friday, July 30, 2010

Bottom Continues to Fall on South Loop Real Estate?

If you didn't read yesterday, a prominent piece of South Loop land was auctioned off recently. 1000 S. Michigan was supposed to be a glamorous towering residential building, but the recession hit and the real estate bubble popped and here we are:

Investors looking for signs that South Loop land prices have stabilized didn't find one at an auction Tuesday of a prominent South Michigan Avenue development site overlooking along Grant Park.

An affiliate of First American Bank prevailed in the auction of the
vacant property at 1000 S. Michigan Ave., with a winning bid of $11.3 million, less than half the $25.3 million the Elk Grove Village based lender is owed on the site, says auctioneer Rick Levin, whose firm conducted the sale.

Honestly, we're not very surprised. Regardless, it's not very encouraging.

(Hat Tip: MH!)


Anonymous said...

Um, those looking for a *quick* recovery are bound to be disappointed. Those living here for the long haul will do fine. The neighborhood will diversify more when high-rises built as condos are rented out to twenty-somethings as apartments, and over a ten or twenty year stretch it will be better for the neighborhood as a whole

Anonymous said...

More Section 8 apartments will also improve the diversity.