One Chicago Condo Unit in Choppy Condo Market Closes for $5.6M
After being on the market for over a year, a unit at One Chicago finally sold for $5.6 million. The developer buildout of the property on the 44th level indeed accounted for the increase in price from the original listing price of $5.3 million. The three-bedroom, four-bathroom apartment is 3,600 square feet in size.
Jameson Sotheby’s Intl Realty agents represented the buyer and the developer; David Mahoney represented the buyer, and Nancy Tassone represented the developer, JDL Development. Not one of them commented when we asked.
This condo sale is Chicago’s eighteenth this year for $5 million or more. In 2021, a record-breaking year for residential real estate, there were 21 condos sold for the same price. If no other condominiums sell this month for that price or above, the 14 percent drop in sales volume will be much less severe than the expectation for condos in the city.
The high-end market is more immune to the rising cost of mortgage debt
According to Redfin, there were 926 condo sales in Chicago in October with a median price of just over $320,000, down 32% from the same month in 2021, and the average time on market was 70 days, up 37% from the average of the previous year. The high-end market is more immune to the rising cost of mortgage debt due to the prominence of all-cash transactions.
Not only that but significant price reductions for expensive luxury condos have recently become the norm. For example, Ken Griffin took a loss when he sold his Waldorf Astoria condo in the Gold Coast earlier this fall, and two subsequent deals in the same building required price reductions to close.
But luxury condos in newer buildings like One Chicago, Tribune Tower, and St. Regis have been less affected by price cutbacks than units in older complexes. Although the $6.1 million sale of a different condo apartment at One Chicago is now the most expensive transaction, the One Chicago condo appears to be among the most costly units to sell in the building thus far.
However, a different collection of condos is currently being advertised for $5.3 million. If sold at the total price, it would still result in a loss compared to the property’s last sale earlier this year. The previous owner spent $5.6 million on an apartment with three bedrooms (bought for $3.85 million) and a smaller condo (acquired for $1.75 million) located on the same floor.
There are no takers for the building’s most expensive properties, which include a $28 million two-story penthouse and many $10 million full-floor units.