Monday, February 11, 2013

Lakeview two and three flat sales UP 35% in 2012

Over the years we've looked at two-flat and three-flat sales in our key North Side neighborhoods as a market indicator that investors are active.  Usually, they are bought to convert to single family homes at some point.  A smaller percentage of buyers are "owner-operator" or keep the properties strictly as rentals for long term investment. 

Lakeview Two and Three-flat Sales in 2012
West Newport Ave east of the Brown Line (photo, Eric Rojas)

91 properties listed as two and three-flat buildings in (our MLS) sold in Lakeview in 2012. This is up 35% over 2011 unit sales. The median price for this type of property was about $570,000 over 2012.  The highest sale was $980,000 for a renovated three-flat building at 3345 N Lakewood with a duplex-up "owners unit".  The lowest sale was $228,375 for 1436 W Irving Park Road...a frame two-flat on a busy four lane street.  The foreclosure was sold by auction.

11 of the 91 (12%) properties were sold as a foreclosure or short-sale according to MLS records.

Lakeview two-flat. Photo, Eric Rojas
Personally, our clients over the years have shunned the "owner-operator" option despite the fact it may afford them a more desired location. Apparently, no one wants to be a landlord. Sheesh.

Lakeview is a fairly large and fairly dense Chicago Community Area.  It's popular, relatively expensive and has a lot of small multi-unit building stock (a good percentage of which has been torn-down for new homes or converted to single family homes).  However, a large stock of two and three-flats remain as evidenced by the large stock of Big Ten college graduates living in the neighborhood (wink).  Walking the streets you can still imagine infinite amount of development and renovation possibilities.

More Lakeview HERE