Downtown Chicago Condo Sells for Less Than its 1989 Value

A Gold Coast condo recently changed hands for a fraction of what it commanded over three decades ago, highlighting depreciation in the downtown residential market.

The three-bedroom unit on the 59th floor of the 66-story Bloomingdale’s building, at 900 North Michigan Avenue, sold for about $378 per square foot, a sharp decline from the $596 per square foot it fetched in 1989 — a value equivalent to $1,500 when adjusted for inflation.

“The buyer got a great deal,” said Harry Maisel, the @properties Christie’s International Real Estate agent representing the seller, Gerardo Madrigal.

Madrigal, who had purchased the 2,700-square-foot condo in 2000 for $1.8 million, about $667 per square foot, did not comment on the transaction. The unit was listed at just under $1.4 million in July before going under contract for $1.02 million in September.

Maisel refrained from discussing the seller’s financial hit but acknowledged that the unit’s need for modern updates and lack of outdoor space were notable factors in a market that prioritizes features like private balconies and contemporary finishes.

Chicago’s downtown condo market has seen substantial depreciation, exacerbated by factors such as pandemic-related remote work shifts, concerns over crime and changing buyer preferences.

Billionaire Michael Krasny recently listed his condo in Bloomingdale’s tower for $1.75 million, marking a 19 percent drop from its previous price of $2.15 million in 2021. Similarly, ESG Kullen faced a setback in its condo-to-apartment conversion of the Oliver complex, selling it for $31.5 million — 17 percent less than the $38 million the firm paid in 2018.

While some Chicago neighborhoods like the West Loop have held their value, older downtown buildings without modern features continue to experience price stagnation or depreciation.

The Bloomingdale’s tower unit, though structurally sound, is in need of a substantial aesthetic refresh since many interior features, including thin granite countertops and black-and-white kitchen tile, date to the late 1980s. The homeowners association manages the unit’s essential systems, but modernizing the condo will require significant investment.

Other notable transactions that resulted in a loss for the seller include a 48th-floor Walton Street condo that sold for $3.55 million in October, a significant drop from its 2021 price of $4.95 million and its 2011 price of $5.5 million.

Additionally, a 26th-floor unit at Delaware Place recently sold for $1.88 million — well below its 2018 and 2010 values. Similar losses were recorded in September with sales on Huron and Erie Streets.

— Andrew Terrell