Chicagomag.com recently looked at what it called the “alarming” trend of residences being bought and sold at the Jackson Towers in Chicago’s Hyde Park. The issue? The wide discrepancy in price the units are selling for.
As the article notes, six weeks ago Jackson Towers had its most expensive sale ever—a 5,230 square-foot duplex that went for $960,000. That’s the good news. On the other side of the coin, the vast majority of units that have been sold or are currently listed underwent rather dramatic price reductions.
The issue appears to be that Jackson Towers has fallen behind the competition. Namely, the plethora of luxury towers that have been built in Hyde Park and downtown. Jackson Towers does have added amenities, such as a 24-hour door staff, but nothing like the pools and roof decks that are signatures of these newer buildings. As a result, residents of Jackson Towers and potential buyers are grumbling that something needs to be added to the complex to increase the value of a residence.
Given these circumstances at Jackson Towers, proper pricing has been difficult to come by. As an example, one unit that went on the market last year for $1.2 million has since had its asking price slashed to $559,900. Here is what Chicago Mag had to say about the Jackson Towers:
“The disparate prices for same-size, same-style units is a little mystifying but it underscores the difficulty in reconciling asking price with high assessments and housing’s uneven recovery.”
Ah yes, the assessment. This is causing big problems for potential buyers who don’t see the value in paying over $2,000 a month at Jackson Towers. As the story notes, buyers want to have something tangible for that money, but it’s proving elusive at Jackson Towers without any enhancements.