There’s a foreclosure in the South Shore Club. This is the one I’ve been telling you about for quite some time, and now it’s here. The prior owner of this house was a prior client of mine, and I do not delight in the fact that I’m bringing this property to market today. I wish they had been able to hang on, to live in this house as they intended, to grow old here. I wish that would have happened, but alas, it didn’t. It didn’t play out that way because of market conditions and the weight of negative equity. The home they built was expensive, prohibitively so. Orren Pickell built it, and the lot (33) that the home was built on had been bought in 2007 for $1.1MM. This was an expensive undertaking, and the pressure of the new SSC market was just too much to bear.
The property, at N1595 East Lakeside Lane in the South Shore Club, isn’t going to sell because a new buyer just loves the light fixtures. It won’t sell because they love the paint. It won’t sell because everyone wants an automated doggy door, though that’s pretty neat. It’ll sell because it’s cheap, and the new purchase price is so far below both the initial cost and the replacement cost that it isn’t even funny. Today, I bring you this property as just the second REO property to ever hit the market in the South Shore Club, for an absurdly pleasing price of $2.275MM.
The house is unique, indeed, but the location is ideal and the finishes elevated in typical Pickell fashion. Outside, you’ll find the typical high end SSC finish. Lots of stone and slate and wood. It’s pretty, this home. Inside, it’s loaded with square footage and opulence. There’s a very nice view of the lake from this home, and the location near the pool will prove to be a benefit to the next owner. The assessor lists the finished square footage at 7102, including the finished space in the lower level. That lower level, by the way, boasts a very nice wine cellar, a large bar, rec room with fireplace, full bathroom, billiard room and exercise room. Would you finish the basement the same way if you were building new? Maybe not, but it’ll sure be nice to change some carpet and paint and call it your own.
Lest you think this is a brand new offering that has never been seen before, it’s not. The home is no stranger to the market, having first appeared on the MLS in 2012 for $3.6MM. The property dawdled a bit, floating around in this price range before succumbing to periodic price cuts, the last of which saw the list price fall to $2.99MM. This wasn’t a bad list price, but it wasn’t enough to entice the market. I ventured it would take a $2.4MM handle to sell this home, and so when the bank approached me with their $2.275MM price, I became a firm believer that this home will sell, and it will sell sooner rather than later.
Consider the rest of the SSC for market context. Currently, I have the only other available listing in the Club, the home on Forest Hill listed at $1.895MM. There have been plenty of sales in the SSC over the past year, this much we know. The lack of current inventory, the knowledge that this home appears to be the only distressed property left in the SSC, and the fact that we’ve now sold all of the available vacant lots means we have the perfect market conditions for this offering. Does an REO property here drag on the overall market? Not in the least bit. It actually strengthens the market by removing any soft ownership. Short term, if you’re the neighbor, you’re not pleased with a $2.275MM list on a home that was likely built for nearly $4MM. Long term, you should be thrilled, as the SSC continues its trend towards strong, interested ownership.
This home will hit the open market either today or tomorrow, depending on my Monday schedule. If you’d like a first shot at it, please do let me know. If you know anyone who you think may have interest, please send them this post with my contact information (firstname.lastname@example.org or 262-745-1993). Expect this home to sell quickly, because who doesn’t love an automated doggy door alongside SubZero appliances and Wood-Mode cabinetry?