We all know just how rough the real estate market has been over the past five years – and not just for average Americans who are facing the prospect of falling home prices and even foreclosure. Even celebrity real estate has seen its fair share of troubles – including the news that Smashing Pumpkins front man Billy Corgan just cut his asking price for his condo, according to the Chicago Tribune.
Corgan, best known as the lead singer of the legendary alternative rock band The Smashing Pumpkins, initially bought the 3,700 sq. ft. luxury condo way back in 2002 for a cool price of $2.95 million. At that time, if you remember, real estate prices were gaining quickly, so paying almost $3 million for a prime location in the historic Gold Coast district in Chicago – especially for a rock star – seemed like a great move.
And it was, until he first listed the spacious six-room converted mansion circa 1892 for $5.5 million in September, 2008. At that point, the housing crisis had been in full swing for two years, and home prices all around the Windy City were falling fast.
After being on the market for 10 months, Corgan decided to cut his asking price down to a more modest $4.35 million – still quite above his initial payment of $2.95 million and in the black, especially compared to some of his neighbours. But unfortunately for the main Smashing Pumpkin, he couldn’t find a buyer willing to pay the price.
Since then, Corgan has cut the price down to $3.5 million and even rented the unit out for $10,000 a month. But no one seems to want to purchase the two-bedroom, 2.5 bath condo complete with a library, terrace, reception room, balcony, and four – yes, four – stylish fireplaces.
So just a couple of weeks ago, Corgan slashed the asking price by a dramatic 20% – all the way down to $2.85 million. This is about $100,000 less than the original purchase price, representing a total decline of 3.3% from 2002 and a stunning decline of 44% from the peak asking price.
It is unlikely that a music superstar like Billy Corgan is going to miss $100,000 (he also owns a mansion in Highland Park that cost the singer $6.8 million in 2003). But, this celebrity real estate case goes to show how terrific deals are available for those ready to jump into the real estate market and catch great properties – like a gorgeous Gold Coast luxury condo owned by a rock star – at great discounts.
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