Chicago's most expensive mansion was abruptly taken off the market last week after failing to attract bidders at a staggering $50 million price tag.
United Automobile Insurance Co. Chairman and CEO Richard Parrillo and his wife, Michaela, constructed the 25,000 sqft Lincoln Park mansion a decade ago, after buying the property in 2005 for $12.5 million from the Infant Welfare Society.
After two years on the market, Parrillo and his wife held firm at $50 million, a record for the region, their original listing agent told the Chicago Tribune. The agent said the couple plowed more than $65 million into the estate, including land cost.
Listing information shows the mansion measures 25,000 sqft, which simple arithmetic would mean a cost of $2,000 per sqft. However, Cook County Assessor's Office reports that the structure is more like 15,533 sqft. The report also shows how the mansion's $50 million asking price is hugely overinflated versus 2018 estimated market value, which is $19.36 million. The report notes the 2018 property value is significantly higher from the assessor’s $13.98 million estimated market value for the mansion in 2017, due to a quick burst in high-end home sales in the last several years, but has since cooled.
With the Parrillos’ mansion off the market, Pete’s Fresh Market co-founder and owner James Dremonas’ $21.9 million asking price for a 13,400 sqft North Dearborn Street mansion on the Near North Side, is now the most expensive listing for any suburban home currently on the Chicago market.
More than likely, Parrillos and Dremonas have missed the window of opportunity to sell their luxury homes for the cycle.
We have well documented the luxury Manhattan condo bust, Greenwich Homes sales plunge, Hamptons real estate downturn, Miami beach home implosion, Aspen mountain home crash, and the West Coast luxury market falling apart over the last several years.
Turning points in the real estate market take time, but as we find out this fall, the top is here: Bank of America rang the proverbial bell on the US real estate market back in September, indicating that existing home sales have peaked, reflecting declining affordability, greater price reductions and deteriorating housing sentiment.
Chief BofA economist Michelle Meyer warned that "the housing market is no longer a tailwind for the economy but rather a headwind. Today's crash in new home sales - which tumbled the most Y/Y in 7 years - only confirmed that.