The sale of the city’s most expensive estate in the past has brought attention to the decline in Chicago’s luxury real estate market. Initially listed for $50 million, the sprawling 25,000-square-foot mansion at 1932 N. Burling St. in Lincoln Park was finally sold for just $15 million—seven years after it was first listed. Once valued at $65 million, the mansion features 6 bedrooms, 11 bathrooms, a 5,000-bottle wine cellar, and decorative fountains, yet the significant price drop reflects the current struggles in Chicago’s luxury home market.
The sellers lost $50 million.
The property was worth $50 million to Richard Parrillo, chairman of United Automobile Insurance Company, and his spouse. Inflation has increased the land’s value to about $20 million from the $12.5 million they paid for it in 2005. Jennifer Ames of Engel & Völkers represented the buyer, who found the mansion to be a relative bargain because it was sold for less than the land’s current value.
The Property Could Not Be Saved by Luxurious Features
Luxurious features of the mansion include 18th-century light fixtures, a wine-tasting room with a ceiling inspired by Versailles, and 1,000-pound bronze doors. It was unable to elude the larger trends impacting Chicago’s ultra-luxury market in spite of these opulent touches. Though the sale price is far below its original listing, it remains the highest residential sale in Chicago for 2024 and the only one to exceed $10 million this year.
Oversupply and Decreased Demand in Chicago’s Luxury Market
The sale underscores the broader challenges facing Chicago’s ultra-luxury market, where oversupply and decreasing demand have led to steep price cuts. Wealthy buyers are seeking more value for their money, making it harder for even high-end properties to maintain their value.
A Shift in Chicago’s Luxury Real Estate Market
This sale is a wake-up call for Chicago’s luxury market. With changing buyer preferences and economic uncertainties, even the grandest homes are struggling to maintain their value. Sellers may need to adjust their expectations as the market continues to evolve.
