1159 E Kane: What Happened?

For those of you keeping up with the Eastside real estate market, you may be aware that 1159 E Kane was sold last spring for $117,000. This small, workers cottage is located in the prime development area along the Milwaukee River. The house was not in the best shape and appeared to have some serious foundation issues. While most real estate developers would try to raze this little house to bring the land to its highest and best use, this property is located in the East Village Neighborhood Conservation Overlay District, which makes tearing down existing buildings difficult (at least politically).

This didn't stop whoever purchased 1159 E Kane from marketing the property as a pre-construction single family with a modern design and a price tag of $399,900. This 2 bedroom 2.5 bath home looks like it is straight out of Bucktown in Chicago. Designed for a narrow city lot, this building maximizes the square footage.

While many people may not appreciate the building's aesthetic styling, there is usually a good demand for new construction single family homes on the East Side. I expected to see this house sell for under asking, but instead it has been pulled off the market.

After 100 days on the market, the lister has pulled the pre-construction single family listing and has re-listed the tired little worker's cottage for $149,900.

One can only speculate what happened. Did the city refuse to grant a raze permit to the developer? Was there no demand for a $399,900 house in the heart of the East Side? Is this project a victim of the current real estate market? Would the develop be willing to sell the blueprints along with the house?

If anyone has any information, please let me know.