R. Kelly’s mansion sells for a fraction of its asking price

The gates of R. Kelly’s onetime “Chocolate Factory” mansion in suburban Chicago have closed for good — and at a steep discount. 

The 21,000-square-foot estate, where the R&B singer once recorded hits and allegedly exerted disturbing control over those who entered, just sold for $1.6 million, according to Alex Wolking of Keller Williams ONEChicago, who represented the listing.

That’s less than half its $3.5 million asking price and only a hair above what it fetched in foreclosure more than a decade ago.

Moreover, it’s not alone. A number of luxury Chicagoland properties are struggling to sell these days.

When the former R. Kelly property last changed hands in 2013, it was a wreck — floodwater in the basement, mold on the walls, rot in the rafters. 

The late Rudolph Isley of the Isley Brothers and his wife, Elaine, bought it for $587,500 and spent years reviving its log-and-stone sprawl, complete with a jungle-themed pool and a bedroom styled like a Chicago Bulls gym. 

After Isley’s death last year, his widow put it back on the market; the final sale came in at about 46% off her original price. But did the R. Kelly association have anything to do with that?

“The biggest challenge to selling the property we had were the property taxes,” Wolking told The Post. 

“The original tax bill was over $250,000 when I first listed the property,” he said. “The taxes were based on an assessed value of nearly $4.7 million. We appealed … and won, which reduced the assessed value to $2.6 million.” 

Even so, he added, “the taxes will still be six figures.”

If the numbers sound grim, the irony isn’t lost on Wolking. 

“The R. Kelly media attention was actually what helped sell it, contrary to what many may think,” he said. “The Isley Brothers connection helped draw a lot of marketing attention, too. … It’s one of the most storied and iconic homes in Chicagoland, and homes with this kind of celebrity lineage just don’t exist in the Midwest.”

(The singer was taken into custody in July 2019. On Sept. 27, 2021, following a six week trial, he was sentenced to 31 years for federal racketeering, sex trafficking, and child pornography convictions from trials in New York and Chicago.)

Yet even the buzz of scandal couldn’t mask a deeper trend: Chicago’s once-glittering luxury market has lost its luster.

No figure embodies that decline more than Ken Griffin, the billionaire hedge-funder and founder of Citadel. After decades as Chicago’s most visible real-estate buyer, Griffin has become its most public seller. 

This spring, he unloaded two unfinished penthouses at 9 West Walton for a combined $15.9 million — roughly $8.8 million less than he paid in 2017.

“The decline in Chicago’s luxury [condo] real estate market reflects years of poor policies and failed leadership in Illinois. In contrast, the high-end real estate market in Miami has appreciated by at least 60% over the past 5 years,” Zia Ahmed, a spokesperson for Griffin, told The Post. Griffin has been public over the years for ditching Chicago for the Sunshine State.

The billionaire himself has been even more blunt. He previously told The Post: “The precipitous decline in the value of Chicago real estate represents just a small portion of the cost of us having elected poor political leaders.”

Griffin’s sell-off caps the unwinding of a record-setting spree. In 2017, he paid nearly $59 million for a four-unit spread in the same Gold Coast tower — a Chicago record — intending to merge them into a 15,000-square-foot aerie with a rooftop pool.

The project was never finished. He later sold the top floors to Illinois Gov. JB Pritzker for $19 million, another loss, and by this year had shed nearly 40% of his investment. 

His move to Florida — where he’s building a $1 billion Palm Beach compound — symbolized not just personal migration but capital flight.

Across town, an even grander palace met the same fate. 

In Lincoln Park, United Automobile Insurance Company chairman Richard Parrillo and his wife, Michaela, spent $65 million acquiring land and constructing a 25,000-square-foot manor designed by Thomas Beeby, complete with 1,000-pound bronze doors and a wine room inspired by the stables of Versailles.

This summer, after nearly a decade of price cuts, it sold for $15.25 million — less than the inflation-adjusted value of the land itself. 

What was once listed for $50 million changed hands for barely 30% of that figure. For all its French grandeur, the home’s fate mirrored a local truth: Even perfection can linger unsold in a market out of sync with its former glory.

Not even Chicago’s most beloved icon escaped gravity. When Michael Jordan put his Highland Park estate on the market in 2012 for $29 million, he could hardly have imagined it would sit for 12 years. 

The mansion — 56,000 square feet with nine bedrooms, 15 baths and gates shaped into his number 23 — finally sold late last year for $9.5 million, about one-third of its debut ask.

The buyer, Nebraska-born real-estate executive John Cooper, initially promised restraint. 

“I will honor the property’s legacy,” he told the Lincoln Journal Star. “This place is great just the way it is.” 

Within months, he’d turned it into an unsuccessful attempt at enterprise.

Renamed Champions Point, the estate was listed on Airbnb Luxe, for a whopping $112,000 per week, pitched as a high-end retreat featuring a basketball arena, putting green and infinity pool.

“Champions Point has always been a legendary estate,” Cooper previously said in a release obtained by The Post. “Now, we’re making it possible for more people to experience that magic firsthand … through our partnership with Airbnb Luxe.”

But Cooper found it difficult to find those renters, and it has since been removed from the rental site.

Farther north, in Winnetka, former Goldman Sachs partner Muneer Satter and his wife, Kristen Hertel, just set a local record with the $31.25 million sale of their lakefront estate.

On paper, it’s the highest price ever paid for a completed Chicago-area home. In reality, the couple spent upward of $65 million developing it — recouping less than half their outlay.

The 1920s mansion, known as Windsor House, features a two-story lakefront living room and operatic balcony staircase, the sort of architectural bravura that once defined North Shore wealth. 

Yet even as the deal topped headlines, it underscored how thin the profit margins have become for Chicago’s elite.

According to the Sotheby’s Concierge Auctions Luxury Market Index, homes that lingered on the market more than 180 days in 2024 sold for nearly 15% below list price on average. 

The city’s average days on market nearly doubled — from 167 to 323 — hinting at a slowdown masked by isolated blockbuster sales.

Luxury broker Rafael Murillo of RM Luxury Group calls it “a tale of two cities.”

“As of today, Chicago has already surpassed last year’s numbers for sales above $4 million — with 61 deals recorded so far … so the luxury market is clearly performing well,” he told The Post. 

“At the same time, it’s really a tale of two cities. Neighborhoods outside of downtown like Lincoln Park are a seller’s market, while downtown high-rise living is leaning in favor of buyers.”

“There’s been plenty of activity downtown, but pricing has adjusted,” Murillo added. “On paper, sales volume looks strong, yet when you compare to past resale values, it’s clear prices have come down. … Right now is a great time to buy.”

He sees the city in “the recovery phase — still navigating the lingering effects of the pandemic and the uncertainty that comes with Chicago’s current political climate under Brandon Johnson.”

“Confidence has begun to return, but a full rebound will likely come once new leadership is in place.”

Still, Murillo insists the fundamentals are sound. 

“The majority of my luxury buyers have been from out of state — they see the opportunity and have confidence in Chicago’s future.”