550 N. St. Clair in Streeterville Extends Its Smart Car Promotion Through This Weekend
Some of you may have seen last weekend’s special promotion for the remaining developer units at 550 N. St. Clair in Streeterville.
This is a newer construction high rise. I was told the unsold units had been rented out previously.
There are 15 units available (not all of which are on the MLS). They are the following:
- 5 studios
- 4 one-bedrooms
- 3 two-bedrooms
- 3 three-bedrooms
The promotion is 10% off all the units.
AND- if you buy a 2 or 3 bedroom unit you get a free Smart Car.
The weather was so bad last weekend they decided to extend the offer through to a second weekend. (Aka, few people turned out for the promotion).
The new price points are as follows:
- Studios from $197,100 to $227,700
- 1 bedroom/1 baths from $312,300 to $423,000
- 2 bedroom/2 baths from $490,500 to $1,001,700
- 3 bedroom/3 baths-4 baths from $1,123,200 to $1,379,700
It’s been awhile since we’ve seen any developers doing special promotions.
A few years ago, these kinds of deals used to cause excitement (remember the Vetro auction?)
But what about in 2011?
Will giving away a car get buyers in the door in this market?
Weichert Realtors is handling the sales. See more details on the promotion on the building’s website here.
A promotion like this is proof that the units are overpriced. The car doesn’t begin to offset the premium being charged for these places.
I’d rather pay less for the unit and dispense with the car. If you accept the terms of the promotion, you will: A. Overpay for your unit; and B. incur a tax liability for the “gift” of the car.
Instead, just knock $50K or more off the price, depending on the original price, and save two ways.
laura,
If you can hold out just a bit, you can take advantage of the upcoming June sale at the smart car dealership, where for every smart car you buy, they give you a 2/2 at 550 N. St Clair.
The developer has been trying to sell these units since 2006, a full five years. They’ve kept pricing steady, but instead appear to be relying on these gimmicky promotions while the market around them continues to tank. Not sure how well that’s working out for them.
Gringo, I think I like that offer better…
Joking aside, if these places have been on the market for 5 years at these prices, then they need to be whacked 30% to sell.
I think everyone wants that nice wake up, expanded view, fresh breath, I feel good about starting my day, good life feeling.
Walking out of this bldg every morning, onto that corner, would just crush my spirits daily.
This is just to get attention. They have to be willing to discount the car value since any appraiser/lender will. Take the car offer and you will be paying cash for it as addl down pymt.
These units are very small, actual values are at least 30% less than ask, probably even less than that.
I don’t see any sq ft. listed anywhere, and no room dimensions either, but It’s pretty obvious from the floorplan layout that they’re unusually small.
The two bedroom units don’t appear to even have room for a kitchen island to create a separation between the living room. The ‘kitchen’ is just one wall of the living room…
ze: Just wanted to give you props on the promotion idea.
With the prices of those units, are you sure they should be calling these “smart cars”
Its a new deal called buying one depreciating asset and getting another for free!
One day I was walking off Mich Ave to grab lunch at Volare. I am walking right down the stairs where the picture, above, was taken. About 10 floors up, the guy must have retrofitted the bathroom to move the shower in front of the floor to ceiling glass window (kinda about 8 panes in from the left). Guy just showering wide open full frontal. Absolutely hilarious.
and come on ze, the location isn’t that bad… I mean 1970’s parking garages are pretty cool right? Also as an added bonus you get sick people in wheelchairs all over the place here due to the proximity to the NW hospital complex
“With the prices of those units, are you sure they should be calling these “smart cars””
[Groove: stands up and start a slow clap]
“and come on ze, the location isn’t that bad”
No, location is great! It’s that check cashing, white hen, baskin robbins, 2 homeless men beating one another with sticks corner. Might not be an attractive place, but Streeterville, overall I like. This corner is exceptionally depressing.
Btw Groove. You missed your calling… I have no kids, wife had a hysterectomy yesterday, but the way you say it, I want one stroller each. Oh and throw in one of those push running ones. I had a friend and she simply crushed me on a race after pushing one of those things around for a year.
I know ze i was being a bit sarcastic, don’t forget that Blackies closed so the only (not in my opinion) good part of this block is now gone!
Ze you definitely get comment of the week for that promotion.
Best wishes to your wife for a speedy recovery.
Do these prices include a parking spot for the “free” car?
I’m just not that impressed with this building, especially considering the corner it’s on. I hate walking past this area and the thugs that hang out in front of the 7-Eleven.
What is so special about this building that separates it from the other lower priced options in the area? There are one bedrooms in the Mies buildings (much better location) that are selling for less money than the one bedrooms here.
“I know ze i was being a bit sarcastic”
I thought that from your second sentence.
Jen.. it was intended to exaggerate a joke. Apologies if that’s a sensitive female issue I was unaware of.
I went and checked out the 2 bedrooms. First off, the location is depressing, again Sonies got it right with the parking and all. There are no views (even the penthouse 2/2 has a terrible view). I don’t like the kitchens, they are just wall units (think a studio in Europe) not a 2 bedroom kitchen IMHO. Also the smaller 2BRs master bath has no door and basically if your significant other using the facilities, you are sharing the experience with them. Even the penthouse one hasn’t got a real door but at least there are walkin closets in between to provide some privacy. For 1 mil, one can buy a 2/2 in Legacy on a very high floor with a den which can serve as a 3rd bedroom with fabulous views and great amenities. So I am not sure why would anyone buy in this building and I love smart cars.
there was a crummy diner here before they built this. I cant recall the name but it had more appeal.
Burrito beach isn’t bad. And CnD gyro was a nice throwback until it recently closed. now there’s still sayat nova and the 2nd story bar.
I’ve looked at the penthouse 3/4 units in this building and had a mixed opinion.
Highs:
11′ ceilings
beautiful h/w floors
top of the line appliances
bathrooms are very well done
lots of windows
decent lake views with ok city views
indoor pool with showers
reasonable assessments
good location. I walk by here pretty often and there are rarely bums outside of that 7/11
Lows
exterior of the building is crappy, especially the windows
small exercise room
overpriced
layouts are terrible (5 hallways in the 3/4 units!)
exposed concrete
for the lower floor units there are no views at all
building entrance/foyer is tiny
I’d buy at lower prices but $450/sqft is still pretty unreasonable.
Each time a see someone driving a smart car I cant help but think
what an idiot
http://www.youtube.com/watch?v=L4k0FWvGoSM
Just looked at the “3 bedroom” floorplan… the supposed third bedroom is more like a dining room off the living room, with no wall whatsoever.
I guess it’s good to have the flexibility, but it shouldn’t be called a “3 bedroom”. And they claim this is a $1 million+ unit.
They’re just playing too many games here… which is guess is also evidenced by the gimmicky ‘free car’.
James.. you just need this one… http://www.youtube.com/watch?v=MDU5BU_qSJU&feature=related
haha, no doubt they’d be sold out if they gave away that one
We were in Chicago earlier this week for the Oprah/United Center show. As we hit our fav spots (garretts, giordano’s,etc…) we walked right by this. I remember saying “this building is in a good spot”. When we move back, that is the area we want to live. We have family on Ohio st and I would probably work for the hospital. But those prices are a joke. Need to be cut by 40-50%. Maybe we would rent there though.
One of my assistants back home had a Smart, she wouldn’t drive it if it was windy because she was too scared it would topple over!
Smarts are great cars to drive in narrow streets and where parking is difficult. Try navigating through Florence in an SUV. I would be very happy to drive a smart in down town Chicago too where speeds are low any ways and the car is quite fuel efficient. Now of course, I would not use one for driving on interstate in US.
@James, each time I see someone who is quick to call others idiots, I think what a tactless bitter person.
“Each time a see someone driving a smart car I cant help but think
what an idiot”
it really is amazing that those cars get sold.
so tiny yet mileage is not near what it should be
overpriced
you will die or lose your legs if you’re in a serious accident.
and you’re not helping the Earth at all no matter what the TV tells you.
oh yeah, and these places are overpriced.
or http://www.youtube.com/watch?v=vExpEl0_5-Y
Not a fan of Smarts, but advocating a size and weight arms race in the name safety is even stupider.
I have heard that the smart motor is actually terribly underpowered and the automatic manual (not a manual automatic, which is an automatic that can be manually operated by the driver but an actual manual which is automatic to the driver) is just about as bad as a transmission gets. You can’t really go highway speeds and end up getting terrible gas mileage (like 30, which is pretty terrible for the car that size) in what is a pretty miserable car. There are plenty of good small cars that aren’t a stupid gimmick. If you think that want a Smart car you probably really want a Honda Fit.
As it is, the smart is a terrible car compared to its competitors and very poorly priced for what it actually is. It sounds like a perfect companion to these units.
miumiu
You are sleepwalking through this life.
dont worry though, you are not alone
“the smart is a terrible car compared to its competitors and very poorly priced for what it actually is. It sounds like a perfect companion to these units.”
Good call!
“We were in Chicago earlier this week for the Oprah/United Center show. As we hit our fav spots (garretts, giordano’s,etc…) we walked right by this. I remember saying “this building is in a good spot”. ”
ha man, you are an uber tourista!
p.s. giordano’s is the WORST deep dish in chicago
is there even a good one? ; )
“giordano’s is the WORST deep dish in chicago”
@ JJJ, have you even driven one? I borrow one from my in-laws in Italy and it is so nice to drive at city speeds and a breeze to park when everyone else is going around for ever to find a spot.
I told you guys about seller/owner financing – I knew that it is going to be making a comeback and you all laughed at me:
http://finance.yahoo.com/news/Home-Sellers-Provide-bizwk-2428535286.html?x=0&sec=topStories&pos=main&asset=&ccode=
“JJJ, have you even driven one?”
Definitely not. I can only go on what I have heard from people and what I have read in the press. Those reviews are pretty uniformly horrible. Europeans use their cars differently than Americans do (because of differences in cost and availability of transit, parking, gas, etc.), but it seems like a poor fit for the American market. It also shocks me that someone would pay $12k for one.
I have to agree with JJJ here, Smart cars are designed for European driving, plain and simple. It works there but I don’t think they are right for the American way of driving.
Now a Mercedes A-class – there is a compact European car I could love.
You have a point on the price JJJ, but honestly once the gas prices pick up here, people will stop going to trader Joe’s in a huge SUV to buy 3 bags of nuts. The other day I had to wait quite a bit for a lady to maneuver her giant car in the parking lot of whole foods and it was huge!
We went to the auto show thing this year and I was amazed how many huge cars with terrible milage are out there. Not everyone is hauling stuff for a living so I find it interesting how there is this love of huge vehicles that seems not to go away. My husband things it is because it make people feel they are not that overweight but I tend to think it is more to do with this idea that they sometimes need a real big car, but honestly how often people need them?
Actually 2 of my colleagues have bought them here in US in the small town we live and they love it. They have a short commute to work (less than 5-6 miles) in a 30 miles per hour speed limit streets and the don’t feel like paying tones for gas. Both of them are actually American albeit women.
“actually American albeit women”
Funny stuff.
Mercedes A-class is very cute but quite expensive too. Toyota Yaris which is available here or Fiat 500 are more economical alternatives. I love Audi A2 as well but I think it might have be discontinued.
“”ha man, you are an uber tourista!
Pleeeaase!!!
I was born and raised in Chicago….Northside/Evanston area. I moved away at age 30 when I got married. But we are moving back next year, which is why I am on this site.
p.s. giordano’s is the WORST deep dish in chicago”””
Giordanos is third to Carmens (#1), Edwardos (#2). IMHO
“and the don’t feel like paying tones for gas.”
You’d have a point if the Smart would actually get good mileage (for its size). Part of why it kinda sucks is that it never really advanced, it’s still mostly the same car as it was 13 years ago. It’s been leapfrogged by just about any other small car.
If you ain’t parking it perpendicular just get a Fit or Yaris, or a Leaf if mpg matters the most.
I have a Honda Fit. Bigger (my bike fits easily) yet still fit into parking spots most others can’t, safer, and gets 40 mpg. Three years ago, it cost me $16000 after Chicago tax, title, license and all. I don’t get the Smart, either. I was amazed at first, the mpg, and next, the price.
“They have a short commute to work (less than 5-6 miles) in a 30 miles per hour speed limit streets and the don’t feel like paying tones for gas.”
With that short of a commute, even the gas for a 1978 Royal Deluxe II will only cost them less than an extra $30/mo.
http://www.hulu.com/watch/2323/saturday-night-live-royal-deluxe-ii
Miumiu I LOVE your husband’s opinion on SUVs! Maybe that’s why I love my Ford Edge so much.
I can’t say for sure but I believe the love for big cars comes from the idea that you’re safer in one if you get hit than if you’re in something tiny. My husband had a colleague who had a Yaris and ended up in critical condition when it fell apart on impact in a crash, the car that hit him was only a Ford Taurus.
This building is really high end:
1)Alno kitchen cabinets
2)Bosch/gaggenau/subzero appliances
3)marble bathrooms
4)Brazilian cherry hard wood floors.
5)Sundeck with beautiful view
6)indoor lap pool/ exercise room
7)11′ high ceilings. Floor to ceiling windows with great views
8)Best Location:walking distance to everything, the lake, Michigan Ave, restaurants, Navy Pier, Ohio St Beach, expressway, public transportation, best hospital in Chicago. You feel safe to walk your dog in the middle of the night. 24/7 Dominicks and 7/11. This is Location, Location, Location. I would not go out in the middle of the night in Lakeview, that you guys talk so much about it. There must be a reason why if you go north it gets cheaper….
9)low assessments
10) size, I would say it is standard unless you expect studios with 1,000 sq feet.
My dad thinks smart looks like a vacuum cleaner…lol…
BTW, that husband of mine was trying to get me to buy a Volvo X60 as he think given my driving it is better for me to have something more solid. Now I am keeping my little car and not listening to the hypocrite : )
G that clip was hilarious. BTW, we might be in need of the service soon ourselves…lol…Actually we are not going to do the chop chop for our baby as my husband is for some reason very attached to that specific part of the baby…Men are just hilarious creatures : )
mm.. Guess it’s like my Chinese buddy said about that exact topic…. ‘for us asian guys every mm makes a difference’
lmao,,,Ze. I knew you’ll come up with something good on that one.
This has been the week of surprises:
Groove—accountant
Jennifer—drives a huge SUV
G—can be hilarious when he is not pissed
I’m also an accountant. Explains the lack of cash.
but you can run a household n a budget something most people cannot : )
“But we are moving back next year, which is why I am on this site.”
Welcome back Cominghome38!
Chicago has only gotten better in the last decade. Relatively affordable housing (compared to other major cities), great museums and parks, and the restaurant scene is the envy of everywhere else (except maybe NY.)
I am the owner of Weichert, Realtors – First Chicago and I thought it was time for me to chime in. We are the company that is marketing 550 St. Clair. I’m happy to see that we sparked such an interesting debate about automobiles on a real estate site. It just goes to show where people’s thoughts will travel. On a more serious note, I’d like to point out a number of inaccuracies being spread by many of you on this site and comment on the overall negative tone. It appears that many of the comments are from people that are either totally misinformed or intent on intentionally spreading false information.
The purpose of the Smart Sale, like any marketing concept, was to get attention and spark discussion. We successfully accomplished this goal. Ultimately, of course, our goal was to sell some of the remaining condos in the building. Hopefully those of you that believe in free market capitalism will respect our motives.
So let me separate fact from fiction:
(1) Are the units overpriced? This, of course, depends on what you use as criteria for making this determination. The most recent sales in the building have been averaging $474/sf including 1 garage space and our penthouses are averaging $492/sf. The last condo we sold was a 2/2 that closed this month for $437/sf with a garage space. For our sale, our average prices are $460/sf including 1 garage space and penthouses are $466/sf Compare this to the Legacy, as miumiu did, and you’ll see that the average price/sf on 2/2s of $554/sf and the least expensive 3/3 is priced at $1.288M or $654/sf for a 1,969 sf unit. Our price for an approximate 2,500 sf penthouse is $1.168M including a garage space and Smart car! And let’s look at 600 Fairbanks, as others have, and you’ll see that 1/1s average around $520/sf; we are at $450/sf. 2/2s are $595/sf; we are at $437/sf. And then there’s the 1,536 sf 2/2.1 at 600 Fairbanks priced at $1.315M, or $856/sf! For $78,000 more, you can buy a 3/4 3,000 sf unit at 550 and get a Smart car.
(2) Is the Smart car a gimmick? Sure it is, but if you don’t want the car, fine, we’ll reduce the price of the condo accordingly. I think even if we gave away a Maybach Landaulet, many of you would think we were still overpriced.
(3) Are the units unusually small? Actually our units were designed by David Brininstool, a renowned Chicago architecture known for his modern design, and every effort was made to create open, flexible spaces. Our unit sizes range from about 550 sf for our smaller studios to over 3,000 sf for our largest penthouse. Maybe some of you don’t like the European style kitchens with no islands in the studios, 1/1s and 2/2s, but that is strictly a matter of style. The larger condos do have islands. We also have 10’ and 11’ ceiling heights, with exposed concrete, again a matter of style, and 8’ solid-core pocket doors. The style and feel of our units are certainly not for everyone, but there are many that think this is one of the best designed buildings in Chicago.
(4) And finally, for those of you naysayers who think this is an overpriced, unstylish building located on a bad corner which requires us to resort to gimmicks to sell our remaining condos, guess what; we sold one unit during the Smart sale and we are negotiating on another.
So maybe, rather than being so negative about this building, the economy, the Smart car and everything else in your lives that brings you down and only further adds to the overall fall in consumer confidence which, of course, only makes things worse…why not look at the positives, see the glass half full and do your little part to help turn things around.
Thanks for the comments Ron. It’s good to hear from someone associated with the property.
And thanks for your positive comments Sabrina.
”
So maybe, rather than being so negative about this building, the economy, the Smart car and everything else in your lives that brings you down and only further adds to the overall fall in consumer confidence which, of course, only makes things worse…why not look at the positives, see the glass half full and do your little part to help turn things around
”
dude; your barking up the wrong tree certainly I would advise not holding your breath on the above; otherwise this post is the 1st legitimate post where we could discuss cars soon they’ll be giving vacations; car-washes and happy endings. I can’t wait.
why charge a higher ppsf for the penthouse; if you tier the prices down for the other levels? is the hoa renting it out? seems to me that price level is not justified; and opens the hoa to a very low offer(esp. by your stds.).
is there a door or wall to the 3rd bedroom or is my floorplan not working
http://550stclair.com/fp/2301-2601.html
in the 2101-2201
is this 3rd bedroom a galley bedroom?
doesn’t it actually prove their point and yours
“(4) And finally, for those of you naysayers who think this is an overpriced, unstylish building located on a bad corner which requires us to resort to gimmicks to sell our remaining condos, guess what; we sold one unit during the Smart sale and we are negotiating on another.”
revassal…thanks for your comments. Higher ppsf on penthouses is very typical because of being on higher floors, spectacular views and some additional upgrades (ie. custom tile, wine fridge, more cabinetry, etc.). But, more importantly, ppsf is determined by the market and buyers are typically willing to pay more for penthouses…just like people are willing to pay more for google than for yahoo.
You’re correct about the “01” penthouse. Originally there was a 3rd bedroom where indicated, but we elimnated the bedroom to expand the living space which we thought would appeal to some buyers. If someone would like to enclose that space and create a 3rd bedroom, we’d be happy to do that.
As for the 2101-2201, there are only those 2 condos in the building with that floor plan and both of those sold very early in the sales process.
Ron, I guess you agree with revassal’s last point.
“doesn’t it actually prove their point and yours”
“(4) And finally, for those of you naysayers who think this is an overpriced, unstylish building located on a bad corner which requires us to resort to gimmicks to sell our remaining condos, guess what; we sold one unit during the Smart sale and we are negotiating on another.”
It does appear to be self evident.
“Hopefully those of you that believe in free market capitalism will respect our motives.”
Ron – I, and many others on this site, believe firmly in free market capitalism and I would argue that if free market capitalism actually existed in this country, the small greasy spoon that used to occupy the land where 550 St. Clair is would still be there. Fact is, without the developer being able to sell to folks who could finance at rates substantially below the “free market” rates for financing, that building wouldn’t be there.
Another important component of free market capitalism is truth on the market. When you compare 550 St. Clair to 600 N. Fairbanks on any basis other than location, you are at best making a negligent misrepresentation and at worst lying. I looked hard at both buildings, well, I guess I looked hard at 600 N. Fairbanks and only briefly at 550 St Clair because unless you are a retiree or dude like clio who plans to use it as an in town on the weekends, it is simply not a viable building.
I wish you luck in selling the remaining units, but rather than giving away a Smart Car, perhaps you should consider throwing in a 3 month stay at Del Boca Vista in the winter of 2011-2012 to better market to the folks who the condos are suited for.
“I’d like to point out a number of inaccuracies being spread by many of you on this site and comment on the overall negative tone”
For a comment in this thread to be an ‘inaccuracy’, it would have to be a statement of fact; I just scanned through the comments in this thread, and all but one comment related to this property is a an opinion. The only statement of fact related to this property that I saw is the following, which wasn’t addressed in your response:
“The developer has been trying to sell these units since 2006, a full five years. They’ve kept pricing steady”
“For our sale, our average prices are $460/sf including 1 garage space and penthouses are $466/sf Compare this to the Legacy,”
Also, I don’t know if comparing ‘asking’ prices bearing here; in this market more than ever, it seems that asking prices are completely meaningless. With so much out there priced completely unrealistically for this market correction, I only pay attention to sale prices of recent sales.
not cool.
esp since you take some pride in this
” Are the units unusually small? Actually our units were designed by David Brininstool, a renowned Chicago architecture known for his modern design, and every effort was made to create open, flexible spaces. Our unit sizes range from about 550″
so how many of your points are in conflict. should list it as a 2/3.
”
You’re correct about the ’01’ penthouse. Originally there was a 3rd bedroom where indicated, but we elimnated the bedroom to expand the living space which we thought would appeal to some buyers. If someone would like to enclose that space and create a 3rd bedroom, we’d be happy to do that.
“
“So maybe, rather than being so negative about this building, the economy, the Smart car and everything else in your lives that brings you down and only further adds to the overall fall in consumer confidence which, of course, only makes things worse…why not look at the positives, see the glass half full and do your little part to help turn things around.”
Ron, you and I both know that, in this world, there are successful people and followers. That vast majority of people on this site are “followers” with no initiative or guts to go out there, take a chance and live their life. They spend their time behind the computer commenting negatively about EVERYTHING in an attempt to make their pathetic lives seem important in some way. Don’t waste your time trying to help them- they will continue to be negative. The great thing, though, is that people who are the “do-ers” know not to listen to these negative nellies and will not be swayed by them. Good luck to you in selling the remaining condos!!
@ Ron Ruby
Thanks for participating on this site.
In terms of comparisons between 600 N. Fairbanks and 550 N. St. Clair.
Here is site that lists the floor plans and sq. ft. per unit for 600 N. Fairbanks:
http://www.metroscenetv.com/600-fairbanks/plans.htm
When I go to your website (posted in next entry), I see the floor plans, but I don’t see any sq. ft. for each layout. Can you comment on why you don’t list the sq. ft? As a starting point, it would help me to compare the two buildings on a psf basis before breaking down unit amenities, views, assessments, etc.
Floor plans for 550 N. St. Clair (looking for sq. ft. listings)
http://www.550stclair.com/function_floorplans.htm
If there is somewhere where the sq. ft. is listed and I missed it, please let me know.
“Ron, you and I both know that, in this world, there are successful people and followers. That vast majority of people on this site are “followers” with no initiative or guts to go out there, take a chance and live their life” … “The great thing, though, is that people who are the “do-ers” know not to listen to these negative nellies and will not be swayed by them. Good luck to you in selling the remaining condos!!”
This entire comment just strikes me as very odd. Sounds like a lot of shallow market-speak with no substance behind it.
Most, if not all, of the so-called ‘negative’ comments on this thread are ultimately regarding the discrepancy between the asking prices of the units and of the persons opinion of the actual values.
The quoted comment suggests that you should just pay the asking price, whatever it is, for a piece of real-estate; if you just blindly pay the asking price, you’re a ‘do-er’, but if seek to make what for many is their biggest consumer purchase as informed and aware of the marketplace as possible, you’re a ‘follower’ ? Really???
With regard to people spending “their time behind the computer commenting negatively about EVERYTHING in an attempt to make their pathetic lives seem important in some way”: Sure there area plenty of examples of that on the internet, and I’ve seen on this site as well, but it’s usually pretty obvious worthless comments that the individual reader needs to be aware of, and disregard.
@nwzimmer
we know / we know / we know
http://www.urbandictionary.com/define.php?term=troll
we just try not to feed it.
“we know / we know / we know
http://www.urbandictionary.com/define.php?term=troll
we just try not to feed it.”
true, there’s always some balance here, and I guess it also depends on what you classify as a ‘troll’ or troll/ish comment.
But I don’t think I’d classify the comments by clio as a ‘troll’, I just disagree with the comments, as noted in my previous comment.
Clio is a troll. Same tired arguments, no data to support his statements or conclusions just psychological tools. He reminds me of someone who never got out of the highschool mentality and sees life as an “in-crowd” (aka doers) vs the “out-crowd”(aka followers).
Luckily he’ll be banned for this site soon enough if he honors his word on his bet with G.
Sorry clio the HS mentality doesn’t apply to the majority of adults on this site and few are going to commit a serious and regrettable financial blunder by buying RE now on a whim.
and who sits behind a computer all day anymore. I’m in my parents basement on my dads i-pad while playing X-Box with Riz.
Gotta throw in… I like the open kitchen in the studios.. The loft nyc background keeps me open minded to it all the way through 1brs.. But 2br? Thats gotta be a tough sell in Chicago. And my comments on that corner stay the same. But cool u came on to say your piece.
back to the smart car debate.
it is proven that mass helps substantially more than smarts “safety cage”.
and OMG you can get better mileage city and hwy in a honda civic than a stupid smart. and you get a real trunk, 4 doors, dont look like a dufus in it and get a car made very well!
and at what point did the stooge who thought bringing a under powered, ugly looking, bad handling, stiff riding, crappy gas mileage smart car to the us market.
the fact i actually see people driving in them has me loosing all hope for humanity 🙁
its America people, why in the heck are 4 bangers even a engine option. law should be only 6 and up!!!!!
”
its America people, why in the heck are 4 bangers even a engine option. law should be only 6 and up!!!!!
”
with 55 mpg to boot.
its the American way….at least it used to be.
“and OMG you can get better mileage city and hwy in a honda civic than a stupid smart. and you get a real trunk, 4 doors, dont look like a dufus in it and get a car made very well!”
Don’t look like a dufus in a Civic? Maybe in your hood, Groove.
4 bangers own, unless you’re pulling tree stumps. You can get upwards of 300hp from factory turbo 4s, that’s plenty for grocery gettin…
“300hp from factory turbo 4s,”
hmmm is that instant 300hp? nope and theres your whole argument gone and if not i have a few others.
so what does your 300hp turbo sound like at 3500 rpm? whats that i could hear your answer over the engine noise and rattle.
i know my engine is so quite i sometimes forget its on (running) and try turning it over. thats always a wake up call.
and how is it passing a truck on a two lane rural road in 100degree weather in your 4banger turbo? some nail bitting and praying going on there huh
“Don’t look like a dufus in a Civic? Maybe in your hood, Groove.”
touche,
but atleast in a civic nobody even looks at you or cares, in a smart they are always looking at you and laughing at you not because of the car its because they know your not really that smart and made the worst choice ever.
“and how is it passing a truck on a two lane rural road in 100degree weather in your 4banger turbo? some nail bitting and praying going on there huh”
Please. If that makes you nervous, you just need more experience. Not even an issue with a non-turbo four.
Now, a 4-banger with an *automatic* transmission, that’s a different story.
“Now, a 4-banger with an *automatic* transmission, that’s a different story.”
they still make manuals? i thought it was just for race cars and VW’s?
“Please. If that makes you nervous, you just need more experience. Not even an issue with a non-turbo four”
i remember driving a girlfriends mitsu 4banger and having to turn off the A/C to get power to pass. still horrifies me to this day.
“so what does your 300hp turbo sound like at 3500 rpm? whats that i could hear your answer over the engine noise and rattle.”
Ill concede that point, but you’re talking to someone who never owned a car with more than 2 seats and who has a bad habit of cruising at highway speeds in 3rd gear. The noise is music to my ears.
“Please. If that makes you nervous, you just need more experience. Not even an issue with a non-turbo four.”
I agree, the least powerful car I’ve had the “pleasure” of driving had about 70hp or so. Just gotta shift at redline and go back to 1st gear on too steep inclines. (silly euros and their underpowered cars…)
“they still make manuals? i thought it was just for race cars and VW’s?”
Your “don’t look at me, but please steal my car” 2012 Civic is standard manual in the lower two models:
http://automobiles.honda.com/civic-sedan/specifications.aspx
“the least powerful car I’ve had the “pleasure” of driving had about 70hp or so.”
I put 10s of 1000s of miles on a 8-12 y.o. car that had 63hp when new (so, like 50-55hp when I was driving it) and a 4-speed transmission. Would cruise at 85+, a lot. Scared many a passenger with the manner of my passing on two-lane highways, but never had any real problems, unless someone didn’t want to be passed.
“but atleast in a civic nobody even looks at you or cares, in a smart they are always looking at you and laughing at you not because of the car its because they know your not really that smart and made the worst choice ever.”
Only people that _know cars_. To the casual person they probably have no idea the power, safety and mpg is nowhere near it needs to be to justify the lack of utility from a normal sized car.
Yeah you can park in smaller spots..that gets old real quick when you’re in an unsafe, slow car with crappy MPG.
Oh and FWIW the pizza delivery guy in West Lakeview drives a newer model white Acura TL. That’s not even the entry model Acura.
“4 bangers own, unless you’re pulling tree stumps. You can get upwards of 300hp from factory turbo 4s, that’s plenty for grocery gettin…”
Those are boxer engines not I4s. And one of them is a station wagon. And have fun shifting in Chicago traffic on the Kennedy/Eisenhower/Ryan to and from your commute.
“Oh and FWIW the pizza delivery guy in West Lakeview drives a newer model white Acura TL. That’s not even the entry model Acura.”
Last week I saw a delivery guy at my building driving a newer (2-3 year old at max) Audi! Are these guys making more money than I thought, or just a classic case of someone financing a purchase beyond their means…
“Clio is a troll”
Do trolls drive Lamborghinis? I think not…… Jealousy is a dangerous thing, Bob. do go down that road.
My initial comments were just meant to emphasize that there are a lot of people who have big mouths/opinions, etc. but very very few people who actually go out there and do something – it is these people who actually have the guts to go out on a limb and do something that are the ones that get rewarded (and then get insulted by the losers who just sit around on their computer whining about this and complaining about this).
Ron Ruby,
Thanks for your comments….very appropiate and civil. As I said in my initial post, I like the location! I just happened to walk past it and thought ‘this could be a good spot for us’. We are tickled pink to be moving back…so we are easy to please and not coming from a negative place. That being said…it seems overpriced.
This article is like a time warp to 2008. Ridiculous asking prices with a “free car” what a joke! These places are all overpriced by at least $100,000 and the (very slow) sales pace confirms this.
In full disclosure I own a building in the unit. I purchased my unit in cash in December of 2008 when it looked like the world was going to fall apart. Overall, I feel like I got a fair deal from the developer. Currently my unit is renting and yiedling around 7% after assesments and taxes. I will take that yield any day of the week.
From a style perspective some people love it, some don’t. For those that don’t I really don’t care. All I know is that when I went to rent the place, I had 10 qualifed renters in a two week time period. Of those 10 it was a mix of business people, couples, single men, and europeans. Additionally, I had three people willing to sign 2 year leases.
So say what you want about the building and the prices, but from experience I know that a) there is demand for it and b) it is priced pretty fairly based purerly on an ROI standpoint. If somebody wants to argue about numbers be my guest, but facts are facts. In the event I rent this unit for 10 years, I will have re-couped my entire cash outlay and still have the unit. Where will real estate prices be in 10 years, you don’t know and I don’t know. 10 years ago we were in a bit of trouble as well. In this case I have inflation on my side, not to mention location. Is this the prettiest location? No. However, it is a block off Michigan Avenue, three blocks from the hospital and three block from the Lake. I dont’t care what you “chicagoans” think but for those moving into the city from out of town, this location carries cache. Additionally, if you truly think that parking garage will be around forever, don’t be mistaken.
It is easy to have a short-term view on things, but this building will still be here 20 years from now. Even if my condo is worth zero, I will have made two times more off rent alone than what the condo was valued at. Oh and I am not taking into consideration any inflation.
For anybody in the market waiting for another 30-40% correction, I think you are in for a pretty harsh reality. You are going to wake up one day and interest rates are going to be 6%, then 7%, then 8%, then 9% and you are going to have to put 20% down. You could argue this is going to hurt prices, but people simply are not going to move out of there houses when this happens. Why? Because they will have bought a house in 2006, 2007, 2008 and still be under water, but worse than that even if they sell there house, they won’t be able to afford to buy another one because a) they won’t have the cash for a down payment and b) even if they have the cash they probably won’t be able to make the mortgage payment.
The option for those of you not buying is to rent, but how long will that party go on? You have no projects being built and supply will probably deterioate at around the same time the economy truly improves. There will be a supply squeeze and rents in Chicago will jump significantly. Couple that with any sort of inflation and I really feel really good about owning this place or any other place.
“Only people that _know cars_. To the casual person they probably have no idea the power, safety and mpg is nowhere near it needs to be to justify the lack of utility from a normal sized ca”
very good point bob. most people just see a small car an assume its buyer bought it because of the superior MPG it must have.
“Your “don’t look at me, but please steal my car” 2012 Civic is standard manual in the lower two models: ”
good catch anon, honda civic/accord, toyota camary, integra, top stolen cars.
i read its the common parts used over all year models that make it attractive.
“but you’re talking to someone who never owned a car with more than 2 seats and who has a bad habit of cruising at highway speeds in 3rd gear. The noise is music to my ears.”
ahhh to be young without kids, but 3 gear in a tunnel is some beautiful music. when i had my jag i would get a woody evey time i saw a tunnel. (who cares if it was artificial sound)
“For anybody in the market waiting for another 30-40% correction, I think you are in for a pretty harsh reality. You are going to wake up one day and interest rates are going to be 6%, then 7%, then 8%, then 9% and you are going to have to put 20% down.”:
Wow- really? Who will be buying then?
Um…no one.
There is a bill before committee in Congress today talking about raising the FHA downpayment to 5% from 3.5% and they’re worried that no one will have THAT amount. 20%? Forget it. It’ll take a DINK 5 to 7 years to save that amount (if they can even save it.)
What happens to all those who have to sell for various reasons (new job, divorce, death)?
They’ll sell for far less than previously.
And as far as rents jumping- they are building thousands of new apartments in the GZ right now. And most condo buildings who haven’t sold out yet are being rented. I don’t see the problem with supply and demand.
Sabrina – Fine points. But really are you saying that prices in the Gold Coast, Streeterville, Lincoln Park, anywhere, should come down another 30-40%? Really? 180 to 210 for a 1 bedroom at 550 NSC? Please. If they dropped prices at 550 NSC 30-40% today, every place would be gone tommorow. The Chineese will flock to it. Dropping places 30-40% would provide yields of over 10% for a cash buyer. That will simply NOT happen. You don’t think HNWI and Funds have tried to go buy out the remaining units in buildings such as these asking for a 30-40% discount?
I don’t disagree that 30-40% discounts are out there, but that is on properties that already asking inflated pricing or are in distress (as you pointed out, moving, divorce, death) and even in those situations, those people don’t have the equity in there home to reduce the price of the property 30-40% and we have all seen how well short sales are going.
Ron let me ask you a question, hypothetically how much would you discount your remaining units, if a cash buyer came tommorow and offered to buy the entire inventory?
Everybody on this board wants something for free. There is no free lunch people. 550 NSC could slash prices on these condos by 50% tommorow and not one person here would step and buy because the majority of you simply aren’t doers.
oh please sabrina, the current FHA required DP of 3.5% is actually 5% when you factor in the up front PMI you have to pay. i don’t think its a big deal, and is probably being proposed to scoot around the upfront PMI needed (which is tax deductable btw)
“550 NSC could slash prices on these condos by 50% tommorow and not one person here would step and buy because the majority of you simply aren’t doers.”
When did clio buy a unit in 550?
Some thoughtful comments on here but also some really ignorant trolls who are making some really uninformed statements. I think a good rule of thumb in determining prices is what shiphouse mentioned about ROI. We are at a point now where rents are higher than mortgage payments would be. And there are always the tax benefits to consider on top of that. Another clue about the fact that we’ve reached the “bottom” on prices is the fact that it now would cost more to construct most of these new condos than they are currently selling for. At the peak of the market I recall simply not being able to purchase any home that offered an immediate monthly ROI. Everybody was betting on making money from the appreciation. Now you can buy condos and rent them and make a respectable 5%-10% easily. AND you WILL benefit from appreciation eventually.
“the fact that it now would cost more to construct most of these new condos than they are currently selling for”
Cite, please.
“the fact that it now would cost more to construct most of these new condos than they are currently selling for”
Anon – I don’t have the time to do a research report for you right now, but I am in agreement with Chicago. You cannot currently build a place right now for what you could back in 2006 when they started building this building. Lets not forget it takes more than a week to put together plans to construct a building like this. They probably started designing this place in 2004 and securing the building materials in 2005 when commodity prices were 50% of what they are now. The cost alone to transport the materials to the building site is more than double than what it was when they were building.
Also I bought when there was blood in the street, late 2008, the day after it looked like both Morgan Stanley and Goldman Sachs were going to go out of business but didn’t.
Sabrina – Back to you, thousands of apartments? When are these scheduled to come online? As far as my understanding goes most of these projects were delayed/shut down. You probably know better than me, so please enlighten me. Regardless, any building being built as an “apartment” is not going to compare to the quality you get from 550 NSC.
I would really love to hear from some of the bashers on the board. Where are you guys? Experts, geez. Please let me know when you are buying because perhaps thats when I will think about selling a few properties.
“I don’t have the time to do a research report for you right now, but I am in agreement with Chicago”
If it’s a “fact”–that can be so nakedly asserted–it shouldn’t require a research report.
Do the 1 brs really rent for ~$3000+/mo?
Is $10k/mo realistic for a 3br?
$4k/mo for 2 brs?
~$1800 for a studio, with parking?
“Sabrina – Back to you, thousands of apartments? When are these scheduled to come online? As far as my understanding goes most of these projects were delayed/shut down. You probably know better than me, so please enlighten me.”
here’s a link from yo mentioning the crains artlice citing 9 new rental buildings either under construction or seeking financing. i think there may be a couple others too not mentioned.
http://yochicago.com/crains-nine-new-rental-towers-in-the-pipeline/19252/
“Now you can buy condos and rent them and make a respectable 5%-10% easily. AND you WILL benefit from appreciation eventually.”
10% easy in a non ghetto building? Wanna share some real world examples and break down your math?
Anon – no those prices aren’t right. I said my roi is currently 6 percent. You have things priced at 10 percent. If I referenced 10 earlier it only saying that’s what u coulkd achieve if u drop prices 40 percens
shiphouse: “I said my roi is currently 6 percent.”
shiphouse at 4:01am: “Currently my unit is renting and yiedling around 7% after assesments and taxes.”
Which is it?
I used 7, based on currently listed units, at asking price (not a blended number, just a sample unit of each size). I can’t assume that anyone would be able to actually purchase at the same price you did–perhaps higher, perhaps lower–even if I knew what you paid.
To be clear, I’m not in the “heading to 1994 prices” camp.
Anon – I am on a blakberry, I am not taking the time to scroll up to tie my post verbatim, 6 or 7 is mincing it a bit, no?it is between 6. And 7 if u calculate the tax benefit from writing off taxes paid. The point is, there is an inherehent value in these places at this price which is in the range of what I paid. It is unreasonable to think they should drop much more umless rents collapse
“6 or 7 is mincing it a bit, no?”
Sure, but my calcs don’t represent 10%, either, and make no accommodation for any deductions/depreciation.
The 1 cap difference is about $400-500/month difference on the 1 and 2 br rents. Under $1000 on the 3 and under $200 on the studio.
btw, $1600 for the studio, with parking, seems totally appropriate to me.
“It is unreasonable to think they should drop much more umless rents collapse”
It is also unreasonable to think that there is an unlimited supply of people who are (currently) interested in investing in real estate via individual condo units held for rent. This is good for those of you (like you) who *are* interested in it, so long as the owners in the association don’t decide to cap or ban rentals (cutting their nose in the process).
Who is renting the 3+ brs for $9k+/month?
“6 or 7 is mincing it a bit, no?”
No, that’s a big difference. Honestly unless you tell us what tier you bought at what price and what rent you’re getting we’re just gonna call bullshit. Amateur landlords are notoriously awful at math…
These units simply are not selling at current asking prices. It appears that the developer still has over 40 units unsold out of 112 available originally. Here are the 5 closings I have in the past year with a little history for each:
1306/p86 closed 3/26/11 $275,000 short sale
1306/p86 foreclosure filed 7/1/10 by GMAC Mortgage
1306/p86 closed 2/7/08 $398,000 from developer
1306/p86 mortgage MERS $378,100
2403/p81/p82 closed 11/11/10 $1,225,000 from developer
2403/p81/p82 mortgage MERS $775,000
1902/p20 closed 10/28/10 $360,000 from developer
1902/p20 mortgage Wells Fargo $270,000
2201/p42/p43 closed 8/25/10 $870,000 cash by Chicago NBC Tower LP
2201/p42/p43 closed 4/21/08 $1,088,500 from developer
2201/p42/p43 mortgage Northern Trust $816,375
1403/no pkg closed 7/2/10 $210,000 cash from developer
There are 3 pending sales in the mls. However, 2302 & 2401 have been pending since spring 2008 – maybe Ron can clarify those? Here’s the one pending resale:
1505/p61 listed 2/18/11 $439,900 reduced $409,000 contract 4/25/11
1505/p61 closed 3/5/08 $505,500 from developer
1505/p61 mortgage MERS $395,600
Here’s a unit with a foreclosure filed:
1507/p111 foreclosure filed 7/1/10 by GMAC Mortgage
1507/p111 foreclosure filed 1/5/10 by GMAC Mortgage
1507/p111 closed 3/11/08 $375,000 from developer
1507/p111 mortgage MERS $337,320
The lack of appropriate price reductions will keep this building from stabilizing for a loooooooooooong time. It sure does appear that the developer has well over a decade’s worth of inventory at their last year’s pace of sales. Maybe Ron can clarify how many developer units are (or have been) rented? No premium for that new condo smell on those units. The only resales moving are at large losses. There are many underwater owners.
No bottom in sight for this building.
My comment on rents and ROI does not apply to every building or area. If you buy a gold coast condo, obviously your rents are likely to be lower than a mortgage payment but you have much more upside potential. Other areas that are NOT ghetto, are definitely renting for more than a mortgage payment. For example: Hyde Park/Kenwood/Oakland. You can buy a 2 or 3 bedroom condo for $90K in a decent area. Rent it for $1400-1600/month and you are positive a few hundred a month after assessments. That condo might be worth $140K in a few years but a Gold Coast Condos have more upside potential and ROI is realized when sold. The point is that rents in many neighborhoods are very close to what it costs to own now and that is positive news.
Here’s what I have for rentals (unit/rented date/rent):
studios
1103 4/4/2011 $1,260
1103 4/17/2008 $1,300
2102 7/6/2010 $1,300
2102 8/11/2008 $1,450
1307 12/8/2009 $1,300
1307 6/1/2008 $1,650
1207 2/27/2008 $1,650
1BR
1802 4/18/2010 $2,100
1402 7/25/2008 $2,000
902 6/19/2008 $1,800
1805 4/29/2011 $2,400
1705 2/24/2010 $2,700
1705 5/24/2009 $2,700
1805 2/8/2009 $2,350
1306 4/23/2011 $1,900
1606 6/28/2010 $1,850
1006 2/24/2010 $1,850
906 1/26/2009 $1,800
1606 1/26/2009 $1,900
1206 6/8/2008 $2,200
1606 4/28/2008 $2,100
1406 3/19/2008 $2,050
2BR
1601 5/5/2010 $2,550
2601 1/31/2010 $5,500
1601 9/8/2008 $2,650
1904 3/18/2011 $2,600
1204 11/24/2009 $2,400
1404 7/2/2008 $3,000
1405 7/30/2009 $2,225
1605 4/21/2008 $2,250
1405 4/8/2008 $2,745
3BR
2602 7/11/2009 $5,800
2003 5/18/2011 $3,750
2603 5/12/2011 $5,500
1108 4/22/2011 $3,900
1508 4/21/2010 $3,395
1508 4/26/2008 $3,495
gold coast condos have lower cap rates because (usually) tenants that are wealthier and more upscale will take better care of the property… you seriously don’t think that risk and tenant quality makes a bit of difference?
“Here’s what I have for rentals”
Those 3 brs aren’t 6 caps even *before* assessments and taxes, are they?
“Hyde Park/Kenwood/Oakland. You can buy a 2 or 3 bedroom condo for $90K in a decent area.”
So your comments had nothing to do with the type of building and location discussed in this thread. No one is denying that you can buy shitholes with cash and rent them at a decent profit.
I saw 2BRs in the building myself, if they don’t lose their value, I don’t know what will. They are an acquired taste and might work ok for a young couple or a single person wanting something a bit more modern, but this building neither has amazing location, nor views, nor amenities so don’t delude yourselves thinking it will keep it’s 08 prices.
As for inventory down town, even prime buildings like Aqua, Legacy, Park Monroe,…are having a a hard time selling. SL is full of inventory too. MP West is practically empty. I went for a walk last night and checked the lights in some of these building, I bet most of them are not even 60% sold despite what the developers are saying.
STOP IT ALREADY! You guys need to stop it with all the facts and data! it is giving us nothing but the actual truth and there is no place for that kind of crap here!
“I bet most of them are not even 60% sold despite what the developers are saying”
Might be 60%+ sold, but half the buyers are holding them unoccupied.
Also, to be fair, you’d need to check them out on a Friday or Saturday, preferably on a long weekend, when they are more likely to be used by those owning them as city homes. Monday night *might* be the least likely night of use for that purpose.
Are you a land baron too? You might want to rethink that upside potential for a unit that sells for $90,000 today…
“Hyde Park/Kenwood/Oakland. You can buy a 2 or 3 bedroom condo for $90K in a decent area. Rent it for $1400-1600/month and you are positive a few hundred a month after assessments. That condo might be worth $140K in a few years “
“Those 3 brs aren’t 6 caps even *before* assessments and taxes, are they?”
Let’s not forget repairs and vacancies, too (I’m sure you haven’t anon.)
1108/p38 closed 2/7/08 $735,500 (6.4% cap *before* anything)
1508/p65 closed 3/5/08 $766,500 (5.3%)
2003/p96 closed 4/16/08 $900,000 (5.0%)
The public records imply that PINs have only been created to date for all the parking spots and units thru floor 21 only. Other sources indicate that 2602 & 2603 might still be held by the developer.
G: “Let’s not forget repairs and vacancies, too”
I think it’s safe to ignore them for CC discussion purposes, just as it’s safe to ignore depreciation tax-effects (tho mentioning their existence is still a good thing). Roll all that into the P&L at sale. Avoids arguing about harder to define costs.
Any interest in the 2000/2100 Howe “why the low AV” question from Friday? Understand if not.
“I think it’s safe to ignore them for CC discussion purposes”
Agreed. I just like to raise them since most of the condovestors seem to ignore them but not depreciation-tax effects, interstingly enough.
I forgot about that howe question. I will try to take a look at it later.
a ‘fact’ we have hit bottom… New build costs. – Ze giggling –
More wildings and muggings. Ahh Chicago in the summer, with its opulent neighborhoods like this and mass transit providing all too easy access for simian offenders:
http://www.chicagobreakingnews.com/news/local/chibrknews-northwestern-chicago-police-warn-about-mob-action-attacks-20110604,0,5088461.story
It pays to be a little ways away from major el line stops. At least all except the brown line N of Belmont & S of Kimball.