5 Years Later, Owners in 340 On The Park Continue To Cash In: 340 E. Randolph In Lakeshore East

5 years ago, the new high rise 340 On The Park at 340 E. Randolph in Lakeshore East was just beginning to close on units.

There were flips appearing on the market (remember those?) and more than a dozen of the units were listed as rentals.

See our September 4, 2007 chatter here.

The south facing units with views of Millennium Park and the lake were hot out of the gate, despite all of the interiors being essentially the same (the same kitchen/baths were put in most of the units.)

5 years later, the south facing units continue to sell like hotcakes and for a premium.

This 43rd floor 2/2 came on the market less than 2 months ago and is already under contract.

It has just 1567 square feet.

At the current list price of $1.149 million, that is $733 a square foot. (Remember, since 2008, the Park Tower at 800 N. Michigan has averaged the highest per square foot price in the city at $760 a square foot.)

The listing says it is the highest floor with this floorplan.

The kitchen has Snaidero cabinets and quartz counter tops.

There are bamboo floors.

The HOAs are a bit confusing. It lists $618 a month but also says there is a “masters association fee” that is $1238 a month. The other units on the market in the building seem to have the lower amount monthly payment however.

This unit is listed for $310,000 more than the 2007 purchase price (including the parking).

The south facing units in this building HAVE been making a profit (and quite a bit of it.)

Will this building see even more appreciation as the housing market improves?

How many people thought five years ago that this building would be one of the premier buildings in the city and would command top prices?

Walter Stunard at Prudential Rubloff has the listing. See the pictures here.

Unit #4303: 2 bedrooms, 2 baths, 1567 square feet, south facing

  • Sold in December 2007 for $889,000 (included the parking)
  • Lis pendens foreclosure filed in June 2012
  • Originally listed in July 2012 for $1.149 million
  • Under contract at $1.149 million (plus $50,000 for parking)
  • Assessments of $618 a month
  • Also has a “master association fee” of $1238 a month (includes heat, a/c, doorman, pool, cable, exercise facility, winter garden) ????
  • Taxes of $5875
  • Central Air
  • Washer/Dryer in the unit
  • Bedroom #1: 13×13
  • Bedroom #2: 10×13

 

45 Responses to “5 Years Later, Owners in 340 On The Park Continue To Cash In: 340 E. Randolph In Lakeshore East”

  1. $733 PSF without any staging?

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  2. “$733 PSF without any staging?”

    Waht’s the psf value of staging? $3? $30? $100??

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  3. The unit itself seems small and somewhat pedestrian, but that’s a world-class view.

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  4. I didn’t express myself very well. It looks like a college dorm from the listing pictures, yet it still went for $733 PSF. That astounds me.

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  5. The profile photo of the realtors is excellent.

    “I didn’t express myself very well.”

    Seems like @fo did not express himself v well either.

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  6. I hope the person actually had a head board and bed frame for that bed, but yes, world class views.

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  7. Mary said “..yet it still went for $733 PSF.” It is under contract – no one will know what price (or price per foot) it is worth until and if a sale closes. Realistic owners funding a foreclosure defense are more likely to be flexible in response to real offers. While I do not know anything about the circumstances of this owner nor do I know what fair market value might be based on recent transactions , it would not surprise me if this unit is under contract for much less than asking price.

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  8. too much track-lighting for that price psf.

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  9. “it would not surprise me if this unit is under contract for much less than asking price.”

    I’d venture in the low to mid $800’s, with parking.

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  10. I’m guessing the Master association fee is for all of Lakeshore East and the other HOA is just for the building. I’m assuming the Master fee covers things like maintaining the park (and it’s WiFi) and things like plowing in the winter. I’d be interested to hear what all that $1238/mo covers as there are 1,000’s of people in that development that would have to be generating millions of dollars per year in fees.

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  11. I live in the building (albeit on the north side). The $1238 does sound like the Lakeshore East special tax assessment that we have to pay, but it would be $1238 per year, not monthly.

    To those doubting this well sell near asking price, check the recent comps. Especially on the south side units have been selling for ~95% of asking–and quickly.

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  12. Lakeshore East is in a special service area. There is a 30 year bond on the property that ends in 2032. The fee is considered an overlay tax and is payable to the City of Chicago. It covers the initial expenses to complete the infrastructure needed to develop the neighbor including the sewer systems, water systems, sidewalks, streetlights etc. It does not cover the park or any maintenance. All of the building associations pay a yearly fee to the master association for the park maintenance.

    The buildings in the special service area include the lancaster, regatta, chandler and 340 on the park. Aqua is not subject to the overlay tax because the building connected to the existing systems from Illinois Center. The future proposed buildings will also be subject to the overlay tax.

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  13. Notice, the earlier pics have snow on the ground. Wonder why those pics were taken in the winter and the later ones in the summer.

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  14. If you don’t believe $733/sf for this unit, then you don’t know this neighborhood or this exposure. South facing units in 340 (and 360 and 400, which are a bit closer to the lake) have always and will always sell quickly, often for cash, at near-asking prices. No matter the “staging”.

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  15. “I’d venture in the low to mid $800?s, with parking.”

    If anonny is right and this closes below the initial sale price, would that be a first among the south-facing, 2+ bed, units?

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  16. These are the last four units that closed in the building with the unobstructed South Exposure.

    5702 closed 4-2-12 $2,600,000 including 3 parking spaces 2748 s.f. $946 s.f. market time 6 days
    4603 closed 4-30-12 $2,325,000 including 2 parking spaces 2750 s.f. $845 s.f. market time 1 day
    5301 closed 7-23-12 $2,100,000 including 2 parking spaces 2371 s.f. $885 s.f. market time 29 days
    1703 closed 7-19-12 $980,000 including 1 parking space 1567 s.f. $625 s.f. market time 7 days

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  17. those are some spectacular views.
    sub-par (for this price) finishes IMHO – is that 40 feet of Developer Grade Light Track??
    let’s see what they get once it actually closes though ——

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  18. Maybe I’m just paranoid but I don’t trust new contrstuction, even if it is high end. I cannot imagine how many developers cut corners bc banks were approving all construction loans. If I had that kind of money to splurge on a view, I’d do my homework and go with an older building like 1212 N Lake Shore or something else that seems sturdy and well built.

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  19. I’m not surprised units in this building, especially with this view have appreciated in value. It is an in-demand building and those views are amazing. Still, it is a little stunning to think over $1M for a mediocre sized 2/2.

    I wouldn’t be overly surprised if the sale price is a fair amount under list price as the sellers do have a pending foreclosure filed but it seems doubtful that they’d have to take an offer under $1M with other recent sales….

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  20. Interesting how badly One/Two Museum Park are doing relative to 340

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  21. Why is it that One/Two Museum Park are not at that premium?

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  22. “Why is it that One/Two Museum Park are not at that premium?”

    Different location and different views. At 340 OTP you are looking out over Millennium Park (can actually hear the music all summer.) At One/Two Museum Park you look at the railroad tracks. They haven’t built over them on the south side of Grant Park.

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  23. “Why is it that One/Two Museum Park are not at that premium?”

    And it’s closer to the restarutants/shopping or River North and N. Mich ave.

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  24. I just don’t get how prices here are still going up like this, I mean the views are spectacular but come on, this looks as vanilla a 2/2 as you can get… maybe its New Yawkers that can’t live on central park buying something like this, I don’t know…

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  25. Is there any chance whether this place or others that its the banks or some phantom buys to make the stats look better?

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  26. The main difference between 340 and Museum Park is that the location of the latter kind of blows. Nothing to do there really; even the musuems are a 15-minute walk, across busy streets, with awkward infrastructure (eg railroad tracks). Plus public transport from there to the loop, river north, etc. is suprisingly lacking.

    340 is sandwiched between Millenium/Grant Parks to the South and a fantastic neighborhood park to the North. It’s an 8-minute walk to the Loop, 15-minute walk to N. Michigan Ave., and shares a building with possibly the best all-around grocery store in the city (Mariano’s). No comparison.

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  27. “[340 OTP is a] 15-minute walk to N. Michigan Ave]”

    I miss miumiu.

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  28. “I miss miumiu.”

    If the men on here didn’t chase away all the women posters with their testosterone and attacks- then you wouldn’t have to be missing anyone. Maybe now some of you are realizing it’s kind of boring for men to talk only with men all the time.

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  29. “If the men on here didn’t chase away all the women posters with their testosterone and attacks- then you wouldn’t have to be missing anyone. Maybe now some of you are realizing it’s kind of boring for men to talk only with men all the time.”

    1. Didnt you hear that I’m a 50-something woman?
    2. Did Kenworthy actually get chased away? Thought she just stopped bc she moved to ChamBana.
    3. Heitman was actually a woman?

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  30. The big difference in pricing between One Museum Park & 340 on the Park is 340 was completed in 2007 & OMP was completed in 2010, well after the RE crash. This allowed 340 to be substantially sold before things got horrible, but left OMP with many unsold units to this day. OMP West, completed in late 2010, I believe, is largely unsold so buyers have been averse to buying in the building with so few sold. Also, because OMP was completed so late in comparison to 340, there were/are many more unsold units available in that location. There is greater demand when there are that many less units available in a certain location.

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  31. 1. Didnt you hear that I’m a 50-something woman?
    2. Did Kenworthy actually get chased away? Thought she just stopped bc she moved to ChamBana.
    3. Heitman was actually a woman?
    4. Westloop was a woman (or Ze, havent figured it out)
    5. Juliana didnt leave because she is a woman its because she lives in naperville and thats funny with or without testosterone
    6. jenny is still here in all here tortoise glory
    7. Milkster is still posting but given she isnt looking in chicago and wont answer my pervy emails.
    8. G is transgender does that count?
    9. ChitownGal post still, you just have to wait till a post gets about 2 weeks old and she will post on it
    10. Ginger is new and seems to be a realtor and she posts here
    11. HD is a woman on a tecnicality as his wife took his ballz away.
    12. Boiztown when going all flamey can qualify as a woman too
    13. and MiuMui didnt leave because she was a woman its because having a new born takes up free time and she went all snooty and got called out on it. she probably decided that she can either post or take a nap. she choose nap

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  32. “I miss miumiu.”

    And remember how she loved OMP…

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  33. “And remember how she loved OMP”

    IIRC she like 340 better but like me for the ppsf would rather take OMP

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  34. “And remember how she loved OMP…”

    But of course. In no small part as it was located an easy 15 minute walk from Mag Mile destinations.

    “IIRC she like 340 better”

    I don’t think so; I think she preferred SLoop for ease of access to whatever college burg (S.Bend? ChamBana? Wheaton?) it is that they spend weekdays in.

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  35. “I don’t think so; I think she preferred SLoop for ease of access to whatever college burg”

    well that was part of *her reason for wanting OMP or sloop but i remember a convo that she said 340 OTP was nicer and all around better but for *her the price and location liked OMP

    again going off brain cells that dont work like they used to so i might be off. that fact you pick up on her husband being a professor then you might be right

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  36. On the topic of regular poster diversity; I think it would be interesting to have an appraiser in the mix. There are already several lawyers, real estate agents, and finance professionals. It would be interesting to hear what a professional appraiser would use as comps for many of the properties the chatterati have strong opinions about price-wise. Although, I can see how this could also be considered a conflict of interest.

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  37. “I think it would be interesting to have an appraiser in the mix”

    Is what an appraiser has to say interesting or useful in any way other than knowing what other appraisers might say? If we were adding people, I would take a home inspector or GC well before an appraiser.

    And speaking of the relatively recently departed, when’s Ze coming back?

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  38. “…Is what an appraiser has to say interesting…?”
    In general no. In my opinion most appraisers approach real estate in the same manner I would drive if I could only view the road thru my rear view mirrors.

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  39. “Is what an appraiser has to say interesting or useful in any way other than knowing what other appraisers might say? If we were adding people, I would take a home inspector or GC well before an appraiser.”

    I would think a home inspector or GC would be somewhat limited in what they add since those are fairly hands-on professions. Its awfully difficult to judge the state of a furnace over the internet. In terms of “What would it cost to add a second bathroom to this 4 bed home” I can see how a GC could provide insight.

    Are real estate appraisals really *that* subjective? I would think that its a profession that could be relatively easily replaced by an objective computer algorithm. Hell, if Zillow released what it used as comps you’d be most of the way there. (this is not in any way meant to be an endorsement of Zillow, just using them as an example)

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  40. Fred:
    Imo for the foreseeable future there will be no substitute for human decision making. I believe there are infinite variations of 1200 sq foot of 2br / 2ba condos located within 2600 feet of Diversey and Sheffield. I can’t imagine an algorithm that could account for such variables as precise neighborhood location/ attractiveness; quality of construction; quality of existing neighbors & financial condition of condo association and a host of other determinants that impact on the amount of money purchasers on average are willing to pay for a specific unit in that zone.

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  41. “I would think a home inspector or GC would be somewhat limited in what they add since those are fairly hands-on professions. Its awfully difficult to judge the state of a furnace over the internet. In terms of “What would it cost to add a second bathroom to this 4 bed home” I can see how a GC could provide insight.”

    A GC could contribute a lot of useful info. We are always debating how much it would cost to do this or that. I realize it can depend significantly on stuff you can only tell onsite, but none of us know that in general. Home inspector maybe less useful but still useful, especially about specific issues that come up, which again we are generally all speculating about.

    “Are real estate appraisals really *that* subjective? I would think that its a profession that could be relatively easily replaced by an objective computer algorithm. Hell, if Zillow released what it used as comps you’d be most of the way there.”

    What little I’m aware of suggests they’re not subjective (or at least detailed) enough. They are trying to apply broad rules to often idiosyncratic situations. Do you think Zillow is accurate for valuing a specific property? Good enough computer algos might work sure, but I don’t think they (or the requisite databases) exist yet.

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  42. Closed today for $1,000,000

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  43. Thanks for the update Ginger.

    Who pays the back assessments in a case like this? Was the seller paying them still even though the bank had filed a lis pendens foreclosure? Or does that come out of the sales price (if they weren’t paying them.)

    This is the first case that I have seen where the bank had filed a lis pendens foreclosure and the seller actually got out of the property with MORE than they owed on it (i.e. they could pay off the bank and walk away.)

    That is very, very rare in Chicago. I haven’t even seen this happening in the Palmolive and other high end buildings.

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  44. And speaking of the relatively recently departed, when’s Ze coming back?

    My money says that Ze lost Internet access temporarily while he serves time on a minor possession charge. he will be back soon. That or he got slapped in the head by his board while riding on a big wave and is out for a few weeks.

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  45. “Are real estate appraisals really *that* subjective? I would think that its a profession that could be relatively easily replaced by an objective computer algorithm. Hell, if Zillow released what it used as comps you’d be most of the way there”

    Zillow comps are often way way off. It will always be somewhat subjective as someone has to place a value on the current condition, style of the finishes, astethic appearance, cleanliness, and any if there is any deferred maintenence. Those can all be factors that change the value substantially.

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