A Renovated 2/2 With Views Of the Lake and Harbor: 505 N. Lake Shore Drive In Streeterville
This 2-bedroom at Lake Point Tower at 505 N. Lake Shore Drive in Streeterville recently came on the market.
This is the building that many kids dream of living in someday as they drive past on their way to museums or Navy Pier.
Built in 1968, the 720 unit building has unobstructed city, lake and harbor views that stretch for miles.
But many of the units show their age.
The listing for this 2-bedroom says it has had a “stunning renovation.”
It now has porcelain slate tile floors throughout – even in the bedrooms.
The kitchen has cherry cabinets, stainless steel appliances and quartz and granite counter tops.
The corner unit has a lot of windows but it also has motorized window treatments.
There is no central air but there is air conditioning through the wall units.
The unit also has an in-unit washer/dryer and parking is available for $85,000.
Lake Point Tower is a full service building with a doorman, a pool and an exercise room.
Will it take long to sell this move-in ready unit?
Bernadette Carter at Coldwell Banker has the listing. See the pictures here.
Unit #2407: 2 bedrooms, 2 baths, 1450 square feet
- Sold in July 1989 for $251,500
- Currently listed at $689,000 (parking is $85,000 extra)
- Assessments of $895 a month (includes doorman, cable, pool)
- Taxes of $7756
- No central air- wall units only
- In-unit washer/dryer
- Bedroom #1: 20×11
- Bedroom #2: 14×11
What exactly constitutes a corner unit in this building?
I won’t even comment on those floors…
“What exactly constitutes a corner unit in this building? ”
Most of them, but there are units that are entirely in the space ‘between’ the lobes, and so (1) have a view in a single direction, and (2) can (kinda) be seen into from the neighbors in the lobes, if blinds are open.
“Porcelain Slate Tile Throughout”
so is it porcelain or slate? i’m guessing it’s porcelain to look like slate. either way, it’s terrible.
Needs more tile
There is a sister building to this one. What is it the address on that one?
hashtag: tile fetish
“There is a sister building to this one. What is it the address on that one?”
You’re probably think of Harbor Point tower at 155 N Harbor Dr Chicago, IL 60601
Otherwise known as Fake Point Tower.
I wonder why there weren’t more larger 2BDs like this one built across the city. It’s much easier to stay in 1450 sq ft for a few years, than 900-1100. Are the larger units not in demand as much?
“I wonder why there weren’t more larger 2BDs like this one built across the city. … Are the larger units not in demand as much?”
Developers want to make the most $$ possible?
Is there as much demand for 2br at $X or at $1.3-1.6X? If the ‘typical’ 1000 sf 2bed was $250-350k, how much harder would it be to sell similar, bigger, places for $400-550k? And then, the expectation would be for higher quality finishes, and more building amenities, so then you starting talking about $475-700k.
Developers want to make money as quickly as possible so they design differentiated units to appeal to multiple discrete market segments so that units get absorbed asap. I heard Fifield speak yesterday about about same approach to designing units in K2 at Kinzie & Milwaukee, his newest apt buildng. He said he provided one bedroom apts. ranging from 600 to 840 sq ft, renting between $1800-$2400/mo. He also discussed future rent for new apartments downtown – after comparing today’s $3+ psf to NYC @ $6 psf or LA/Santa Monica @ $4-$5 psf. Fifield and other’s opinion is rent for new apts in downtown will hit $4 psf but not for 8-10 years, given they project rent to rise about 3%/yr vs 8-9%/yr in recent years.
It’s all on a giant Excel spreadsheet. The analyst can change any of the assumptions with the press of a button: When you change the unit mix, it changes the Sales proceeds and the cost assumption. There are assumptions for monthly lease up to stabilization, etc. It’s all guesswork and sometimes the deals perform close to the proforma (given to the construction lender), but the majority of deals underperform the spreadsheets.
I’ve never really understood the appeal of this building. It’s a nice unit to be sure, but who wants to live next to Navy Pier and wade through tourists all day? All for the low-low price (depending on a number of factors of course) of like $4500/month for the pleasure of doing so. Pass.
Underperform proforma.. Never seen it any other way…
I don’t hate the tile as much as I thought based on the comments. Seems to have that vintage 60’s feel. Kitchen is nice but goes in a different direction. Are those views from the unit? Great fireworks shows all summer. Dinn parties twice a week.
“What exactly constitutes a corner unit in this building? ”
Original tier guide for floors 24-51…
http://www.lakepointtower.org/document_view.asp?id=698
@anon. Makes sense. I guess I am looking more at current market conditions. Since its not as easy to switch in and out of condos, making enough profit each time to cover realtor commision and closing costs, seems like a “jumbo” 2 BD would be worth the extra $ bc you can grow into the unit. No need to move out just becaus Jr, a dog, or a 27″ I-Mac needs his own space. Obviously much easier for people who can afford the premium those larger units cost.
this building always reminds me of this for some reason
https://www.youtube.com/watch?v=OmnEbbFxFb8
They should have listed it in the spring or summer (or at least photographed it then). The combination of the tile and the snowy views makes the unit look very cold and sort of barren. The tile itself is not bad.
Windows don’t open
Not bad. Would prefer a higher floor and a north view. Taxes and assessments seem more than fair considering all the amenities here. Wouldn’t want to live in LPT, though. Too isolated from the rest of the city by that ugly LSD overpass.
“The analyst can change any of the assumptions …: When you change the unit mix, it changes the Sales proceeds and the cost assumption. There are assumptions for monthly lease up to stabilization, etc. It’s all guesswork and sometimes the deals perform close to the proforma (given to the construction lender), but the majority of deals underperform”
Yeah that’s how it works if a corporation (or an idiot who is willing to let analysts drive his bus) is the developer. Fifield (w/ his wife) make their own product mix decisions based on years of very successful forecasting. And you and Z are wrong about recent past – apartment rents realized & length of time of absorption along with most important metric, the sale of new downtown apartment product has far far far outperformed developer’s original proformas shared with lenders and potential equity partners.
When you’re running one tile throughout the entire place, putting it in the shower too is a no brainer.
Thanks HH. Why in the world would anyone down rate a response which is an address?
BTW, I’m shocked how relatively low the assessment for such an old building is especially given the pool. Am I missing something?
Couple thangs: No comments on the $85,000 parking space? That would be ~30% higher than any parking space I’ve seen in this town.
Hi Southside, re: Fifield and his comparing Chicago rents to LA and NYC, was he concerned that Chi rents are approaching those two cities, or was he using the comparison to show that Chi rents still have room to increase? Thanks!
“Couple thangs: No comments on the $85,000 parking space? That would be ~30% higher than any parking space I’ve seen in this town.”
This building is also the one with the multi-million dollar parking space/garage……
http://cribchatter.com/?p=16395
The extra ~$35k is just for the honor of being near that garage….
” re: Fifield and his comparing Chicago rents to LA and NYC, was he concerned that Chi rents are approaching those two cities, or was he using the comparison to show that Chi rents still have room to increase? Thanks!”
Fifileld’s opinion is Chi rents have room to increase. Fifield said today given spread in achievable rents, 90% of equity & debt investors favor funding new apartment construction on coasts vs funding construction in secondary markets including Chi. He said rent/ income ratio in Chicago was low and had room to increase while acknowledging only small % of Chicagoans can afford to rent the apartments being constructed downtown. Dave Schwartz, founder of Waterton Residential, owner of older downtown projects like Presidential Towers (30 yr old 2br runs $2.13- $2.59psf; vacancy appears under 1%) said while Waterton’s average tenant spends 25% of income on rent, Chicago renters spend on average 20-22% of income on rent vs 40% in coastal CA and that with continuing trend of job growth downtown, increased demand will support higher rents. No one voiced optimism that the 17 announced downtown apt. complexes will get funded and be built.
“the sale of new downtown apartment product has far far far outperformed developer’s original proformas shared with lenders and potential equity partners.”
Agreed. Some deals work, sometimes. In addition to the 3 L’s, you also need the 3 T’s: timing, timing, timing.
The location of Fifield’s apt towers wasn’t exactly “A”, but damn did they lease up anyway. Good for him, he took the risk and it paid off, plus the condo crash/rental-upswing timing was lucky.
Yes – the price of the parking space seems outrageous.
Good luck finding another place with private parking east of LSD. That’s why it’s outrageous.