Flipper Alert: 30 W Oak is a flippers dream
30 W. Oak on the edge of River North/Gold Coast near the Rush Street restaurant scene was a successful building since inception.
The building has become a favorite of those who like the modern style. The 24 story, 46 unit building has only top of the line finishes including Poggenpohl kitchens. Ceiling heights are 10 feet and there is south facing floor to ceiling glass.
Units sell pretty quickly in the building. For the last several months, there hasn’t been anything on the market in the building.
But after they’ve been flipped a few times, you have to wonder, how much longer does the party last?
We’re about to find out.
A large 2 bedroom unit just came on the market. It’s empty now and the sales information makes you wonder if anyone has ever lived in it.
Unit #4C: 2 bedrooms, 2 baths, study, 2057 square feet
- Sold in November 2006 for $1,009,900
- Sold in May 2007 for $1.115 million
- Currently listed for $1.325 million plus $65k for parking
- Assessments of $1,063 a month
- Listing says it has a 24 x 12 terrace
- Fee Simple Realty, Inc. has the listing
The first flipper didn’t make much. The second flipper is trying to top that and actually make some money.
Will this flipper be left without a chair when the music stops? Stay tuned.
Chances are the first flipper didn’t make anything unlees he/she sold it fsbo. They only sold for $105,000 more than they paid for it and the realtor fees alone would be nearly $60,000! Add the seven months of mortgage payments, assoc fees, closing costs and all the other fees and they most likely lost a few grand.
Why buy this when the townhouse next door is offered at $1.8mm and has 4850 sqr feet + 2 spaces? That’s $644 / sqrft vs. $370 / sqrft. Oh yeah, and the assessments are $200 vs. $1k per month.
I’m guessing the 1st flippers never lived in the unit…
But if they did live in the unit for 7 months and rented (month to month for 9k-15K) they would have lost a lot more than a couple of grand. More like 60-150GRAND…
$1.3M for a 2 bed apartment …er condo ??? C-R-A-Z-Y! Don’t people know that they can buy or rent a car and drive to Chicago to visit? Is it THAT great to live here? 1.3M can get you a REAL mansion anywhere else.
SITC:
Sure, but there are a lot fewer $500k/yr jobs in Indy/Milwaukee/etc. It’s not like you get a “mansion” in Lake Forest/Glencoe/Hinsdale for $1.3mm either. Sure, it’s a lot more house for the money, but time=money and some people actually don’t want the extra space.
Stuckinthecity,
yes, it is THAT great to live here.
Based on your comment, you live in burbs and “drive to Chicago to visit”. Just so you know, on this blog people discuss DOWNTOWN chicago real estate, for most part. So, you found a wrong place to tell people how “C-R-A-Z-Y!” spending $1.3M on a condo is.
I have lived here for over a year and the only time I want to go to the burbs is when I have to go to O’hare. I always tell me friends that I did not move to the Midwest, but that I moved to downtown Chicago which is definitly not the Midwest, Thank God! I don’t have the income to buy at 30 West Oak, but it sure looks great when walking by from below at night. It looks like the interior design of some of the units is spectacular, and I cannot think of a better location. If 30W were in San Francisco or Los Angeles they would start at around 5 million even in this recession.
Stan,
It would be crazy to spend $1.3M on this condo. As it stands, it doesn’t appear that anyone has ever been found to actually live in this unit. The pyramid scheme has ended. So, besides the basically extinct flippers, who will buy it at this fantasy pricing?
A unit like this will be begging for a buyer for a long time, even after it drops below the 5/07 and 11/06 purchase prices.
I forgot to add, unit #5C with same square footage sold 11/13/06 for $948,056.
unit #5C with same square footage sold 11/13/06 for $948,056
So, $950k, including the parking probably gets some action, right? Actually sells for about $875k, including parking? A nice $300k haircut–sounds about right.
This is not the 06 market. Based on an 06 sale of 950k, I wouldn’t pay a penny above 799k today for that unit. 400/sqft looks about right for NOW.
Okay, ja, so are we disagreeing by $11k (under 1.5%), or are you saying $799 incl. parking?
Oh, and $400/ft is over $820k.
As to my guess, I was making the assumption (perhaps bad, but based on the fact that 4c sold for $60k more) that the #5c price was pre-construction from 04 or so. When did the building start sales?
Don’t forget that #5C was probably the closing price from the developer- so that is likely a 2004 price.
I’m not saying these won’t sell for 2004 prices shortly however. We shall see.
This building is popular, that’s for sure. It’s a pretty exclusive building.
Morgan: I agree with you that these would be selling around $5 million in San Francisco- even right now.
Of course, they don’t have this kind of cool and interesting modern architecture there (at least not so far.) Most of the high rises being built there look more like Avenue East than 600 N. Fairbanks or this building.
They also never put in Poggenpohl kitchens- even in the $5 million units.
Chicago is a much better deal.
I don’t follow the Gold Coast market at all, but in Lakeview, where i do follow the high rises, there is a WIDE discrepancy between what i’ll call strong buildings (which have very few or no units for sale) versus weak buildings (which are flooded with inventory and/or foreclosures).
Seems like 30 Oak might be a strong building, and i can see why, given its design, location and low inventory levels.
While no building is immune from the downturn in the market, some will come out of this much better than others, and perhaps this is one of them. (No i don’t own there and i’m not an agent selling a unit there!).
Havent seen much comment lately, I do see a unit for rent, claims 3000 sq feet, sw views, asking 10,000.00 a month. That seems waaaaaaayyyy overpriced. Even as nice as it looks on the realtors website. Thoughts ? Is this the same unit mentioned in above blog ?
the desirable 2 bedroom unit is the ‘d’ unit on the west side of the building. let’s see how our economy unfolds between now and next year. let’s see how financially secure anyone is. he/she who has cash, wins.