Flipper Alert: Seller to entertain “all offers” in The Columbian

A lot of people have been wondering how long it will take before some of the flippers feel the stress of the slowing market.

It is already happening at The Columbian at 1160 S. Michigan in the South Loop.

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The building was only 70% sold when closings began.  The developer has been cutting prices and giving away free parking (and probably other incentives) to move remaining units.  That’s a flippers worst nightmare.

Unit #1301: 2 bedrooms, 2.5 baths, 1571 square feet

  • Sold in August 2007 for $675,900
  • Currently listed for $665,900 (parking negotiable)
  • Assessments of $432 a month
  • Sudler Sotheby’s has the listing

The listing states:

PRICED TO SELL NOW (COMPARE DEVELOPER’S PRICES IN THIS NEW BLDG–THE COLUMBIAN!)EXCEPTIONAL LAKE VIEWS OVER GRANT PARK NAVY PIER, MUSEUMS ETC!) THAT WILL NEVER BE OBSTRUCTED!!! COVETED SE CORNER UNIT–HUGE BALCONY-EXQUISITE FIN,HARDWD, MARBLE,GRANITE,GE APPL, LG WALKIN CLOSETS.TOP AMENITIES, DRMAN,PARTY RM,FITNESS CENTER,SUN DECK,DOG RUN,GARAGE PARKING AVAILABLE TO NEGOTIATE…SELLER WILL ENTERTAIN AL…

This is a Southeast corner unit that faces the lake.  As the listing states, the developer is trying to sell several of these at prices ranging from: $699,900 to $790,000.

I don’t have pictures of the interior of the unit but here are some of #4201:

columbian-_4201-livingroom.jpg

columbian-_4201-kitchen.jpg

Similar views- different layout.  But you get the idea.

12 Responses to “Flipper Alert: Seller to entertain “all offers” in The Columbian”

  1. I’d be happy to put in a few offers that entertain me. The owner, on the other hand…

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  2. How long until that Eastern Lake view (it’s main selling point) gets blocked?

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  3. Grant Park is directly East of the Columbian.

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  4. huh–guess I could have figured that out for myself. So why are people saying this place has marginal views? Why aren’t people raving about the views here as much as they are about 340 OTP? Not talking about quality of the construction–just the views. And isn’t the location really convenient to public transport? WHY is this building doing so badly?

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  5. I think that was a rhetorical question, Kenworthey, but let’s make the answer clear: PRICE!

    There are no more new players in the pyramid scheme. The market overshot the demand from those willing to make very poor financial decisions. Every pyramid scheme ends the same way with those latest to the game left holding the bag. Any pent-up demand you might hear about only exists from those who were too wise to get involved in a pyramid scheme. They will only “move off the fence” when prices make financial sense versus incomes and rents.

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  6. Streeterville Realtor on February 21st, 2008 at 1:12 pm

    Kenworthey,

    The Columbian views are different from 340 OTP. 340 OTP over looks Millennium Park, Grant Park to the south and the Lake the the East/South (lake curves). The Columbian is a more narrow building so only 1 tier faces East over Grant Park to the Lake. The other 3 sides of the building have “city views.”

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  7. G – I need to add my BS regarding your lowest common denominator – price. Price is not always the final determining factor. Trump has built a dynasty because he has convinced people to overpay for real estate for years. He has created a marketing niche where there is cache in paying more for a property because you simply can – and some buyers find it necessary to pay more and tell people that they’ve paid more than the next guy. Will it last? You seem convinced not.

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  8. Tom,
    Once again, your sense of humor cannot be contained. It is funny how you call a pyramid scheme a “marketing niche.”

    Doesn’t your example prove that price is the factor? You seem to be saying that Trump prices them high in order to make sales, so therefore price is the most important factor, no? I really hadn’t considered its importance that way, so thanks for another situation where price is THE factor.

    “Will it last?” Of course it won’t last. As a matter of fact, haven’t sales pretty much halted there in the last year? It didn’t last for Trump in the 80’s when he went BK either. He has already cancelled projects elsewhere because of a shortage of “greater fools.” Are you suggesting “it is different here?”

    You can go on doing your best to find him even greater fools. I am sure it pays well, as dirty work should. Personally, I couldn’t sleep at night leading people into a pyramid scheme.

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  9. G – You’re suggesting that I am encouraging buyers to purchase units at Trump Tower – as a trusted advisor, I would be hard pressed to encourage a buyer to purchase a unit at that project. The quality etc simply doesn’t measure up – and before that project was even conceived, Chicago was hard pressed to find projects greater than $500psf – which was considered ultra-luxury. Waterview Tower, Elysian, The Ritz, Canyon Ranch – to some extent Aqua all play to the ultra-luxury market. Surprisingly, it took off in Chicago – this is a segment of the market that appeared to be under served.

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  10. Kenworthey: I echo what Streeterville Realtor said about the views. The south end of the park isn’t as glamorous as the north end, simply because there are train tracks that run through that end of the park. Also, this building, as SR said, really has only dead on lake views (not that there is anything wrong with that.)

    I actually think it’s quite pleasant though- as you have a very nice view of the Museum Campus (almost dead on.)

    One Museum Park’s views will be equivalent to 340 OTP when it opens later this year (just from the other side of the park.) But, again, it won’t have the nicer millennium park right in front of the building- but instead will have the train tracks.

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  11. Tom Hall, Great Points… Trump is really a Guru when it comes to marketing. I’m glad someone is going to be able to eat when the Great Recession comes… I bet Gumshoe G is going to respond that Trump sold $600 million worth of real estate by using of course “a pyramid scheme…”

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  12. Has anyone evaluated the Trump plans for the smaller sized units. They are terrible layouts, some of the 1-bedrooms are all bathroom, or are very inefficent layouts. People who bought off the drawings and don’t understand the actual spaces will be in for a big surprise. You will only be able to fit a sofa, couple club chairs and maybe two bar stools. This is what your plus million dollars buys. And why do you need a 5 burner range with only 4 lineal feet of counter space for food prepartion. He was smart and didnt show any furniture in the plans, to show how small the living rooms are.

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