A Typical Fall Market or a Slowing Market? 1500 N. LaSalle in Old Town
This 2-bedroom in 1500 N. LaSalle in Old Town came on the market in July 2016.
The building was designed by Edmund Krause (1859-1935) in 1892. He designed 61 buildings in his lifetime. He specialized in mid-rise apartment buildings such as this one and also designed The Commodore at Surf and Broadway in Lakeview.
Krause’s best known building is the Majestic Building at 22 W. Monroe in the Loop, better known as the Schubert Theater.
This building has 24-units with an elevator.
The original vintage features in this unit have been removed but it does have a fireplace and some built-ins with 11 foot ceilings.
The kitchen has maple cabinets, granite counter tops and stainless steel appliances.
The listing says the unit has a new furnace, new windows, a new washer/dryer and new ceiling fans.
There are hardwood floors in the living/dining rooms.
There’s no parking with this unit.
It has been on the market nearly 3 months.
Originally listed in July 2016, it has been under contract once. It has also been reduced $32,500 to $440,000.
Is the market slowing or has the market been so hot that we don’t know what a typical fall market is like?
John Barr at Griffith, Grant & Lackie has the listing. See the pictures here.
Unit #2C: 2 bedrooms, 2 baths, 1400 square feet
- Sold in November 1988 for $140,000
- Sold in February 1991 for $145,500
- Sold in November 1994 for $165,000
- Sold in July 2000 for $279,000
- Sold in July 2013 for $380,000
- Originally listed in July 2016 for $472,500
- Reduced
- Under contract in September
- Currently listed for $440,000
- Assessments of $488 a month (includes exterior maintenance)
- Taxes of $6289
- Central Air
- Washer/Dryer in the unit
- No parking
- Bedroom #1: 14×14
- Bedroom #2: 12×10
- Den: 13×9
Seems like a good price for Old Town. I wonder if there’s something wrong with the building.
OLD STYLE TIME!!!!!! LOLZ!
I wonder if demographics are starting to be an issue. I’d imagine that this location would appeal to the under 35 crowd, which is now Millenials that would rather rent than own.
Fred,
Nearly 70% of the under-30 crowd still lives at home with the parents. There’s a limited market for $440,000 cramped 2/2’s in vintage buildings in cramped neighborhoods.
LaSalle is super insane busy here too, not a street I would want to live on
“Nearly 70% of the under-30 crowd still lives at home with the parents. There’s a limited market for $440,000 cramped 2/2’s in vintage buildings in cramped neighborhoods.”
Then who are they building the 8,000 luxury apartments for downtown?
The baby boomers to retire in? That’s who’s using the rock climbing walls?
Most of the people I see moving into these places are way over 30
because you know… those people are the ones usually making the most money
Based on the fact there is no parking (not that it is needed in this location), I would say this is a bit over-priced. You can go a few blocks west and be closer to all the new construction in the Clybourn Corridor and get a 2/2 with parking and private outdoor space for about $30-$40K less than this…and not be right on a busy street as someone else pointed out…and pay less in taxes.
“Nearly 70% of the under-30 crowd still lives at home with the parents.”
Citation or it didn’t happen.
“Nearly 70% of the under-30 crowd still lives at home with the parents.”
Yes. That’s probably because about 60 % of that crowd is in high school and younger.
” Most of the people I see moving into these places are way over 30
because you know… those people are the ones usually making the most money”
This is probably true. But I think there’s a pretty big jump between 25 and 35. Myself and most of my friends in our early 30’s make significantly more now than we did in our mid to late 20’s. this is true it just in healthcare, but I also see it in business / consulting, law, engineering, and especially so in tech.
“Then who are they building the 8,000 luxury apartments for downtown?”
I’m not sure. A big part of me is hoping that they just got greedy when inventory ran out in the last couple years, and are over now overbuilding luxury apartments in a city that just doesn’t have the same number of young people willing to pay a million dollars to live in 1800 square feet in river north. there are two towers being built within 2 blocks of me, and the 1800 square foot two bedrooms are asking in the 1 million range. I’m talking about Chicago and Orleans here. Just loopy.
http://www.usnews.com/news/best-countries/articles/2016-10-05/countries-where-the-most-young-adults-live-with-their-parents
US 66.6% of 15- to 29 year-olds cohabitate with their parent
“US 66.6% of 15- to 29 year-olds”
First, 15 to 18 year-olds (that is, ~25% of the cohort) are presumptively cohabiting with a parent.
Second, I expect that 90% of college students (another ~25% of the cohort) count as “cohabiting with a parent” in the data, in that they are still counted as dependents.
So, we have something like 55-60% of the cohort within the ‘possibly buying an overpriced condo” group. Let’s call it 60%. So, based on that stat, of the 60% of 15-29 yo who could conceivably have ‘launched’, the split is actually 45% “living at home” and 55% not.
Location, location, location!!!!! I love this building and have friends who live in it, so I took a peek at this unit when it was first on the market. It’s fantastic. It has beautiful parquet floors, gorgeous shaker cabinets in the kitchen, a jetted tub, and more closet and storage space than you can shake a stick at. It also has a really cool alcove in the master bedroom for an office space. While I know I am partial b.c I live in the neighborhood, I don’t think this location can be beat for this price. There are a ton of perks, including a 5 min cab to the loop or the 156 bus stop at the corner. The lake, Lincoln Park, great restaurants, shopping, workout places, you name it and it’s all within 100 ft of this building. As far as street noise, I never noticed it in my friends unit, but don’t think it would matter given that the bedrooms are in the back. I’m wondering if the new agent lowered the price to start a bidding war b/c it’s priced less than the other unit in the building.
Homedelete- don’t bust my chops for saying “it’s all within 100 ft of this building” or I will bust yours for claiming that a 1400 sq ft 2/2 is considered cramped. Just kidding. 😉
I shall rephrase my original statement:
I wonder if demographics are starting to be an issue. I’d imagine that this location would appeal to people aged 25-35, which is now Millenials that would rather rent than own.
“Homedelete- don’t bust my chops for saying “it’s all within 100 ft of this building” or I will bust yours for claiming that a 1400 sq ft 2/2 is considered cramped. Just kidding. ?”
My hyperbole is Trumponian so I can’t give you shade for claim what is 1000′ feet is only 100′ feet.
“and are over now overbuilding luxury apartments in a city that just doesn’t have the same number of young people willing to pay a million dollars to live in 1800 square feet in river north. there are two towers being built within 2 blocks of me, and the 1800 square foot two bedrooms are asking in the 1 million range.”
Riz: they are NOT building condos. They are building rental apartments. 8,000 of them. All those high rises being built everywhere? Most of them are rentals. There are, what, about 6 new condo buildings in the downtown (all the million dollar price range.) Other than that- they expect to rent 8,000 apartments to millennials (or somebody.)
And they just started construction on a few thousand more in the Riverline development.
Don’t get me wrong. I’m glad they’re building. But they’re already doing some interesting incentives out there and it’s only going to get worse. Eventually, those rents will drop.
And they’re paying so much to build these buildings that converting them to condos might not be practical this time (unless they start selling the 2/2s in the $800,000s.) And maybe they will. I don’t know.
But I’ve seen 1 to 2 months “free” and some buildings are doing a “utility package.” They are charging $100 a month set amount which includes heat, a/c, internet and cable. That’s a pretty good deal because in a “normal” apartment all of those things could add up to $300+ depending on the size of the apartment.
“Don’t get me wrong. I’m glad they’re building. But they’re already doing some interesting incentives out there and it’s only going to get worse. Eventually, those rents will drop.”
It’s about time – Are you familiar with “new city” ? They are the apartment rentals attached to the movie theater close to the lincoln park apple store – The apartments are a few blocks from subsidized housing and old cabrini. I was quoted 3700 without parking for a 1200 square foot 2 bed 2 bath with a view of the street. This was back in June – I couldn’t believe it..and they are renting at this price point.
I mentioned on here a while back that I was paying 3200 for a 2/2 at chicago and orleans ( in a mid-range building with average amenities ) and people were shocked. My landlord just informed me that she was raising rent to 3550 in July. I mean, I understand that my generation prefers renting – but at some point, spending 40ish grand a year on rent just doesn’t make sense whatsoever.
New City – unbelievably is 95% occupied! The Xavier is mostly occupied too, I see tons of lights on at night way more than even a month ago, so SOMEONE is living in these new construction places… hell even Next is starting to be occupied and they literally just opened last month. So apparently some people are living in these new places… fucking wolf point with its retarded $4sqft/month rents is getting near capacity!
Face it, downtown is hot hot hot, and there are hundreds of thousands of attractive, hipper & younger professionals in this town earning waaaaaaaay more money than you do. Your 20 years work experience after college isn’t an asset, it’s a liability, Mr & Mrs Gen X. your baby boomer boss has no plans to retire anytime soon, and they’re paying the millennial new hires even more money than they are paying you. Face, your days are numbered before you’re finally squeeze out of the work face, and all you’ve got is your handful of oxy, your WIC card and Obamacare.
Makes me glad I went into medicine and not business/finance/law. It’s one of the few fields where experience and years worked still holds a ton of value.
On that note, I’m 31 so I think I fall somewhere between a millennial and genX/Y.
‘Maybe I’ll feel different at 50.
Homedelete: “Trumponian and Shade” Next you are going to be dabbin’ me. If I hadn’t been reading your commentary for what seems like a decade, I would think you were one of those Millenial types. 😉
“Makes me glad I went into medicine and not business/finance/law. It’s one of the few fields where experience and years worked still holds a ton of value. ”
Oh really? Are you aware of what happened to your profession? It’s like you’re all law firm associates at big firms now without the prospect of ever becoming partner! Your profession – and I’m not quite sure how this happened – let the suits take over and now you’re all subservient to guy named Trevor from New York with an MBA from Wharton. Your profession lost it’s autonomy, it’s profit sharing, and it’s ability to control it’s own destiny, when you signed your non-competes with the corporate medical groups and take your measly salary taxed at 39.6% of your income, while your forefathers took profits from the business of their S-Corp and paid far lower taxes. I have a close relative with a business degree who works pretty high up in a major medical group in america, and he laughs at the doctors. instead of having their own practice, they have corporate bosses w/o MD’s, minimum patient requirements, patient review that determine their salaries, a certain number of hours per week they have to keep office hours…and he laughs at you all as he tracks the additional revenue streams you bring in the firm through inter medical group referrals…I don’t remember the term he used but he said that he wants his doctors sending patients to specialists and taking lots of diagnostic tests. They keep track of the originating doctor for this stuff. they base contract negotiations on these figures! I asked if he discloses this info to his doctors and he laughs, hell no, he says, why would they do that? Why would they give their ’employees’ any negotiating power? Hahaha
Long gone are the days when you were your own boss and take a day off off to go to a conference, or devote a few hours a week to write a article, or enjoy the spoils of being a self-employed professional. you have office hours to keep, and patients to meet as you frenetically run from room to room and patient to patient, making referrals to other specialists all along the way so your corporate overlord can bill an few dollars to some scumbag insurance company! The CEO making $3,000,000 has a mortgage payment due on his $3,000,000 mansion in Barrington Hills so you NEED TO BILL!!
OldTown : My birth year places me either as the oldest millennial, or the youngest Gen X. And there aren’t many of us either as America’s birth rate dropped significantly during those awful Carter years. But since I read a lot of Buzzfeed, i see that term “throwing shade” every where and as stupid as that term is, since all the cool kids are using it, so will I.
Homedelete: I echo your sentiments exactly (when I read Riz comments on being a doctor, I shuttered to think how one of the most glorious professions pre 2000 sadly has become a churn and burn factory of everything you have described. I can’t remember the last time a doctor dx something correctly or with compassion b/c they were so busy running from room to room or sending in their PA’s or NP’s to take care of things and passing you off to the next specialist for something a family practice doctor could have and would have figured out on their own. Long gone are the good ol days of really respecting your doctor, now they are just pawns in an evil corporate game; and they are as a rule not business savvy or mad enough to ban together to fight back against the evil machine. It’s so sad really b/c patients get the short end of the stick. We need more Michael Blurry M. D. types who get business and are willing to stand their ground. If anyone on this thread hasn’t seen the Big Short, it’s a must see. This is just the same version of where the medical world is going, right down the corporate lying politically motivated tube; and our millennials who have busted their butts to get their M.D.s and more importantly, their patients are the ones who will lose out.
Homedelete:
Gah, on the inability to edit comments. Shuttered, shuddered…. I just had to throw a real estate term into my diatribe. So a 79/80’s baby? I would have never guessed. You are wise beyond your years. Word around the water cooler is that the term shade is so last month, , now it’s dabbin as the word/movement of the week. Ps. I’m convinced S makes you do math equations to limit banter not spam. 😉
“dabbin as the word/movement of the week”
Wow, were’d you get the time machine?? cuz that *might* have been the word of the week in October of 2015, but it’s out of date now.
And that’s not coming from the cutting edge.
“Oh really? Are you aware of what happened to your profession? It’s like you’re all law firm associates at big firms now without the prospect of ever becoming partner!”
That’s really funny coming from a lawyer – quite possibly the most fallen specialty in terms of respect and earning potential. Way to go to oversaturate yourselves with open 100 law schools in every state. Medical school is the most competitive it’s ever been in history.
” Your profession lost it’s autonomy, it’s profit sharing, and it’s ability to control it’s own destiny, when you signed your non-competes with the corporate medical groups and take your measly salary taxed at 39.6% of your income, while your forefathers took profits from the business of their S-Corp and paid far lower taxes. I have a close relative with a business degree who works pretty high up in a major medical group in america, and he laughs at the doctors”
did it ever occur to you that we are taxed so high because our income is that high? I hate to be a broken record but just what percentage of lawyers earn over 200k a year? That’s what your average, low paid family practice doc makes in chicago. Without bonuses or productivity bonuses. Here’s a link for reference:
http://www1.salary.com/IL/Chicago/family-physician-Salary.html
My forefathers? you mean the doctors that bankrupt Medicaid, didn’t practice evidence based medicine, and had minimal accountability? I’m not jealous.
As far as your family member goes – B.S.
I’m a part of a 150 physician multi state practice group and the only people in our group who aren’t an MD is our lawyer and our finance staff.
Do large, corporate type medical groups run by MBA’s exist – sure they do, but they are far and few between these days. The trend in medicine is completely the opposite – there simply is no money for some old business croney to rip off doctors – it’s a model quickly becoming extinct. The trend is that hospitals are employing physicians directly more and more – that is what will likely happen to every physician in the next 25 years. The hospital handles the overhead and billing and employs the physician directly. That’s the trend. There will be no business man in the middle, like your uncle or whoever your family member is. ( I personally think you made that up. )
Last but not least – Say what you will about medicine and where it’s going. Physician salaries have not changed whatsoever in the last 30 years. We aren’t making any less and we certainly are not working any more. We ARE doing a crap load more paperwork and getting sued more often.
On the bright side, I’m making partner this coming year. I don’t work evenings. I take call 1 weekend a month, No, I don’t make 3 million dollars a year but I’m pretty happy with 1/5th of that.
Please point me in the direction of another professional in their early 30’s that has that lifestyle – and still spends his days saving lives. I’d take this over being a suicidal lawyer any damn day of the week.
PS , I’m not a GP , so perhaps some of the struggles in family medicine, pediatrics etc are different. The again, that’s why I worked my butt off to get into a competitive subspecialty.
Come on, was that bashing commentary above necessary?
You are in your early 30’s and making $600K a year, yet have all of this free time to posture on CC?
I think you missed the point that homedelete was making. You may be one of the lucky ones, but it’s not the norm and those points are fairly on target.
This quote is the one that makes me cringe:
” My forefathers? you mean the doctors that bankrupt Medicaid, didn’t practice evidence based medicine, and had minimal accountability? I’m not jealous.”
Really? So there were a few bad apples who screwed Medicare pre Riz zygote, yet you find it acceptable to put down those who have worked for a century before you as scum, who were stupid, ill informed and had no accountability? Claiming, they didn’t practice evidence based medicine? That was the most laughable comment because someone has brain washed you. Somehow you and your peers believe you have the answer to “evidence based medicine?” Would that be the evidence based medicine largely fed to you unsuspecting instructors since med school? Those of you, whom have read the latest research funded by corrupt money mongering pharma and med sales companies, where the “science” is sometimes ghost written by corrupt scientists or just lacks accountability, and given the ok, by a small percentage of corrupt people at the AMA/FDA/CDC? You are showing your ignorance to your field which you apparently love. Either way, you bashed a commenter on points that weren’t about you, but you made them about you. You’re probably an ortho.
And you have no respect for lawyers? Wait until you need one when you have your first med mal suit thrust upon you b/c you weren’t listening to your patients unlike your forefathers, but rather chose to be a hot headed arrogant know it all in their 30’s.
“You are in your early 30’s and making $600K a year, yet have all of this free time to posture on CC?”
Ack, sorry – close but not quite. Math was never my strongpoint. I’m on vacation, cribchatter is a vice I only have time to catch up on when I’m not working.
“And you have no respect for lawyers? Wait until you need one when you have your first med mal suit thrust upon you b/c you weren’t listening to your patients unlike your forefathers, but rather chose to be a hot headed arrogant know it all in their 30’s.”
My wife and my father in law are both lawyers. Not that I don’t respect lawyers as a whole, but I think it goes without saying the profession has by far lost much of its respect in the public eye and lawyers are a dime a dozen.
“you bashed a commenter on points that weren’t about you, but you made them about you. You’re probably an ortho”
No, I bashed HD for talking out of his butt like he usually does. Just like he bashes me when I say stupid stuff. I don’t think he needs you to be his knight in shining armor.
Also, the jibberish you spewed about pharma and corrupt science ,and forefathers in medicine not screwing us over, is so so dumb I can’t even respond to it. My point was that there was a large percentage of doctors ( and still are ) that were incentivized by money and practiced shady medicine and billing practices.
And yeah, doctors in my generation have seen those docs crash and burn – and we practice better medicine.
Ortho is close..more specialized though.
Back to the point – is it truly millennials paying such a premium for these apartments? Is it truly be they are all making well into the six figures, or do they shack up with roommates ? Or are mom and dad footing the bill?
I can understand these prices in the Bay Area and the east coast – but given the income ranges in chicago, is this sustainable?
“Back to the point – is it truly millennials paying such a premium for these apartments? Is it truly be they are all making well into the six figures, or do they shack up with roommates ? Or are mom and dad footing the bill?”
Yes
“I can understand these prices in the Bay Area and the east coast – but given the income ranges in chicago, is this sustainable?”
Yes
“Physician salaries have not changed whatsoever in the last 30 years.”
Not up, not down? Not whatsoever?
“open 100 law schools in every state”
5,000 law schools? Wow! One would think that, oh, I don’t know, maybe 175 would be sufficient for California, and maybe 25 for North Dakota.
“I’m on vacation, cribchatter is a vice I only have time to catch up on when I’m not working.”
Maybe consider other vices, or at least other vacation spots?
Riz- Glad you are on vacation, because you were making me jealous with your flexibility to post during the workday at $600k a yr (give or take a 100K factoring in fuzzy math). I’m still confused on how you get to comment so often given that one has to know binary to get past the spammer. You are right, I normally wouldn’t stick up for HD, because he busts everyone’s chops; hence why I ran to correct my own statement before he bashed me. But to his point, if there is any field I have an insight into, it’s the medical field and fraud, and I think he’s more right than wrong for too many physicians. Back to the real estate trend, I think there is a share of well to do co-habitating millennials, but moreover well to do 40+ year olds DINK’s in these over-priced rentals and it will probably be a bit over- saturated in the next year or so. As far as these over-priced rentals and their over the top incentives, it’s a typical ploy in the rental industry for property management companies to over-charge rent, but suck you in with great incentives (the leasing agents show you the fuzzy math and if math is not your strong suit you get sucked in). You get told it’s $3.5k a month for a cramped 2/2, but with the 2 months free you are saving 7k. All of a sudden that $42K becomes $35K and what a bargain, right? No, because they know your chances of moving out are slim. Once you have moved in, you are most likely staying because you have paid exorbitant move in/move out fees, not to mention the high cost of movers and time and energy expended. It’s similar to cable companies but 100 x more painful. Ps. I’ll bite– Neuro- spine?
Riz: I did not make up my relative who works for the major midwestern health care system. It’s not an IL system but it is within 750 miles of here. And everything this relative has told me is true.
I know about the running from room to room because I visit many doctors, sadly, for my health, as being in a stressful profession myself, I have developed a few health problems over the years, the typical ones you would expect from late 30’s attorney.
As far as income goes, life is truly: more money, more problems. I have many clients who earn far more than I do, and I do quite OK for myself (as if, based on your comment above, earning ONLY $200,000 is not respectable!) and they all have problems like everyone else. I earn quite enough to pay my bills, live in a nice area, see my family, and live comfortably, even though I may not drive a range rover.
as far as evidence based medicine….there’s a saying we have in law school, and nearly all my professors recite in the first week of law school: We lawyers drafted the constitution while doctors were still using leaches and mercury as medicine.
And thank you for agreeing with oldtown on the state of medicine today.
Riz is a radiologist, who sits in a dark room with three or four other radiologists, and looks at x-rays of mostly old people with bid hips, knees and backs all day long. Every so often there’s a tumor, or some crazy sesamoid bone in a unique population that should totally be studied (or maybe it was an old bone chip and not a sesamoid, who knows?)
And there’s nothing wrong with this: he must be right 99.9% of the time, or else someone’s cancer metastasizes, or a surgery is unnecessarily performed,or it’s not performed at all. ANd he’s compensated well for that. I look at the x-rays and mri’s of my clients and 50% of the time I can’t figure out what I’m even looking at, much less identifying a pathology! But that’s why I’m the attorney and not the physician.
“And thank you for agreeing with oldtown on the state of medicine today.”
That came out wrong, Oldtown thank you for agreeing with me on the state of medicine today
“The Xavier is mostly occupied too,”
Really? Why give out incentives then?
Here’s what’s going on at two new luxury buildings in Streeterville and the South Loop according to Crain’s:
Demand for downtown apartments has been high, fueled by strong job growth and a preference among many city residents for renting over owning a condominium. Yet developers are building apartment towers at a record pace—they’re forecast to complete 8,800 units downtown this year and next—and tougher competition for renters will make it harder for landlords to fill their buildings.
The market still is strong, but it’s cooled a bit, Newman said. One result: More developers are relying on concessions to lease their buildings, he said.
“We’ve all been anticipating it,” Newman said. “We’re finding things are leasing. I think the pace is a little slower than it had been a couple years ago.”
He declined to say how many apartments Golub has leased in its two downtown developments. Moment, at 545 N. McClurg Court, was 20 percent leased in August, while the South Loop tower, at 1001 S. State St., was 25 percent leased, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm.
http://www.chicagobusiness.com/realestate/20161005/CRED03/161009924/developer-doubles-down-on-gold-coast-apartments
“fucking wolf point with its retarded $4sqft/month rents is getting near capacity!”
Really?
Do you have a link?
They’ve been real quiet about how much of it is leased. I would think if it really was at capacity they’d be trumpeting that all over the place.
Wolf Point South is set to break ground in spring 2017 with 707 more apartments. Won’t be completed until 2019 though.
“My landlord just informed me that she was raising rent to 3550 in July. I mean, I understand that my generation prefers renting – but at some point, spending 40ish grand a year on rent just doesn’t make sense whatsoever.”
She’s raising it NEXT July? Why would she tell you now?
I’d move out. There are incentives all over the place. Hundreds more units are coming on every few months. Just look around. There’s no way they can rent them all. Current absorption rates show over 1,000 will be sitting empty. Eventually, some of the landlords will get desperate but rents will remain sticky until it really hurts the pocketbook.
“Riz is a radiologist, who sits in a dark room with three or four other radiologists, and looks at x-rays of mostly old people with bid hips, knees and backs all day long. ”
I’m impressed. You hit that nail right on the head. ( unless i’ve mentioned it before? ). I wish my life was that boring though. My particular subspecialty is neurointerventional radiology so I think only about 10% or so of my time is spent in the reading room. Plus, looking at x-rays is not really in my wheelhouse. When I do read, it’s mostly MRI. ( We get paid what, 5 dollars to read a cxr? no thanks. )
“We lawyers drafted the constitution while doctors were still using leaches and mercury as medicine.”
I know, that’s why I was saying my forefathers were clueless. 🙂 – At least I can say we’ve come a long way. Although leaches are making a comeback in certain circles.
“She’s raising it NEXT July? Why would she tell you now?”
My wife and I are looking to buy between now and Spring and asked her if she’d be flexible on our end of lease terms – she lives abroad and has heard that the market in chicago is ‘crazy’ now and she’s charging ‘way too little’.
Yeah, i rolled my eyes too.
I have a friend who lives in a nice size place in river north, but its like a 1980’s 2/2 and their rent has gone up over 1k in 3 years, kinda nuts
Some of the doctor practices have made $$$$ selling and leasing back their medical office buildings. Investors covet these things and they sometimes sell for over $300 psf, while down the road a regular office building sells for $60 psf. When the doctor practice gets acquired by Advocate, for instance, the credit on the lease improves greatly and the building can then be sold in the Net Least (1031 buyer) market or to a medical office REIT etc. The cap rates for credit leased medical office buildings are below 6%,
Doctors making money in real estate? I thought they all had the investment smarts of Clio!
Closed 12/21/16 for $428,500
2C Closed again yest for $410,000