Flipper Alert: Flippers Competing Against the Developer in 240 E. Illinois
Back by popular demand, an update on Fairbanks at City Front Plaza, at 240 E. Illinois, in Streeterville.
The loft base of the building started closings in 2006. The highrise portion has been closing over the last few months.
There are more units available now then when I last chattered about the building in February 2008. The building has 281 units on 31 floors.
Current stats in the building:
- 25 units for sale
- 12 units for rent
Remember, some units will be both for sale AND for rent. The developer also has not sold out the building so all of the developer’s units are unlikely to be listed on the MLS. The closings also continue.
Out of the three units I chattered about in February, one has been withdrawn (Unit #1408), one has been reduced (Unit #801) and one is priced the same (Unit #1105).
Unit #801 has been reduced (and has new pictures.)
Unit #801: 2 bedrooms, 2.5 baths, 1595 square feet
- Sold in October 2007 for $628,000
- Was listed in February 2008 for $799,000 (parking extra)
- Reduced
- Currently listed for $725,000 (parking extra)
- Assessments of $715 a month
- Prudential Preferred has the listing
Several other units just recently closed and have come on the market as flips.
Unit #2310: 1 bedroom, 1.5 baths, 1025 square feet, no pictures available
- Sold in April 2008 for $498,500
- Currently listed for $508,000 (parking is extra)
- Assessments of $466 a month
- Schwalb Realty Group Inc. has the listing
This two bedroom has competition from the developer.
Unit #2611: 2 bedrooms, 2 baths, study, 1473 square feet, southeast corner
- Sold in March 2008 for $819,000
- Currently listed for $819,900 (plus $60k for parking)
- Assessments of $645 a month
- Rubloff has the listing
The flipper selling Unit #2611 has to compete with the developer, who is trying to sell #2711.
Unit #2711: 2 bedrooms, 2 baths, study, 1473 square feet
- Currently listed for $849,900 plus $60k for parking
- Listing says “buyer and agent incentives”
Among the cheapest one bedrooms in the building is Unit #402, in the loft part of the building.
Unit #402: 1 bedroom, 1 bath, 933 square feet
- Sold in December 2006 for $401,000
- Currently listed at $420,000 (parking additional)
- Assessments of $392 a month
- Prudential Preferred has the listing
What about the rentals? The cheapest one bedroom on the MLS is this one bedroom unit. (Thanks to the tipster who sent me the rental information.)
Unit #1307: 1 bedroom, 1.5 baths, 1071 square feet
- First came on the market as a rental for $2400 a month in March 2008
- Raised to $2550 a month
- Recently reduced to $2495 a month plus $200 for parking
OR
You can buy it.
- Sold in October 2007 for $456,900
- Originally listed at $497,500 in March 2008
- Reduced
- Currently listed at $489,500 (parking extra)
- Assessments of $488 a month
In the data I saw on the building, I didn’t see any evidence that a single flip has sold since 2006. If anyone has different info, please let me know.
These look nice. I don’t like the concrete ceilings but they all seem to have nice finishes. I’m looking for a townhouse though.
The ’11’ tier is beautiful! I’ve never been in this building yet, but it looks like a nice building, and right off Michigan Avenue! Seems more livable than 600 NF (e.g. the pillar in the bedroom, etc.) except it does not have the ‘starchitect’ brand attached to it which probably matters to some people … BRAND IMAGE people!
Thanks Sabrina!
Nice building but these prices are crazy.
$2500 for that rental, PLUS parking?!? Crazy. You can go over a few blocks to the ParkView and get the same space for ~$500 less per month. I’ll be shocked if that actually rents.
Who raises the price on something when it doesn’t rent? That just doesn’t work.
Kevin,
A flipper getting increasingly desperate or approaching financial distress. Instead of seeing the inevitable, they delay it as long as possible, still believing a greater fool is out there somewhere looking to bail them out. So they raise the price as per their situation they now need a higher one to turn a profit or break even.
Moving to Chicago:
I hope this helps.
It also seems, given the number of closings in the building, that the developer still owns a large number of units.
I’m not a salesman, but I do know that if I want to sell something that I own, I need to first put myself in the buyer’s shoes. What does the buyer have to choose from? What will they be comparing my place to? Can they easily get a better deal elsewhere? It amazes me how many people are supposedly serious about selling their homes but are totally clueless to the market that buyers have to choose from.
I just noticed the one-bedroom that someone is listing for over $500,000. Keep dreaming, buddy.
are you referring to the 1071 sq ft. one? if so that’s big for a one br. 340 park was charging even more. Psychologically that’s a lot for a one br though.
My friend just rented a 1Br/1.5Bth Unit in this building on one of the high floors for $2,100. The Unit is great and spacious, the kitchen is top notch and the building itself looks very well put together from the lobby to the actual entry doors to the units.l Too bad it is so overpriced.
Millie – looks as though the concrete ceilings are only in the loft units at the base of the building. It’s amazing how much “richer” these units look with a finished ceiling as compared to 600 NF.
I love this building and am thinking about making an offer in on a 2-bedroom. It’s list price is $759,000 – apparently the condo listed for $653,000 back during the pre-construction days. How much would you recommend that I make the offer for?
Anyone with any suggestions for our firsttimehomebuyer?
I would look to see what else (if anything) is selling in the building to see if there are any comps.
And then I would offer pretty low.
Some posters have put in offers on other new construction buildings- perhaps they have advice.
How do I find out what the pre construction prices were in this building?
Thanks
Hi there,
My husband and I are buying our first home! We are thinking about buying one of the 07 or 09 (1 bedroom + den, south facing) units in the building. They are currently priced at just over $500K (not including parking).
Please let me know what you think about the price and resaleability in this building.
I love the 01 tier, but they are ridiculously overpriced and over our price range.
Please let me know what you think of $500k 1 bedroom condos.
Jessica – i think it’s a great idea – go for it! sounds like a really sound invesment from everything you’ve told us!
$500k for a 1 bedroom? Where are we, New York? There are numerous buildings where you can get more for less, and in desirable locations with great views nonetheless. The prices in this building, along with 340, are not sustainable and will crash hard.