Flipper Alert: Still Trying to Flip at 240 E. Illinois in Streeterville
Some flippers are still out in force at the Fairbanks at Cityfront Plaza at 240 E. Illinois in Streeterville.
The building stats haven’t changed much since we last chattered about it in May 2008.
Current building stats (out of 281 units):
- 20 units for sale
- 7 units for rent
Some units may be both for sale AND for rent. It’s also not clear if the developer is listing ALL of the units still available on the MLS.
In May 2008, we chattered about Unit #2711, which was for sale from the developer. It sold in October 2008.
But it’s now available to rent.
Sophia Klopas at Koenig & Strey has the rental listing. See more pictures here.
Unit #2711: 2 bedrooms, 2 baths, study, 1473 square feet
- Was listed in May 2008 for $849,900 plus $60k for parking
- Listing said “buyer and agent incentives”
- Closed in October 2008 for $850,000 (I’m assuming this included parking)
- Currently available to rent for $4,000 a month (parking $300 extra)
- Includes heat/air/cable/internet
- Tenant pays electric
Unit #2611 was also on the market as a flip back in May. It was for sale OR for rent (but not from the developer).
It rented.
The smaller one-bedrooms have been struggling to flip in the building. In May, we chattered about Unit #402. It too never sold.
It rented. For $1900 a month.
Unit #2603 was recently reduced. Here’s the listing:
ABSOLUTELY PERFECT ONE BEDROOM HOME! PERCHED ON THE 26TH FLOOR, EXPERIENCE JAW DROPPING VIEWS OF THE LAKE AND RIVER, AS WELL AS GORGEOUS SKYLINE. NEVER LIVED IN FINISHES; WIDE PLANK WHITE OAK FLOORING, GRANITE COUNTERTOPS, LIMESTONE BATH, TOP OF THE LINE KITCHEN AID APPLIANCES AND MORE.
9’4″ CEILINGS FRAMED BY FLOOR TO CEILING WINDOWS, WALK IN CLOSET AND SPACIOUS BALCONY OFF LIVING ROOM COMPLETE THE PACKAGE…
Cara Buffa at Prudential Preferred has the listing. See the virtual tour here.
Unit #2603: 1 bedroom, 1 bath, 874 square feet
- Sold in March 2008 for $412,000
- Just reduced
- Currently listed for $404,999 (looks like parking is extra- around $60k in the building)
- Assessments of $358 a month
- Taxes are “new”
- OR you can rent it for $2150 a month (parking extra)
- Possible “lease to own”
Sabrina, link to unit 2711 is broken.
Also, all of these sellers need to cut back on the illegal drugs they are smoking.
I have to agree. Some of this moderately stylish new construction is outrageously expensive. And in that nasty neighborhood, to boot. who would ever buy that right now?
bubbleboi–I actually disagree with you on the neighborhood. You have to have a taste for it–very young, yuppie area of modern highrises with, paradoxically, not a lot of foot traffic, and not a lot of public transport. Great access to the Lake, Mag Mile, near Northwestern downtown campus, including hospitals. Nasty, nasty windtunnels, which get worse as you move toward the lake, natch.
I don’t love the neighborhood (lack of) amenities, but like access to Lake and Northwestern.
Kenworthy – interesting to hear the other side, as always. And obviously you aren’t alone.
to me, it’s sterile and totally lacking charm/character, not to metntion all 6 millions navy pier tourists tramping through your neighborhood every year. So i guess i disagree about the foot traffic – seems pretty busy to me. Plus i heard fox and obel is closing.
What did 2611 rent for?
I normally take exception to posters who claim “the market” is in for a 40% correction. It’s properties like THIS that are in for a 40% correction. Whatever happens to the market won’t be half as bad as the fate that’s waiting for the owner here.
40% is an average of the 20% decline (or more) in the prime areas and the 60% decline in buildings like this and in the ghetto (check out the half off deals in Roseland!). There is no reason to take exception to a 40% decline.
“Plus i heard fox and obel is closing.”
I think you’re mixing that up with the fact that F&O has backed out of its not-yet-effective lease in the Sullivan Center (former Carson’s).
For that price the drinking water better be laced with cocaine.
This will sell for around 300k. The days of the 400-500k Chicago 1br are over. Even for neighborhoods like Streeterville.
Streeterville might be one of the few neighborhoods that holds on to 300k-350k 1BRs, but 400k+ 1BRs are gone from Chicago going forward. This isn’t NYC.
The flipper of #402 must be having fun collecting enough rent to cover about 1/3rd of their holding costs. Maybe half of their costs at most. I’m sure this isn’t what they had in mind when they got the great idea to “get rich in real estate”.
Agreed, Bob. The super high-end one bedrooms are toast. The high paying jobs that once supported this very small sliver of the market are shrinking or disappearing altogether. It’s kind of hard for a 30 year old single trader to pay $500,000 for a one-bedroom when he lost the down payment in this extreme bear market.
The rumor i heard was the 401 E. Illinois store was closing, but googling it now it appears that Fox/Obel has new corporate owners and is possibly planning an expansion.
Time will tell.
Pete,
You have no idea. The scenario we’re facing of evaporating demand isn’t the 30 year old trader losing his down payment, its the 30 year old single trader losing his job.
2009 and forward is going to result in massive financial services industry layoffs. I really don’t think most people comprehend just how much its going to get hit. It was hit pretty bad after 2001 and I think this will make that look tame. I could see securities industry headcount falling by 40% within the next three years.
Pete and Bob, what a debtor’s prison that 1BR will become when job mobility or family expansion needs arise.
There is certainly a market for these units in the big city. The problem is that supply was built to a demand currently under complete destruction.
Wait a sec, not “was built,” but the more ominous “still being built.”
Bob – I concur…and I’m an optimist. The demand level shifted downward, it is not part of a business cycle since the whole curve has shifted downward, supply level is painfully making the switch too. The wealth destruction continues to amaze.
400k for a 1br in NYC? you can’t get a studio for double that (in a good area)
Not yet you can’t. After 300,000 layoffs and a year swinging in the wind, the owner might pay you to start a fire.
Since everyone loves to make comparisons to NYC when it comes to Gold Coast/Streeterville, let me provide you with some numbers for comparable areas (UES, midtown/Sutton/Beekman, Murray Hill, Kips Bay). A one bedroom in a post-war building, 700-750 square feet, currently lists for around $550,00 – $600,000. No pools, party rooms or washer/dryers in your unit. So you’re right, “This isn’t NYC.”
Bob & Pete. I dont think the traders are doing so bad. Now more than ever do I get calls to come work for trading companies. A lot of them are doing great in this market. Fluctuations = cash.
Up down up down up down = $$$
A,
I was thinking more about hedge fund & i-bank traders, and in the future mutual fund traders too perhaps. Hedge funds are seeing massive redemptions and are many are shutting down. You’re probably well familiar with the problems facing i-banks.
For vol traders yes these are good times, but not everyone trades in covered positions.
Bob,
Yeah they’re screwed, most of the traders in Chicago though are volume/day traders.
G, I don’t think the demand was ever built based upon supply. Much of the supply was investors and at the price points they were selling at they were too expensive for most individuals looking one bedrooms or a 2/2s. Large buildings with small units work well for public housing and assisted living and college dorms. They’re not homes that people in Chicago should be paying top dollar for.
“G on December 2nd, 2008 at 12:38 pm
Pete and Bob, what a debtor’s prison that 1BR will become when job mobility or family expansion needs arise.
There is certainly a market for these units in the big city. The problem is that supply was built to a demand currently under complete destruction.
Wait a sec, not “was built,” but the more ominous “still being built.”
“I don’t love the neighborhood (lack of) amenities”
Are you serious? I can’t think of a neighborhood that has a more complete set of amenities than Streeterville. It’s not a destination neighborhood, but for residents (like myself) the amount of restaurants, grocery stores and other lifestyle amenities is as good or better than any other neighborhood in town.
These sellers are dreaming. How can they ask for over $800k for a 2/2 when they are $100k cheaper at 600 NF (a better building, IMHO) and probably $150k or more cheaper at 550 St. Clair? This unit probably went pre-construction for $550k or $600k. I also don’t know how they expect to get $4k for rent when the Streeter is only in the $3-3,500 range.
a, you are correct about the traders in Chicago. The mass layoffs in banking and hedge funds are/will be concentrated mostly in NYC. Chicago will likely suffer a bit but I don’t think the loss of financial jobs here will be nearly the negative catalyst it will be in New York.
“Sabrina, link to unit 2711 is broken.”
Thanks for the heads up Kenworthey. Koenig just got a new website and the link was lost in the changeover. It has been repaired.
Just Curious said: “What did 2611 rent for?”
It looks like $3950.
So maybe the $4000 a month rent for #2711 isn’t too far off after all?
The market for 400,000 one bedrooms is not over yet…how about the Palmolive building where people are trying for 600-700,000? or the recent closes on 700,000 one bedrooms (albeit large ones) in 340OTP? some are still buying these.
Here is some data on 1BR units over $400,000 in the Loop and Near North Side for Jan 1 through Nov 30:
# Sales
2005=142
2006=181
2007=213
2008=203
Sales By Month:
2008 2007
Jan 18 8
Feb 21 4
Mar 22 6
Apr 26 11
May 34 6
Jun 25 4
Jul 12 31
Aug 15 30
Sep 12 26
Oct 10 42
Nov 8 45
The 2nd Half of 2007 and 1st H 08 included many deliveries of new units that were contracted for in prior years. There are currently 252 units listed for sale in the MLS, or about 2 years of inventory.
Streeterville Realtor, yes, completely serious. But perhaps I didn’t word it correctly: I agree with bubbleboi that Streeterville has a soulless quality. You don’t have little sidewalk coffee shops, boutique-y places to explore and shop, parks, etc. And as for grocery stores, you’re stuck with either the insanely overpriced Fox & Obel, or Dominick’s. (Dominick’s is great, don’t get me wrong–but it’s the only real grocery store in the area unless you want to walk substantially west to Whole Foods or Trader Joe’s).
It’s not *devoid* of amenities, but until very recently, it just wasn’t a place people lived. It’s no Lakeview, or Gold Coast. It’s more like River North further west (except safer). In other words, I totally get why it isn’t everyone’s cup of tea. It wouldn’t be mine but for the proximity to my workplace.
I think the proximity to most people’s workplace is a major draw. But I agree that it is a little “souless.” It has some great amenitiies but it does miss that independent charm that a lot of neighborhoods have with their plethora of independent restauratns and boutique stores. Plus, an awful lot of parking lots that deminish the charm.
S’ville is soulless and like River North filled with few venues, most all of which are overpriced and people desperate to cling to some sort of status or social stratification in life.
I really can’t believe that once when I met a friend for beers and wings at the RN Hooters the tab wound up being $70. About double a regular Hooters and double any other sportsbar a couple of miles away.
But hey if you’re desperate to prove to the world that ‘you’ve made it’ and you’re ‘someone’ go ahead and feel free to pay an egregious amount more for basic living expenses that are priced far above the rest of the city.
“You don’t have little sidewalk coffee shops…”
Up and down Ontario and Ohio there are several outdoor restaurants, including Lavara (sp?), a coffee shop.
“boutique-y places to explore and shop”
It’s not a destination neighborhood, it’s a residential area. Who cares about living near boutiques?
“parks”
There is a large park at Chicago Ave will multiple baseball fields and a quarter mile outdoor track. At Illinois St. they just completed a full acre park. You are also just blocks from the lakefront.
“And as for grocery stores, you’re stuck with either the insanely overpriced Fox & Obel, or Dominick’s.”
There is also a huge Treasure Island in the Playboy building, so you have that option, a specialty foods store (Fox and Obel) and the best Dominick’s in the city.
Have you ever even been to Streeterville?
Bob,
Did it ever occur to you that some people like living in new high rises and being able to walk to everything? If these areas are so crappy, why are they considered “high status?” Sounds like someone is mad they can’t afford to live south of Uptown…
Yes, Streetervillian, I have already mentioned I work there. You like it; good for you. Different strokes for different folks. It’s no Lakeview. And you can’t argue people into liking it. Christ, lighten up!
I’m not trying to argue you into liking it. I’m pointing out that virtually everything you said was wrong.
SV:
I guess I could spend way more on rent + parking and live there. But I really wouldn’t be happy.
As equally important as the rent+parking cost lets also factor in just about every other cost of living that is much higher in SV than even 2-3 miles away. In fact I’m of the opinion that SV is more expensive than the Loop itself for daily living. To me its soulless and not my scene. As for all the art galleries: I’m quite content the pretentious arty people stay down there.
I’m not saying that you have to live there, but to dismiss people who live there as elitist smacks of jealousy. BTW, the art galleries are in River North, not Streeterville or the Loop.
Ok then, since we’re not arguing:
The “large” park with “multiple baseball fields” you mention has one baseball field, an outdoor track taking up the rest of the space, and a tiny sliver of nice park area with a couple of benches.
The “huge” Treasure Island in the Playboy building is only huge if you are Lilliputian. Moreover, the quality of the store is on par with the other Treasure Islands in the city: very uneven. I completely forgot about it when I mentioned the grocery stores, true–but there’s a reason I forgot about it. The “several” outdoor “restaurants” you are referring to are an occasional sandwich shop, open only during business hours. Yes, there are a few other restaurants open outside of business hours, but again, it’s no Lakeview or Gold Coast. Just ask the owners of DelaCosta how easy it is to bring people to Streeterville to have a nice meal. And no, there are no interesting little shops. Just because YOU don’t value that, doesn’t mean others don’t, either. I didn’t even mention that Streeterville doesn’t have storefront theaters to speak of (LookingGlass being the only exception–and it is very high priced), or music venues. The bare handful of bars are as soulless as the rest of the neighborhood.
Though you clearly not trying to argue people into sharing your particular tastes and preferences, because that would of course be idiotic, by making me think harder about it, you’ve successfully managed to make me reconsider whether I could actually stand living there at all, despite its being near the Lake and my job.
Good work, Streetervillian! By keeping the likes of me away, you are a true ambassador of the neighborhood.
SV,
Admittedly I don’t know too many that live there, only a couple that ventures north on the weekends. But perhaps I’m being unfair in lumping SV in with the rest of River North. I’m not a fan of River North for the reasons mentioned above and a few others.
Bob, it’s not an unfair comparison, except that there is more going on in River North (restaurant, bar and gallery-wise) than in Streeterville. In compensation, Streeterville is safer. It’s also more expensive.
It’s funny that you claim there aren’t multiple baseball fields, considering I played softball on both of them last month. There is also a large open space there and you seem to have chosen to ignore the fact that there is a huge new park (right next to DelaCosta). If you are a 22 year old girl who needs to live next to “boutiques” and theatres, move to Armitage and Halsted. Whether you like Treasure Island or not, your lament on the lack of grocery stores was grossly inaccurate. Again, I’m not trying to convince you to like it or even comparing Streeterville to other neighborhoods, I’m simply pointing out that almost everything you said was flat out wrong!
Streeterville is a more functional place to live than River North, IMHO. As I said before, SV is not a destination neighborhood, so it isn’t a place you go to unless you live there, but it’s extremely convenient. It’s also hard to generalize about RN because the area west of Wells is starkly different than the area from Wells to Michigan.
If by “multiple baseball fields,” you mean two 16″ softball fields (which together are less than one baseball field in size), then ok, you win! As for the “huge new park”, I think it’s maybe a couple of acres at best, abutting a couple of the new highrises. My “lament on the lack of grocery stores” was “grossly inaccurate” because I didn’t mention one small, run down grocery store inside the Playboy building? I think you need to look up the meaning of “grossly inaccurate.” Perhaps also the meaning of “almost everything.” And while you are at it, maybe look up the meaning of “tastes and preferences,” “different strokes for different folks,” and “not everyone’s cup of tea.”
I imagine you will have lots of time to do that while sitting inside your soulless highrise, with little else to do in the neighborhood after business hours.
I could be bribed to soulless for a price. Not this hood but maybe N S Loop. Its the perfect combo for me of being near Chicago public transit hubs as well as the 290 and way cheaper than S’Ville.
But yeah I agree on the rest: for me LV is a way better ‘hood than SV.
And in terms of 22 year old gals who like boutiques and should move to Armitage and Halsted, well SV as a 20-something I happen to like 22yr old gals so thats another + for LP/LV in my view! Ahh Arm&H..the memories..the Sto FTW!
As for me… Streeterville area is best spot in city. Very centralized and most things within walking distance w/o going into hypothermia… Hope everyone had a nice vacation.
Ze, I was beginning to think you took a wrong turn in a flavela. Or, you got caught up in that new govt right to spy on expats. Either way, glad to see you back.
Kenworthey, that looks like an irrational FB still in the denial phase. The link between smarts and money isn’t very strong.
G,
I did have that beer for you as I finally made it to Avenida Atlantica for some excellent Lebanese food. That is one really pretty spot. Needed to get away and wife finally finished her project at her Moms so went to Buenos Aires. Talk about places that got cheap fast.
Anyway… Real question… Any thoughts on what to pay the doorman who arranged the sale of your place. I’m thinking in months of salary?
The “run down little grocery in the Playboy building” (we call it 680 N Lake Shore) is my favorite – it’s not run down, it’s got character – and it’s pretty big – you probably didn’t wind your way back to the produce and meat section in the back.
But I can also walk to Fox & Obel, the Dominick’s between Illinois and Grand on Fairbanks, the Jewel on State & Grand, the Trader Joe’s on Ontairo, and the Whole Foods between Dearborn and Clark. (Ok, those are technically outside Streeterville proper, but I can still walk there.)
To each his own, but Streeterville has its charms.
When I lived downtown, I used to walk to the Jewel on State & Grand, and then take advantage of the grocery home delivery. That rocked and is something I miss.
Ze: Anything you do for your doorman will be a nice gesture. If he saved you months of carrying costs showing your appreciation especially these days will go far.
Ze, I would consider that or at least 1pct. You can always surprise him at a later date with more $s when the miracle he performed becomes clear.
This is the kind of doorman that justifies high assessments.
“so thats another + for LP/LV in my view”
For the fifth time, I am not comparing SV to any other neighborhood, I’m simply pointing out factually incorrect information that was presented here. LP and SV can’t be compared because they are so different. I lived in LP for years and loved it, I think it’s one of the best urban neighborhoods in the country. SV is completely different and has different strengths. All I’m saying is that anyone who thinks SV has “no amenities” doesn’t know what they are talking about.
“the best Dominick’s in the city”
Seems dark, small and crowded, with limited selection, to me, but as is the theme in these comments, to each their own.
You can’t fault a guy for giving you a defensive answer for his neighborhood after five people call it soulless, then go back to the different strokes argument. I particularly love Streeterville for my own reasons, but I also love Bucktown, LP, Boystown. If only I could get mult loans and buy properties across the city and live beyond my means. Seems novel.
#1) Many great neighborhoods in Chicago – you don’t like Streeterville? Don’t move there. Theres a reason there are different hoods, building types, etc – b/c everyone is not the same. Streeterville is a fantastic hood for many people, they’re just looking for different things than you are.
#2) $400K+ 1BR’s over in Chicago b/c we’re not NYC? Ever been to NYC? Good luck finding a 1BR for $400K-$500K. Maybe in the Hudson River. I closed three $400K+ 1BR’s in a Streeterville new-construction high-rise last month alone – and that doesn’t include the parking that was over $50K either.
#3) You forget that many buyers of these expensive 1BR’s are not the single trader who is going to lose their job nor the person who will grow out of the place in a year b/c of kids and be hard pressed to sell it. It’s the wealthy suburban couple looking for an intown that they’ll use for the next ten years. Or it’s the single trader’s boss’ boss, who flies in from NYC every other week and needs a place to crash. Or the wealthy international buyer. Ever hear of Navy Pier, Ohio St. Beach, River East Art Center, the new 2-acre park? Rich people LOVE Fox and Obel, you would too if you could afford to try their $40/lb. ribeye. Cheap eats? Try the Flamingo….take a summer walk down Ogden Slip and chill next to bi-centennial fountain – it’s all good. Me, I live in the burbs now for my own reason, but I can appreciate it all.
#4) Don’t forget why so many people buy a high-rise – it’s for that million dollar view. You can get those views in many of the new construction high-rises in Streeterville, especially of the lake -but you won’t get it for under $400K, plain and simple.
I know I’m a little late to the party here… but for me Streeterville is about convenience.
Just moved back to Chicago from NYC, where I loved the ability to walk to/from work. Better yet… I was able to get all of my errands done during that walk. Grocery, drugstore, hardware store, florist, drycleaners, etc… all on my way home. No chores left to spoil the weekend! SV has that same convenience factor.
(BTW, I would agree with the statement above that Chicago is not NYC… sold my 700sf 1 bed/1 bath in an ugly old brick building with low ceilings for $650K+ in October. Course it’s probably not worth that now.)
“I closed three $400K+ 1BR’s in a Streeterville new-construction high-rise last month alone – and that doesn’t include the parking that was over $50K either.”
Uh huh. And when were those contracts signed?
I’ve been renting a condo for a year and a half in Streeterville and I love it. As a newbie to Chicago I looked in all the neighborhoods that you all were “arguing” about. Out of River North, Lakeview, Bucktown/Wicker Park, the both Loops and Gold Coast it is the ONLY neighborhood that I (petite single woman in her late 20’s) felt completely safe walking around at night. So NO, it doesn’t have boutiques, theaters, etc but they’re only a short cab ride away. Living in a safe neighborhood is much more important than amenities (if I were a man I might think differently).
Now…if someone could please give me some advice on purchasing a condo in Streeterville I would greatly appreciate it. Considering the current economy, how low do you think a developer is willing to sell a 1 bed/1 bath or 1 bed/1.5 bath with den? I’ve found several buildings that I like and they’re having “developer closeouts” to get rid of the remaining units. Would they accept an offer of $350,000?
Thanks for your help!
P.S. Financing is not an issue in my situation.
Jean: It depends on what building you’re looking at. Pearson on the Park, a conversion building, is having “deals” on its remaining units. They are giving away free parking and have some 2/1 units (no balconies with those- I don’t think.) Those are in that price range.
And apparently, according to someone who posted here over the weekend, Avenue East is also willing to deal (if you ask.)