Developer Cuts Price $60K at 150 W. Superior in River North
We last chattered about 150 W. Superior in River North all the way back in November 2007.
At that time, the developer was offering a special “discount” of 7% on select units in the 54-unit boutique building.
Around 20 remained to be sold from the developer even though closings began in 2006.
See the prior chatter and pictures here.
Back in November 2007, Michelle from Maher Partners, LLC, which was handling sales in 2007, was kind enough to chime in on Crib Chatter with some details about the 7% discount.
“And as far as the current incentives “messing” with any re sale in the building…I think everyone understands that when you get into a project early you get a bit of a discount. Although this building had no pre-sale requirement and they broke ground the same time they started sales, there were still some discounts given.”
“Sure, people purchasing SELECT UNITS in the building today will save and get a great deal. However, everyone will win down the road as this is a VERY special building with very unique units and features. It’s not the usual boutique highrise and every owner will stand to gain down the road when the market stabalizes and a normal level of appreciation is in place. This building will always stand out amongst all the other vanilla boxes out there.”
“And just to be clear, the 7% is NOT on every unit. Only a select few on those contracts signed prior to 12/31/07 will recieve this. And to be clear, there are less than 20 available for sale.”
A week later she updated her comments with this (please be kind – gentle?- in your posts about her comments as it was a different real estate world in Nov 2007):
“And you are correct, it’s certainly a different market we find ourselves in today. However, most seasoned real estate professionals have been through this type of market before and know there is light at the end of the tunnel!”
“Our new sales center is located at 730 N LaSalle and we have tremendous traffic which has certainly helped reduce the number of remaining units in the building.”
“And I’m happy to report that as of today, there are only 16 remaining! The 7% off (on select units) will be offered until 1/31/08. So for those of you in the market for something different..you’d better hurry!”
Two of the units that we chattered about in November 2007 are still on the market.
The developer has reduced the price by $60,000 on Unit #702 and the listing now says, “Developer says lets SELL IT!”
The listing also says it’s reduced by $75,000- but I have it reduced by $60,000 from 2007.
Here’s its history:
Unit #702: 2 bedroom, 2 bath, 1511 square feet, duplex unit
- Was listed in November 2007 for $760,000 plus the $45,000 for parking
- With the 7% discount- the “real” price is now $706,800 (plus the parking)- offered in November 2007
- Reduced
- Currently listed at $699,900 plus the parking
- Assessments of $489 a month
- Taxes are “new”
- Maher Partners, LLC still has the listing. See more pictures and the listing here.
The other unit we chattered about was a re-sale, Unit#504, which is also still on the market. It’s been reduced by $40,000.
Unit #504: 2 bedroom, 2 bath, 1530 square feet
- Originally sold in October 2006 for $820,605
- Was listed in November 2007 for $835,000 with the parking extra for $45,000
- Reduced
- Currently listed for $795,000 plus parking
- Assessments of $599 a month
- Taxes are “new”
- Alanna Golden at Coldwell Banker has the listing. See more pictures and the listing here.
Current building stats (out of 54 units):
- 8 for sale
- 2 for rent
Some units may be both for sale AND for rent.
I believe 504 looks out at a huge advertising sign over the HoJo’s, not very pleasant.
800k for 1500 sq ft?! Weren’t we just discussing overpriced inventory?
and across from the homeless shelter. nice place though…
I also forgot to add that the last sale I could find in the building was in August 2008.
I looked at renting 702 last May. The developer wouldn’t budge from 4200/month. That is how irrational this guy is. Amazing. This unit should sell for 500-550 with the parking included, unless he wants to leave it empty for the next 5 years.
Nice looking unit, but no way I would pay that much for 1500 square feet. You can get much better deals elsewhere. Can’t be that big of a need to live in River North. $700k goes a long way…
Hey Ze come on its the year of Hope and Change ™. Living across from a homeless shelter should be an amenity this year.
What are places in the Silver tower going for? I’d assume that they are priced better than this!
That woman’s job is not to discuss realities, but “market” her project. Nothing she said surprises me. There are many fields of expertise. The people who worked on the Manhattan Project (speaking of bombs) were so focused on splitting the atom, nobody remembered to build barracks to house the scientists until after they arrived, forcing the teams to sleep in tents for two weeks.
I don’t believe she was crunching the numbers in any way, shape or form. She focused on her job, selling her client’s property.
Yes, it’s great when people go outside their job description, develop new methodologies and gather data to strengthen their understanding of their the whole (isn’t that what we call innovation?), but it’s rare.
As for the properties, they are beautiful. Location is everything, so walking to work, movies, groceries, restaurants, parks, theaters and concerts is a superplus.
The only criticism is the parking. When will the pricing on parking start to drop? It’s like, “my home was worth $750,000 last year and now it’s worth $120,000. But my parking spot is still $50,000.” I find this line of thinking SCARY and STUPID. Developers have been making a killing for years from parking spaces, will that ever end?
The floor-to-ceiling windows are nice, but everything else – and the units that aren’t on the corner and don’t have the windows – look just like every other white box to me.
i viewed a few 1 BR’s in this building back in april and actually loved them. i think of all the new construction buildings in river north and streeterville, i thought the finishes and details in this building were the nicest. definitely gave you the impression that it was a quality project. however, i eventually decided on another building b/c of 2 issues.
1) cost – the cheapest but most reasonably priced unit was a nice 1 br with den facing northwest. view was unspectacular. when i looked at units on the other side, with nice views, the price jump was unreasonable. esp given the …
2) location – i brought some family members along a second time to get their opinion and within five min of pulling up to the biulding, jokes were made if i would put them up at the hojo or just have them grab a cot at the homeless shelter. i know location is everything, and River North has about everything one could want, but i think RN is very block-by-block, and this was not one of the blocks i’d wanna live on. esp for the prices they’re asking for.
all in all, a truly nice building and i actually agree with the agent when she says its “unique” and “different from any other”. i know developers feel the $ is reasonable given the quality and uniqueness, but this just isn’t the environment to sell out a “luxury building” and try to get those prices.
condo shopper,
obviously the corners with the windows are spectacular, and i think actually justify a high price (Just not $530 per/sq ft), but even the non-duplex units without the windows are done very nicely. the open kitchen layout, marble fireplace, well done bathrooms, very well insulated from sound from the street – def not the standard vanilla box units we keep seeing in others. and just look at the size. generally larger than the units in other buildings.
Anybody who pays extra for their parking space is stupid. Parking spaces were included for free in most developments before this boom. The whole idea of paying 35k+ extra for parking is a new phenomenon of the boom and hopefully won’t last.
You’d have to be an idiot to drop 250k+ on a condo if it doesn’t come with a heated, garaged parking space, IMO. The exceptions are if there is no garage.
I am surprised noone has really ripped the realtor? Where is G? Kenworthey? Anon and HD?
Mark Boyer of YoChicago talked to Steven Maher of Maher Partners about these reductions last month: http://yochicago.com/today/high-rises/after-price-cuts-15-left-at-superior-at-lasalle_8136/
If you’ve bought (or considered buying) at Superior at LaSalle and would like to share your thoughts on the project, feel free to rate and review it at NewHomeNotebook: http://newhomenotebook.com/development.aspx?pn=20&po=1937
Did someone just compare a dumbass realtor to Fermi and creating the atomic weapon?
Are you serious?
Sonies – I dont think the finishes in Silver Tower are comparable to this but I could be mistaken. 101 W Superior (almost a little sister to this building) and perhaps 110 W Superior (the new very blue building) are on par with this and around the same price points. I think 110 is more expensive though.
The corner units with 15′ ceilings and floor to ceiling windows certainly offer something unique and warrent a premium. I’m not quite sure what that premium is though…
I am going to have to say this is one of my favorite buildings in River North. The duplex units with the windows and glass walls are stunning and have the WOW factor. Price tag seems a tad inflated for the sq footage based on the location. I would jump on one of the duplex units and hump it to death if it was around 500k with parking. lol
I think the agent deserves a little credit. It sounds like they sold a lot of units once her company took over, which probably wasn’t easy in 2007 as everyone started buzzing about a slow down in the market. What I really want to know is what is this building competing with? What building in river north is offering the lowest price per square foot for new construction right now?
Does anyone know roughly how much a developer makes/unit once he’s paid realtors,lenders, Uncle Sam, etc on a high-end overpriced development like this one? I wonder how low these developers can go before they are underwater on their projects.
Danny- are you sure you want RN new construction right now? That area has quite a few bank owned units with double the sq for the same price. A few of my coworkers are getting killer REO deals in RN right now through Countrywide, Wells Fargo and Chase.
“Sonies – I dont think the finishes in Silver Tower are comparable to this but I could be mistaken. 101 W Superior (almost a little sister to this building) and perhaps 110 W Superior (the new very blue building) are on par with this and around the same price points. I think 110 is more expensive though.”
Yeah but you’re in a MUCH better location IMO, and I think they are quite a bit cheaper, so if you really wanted that super duper high end refrigerator or whatever, you could afford one.
Jason:
When do I rip realtors who aren’t posting here spouting BS and claiming we’re all stupid?
Lauren, I don’t want to buy new construction in River North. I’m just curious about pricing. I’m seriously considering never buying another condo again and either renting or only buying a single family home or fee-simple townhouse if I ever own again. My experience with my own vintage condo in Oak Park hasn’t been great and I have some coworkers with real horror stories to tell about their high rises…although I will admit some of the REO prices in river north are tempting. I just don’t know how you buy in a high rise right now without worrying that you could be sitting on a time bomb and the building could need millions in repairs…or you could get stuck with monthly assessments going over $1,000 a month as foreclosures mount and neighbors stop paying their share.
I should probably note, however, that I still fantasize about living in a condo with really high ceilings, unique architecture, and/or incredible views of the skyline. There’s something really appealing about throwing a party in a beautiful two-store living room with panoramic skyline views. I also loved that loft near mccormick place from a few days ago for the same reason…but I’m sure buying a place because the living room would impress your party guests is a very bad investment decision.
*two-STORY living room
In a “normal market” I really don’t see people paying over 750k for a 1500sq. ft living space one block from a homeless shelter.
“Did someone just compare a dumbass realtor to Fermi and creating the atomic weapon?”
No.
“Are you serious?”
Depends. If you care to re-read the post, then tell me what your uproar is all about, perhaps I can decide if I am “serious” about the point of contention.
As of today, I see 19 units still not sold by the developer. In addition, they have listed a unit “11CB” (2,719 sf) which appears to be an offer to combine two of their remaining 11th floor units, but I am not certain.
Here are the developer’s 19 remaining units as I see them: 604, 702, 704, 802, 805, 902, 905, 1005, 1006, 1102, 1105, 1106, 1201, 1202, 1203, 1205, 1401, 1403, 1405.
There have been 34 sales representing the other 35 units that were originally proposed. 601/602 sold together and were combined (based on their shared PIN,) thus leaving the building at 53 units total according to unique PINs. The 2008 closings by developer were units 501, 502, 1101 and 1501. 701 also resold 8/19/08 for $700,000 with pkg (developer sale 10/16/2006 $630,854 w/pkg.)
It is interesting to note that the developer apparently leased units 905 and 1201 in 5/08. 905 was available for sale in 5/08 for $450,000 plus pkg when it leased for $2050. 1201 was available for sale in 5/08 for $400,000 plus pkg when it leased for $1800. In addition, the developer has 802 currently listed for rent and 1106 as a pending rental.
Danny-Just wait, you are alot closer to a gorgeous condo than you think (if you can manage to deal with the 4 figure assessment) Don’t forget about the chunk of young hotshot I-bankers hedge fund associates and PE guys who have seen a 50% decline in their bonuses this year. Alot of those guys didnt know how to handle that much money so they drank it up instead of setting some aside or putting a bigger downpayment on their condo. By July we should see a nice amount of short sales thanks to the young hotshots 🙂 It would be nice to know which condo buildings are the most recommended in the city.
“Does anyone know roughly how much a developer makes/unit once he’s paid realtors,lenders, Uncle Sam, etc on a high-end overpriced development like this one? I wonder how low these developers can go before they are underwater on their projects.”
You can’t go on a unit by unit basis.
A (real) developer and his equity partners are looking for 20%.
Every Pro-forma is different.
“You can’t go on a unit by unit basis.”
You can–at least on the how-low-can-they-go part–if you have the release price list for the financing (and a bunch of other info). If the developer is in a “sell it or write-it-off” situation, they’ll be willing to get awfully close to those minimum prices, especially if using in-house sales.
And they’re looking for 20% based on the initial list prices (sometimes pre-con discount pricing), not the post-completion, bubble-inflated asks on many buildings (yes, driven up some by material cost increases, but kept down (for a long time) by lower rates on the construction loans).
My response was geared towards the makes/unit. The developers profit on a large penthouse is much different than a 1 bedroom low level condo.
How low they will go depends of how they fared with the bulk of their sales. The want/ability to hit rock bottom pricing can be different for a development that 98% sold Vs 50%.
They’re looking for 20% based on what’s in the pro forma under an assumed success level of sales/rent.
“You can–at least on the how-low-can-they-go part–if you have the release price list for the financing (and a bunch of other info). If the developer is in a “sell it or write-it-off” situation, they’ll be willing to get awfully close to those minimum prices, especially if using in-house sales.
And they’re looking for 20% based on the initial list prices (sometimes pre-con discount pricing), not the post-completion, bubble-inflated asks on many buildings (yes, driven up some by material cost increases, but kept down (for a long time) by lower rates on the construction loans).”
JohnnyU:
So, bascially, we agree. If you have really good data, you can figure it out for every unit, but you can’t just look at the whole project, with only public data and say “they can shave 17.8% of of the list price for every unit” and be doing anything other than stabbing in the dark.
I think were in pretty close agreement.
The 20% is a bit more than a stab in the dark, more of a slightly educated guess of where the market was. And you are correct, you have to watch what set of numbers you use. The quick and dirty way would be to do a weighted average on the project or floor plan and use the 20% of that as the break even point.
“…However, most seasoned real estate professionals have been through this type of market before and know there is light at the end of the tunnel!”
I’m not gonna rip the agent here, but I don’t ever recall a market like this and I suspect she hasn’t seen one like it either.
Anyhow, with respect to finishes, 110 Superior has the best finishes in the immediate area, hands down. I love that place. I bought at 101 when it went to market. The finishes were nice, but not on par with 110. Of course, times were different and so was the price point.
Silver Tower has nice finishes and it’s an awesome looking building.
I don’t know what they want for parking @ 150, but I remember that unsold spots at 101 went to auction and someone got a great buy. Nevertheless, I don’t see the upcharge for parking going away.
Is it just me, or do the people in #504 REALLY like throw pillows?