200 N. Dearborn Conversion Only 50% Sold
American Invsco is converting the former apartment building at 200 N. Dearborn in the Loop into condominiums. According to Crain’s:
The one pending acquisition by a condo converter, American Invsco Corp.’s plan to buy the 46-story tower at 200 N. Dearborn St., could move into early January. That’s because of slow condo sales and not the debt market turmoil, says Arnold Schepel, the Chicago-based company’s vice-president of advertising and marketing.
If the sale closes next year, 2007 would be the first year a condo converter didn’t buy an apartment building downtown since 1997, according to CB Richard Ellis.
American Invsco has the building under contract, and has sold about 150 of the 309 units since it began marketing to residents in May and the public in July, says Mr. Schepel.
The days when American Invsco, which also converted The Sterling at 345 N. LaSalle and River City at 800 S. Wells (as well as the Loftminium World loft project in the South and West Loop and several high rises in Lakeview, among other developments over the years) could just open up a sales center and sell a conversion in a few months are over.
The conversions I see selling right now are those that are trying to give buyers every amenity.
200 N. Dearborn, outside of having a pretty nice Loop location, lacks just about everything else. The real killer for sales is that there is no in-unit laundry, a virtual “must have” in the condo market today.
But you can’t fault Invsco for trying. They are, yet again, offering one of their condo incentive programs to “investors.” This time they’re saying:
ASK ME HOW TO GET A PARKING SPOT FOR ONLY $5,000 AND TURN YOUR INVESTMENT INTO A 5 YEAR CASH FLOW FREE OF PAYMENTS
Apparently, no one is currently buying. Where are all the European investors?
Just wondering.
Prices range from $283,000 for a 590 square foot 1 bedroom and up to the low $500,000s for the two bedroom, two bath units.
200 N. Dearborn [website]
The two leaders in foreclosures: River City and the Sterling. I think AI’s track record for attracting suitable ‘investors’ speaks for itself.
Pricing here is ridiculous. Buyers will soon learn that their appreciation might be on par with River City. Banks will learn this too.
Good luck to them all. It’s not like someone tied any of them to the railroad tracks. Will they step aside before the train roars by?
They were taking out double page ads in the Sunday Trib a few months ago for this building. They were advertising a special “sales event” with below market pricing. It gave the impression there was only minimum supply left and they were auctioning off what was remaining. I remember because I bookmarked their website that day.
To this day they do not offer any availability or pricing on the website, you have to contact a salesperson to find out. Very slimy if you ask me.
Here are the rental rates in the building (last # is square footage)…
Studio $1,159 530
Convertible $1,205 545
1 BR $1,360 790-850
2 BR 1 Bath $1,982 1020
2 BR 2 Bath $2,064 1165
John
Check it out, must have been advertising this event, guess it wasn’t too successful…
http://www.chicagomag.com/Radar/Deal-Estate/July-2007/Housing-Bulletin-Click-Here-to-Buy-a-Condo/
John
200 N. Dearborn DID hold a special one day auction where they sold a bunch of units. Invsco did this sales technique about a year ago in Century Tower on Lake Street and were successful with it there. This time, not so much. I think the “investors” are catching on that this investment might not be so hot.
Are they still offering the 2-2-2 deal? (That was two years worth of free assessments, two years worth of taxes paid and two years worth of guaranteed rental). That’s what they offered in several of their other buildings in recent years.
By the way- for these price points, why not just buy in MoMo which is a block away and brand new? That building starts closings early next year.
Thanks for the link John.
Chicago Mag said they sold 102 units at that auction in July. They probably sold a couple dozen to current renters.
That means they’ve sold almost nothing in the building since July.
Brutal.
I believe you will see more and more banks requiring appraisers to deduct the effect of purchase incentives from their valuations.
Banks that stay in business, that is.
Those a**clowns, d-bags and ‘hos at AI also converted my former building, Plaza 440, back in 2005, and offered the same 2-2-2 deals.
They found suckers, I mean “invstors,” whose 2 years have now probably run out, and–judging from the rent vs. monthly nut–must be flushing hundreds a month down the terlet.
All for the privilege of “owning” in a building full of snotty foreigners, Loyola kids whose parents were likely among the “invstors,” and a rather large contingent of prostitutes and drug dealers. (I was once greeted by an entire SWAT team riding the elevator up after a long day at work, I kid you not.) Can’t imagine the property values are skyrocketing there.
200 N. Dearborn is a much worse building, though–almost as Soviet-style concrete heartless as River Sh*tty.
I enjoy this blog, BTW.
Mac: I haven’t covered Plaza 440 yet but don’t worry. It’s on my radar. I love those conversion buildings. Always something interesting going on.
The owners in Plaza 440 like to advertise it as “live next to Trump for half the price.” ha!
Thanks Sabrina!
So funny about the Trump Effect. That’s exactly how they positioned that building in post-conversion sales, even before they leveled the Sun-Times.
They forgot to mention that Plaza 440 shares the gym, deck, and pool with the Marriott Courtyard. Nothing embodies the upscale elegance of the Trump lifestyle like sharing the jacuzzi with tourists from the Quad Cities.
Can’t imagine where they’re going to shoehorn in the new building you mention today. Will they tear down the ugly garage on Kinzie or the Shaw’s Crab House bldg.–or the Lakeshore Athletic Club.
Anyone know the current 2010 status in regards to this 200 N. Dearborn building?
Kind regards
We’ve done a few other posts on this building since this one. Anyone have any recent info?
Thank you Sabrina, hopefully someone will have more information soon.