$89K Reduction on 2-Bedroom in Lakeshore East: 201 N. Westshore
It’s been awhile since we last chattered about The Lancaster, at 201 N. Westshore, in Lakeshore East.
Unit #1008, a 2-bedroom, 2 bath, has been reduced by $89,900 and appears to be “cheap” at only $450,000.
But is it?
The last 08 tier unit sold in August 2008 for $420,500. It was bank-owned.
See our prior chatter and pictures on the bank-owned unit here.
Here’s its history again:
Unit #1208: 2 bedrooms, 2.5 baths
- I still can’t locate an original sales price
- Foreclosure auction price of $516,000 in October 2007
- Bank-owned
- Was listed in March 2008 at $540,900 (parking extra)
- Was listed in May 2008 listed at $540,900
- Sold in August 2008 for $420,500 (no parking with the unit)
- Assessments of $409 a month
- Arc Realtors, Inc. had the listing
What does this comp mean for Unit #1008?
Christopher Hart of ABA National Realty LLC has the listing. See the pictures here.
Unit #1008: 2 bedrooms, 2.5 baths, 1295 square feet
- I couldn’t find an original sales price (the records on this building are awful)
- Originally listed in August 2008 for $539,900
- Several reductions
- Currently listed at $450,000 (plus $35,000 for parking)
- Assessments of $537 a month
- Taxes of $6260
Still overpriced by a mile. These guys need a reality check…
…I’d start at $400K. Parking included.
not sure i agree with only 400K for a 1300 sq foot condo in a nice neighborhood. from what i’ve seen this isn’t a building that is distressed (at least not any more than other “nicer” new condo buildings. however, i’m straight angered by how little work these agents are putting into sales. those pictures are absurd. this could be a studio for all i know based on the pictures. how do you sleep at night if you put this little effort or care into your work. i’m stunned.
“not sure i agree with only 400K for a 1300 sq foot condo in a nice neighborhood”
I could rent one of them (advert on Craigslist) in this building for $2525, plus $225 for parking (and I’m sure that’s negotiable to some extent). If the parking rent to purchase ratio is right, the condo’s price is $392k and change.
Or (2750-537)*12-6260/.07 = $290k, with the parking, at 7% cap rate
Or (2750-537)*12-6260/.055/.8 = $461k, w/ pkg, w/ Heitman’s o-o “break even” analysis
Speaking of distressed buildings, how’s the Sterling doing? Faring badly, I’d imagine…
anon, I really don’t understand how you look at long term home ownership vs. renting. It makes no sense unless you are an investor. Most of us buying a home are not looking to invest in one-off condos, way too much work.
paulj,
I really do understand how people place a premium on home ownership and have ignored the rent equivalent yield during this boom. Its the reason our real estate valuations in this country got so horribly out of whack and are now imploding.
Its rather hard to feel sorry for these people that are now facing losses in RE as either: a) they were speculating and thought that RE never goes up or b) just aren’t good at math and don’t consider rental equivalent expenses (as you inferred to above).
err “RE never goes up” should’ve read “RE always goes up”
Home ownership has been engrained in our culture like a tattoo.
“A slice of the American dream”
People think that their realtor will act in his or her best interest and behave a like a fiduciary.
anything above 250/sq foot is overpriced. $537 for assessments…man some folks are delusional
“anon, I really don’t understand how you look at long term home ownership vs. renting.”
Um, this is an apartment, even if you own it. I look at condos as apartment replacements. Rental equivalence breaks down with fee simple ownership.