24.3% Past Peak in River North: A 2/2 in The Sterling at 345 N. LaSalle
This 2-bedroom in The Sterling at 345 N. LaSalle in River North just came on the market.
The Sterling is a 389 unit building which was built originally as apartments and then converted into condos at the peak of the boom in 2007.
In many units, kitchens and baths were left unchanged from the apartment finishes.
A lot of investors bought in the building originally.
We have chattered extensively over the years about the foreclosures in the building. You can see one of the posts here.
This unit faces south and east on the curve and has had some upgrades.
The listing says it has new hardwood floors and stainless steel appliances.
The kitchen has granite counter tops and white cabinets. The listing doesn’t say the cabinets are new, so, apparently, those just must be painted.
The bathrooms appear to be original with white tile and vanities.
The listing says there’s a new washer/dryer.
The Sterling is a full amenity building with a doorman, an outdoor pool, and an exercise room.
There is no deeded parking but there is an attached garage where spaces can be rented for around $300 a month.
At $459,900, it is the most expensive unit listed in the building. However, the 2/2 directly under it, Unit #2006, is listed at the same price and is under contract.
If it sells for its list, it will close 24.3% above its 2007 selling price.
Are we only at the beginning of new cycle highs in Chicago’s housing market?
Amy Pritchard at Jameson Sotheby’s has the listing. See the pictures here.
Unit #2106: 2 bedrooms, 2 baths, 1200 square feet
- Sold in June 2007 for $370,000
- Currently listed for $459,900
- Assessments of $552 a month (includes heat, a/c, doorman, pool)
- Taxes of $4184
- Parking is leased in the building between $284 and $300 a month
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 13×10
- Bedroom #2: 11×10
Is it me or is Sabrina cherry picking properties that are over priced to support her impending bubble/pre-bubble theory?
345 N LaSalle Blvd #2006 is contingent with the listing price of $459,000. So I am not sure this is necessarily over priced. One has to see the comps to make an informed guess.
Those are some cheap assessments and taxes. That helps the value of the unit.
Nice enough place and great location, but it is still only 1200 sq ft.
And for nearly a half million dollars, could I at least get a nice built in induction cooktop and built-in oven, instead of a low-end free-standing electric range?
Phil:
I don’t think that’s the underlying motivation but you do point out something humorous. The negative sentiment on this site about Chicago real estate seems to always have existed on this site. Look back at 2010/2011 and you’ll see many of the same posters calling properties overvalued that are now at 30+% appreciation from those prices.
The one I remember off the top of my head was some probable permarenter saying 300k 1 bedrooms in River North are INSANE and will never sell. Funny stuff.
Everyone seemed to have hated some Clio fella yet that seems to be the only person whose sentiment was correct. Maybe that’s why I never see that person post anymore, got tired of the losers that were totally wrong and missed out on a great opportunity.
@AnonIDGAF,
Just a piece of advice, if you are making a statement which has a good dose of truth in it, don’t resort to teenager language and name calling (got tired of the losers). It only detracts from your point.
BTW, Clio was insanely Bullish as G (and Seems these days Sabrina) was insanely Bearish. Clio lost a lot of money in the last housing bubble so he was not exactly the genius in residence either.
Selection bias aside, after incorporating mortgage rates and inflation this property’s monthly mortgage payment is actually less than it was after the 2007 purchase in real dollars with 20% down. I realize that’s not everything, but if we’re discussing affordability, it’s an extremely important distinction.
Cap rate = ($3,000 – $552 – $349)x12 / $459,900 = 5.5%
That assumes a $3k rent / month. Think that is reasonable but this place might rent for a bit higher. Very blah as an investment but the days of 8-12% cap rates are long gone. I think all these 2/2 in RN should only be purchased by investors.
This building was foreclosure central during the bust. Everyone on CC bashing it, if you were the smart money you are now sitting on nice little profit (maybe 100%) plus a 30 to 40% increase in rents over that time period. That’s how money is made in RE.
The Sterling’s current pricing is a sure sign of a top of the market just like in 1929 the shoe shine boy or the newspaper boy was giving out stock tips.
I’m tempted to list myself. I’ve got tons of paper equity at this point. But where am I going to go rent? I sure as heck aren’t going to buy another property in this June of 1929 of a real estate market.
“If it sells for its list, it will close 24.3% above its 2007 selling price.”
But only 14.7% about its *2002* selling price. Which means that, in real dollar terms, it’s almost 13% *below* that price, which isn’t even the prior peak.
The actual prior peak was in 2004, when this place sold for $465,000. Which means that this place is NOT past peak, unless is goes over ask. And is *21%* below peak price, in real dollar terms.
If Sabrina is cherry-picking, she needs a lesson in telling when cherries are rotten.
Seriously? Doing the math on past sales prices, factoring in inflation? Hey, I have a 1972 240Z that I paid $2500 out the door. Holy crap, that car is worth what, $500,000 today? My God, the “actual prior peak” in the auto market must have been 1972!! Cmon man, read an Econ book, preferably 101. Supply, demand, pricing, all dynamic and only relevant today, not tomorrow, not 11 years ago. But, I’m impressed that you now how to use an HP calculator…….
“Hey, I have a 1972 240Z that I paid $2500 out the door. Holy crap, that car is worth what, $500,000 today?”
Did it sell for $510k in 2004? And then for $450k in 2007?
On those facts, would you say that $500k today is a ‘record high sales price”?
This shall serve as notice to cease and desist being a dope.
$400 per sf for the Sterling, which is just a glorified apartment. As time marches on we have to agree that inflation just flat out exists. So, the Pinnacle was originally a $400 psf building, wasn’t it? That’s probably at $600 psf now. I think this is just regular old inflation not a “bubble”.
I think it’s pretty well accepted by everyone outside of the Fed and the BLS that inflation is real, and that it is ridiculously high. Sure, the cost of my TV and food has gone down as measured by inflation stats; but, items in the BLS make up that are only indirectly accounted for like education and owners equivalent rent(whatever that fiction is), and health care, have increased exponentially. For example, food makes up a good chunk of the BLS, but as compared to my graduate education, which in 3 years costs more money than I’ll pay in food for the next 13, isn’t accurately reflected. And healthcare cost, which is measured in the BLS, doesn’t recognize that my employer just switched me to a high deductible health care plan. Arguably, that’s not inflation, it’s cost of living, but the cost of living is increasing because of inflation. It’s easy to point to lower gas prices or chapter flat screen TVs as low inflation; but as soon as you go to college, get sick, get new health insurance, have to buy or rent a place to live, or purchase a vehicle, the years of ‘low’ inflation have really added up to take a bite of real wages above and beyond any inflationary pressures for example on the price of milk.
“my employer just switched me to a high deductible health care plan”
You switched yourself, and you’re complaining? I suggest you fire all those malingering complainers!
Some booths at the Farmer’s market in the Loop today don’t accept credit cards but do accept Link.
“Some booths at the Farmer’s market in the Loop today don’t accept credit cards but do accept Link.”
Why WOULD they accept credit cards for the $3 worth of grapes you’re buying? As a farmer, why would I want to pay a fee?
This unit is now under contract.