Flipper Alert: Flips and Rentals in 340 On the Park
I haven’t chattered about 340 On the Park, at 340 E. Randolph, in Lakeshore East for awhile.
Current stats on the building (out of 344 units):
- 18 for sale
- 10 for rent
Thanks to the tipster who sent me the sales information about this building. It’s massive and hard to track.
Stats on flips and rentals:
- 12 units flipped (from what I can tell)
- 34 units rented
- 11 units pending
A bunch have simply either let the listing expire or have canceled the listing.
Of the flips, not everyone has made money. The listing price below was the last list before it closed- some were listed higher originally but had reductions:
Unit #307:
- Sold in July 2007 for $314,000
- Listed for $599,000
- Sold in March 2008 for $525,000
Unit #405:
- Sold in July 2007 for $314,000
- Listed for $659,000
- Looks like it resold for $600,000
Unit #601:
- Sold in August 2007 for $939,000
- Listed at $999,000
- Sold in January 2008 for $949,000
Unit #703:
- Sold in September 2007 for $779,000
- Listed for $1.05 million
- Sold in April 2008 for $1,032,500
Unit #1203:
- Sold in August 2007 for $803,000
- Listed for $1.149 million
- Sold in March 2008 for $1.1 million
Unit #1407:
- Sold in September 2007 for $619,000
- Listed for $704,000
- Sold in March 2008 for $690,000
Unit #1701:
- Sold in November 2007 for $1.539 million
- Listed for $1.56 million
- Sold in April 2008 for $1.5 million
Unit #1804:
- Sold in October 2007 for $830,000
- Listed for $1.2 million
- Sold in November 2007 for $950,000
Unit #2302:
- Sold in November 2007 for $638,000
- Listed for $689,000
- Sold in April 2008 for $675,000
Unit #3301:
- Sold in December 2007 for $1.644 million
- Listed for $1.699 million
- Sold in February 2008 for $1.6775 million
Unit #5501:
- Sold in February 2008 for $1.601 million
- Listed at $1.85 million
- Sold in April 2008 for $1.8 million
The most expensive unit currently on the market is:
Unit #5901: 3 bedrooms, 3.5 baths, 4050 square feet
- Listed for $3.499 million
- Three parkings spots available for $60k each
- Assessments of $1,338 a month
- Premier Relocation Inc. has the listing
Impressive returns on the one bedrooms (307 and 405), if the original sale prices are correct. They don’t agree with previously reported numbers at http://cribchatter.com/?p=2665 and http://cribchatter.com/?p=2067
It does look like a few flippers did well though.
Looks like there are a lot of people with more money than brains. Who really thinks these places have justifiably appreciated so much since late last year? And at this end of the market, they would have to be cash purchases since $900,000 mortgages are nearly impossible to get anymore. Wow. Must be nice to have so much money you can just set fire to a few hundred grand.
Who are the people buying these places in 2008? Sometimes I feel that those are related parties selling to each other just to create enough activity in the building. Any thoughts from those who do know?
Pete,
It takes money to make money. This is nothing more than high stakes gambling and it looks like it paid off for these flippers. Truly beautiful building too.
Riches are won and lost in volatile real estate markets, maybe we should be happy (or at the least, indifferent) for the flippers that despite taking on an incredible amount of risk they betted wisely on this one.
There are enough rich people living in the downtown area who could probably afford a unit in most any building they wanted, so the high-end of the market may hold up.
Look for similar flips in the Spire, although I wouldn’t (& couldn’t) bet on it.
i swear that is the largest 3 bedroom condo ever…i grew up in a 5,000 sqft house with 7 bedrooms, i cant imagine only having 3…do they have a ballroom hidden in there somewhere, a bowling alley or indoor pool perhaps!?!
The July 2007 sales data for 307 and 405 is wrong by about $160k if you check the Illinois property transfers.
While I know there are a lot of rich people who would like to buy at the moment and may not care about the prospect of the home losing value, the high end of the market is becoming very oversupplied. When the Trump tower, the Spire, Shangri-La, that monstrosity in Lincoln Park, and numerous other very high end properties are all competing for buyers, will the supply exceed the demand?
I have to agree with 340 Owner, I think the original purchase prices on the small units is off. Looks like a few got out, luckily, with a nice little profit, but most will be lucky to breakeven when you account for the transaction costs and either a mortgage rate or opportunity cost of 6%.
Pete,
FYI construction has halted at Shangri-La. The parent company ran into some financial trouble and is trying to work out financing to complete the project. As of now there is no activity at that construction site and its been this way for the past two weeks.
Just noticed a few large price reductions:
1606 – $550K to $519K
1406 – Originally $619K, then $599, then $579, now $519. I guess they had to keep it on par with unit 1606
People like the owner of 1406 just don’t get it. If I have 519k and I wanted to buy a unit here I would obviously go with the one on the higher floor. Its owners like this that wind up chasing the market down.
$481,000.00 08/03/07
340 E RANDOLPH ST 405, CHICAGO, 60601-7314
$460,000.00 08/02/07
340 E RANDOLPH ST 307, CHICAGO, 60601-7314
So 307 didn’t really make any money if you take into account a 6% cost of money (starting from the time of deposit downs, then next payment and then closing), transaction costs, resell fees, etc…..
And 405 made a bit of money, but not a lot considering.
In conclusion, looks like the flopper days are here for the condo flippers in 340 On The Park….
What do you think is a fair price for a low floor (10th or under) “07” line unit in 340 OTP???
Kenworthey, Streeterville Realtor, and/or G – Any insights into a realistic price for a lower floor “07” unit without parking (assume with parking adds $25K-$50K). I know someone who is looking at an “07” and my advice was to wait if the price with one parking space was $650K-$700K since I don’t think the “07” is worth as much as an “05” even though it has a balcony.
Just looking above, 307 sold for $525K and 1407 sold for $690K (both in March) — those provide some bounds and value height at about $15K/floor.
What Kevin says sounds exactly right re: comps. (In other words, start with $525, and add $15K a floor for each floor above the 3rd.) I will say, though, that this is a declining market, so as a purchaser, if your friend really wants to buy right now, he/she is in the driver’s seat. Meaning, the price of the comp is an upper bound at this point. (Also, your friend should expect to pay $50K for parking; I’ve never heard of parking in this bldg being sold for $25K).
This building seems to be holding its value better than other places so far… but it, too, experiences the basic law of supply and demand.
Thanks for the comments. I will pass them on and I agree with the comments too. The recent sales are UPPER limits.
Kevin – Do you know if the sold prices for 307 and 1407 include parking space(s)?