A Totally Renovated 3-Bedroom with Wrap Around Balcony in River North: 635 N. Dearborn
This corner 3-bedroom in The Caravel at 635 N. Dearborn in River North came on the market in August 2021.
Built in 2003, The Caravel has 124 units and an attached garage.
It has door staff, a brand new fitness center, bike storage and a party room.
The listing for this unit says it has been “totally renovated” and has designer tile and custom light fixtures.
It has hardwoods throughout the living and dining rooms with a marble tile floor in the kitchen and a wrap around balcony off the kitchen.
The “new chef’s kitchen” has blue cabinets on the lower and white on the upper, along with open shelving, a white farmhouse sink, quartz counter tops, an oversized island with seating, stainless steel appliances, including a hood, and a marble tile backsplash.
The dining room has a built-in wine bar with quartz counter tops, open shelving and a wine fridge.
It has a den/family room, without a door, off the dining room.
The listing says the primary suite has been “sound proofed” and has custom closets, a marble en suite with dual vanity and water closet along with a walk-in-shower and free standing tub.
There’s a balcony off the second bedroom and the other two bedrooms share a full bath.
The unit also has a half bath.
It has the features buyers look for including central air, a laundry room with a full size washer/dryer and 2-car garage parking is available for $60,000.
Originally listed in August 2021 at $850,000, it has been reduced $100,000 to $750,000.
After the price cuts, is this property now a deal?
Melissa Siegal at @Properties has the listing. See the pictures, video and floor plan here.
Unit #1301: 3 bedrooms, 2.5 baths, 1978 square feet
- Sold in July 2003 for $647,000 (didn’t include the parking)
- Sold in August 2017 for $640,000 (included 2 parking spaces)
- Originally listed in August 2021 for $850,000
- Reduced
- Currently listed at $750,000 (plus $60,000 for 2 garage spaces)
- Assessments of $1248 a month (includes heat, a/c, gas, doorman, cable, exercise room, exterior maintenance, lawn care, scavenger, snow removal)
- Taxes of $13,632
- Central Air
- Full size washer/dryer in the unit
- Bedroom #1: 14×11
- Bedroom #2: 14×10
- Bedroom #3: 13×10
- Living room: 22×14
- Dining room: 13×10
- Kitchen: 8×19
- Family room/Den: 14×18
- Foyer: 9×7
- Laundry room: 6×8
- Balcony: 5×12
- Balcony: 21×14
Shocked there wasn’t a bidding war with Its proximity to TJ & Eataly.
2nd Br & FR should have flipped
“Sold in July 2003 for $647,000 (didn’t include the parking)”
While the ’03 deed isn’t currently on ccrd, they had them by their ’06 refinance, without getting another deed for anything, so I’m going to go with “included the parking”. (does appear that the Dec allows for parking to be owned by non-unit owners, but bylaws may limit that)
Of course, if it didn’t include the parking, that ’17 sale price would be a bloodbath, rather than merely disappointing.
july-03 + CPI = $863 in Aug-17
= $965 now
“2nd Br & FR should have flipped”
Then would need to rely on borrowed light, no? And creating a narrow hallway to laundry/backdoor.
What’s the downside of this place? Nice reno, very spacious (big living/dining area + family room – almost unheard of), half bath, tons of outdoor space. Bedrooms are decent size (even the 3rd bedroom).
$750K seems like a bit of a deal to me. What am I missing?
Not a good location
“Then would need to rely on borrowed light, no? And creating a narrow hallway to laundry/backdoor.”
Yes on the light – but would prefer that to Jr having his own balcony
On the access, think you could make Br the same size as the other and utilize the “back” entrance/laundry room as a mud room. The chase in that Bathroom really mucks things up
“but would prefer that to Jr having his own balcony”
I doubt too many people living here have 2+ kids. Just put Jr in the 3rd bedroom. The one with the balcony can make a great office or guest bedroom.
“What am I missing?”
Maybe:
HOA Dues: $1,248/month
Which isn’t awful assuming it includes the parking spaces. Same with taxes.
But you can find similar-ish sized places nearby with HOA ~1/4 to 1/3 less.
“But you can find similar-ish sized places nearby with HOA ~1/4 to 1/3 less.”
With full time door staff?
Really?
Please link.
These assessments are actually pretty cheap for this square footage.
Here’s a 3/3 in the Fordham listed at $900,000.
1750 square feet so it’s smaller than this unit in 635 N. Dearborn.
Assessments of $1568 a month.
https://www.redfin.com/IL/Chicago/25-E-Superior-St-60611/unit-3804/home/12695320
“Of course, if it didn’t include the parking, that ’17 sale price would be a bloodbath, rather than merely disappointing.”
They bought during the housing boom and, presumably didn’t update anything (although there are no pictures from the 2017 sale that I could find). The Caravel’s original finishes weren’t “luxury” so no surprise they didn’t see a good return.
Many people forget just how crazy the prices were in 2001-2007 time period, especially on new construction. People camped out outside the sales offices just to be able to buy on the first day. River North condos were among the hottest in the city during that period.
Everyone paid a premium during the boom years. And then prices went down and have stayed down on many buildings downtown. And now they need to be renovated to compete.
With little new construction at the lower price points and demand only going to rise, owners should be seeing better returns in the next few years. That inventory is really starting to come down.
But you need to give Millennial buyers the finishes they already have in their luxury apartments. This unit definitely has done that.
You’d have to be ok with owning the most expensive and customized unit in a pretty mediocre building. Unit 702 has a comparable floor plan and bigger balcony. Finishes aren’t quite as current but it appears move-in ready and listed for $100K less.
https://www.redfin.com/IL/Chicago/635-N-Dearborn-St-60654/unit-705/home/12672394
Thanks for posting 702 KK.
Those are the original finishes I was talking about in my comment.
Also, 702 is 300 square feet smaller. Big difference between 1978 square feet and 1622.
702 also has 2 car deeded parking available. I wonder if all the 3-bedrooms sold 2 car parking with the unit?
702 also has a very large deck (Which I understand everyone wants) with a romantic view of a cooling tower.
705 is selling at a higher price/sf than 702 even though the finishes are dated and very mediocre. It also doesn’t have a half bath.
“Also, 702 is 300 square feet smaller.”
this adds about 100k in value to 702.
“With full time door staff?”
I didn’t say that, did I?
Appears the 13th floor got 4 units instead of the usual 6 per floor; see 1305 which sold in May for $600k with what look to be (mostly) original finishes:
https://www.redfin.com/IL/Chicago/635-N-Dearborn-St-60654/unit-1305/home/12681213
It only has one parking space. No deed available on ccrd yet, so cannot confirm that the $600k included parking.
“Assessments of $1568 a month.
https://www.redfin.com/IL/Chicago/25-E-Superior-St-60611/unit-3804/home/12695320”
Why are you comparing a condo w/ a Pool & onsite manager to the subject property?
I don’t think the assessments are particularly high. The renovations look nice and the taxes are reasonable for Chicago. On the downside, it is a low floor with poor views, and the building itself is subpar.
I think the building either prohibits rentals or has a low rental cap. Maybe that contributes to low prices?
“What am I missing?”
that location is terrible, right in the heart of lots of clubs and tourist bullshit
Seems like you get a lot for your money. Not a cookie-cutter floor plan, either.
A pool doesn’t cost you hundreds of dollars a month JohnnyU.
If you ever lived in a Chicago high rise you would have some knowledge of how assessments work.
These assessments are actually quite reasonable for the size of the building and amenities.
Great place, meh location.
Lots of rooms and spendy updating are huge. Expenses seem in line with what you’re getting. If I was in this price range for a 2 or 3 br, I’d strongly consider it.
“ A pool doesn’t cost you hundreds of dollars a month JohnnyU.”
Did I say it did?
I said there’s a pool AND an on-site manager, so it’s not an apples to apples comparison.
“I said there’s a pool AND an on-site manager, so it’s not an apples to apples comparison.”
No one said it was. It was an even BETTER example, and really shows how cheap these assessments are, because it is 300 square feet bigger and the building has much fewer units and yet it’s still well under the assessment of the Fordham.
Like I said, you’re wrong about the assessments. These are very solid for the square footage and amenities in this type of building.
And since anon(tfo) couldn’t find any actual examples of another unit with “1/4 to 1/3” lower assessments with a full time door staff and similar square footage, you know it doesn’t exist.
” couldn’t find ”
DIDN’T LOOK
I just went to the Open House for this unit. It is very nice in many ways. Views are very decent – nothing spectacular, but you can’t really expect more in this part of town. Master bedroom small, but there are plenty of other rooms to use for purposes other than sleeping, so not a deal breaker. Ironically, the thing that did not impress me was the “renovation”. Despite the agent repeatedly saying everything was newly renovated, the edges looked “fraying” – mold around the grouting in the recessed soap area of a shower stall, paint slightly rubbing off edges of cabinets, etc etc. In fact, this reflected the look of the common areas of the building as well. Originally done well, but edges of wood furniture in lobby had finish rubbing off, hallways looking every so slightly tired. Not to the point where renovation will be called for next year, but definitely in a about 5 years, then probable special assessment. I also would think long and hard about paying for a “renovated” place in which the finishes chosen are ones that have been in the rage in the last 5 years, but no way they are going to stand the test of time. I’m talking about massive amounts of porcelain tile that have the “urban farmhouse” look of faux distressed wood. The guest bathroom has tiles that have such a distressed look that it looks exactly like water-damaged wood – peeling and bleached at the edges. Other finishes that are marble (or faux marble) are fine, but the trouble with tiles is that everything is connected and you can’t rip up one section without having to rip out everything adjoining. In this way, I would prefer buying a place that has superficial renovation needed, for which more timeless finishes could be chosen, so that their value would last until the next resale.
There is a house for sale in the Lakeview area that has most of the photos digitally altered. The first 22 photos in this listing are virtual photos, and photos 39-43 are what the actual interiors look like. The owner spent a fortune 20 years ago having custom elaborate draperies and faux marbleized painting done, but it all looks dated now, and the virtual photos have everything just whitewashed and cleaned up.
https://www.realtor.com/realestateandhomes-detail/853-W-Oakdale-Ave_Chicago_IL_60657_M85742-44902
People really have to think about where to put big money into when renovating and decorating a place if they want it to add value to their investment. Most people who don’t keep up with design trends are usually around 10 years “backwards” in their taste. What spontaneously appeals to them are design elements that they have gotten used to being bombarded with for a long enough time so that they are usually on the tail end of a trend, and if they buy a place thinking it looks totally on-trend, it will most likely have elements that will actually be a detriment to the value of the place by the time they are ready to sell. So the next time you see barn doors or bright yellow “gold” or black bathroom hardware and fixtures, think long and hard about whether you are paying extra for these “updates”.
“Originally done well, but edges of wood furniture in lobby had finish rubbing off, hallways looking every so slightly tired. Not to the point where renovation will be called for next year, but definitely in a about 5 years, then probable special assessment.”
All high rise buildings must be maintained. Hallways are recarpeted and painted approximately every 10 years.
Why do you assume there would be a special assessment?
Did you ask what the reserves were while at the open house? Did you ask when they last redid the hallways, the elevators, the windows? Or when they last did maintenance on the facade and/or balconies?
When you buy a single family home, do you assume you’ll never have to replace anything?
I don’t understand the constant “dismay” at the idea that a high rise condo building needs maintenance and, gosh, they may have to replace the carpet in the hallways.
Good!
You WANT to see things maintained and updated.
“The owner spent a fortune 20 years ago having custom elaborate draperies and faux marbleized painting done, but it all looks dated now, and the virtual photos have everything just whitewashed and cleaned up.”
Yep- if you “renovated” 20 years ago, you’d probably need an update now.
That’s just how it goes with homes these days.
But Vissi, you’re acting like buyers should be some kind of seers into the future and should already KNOW what will be in in 10 years. Even brand new 2021 construction will be out of date in 15 to 20 years. So? There’s nothing you can do about it. You have to LIVE in the property. Stop thinking about it as an investment. It’s your home. It’s your life (and now work life too.)
“Why do you assume there would be a special assessment? Did you ask what the reserves were while at the open house? Did you ask when they last redid the hallways, the elevators, the windows? Or when they last did maintenance on the facade and/or balconies?”
The Caravel is an 18 year old building. It clearly has never had the common areas renovated, so I am assuming it is an upcoming capital expenditure cost for the building in the next 5 years depending on how hard vocal owners fight against spending the money. I have lived in a lot of high-rise condos in Chicago, and I have never been though a complete overhaul of common areas that did not involve special assessments. I am not against this. During the decision-making process, I have always voted to go ahead with building updates. But in every single case, there were a few vocal unit owners who screamed bloody murder at any expenditure on common areas, and these have been usually enough to stall the process – sometimes for years, and in a couple of cases, they succeeded in stopping the projects altogether. I never understood these people, because they were sometimes ones who would spend lavishly in the interiors of their units, but would balk at kicking in even $200 for a little console with a vase of flowers and a mirror to decorate a barren hallway.
In some cases, if the common areas are not TOO bad yet (which is how I would describe those in the Caravel), the owners convince themselves they are not a detriment to the selling of their units, and as they intend to sell in a year or two, they put a wrench in the process to stall so it happens after they leave, and they are not passing the cost of the special assessment to the next owners. People also have different standards. By looking at the way people live, it is clear there are many who feel it is perfectly fine to live in homes that have last been decorated/renovated 20 years ago, and they think it is a waste of money to do replace things for just aesthetic reasons. Since I am not one of those people, I have resorted to just buying things for the common area myself when the other owners could not be persuaded to kick in anything. This is in smaller buildings, of course.
In large buildings, they won’t even let you change anything no matter how decrepit an existing piece is. It’s gotten so that the most important factor for me when I look at a unit in a condo building is how the common areas look. I figure I can fix and improve anything in the interior of a unit, so as long as the layout, view, etc. is good, I’m willing to consider a place. But there is nothing you can do about the common areas if you don’t have a HOA that is made up of kindred spirits.
To me, pouring my efforts into making the interior of a unit look perfect when the common areas are shabby and dirty is like wearing designer clothing when you haven’t taken a bath in a week and have dirt under your nails.
“…you’re acting like buyers should be some kind of seers into the future and should already KNOW what will be in in 10 years. Even brand new 2021 construction will be out of date in 15 to 20 years. So? There’s nothing you can do about it.”
No one has a crystal ball, but it is not true you cannot see anything 10 years into the future. If you are design-conscious, you can see which trends are on the way out, and where the direction is going. You an also develop a sense of the kind of trends that are clearly temporary, and you can limit these to elements in your home that are easily changeable I don’t mean just sofa cushions! You can even go trendy on window curtains, although these are often not cheap, but at least it doesn’t involve major demolition to change them!
But I notice in design shows like “Flip or Flop” that they are not careful in this sense. They put wildly colorful Moroccan cement encaustic tiles in bathrooms, distressed barnwood paneling on the backsides of kitchen island, $2,000 brushed gold-tone kitchen faucets in an otherwise chrome-lavished room (I’m actually watching this show as I write this and they are doing this!). The flippers are interested in people potential buyers coming to see the place and hit viscerally with what looks like a place JUST done and making an offer, and they couldn’t care less what the longevity of these elements are. And, as I wrote earlier, it is my observation that most people who are not particular design-conscious are attracted to trends that have been around for 5-10 years already. They say, “Oh, I’m not a slave to fashion- I just want to get what I like personally”, not realizing that what they like personally are actually fashionable elements they developed a taste for by osmosis, by being unconsciously exposed to it in media and public spaces for years.
So when they are wowed by a “just renovated” interior and are therefore willing to pay a premium for it, they certainly don’t expect that when they try to sell in 5 years, their realtor will tell them they have to rip stuff out and remodel in order to compete with new development units! I ripped out perfectly good Uba Tuba granite kitchen countertops in 2005 and replaced it with honed Caesarstone quartz. Everyone thought I was crazy. (I actually repurposed some of the granite in the laundry room.)
When I was refinancing a couple of years later, the appraiser refused to put any value on the quartz countertop, because he had strict categories which he was allowed to add value for, and even though this included granite, it didn’t include quartz because it had not even become an established category yet! In the following ten years or so, I tried to persuade every friend I had renovating their kitchen to opt for quartz instead of granite, but not a single one did, because after all, granite was THE upscale material! Now, only 5-10 years later, they are all ripping the granite up because their realtor told them they won’t be able to compete with other places on the market otherwise! (It is ironic, that in the early years of granite countertop, the pitch was that it would last forever! Whoever thought this would be a curse! An early promotion of Corian was that it could be sanded down, so always could be “refreshed”. How many people do you know who have sanded down their Corian countertop?)
Meanwhile, as early as 2005, it was clear that design trends were going towards more the clean-lined and modern – a reaction against the ’90’s English Country House/Dynasty look. But developers were still using ornate traditional elements in modern high-rise units to appeal to buyers, , and these look just terrible now. I sold that condo with the honed quartz countertop (and other similar “forward” elements) for a nice healthy price in 2012, when we were barely recovering for the downturn and nothing else was moving.
One suggestion I have for the design-illiterate to educate themselves on being wary about paying through the nose for upgrades that will not stand the test of time (which means at least the next 15 years) is to visit the newest (or newly renovated) and poshest hotels in town. It is my observation that the design styles they choose in deluxe hotels are a fairly good indicator of ones that will LAST the next 15 years. Remember, it is their business to impress on impact and have this ability for as long as possible, so they will never choose an outgoing trend.
I understand that when you buy a home, you should primarily pick elements to please yourself. But there are huge selections of choices out there without having to resort to porcelain tiles that look like water-damaged driftwood and cobalt blue kitchen cabinets (god knows how long THAT color is going to stay in vogue)! You can express yourself in thousands of ways without being stuck with clearly passing trendy elements which will cost a lot to change. Light fixtures, cabinet hardware, paint which can be easily done over, the is where to express your taste. Stay away from trendy design wallpaper! Wallpaper is a bitch to remove!! I also agree with the frequent admonition on this board to go with the general style of the building. Your latest post of the Randolph St condo with the lavish baroque interior is a classic lesson on “What Not To Do”!!
“It clearly has never had the common areas renovated, so I am assuming it is an upcoming capital expenditure cost for the building in the next 5 years depending on how hard vocal owners fight against spending the money.”
Huh?
Vissi: Why are you “assuming” they don’t have it in reserves to replace the carpet and paint?
In my experience, most condo buildings have the reserves to do THAT.
And if they haven’t done it in 18 years, then they are about to do it.
Instead of “assuming” Vissi, you could have actually asked the realtor at the open house. They may not know, but a serious buyer would ask about the reserves, what has been done recently in the building etc. As you said, you apparently have lived in high rises before. None of this should be new to you.
But as far as this building is concerned, you cannot “assume” anything. Because, frankly, you have no idea.
“…but a serious buyer would ask about the reserves, what has been done recently in the building etc.”
There was actually an owner in the building who was at the Open House the same time I was there. I asked him what the reserves were, and he said around 1.3 million. That is not enough to redo all the common areas and have enough remaining to keep the building in a healthy position. They just redid all the hallways at 55 W Delaware, which is a 12 floor building, and it cost $750,000. (This is not counting the lobby floor which was already done a couple of years ago.)
“wearing designer clothing when you haven’t taken a bath in a week and have dirt under your nails”
That hasn’t come back in yet? Crap!
This unit is under contract.
Closed for 780K
“Closed for 780K”
july-03 + CPI = $965 now
Even ignoring the reno, that’s terrible for the building.
Including the reno, it’s a disaster.
“Including the reno, it’s a disaster.”
Thanks for the update anon(tfo). There are some great deals downtown right now, even though inventory has fallen. I wouldn’t be selling downtown unless I absolutely HAD to right now. Lol.
In a few years, it will be a much better market as the inventory gets absorbed.
Also, if rents keep going up at this pace, a lot of renters are going to decide it’s cheaper and will save them money to buy. Condos will be in demand when that happens. It’s already that you can buy a 1-bedroom downtown for $2400 a month or rent it for $3000. Once the rental prices are even higher, it makes no sense to rent it.
Maybe next week I should do posts on all the downtown “deals”? There are a lot.