Auction Alert: 30 Condos Going Under the Gavel at 1400 N. Lake Shore Drive in the Gold Coast
RDM Development, the developer of 1400 N. Lake Shore Drive has announced an auction of 30 units on April 25 at the Doubletree Hotel at 300 E. Ohio in Streeterville.
The building is a vintage apartment to condo conversion which started selling units in 2006.
In a press release, RDM Development said it was holding the auction in late April because it has a short window of opportunity due to the April 30th deadline for buyers to obtain the first time home buyers tax credit (remember, you must only be under contract by the 30th but have until the end of June to actually close.)
Jameson and the auction house Fine and Company are handling the sales.
According to Crain’s, the developer still owns 80 condos out of 391 units.
Mr. Mosky says the Lake Shore Drive project is performing on a construction loan from LaSalle Bank N.A. Bank of America Corp., which took over LaSalle in 2007, has extended the maturity date of the loan, which now comes due at the end of the year, he says.
Mr. Mosky plans to sell the remaining 50 unsold condos the traditional way. About 70% of them, or 35, are currently being rented out, he says.
According to the development press release, the units will be available either in the original condition or refurbished. You can also buy a unit with tenants in place.
If you’re wondering about financing, especially given the number of rentals in the building, the developer has lined up financing for the auction.
On the development’s website, it says 15 units must be sold at the minimum bid starting at $50,000 for a studio up to $200,000 for a 3-bedroom.
Some examples of prices:
Studios:
- Were $140,000 to $160,000
- Minimum bid of $50,000
1 Bedrooms:
- Were $250,000 to $270,000
- Minimum bid of $90,000
The units have no central air, no in-unit washer/dryers and there is no deeded parking. It is available for lease nearby.
Unit #17B is one of the renovated 2/2s with lake views. It is currently on the market.
It is 1187 square feet and is listed for $499,900 (and is the most expensive unit on the market in the building.)
Assessments are $528 a month. Taxes are $6048.
See the pictures here.
Check out the development’s website for more information: 1400lsdcondos.com
Gold Coast building to auction 30 condos [Crain’s Chicago Business, Alby Gallun, Mar 18, 2010]
No air + tiny, scarce windows is a huge huge huge problem. 250-270 in this old of a building is a joke. In each room you’ll have one window left after you add AC window units.
The view looks like its amazing, but the condo looks cramped for more than 2 people at a time (aka no friends over for cards).
But, you could have a rocking Air Show party as indicated by the pictures in the listing.
I’ve been in some of these units. They’re nothing more than dark, rehabbed apartments with no closet space. The glory days of this building are long past.
I know it will go for more but… the thought of a 50K studio on LSD could be appealing to a great many people I’m sure.
1) Does anybody know what a studio rents for in this building?
2) Does anybody know the building reserves or what type of special assements are in the pipeline.
A studio for under a 100K here seems like a no brainer for a rental unit, but a special assement would kill the ROI.
50k studios in the Gold Coast might entice some (myself included) to become mini land barons. I’d have to get a few of them and let a management company deal with the headache to make me actually do it though.
Apartments.com (not sure how reliable/accurate) says studios rent in the range of 850-1070/mo. Applying an annual rent multiple of 10x (for a gross return before expenses of 10%) at the low end of that range gets you to $102K. Of course, the appropriate multiple is up for debate.
These apartments are a pretty good deal at auction prices, though they were a burn at the original prices. They’re small, but almost anything in that area that inexpensive is pretty tiny.
“Apartments.com (not sure how reliable/accurate) says studios rent in the range of 850-1070/mo. Applying an annual rent multiple of 10x (for a gross return before expenses of 10%) at the low end of that range gets you to $102K. Of course, the appropriate multiple is up for debate.”
Based on the listed studios I found, assessment + taxes total ~$300/month. Use 8% on semi-net and $850 rent, you’re at $82,500. So, $50k seems like a pretty good deal, with a reasonable margin for risk of specials.
I feel for the people who bought one bedrooms when they were in the 250k’s. I know someone who bought a two bedroom. It has to be disheartening for her that people will be able to buy at almost half price.
$6,000 in yearly taxes?!
That is the total amount of my 6-unit building’s yearly taxes in Wicker Park. But uhh, I guess you are by the lake.
The problem is the taxes and assessments.
Even with the minimum bids the 1-bedrooms don’t seem to make sense and aren’t at rental parity.
A thousand dollars a month just for tax / assessments? Two years ago we were renting a large two-bedroom in Denver for less than that–with a view, parking and utilities included!
what 6 unit has 6K in total taxes,
“That is the total amount of my 6-unit building’s yearly taxes in Wicker Park”
I rented a studio in this building for a summer (2007), paying I think around $750/mo (furnished). The space worked great for such a short period, especially since it was summer and I really only slept there. For the location alone, I would have been happy to pay at least $1,000/mo. It also had a pretty decent fitness room.
But the building (including some residents and their guests) really is a mixed bag. One (of the two?) elevators was routinely out of order. These developers would be better off turning the place into more of a Belden Stratford (i.e., convert the available units to modestly priced hotel rooms).
Hmmm….1920’s vintage condo. Could there be lead-based paint? Asbestos?
My personal opinion after seeing 2 of these units up close and personal is that the building is a death trap. God forbid there is ever a serious fire in one of these units or, worse still, in the basement.
I wouldn’t live, own, or rent one of these under any circumstances.
This type of stuff will make me a owner of one home for life. I have seen so many people get destroyed by owning multiple in this recession. I still have two and cannot wait for the day I am down to one. On the first time home buyer front, I plan to tell my kids to rent until they get married. Life can change quickly (marriage, grad school, a new job in a different city) for a young person and this is why renting makes the most sense.
The days of working at one company for life are over for probably 80% of America. Agility will be key.
Has anyone heard what the results of this auction were on Sunday?
Gonzalo (and everyone else):
I couldn’t make it, but one of our readers sent in the results and some observations this afternoon. http://yochicago.com/1400-lake-shore-drive-auction-brings-in-almost-3-5-million-with-20-sales/14915/