Can Anyone Make Money On Co-Ops? A 2-Bedroom In 3750 N. Lake Shore Drive In Lakeview
This 2-bedroom in the vintage co-op building at 3750 N. Lake Shore Drive in Lakeview has been on the market for 10 months.
At 1600 square feet, it has a separate dining room, a butler’s pantry and oak hardwood floors.
Located on the second floor, it has north, south and west views.
The kitchen has checkerboard floors and carrera marble counter tops along with “high end” appliances.
The master bath has been rehabbed and has heated marble floors.
This is a rare vintage unit that has many features buyers look for including a washer/dryer in the unit and space pac cooling. There is rental parking available for $150 a month.
Yes, the HOA is $1440 a month but that includes the taxes.
Originally listed for $199,000 in February 2012, it has been reduced to $175,000.
Redfin shows it was last purchased in April 2010 for $130,000.
Is it possible to make money on the co-ops anymore?
Or are you buying it simply to live in?
Steven Acoba at Keller Williams Preferred has the listing. See the pictures here.
Unit #2H: 2 bedrooms, 2 baths, 1600 square feet, co-op
- Sold in April 2010 for $130,000 (per Redfin)
- Originally listed in February 2012 for $199,000
- Reduced
- Currently listed at $175,000
- Assessments of $1440 a month (includes heat, gas, taxes, doorman, cable, indoor pool)
- Taxes are $3426
- Space pac cooling
- Washer/Dryer in the unit
- Rental parking available for $150 a month
- Bedroom #1: 17×12
- Bedroom #2: 17×11
The assessments in this building are outrageous and always have been even when you consider the property taxes, which are really rather reasonable relative to what places that are inferior and sell for much lower prices are paying in areas that are a lot less prime than this neighborhood. After taxes, you’re left with over $1000 a month for a 1600 sq ft apartment that isn’t really exceptional.
What you are paying for here is really exceptional service. The building has two desks, one on LSD that is manned 24 hours a day and one on the side on Grace St, that is manned part of the time. There are also many more elevator tiers than most buildings have, plus the swimming pool and the double-height pool room, which is not cheap to heat.
People buy here because they like the amenities and service and are willing to pay for them, and are also willing to submit to exhaustive scrutiny by the board. All sales are subject to board approval, and the board will make sure you can afford to live here. In a way, that’s an advantage because it means that the building is less likely to be burdened with foreclosures and unpaid assessments.
“The assessments in this building are outrageous and always have been even when you consider the property taxes, which are really rather reasonable relative to what places that are inferior and sell for much lower prices are paying in areas that are a lot less prime than this neighborhood. After taxes, you’re left with over $1000 a month for a 1600 sq ft apartment that isn’t really exceptional. What you are paying for here is really exceptional service. The building has two desks, one on LSD that is manned 24 hours a day and one on the side on Grace St, that is manned part of the time. There are also many more elevator tiers than most buildings have, plus the swimming pool and the double-height pool room, which is not cheap to heat.”
I don’t think I’d call $1k/mo for 1,600 sq ft in a full service building outrageous. What are the fees for 1,600 sq ft at, say, 2500, 2600 or 2626 or 2650 N. Lakeview? And those are all condos. Granted, those are much, much better locations, but 3750 LSD isn’t too shabby either.
This unit obviously isnt’ about light or views. But given that it doesn’t have an eastern exposure, and provided that it doesn’t look out at a row of dumpsters or the like, the place seems like an a pretty good deal.
Your’e essentially just renting the place, so why bother going through the hassle of a transacation even if it’s only $100 something to buy. It makes more sense to just rent a place plus the location just isn’t desireable enough to be in a situation like this.
The biggest issue for low end co-ops in Chicago is the lack of financing available. Very few lenders want anything to do with them outside of NYC. It is ironic though because as a buyer, you’d think a co-op would be more stable and less risky in terms of being able to screen your neighbors for solid finances versus condo living where pratically anyone can move in if they can get a mortgage and risk bringing down the entire HOA.
Does anyone remember this listing from last year?
http://www.redfin.com/IL/Chicago/3500-N-Lake-Shore-Dr-60657/unit-7A/home/39914811
I think it was featured on Crib Chatter.
3500 LSD #7A is larger than the subject unit at 3750 LSD but has more modest kitchen and bath finishes and sold for only $132,000. HOA of $2,000 a month.
Therefore I think the asking price is in the right ballpark. They may get closer to $150,000, who knows. The real problem is no well informed buyer would want to own in a building like this and be responsible for the overwhelming maintenance costs that come along with these old LSD buildings.
Between the facade and the life safety requirements, added to the other routine maintenance and building staff it’s no wonder why it’s $1,000 – $2,000 a month per unit. And that includes taxes! It actually sounds kinda low if you ask me. I wonder if the life safety requirements have been met? I wonder if there has been or will be a special assessment for that and if there was facade work done of if it’s needed would there be a special assessment for that too?
Anyone know about reserves and these costly projects?
“Or are you buying it simply to live in?”
Oh what a novel idea…. who would’ve thought
A good co-op board will screen out a flippers – it’s a hassle for everybody. This isn’t a low-end co-op but the financing is a problem at the moment, mainly because banks can’t repossess the unit should there be a foreclosure, however, a well run cooperative is a better bet than a condo for stability (sorry, you aren’t “renting” the unit, there may be a lease, but you own your unit as effectively as a condo – it is your dividend as owning a share of the corporation, or your benefit if you are the beneficiary of a mutual trust situation – living in a co-op isn’t any different than a condo, you can modify your unit just like a condo, some of which have huge restrictions of things). I think the assessments are right on the money, considering what they include. Another advantage is most co-ops don’t allow investors, hence renters, except for certain situations (temporary job postings, hardship, etc), so people have more in common with neighbors and a longer term interest in the property.
Wow another example of a beautiful gem that one cant give away because the high cost of union labor (doormen and maintenance) and the fact that communism that is a Co-Op/HOA.
Add to the fact most HOA’s Co-op’s decided to kick the can down the road instead of investing in infrastructure earlier and when it was cheaper, usually decided to flog the antiquated equipment as long as they can. which leads to inefficiencies and bandaids that cost more than an overhaul in the long run.
is sad to see beuatifil quality built places like this selling for $175k when down the street at abomiantion that is 2525 LPW the same size is 1.7mil and that building offends all the senses, even the 6th sense.
I like a lot of units in this building, but second floor without a lake view really works against this unit for me.
People who buy in a building like this do not think about resale because they are planning to leave feet first, meaning their heirs get to worry about selling the place. It is not typical to make money selling a co-op place, since the prices generally don’t increase much over the years. High assessments and heirs willing to sell a place cheap just to get it gone are two of the big reasons for this.
Greetings CC.
Any recent updates on 3750 LSD?
Will pass along info following your comments.
Cheers,
Margo