Chicago Condo Market Conditions: 340 On The Park
We’ve chattered a lot about 340 on the Park but what is happening in that building is illustrative, I believe, of what is happening all over the Chicago condo market.
The building is popular. It is getting a lot of press. It has “location, location, location” with unobstructed views to the south of Millennium Park, the Lake and the historic Michigan Avenue wall.
Yet, very few units have been flipped in the building since closings began in July 2007. Some units have been on the market for 8 months.
I’m not saying nothing has re-sold, but it’s been a fairly paltry dozen units or so given what is available and the popularity and size of the building. Again, that’s in 8 months.
Here is a list of some re-sales (it is NOT a complete list- but it gives you an idea.)
Unit #206: 1 bedroom
- Sold in July 2007 for $409,000
- Re-Sold in October 2007 for $644,000
Unit #405: 1 bedroom
- Sold in August 2007 for $481,000
- Re-Sold in November 2007 for $600,000
Unit #805:
- Sold in September 2007 for $474,000
- Re-Sold in November 2007 for $645,000
Unit #1200: 2 bedrooms, north facing
- Sold in August 2007 for $481,000
- Re-sold in January 2008 for $635,000
Unit #803:
- Sold in August 2007 for $793,000
- Re-sold in January 2008 for $1.048 million
Victoria Carton, an @Properties agent, who has commented on Crib Chatter in the past, has her own blog about 340 on the Park. She lives in the building.
She recently blogged about the Chicago condo market, in general, and 340 on the Park more specifically. (Thanks to the Tipster who sent me the link.) From 340blog.com:
The National real estate market is definitely seeing some pricing adjustments. Savvy buyers and sellers know that local information is what matters most in real estate. The condominium prices in GREAT AREAS and GREAT BUILDINGS are strong and rising in many cases despite the National trends. Yes, the condominium inventory is rising, but that is because well-informed owners are pricing correctly and waiting for the informed buyer.
One of the biggest determinants of value in the real estate market is “scarcity.” There are simply no more building sites available on the Northern exposure of Millennium Park. Period. The limits to lake and park views, as well as lake and park access are scare as well. There are even fewer locations with proximity to shopping, restaurants theaters and museums. There may be some deep discounting going on in some “overbuilt” sections of the Chicago condominium market, but premium and “scarce” properties will continue to hold their own.
Units continue to close in 340 on the Park. Recently some as high as the 55th floor have come on the market.
But some of the flips of the bigger units are even more interesting. I haven’t yet seen a successful flip in the upper bracket.
It appears that some are selling nearly at “cost” (pre-construction prices) and others will be lucky to make any profit at all.
Specifically, there are a bunch of units in the O1 Tier. It apparently was one of the most popular tiers, as you can see why from the pictures.
These are from Unit #5501:
Unit #5501: 3 bedrooms, 3.5 baths, 2371 square feet
- Sold in January 2008 for $1.617 million
- Currently listed for $1.86 million
- Assessments of $752 a month
- 2 car parking extra
- Vangel Realty, Inc. has the listing
Here are some other similar units and what they recently closed for. Unit #5001, five floors below it, closed in January for $1.869 million. And #5201 closed for $1.584 million.
But there are a bunch of the same units all for sale on other floors that show an interesting perspective on what is going on in the building.
Unit #3201: 3 bedrooms, 3.5 baths, 2371 square feet
- Sold in January 2008 for $1.442 million
- Currently listed for $1.725 million
Unit #3301: 3 bedrooms, 3.5 baths, 2371 square feet
- Sold in December 2007 for $1.644 million
- Currently listed for $1.699 million
Unit #4501: 3 bedrooms, 3.5 baths, 2371 square feet
- Sold in January 2008 for $1.588 million
- Currently listed for $1.95 million
Let us recap the current list prices:
- #3201: $1.725 million
- #3301: $1.699 million
- #4501: $1.95 million
- #5501: $1.86 million
Remember, they all have the same finishes (same kitchens, baths etc.) All the kitchens in these units look like this:
Floor DOES seem to matter. This is a picture of the livingroom of Unit #3301. Notice how you can see the building next door. In the pictures above, with #5501, you have unobstructed views.
It seems to me that some of the flippers on the upper floors are just trying to dump these bigger units and get out. After carrying costs, closing costs, and realtor fees, what profit will be left? More importantly, how long will they be able to hold on?
Stay tuned.
Hi,
The views from 5501 are stunning! If I had that type of money, I would have to really think it over and compare the unit to other high end buildings, such as 55 E Erie, 270 E Pearson, etc. The only thing that bothers me about this building is the fact that all units have the same Exact Finishes. I just don’t like it. If I was spending around 2 million, I would like to think that my unit was special/different than all the other units in the building. 340 OTP offers fantastic views and a great location but no customization.
for almost 2 million wouldn’t you want some LAND to go with your property taxes?
http://www.realtor.com/search/searchresults.aspx?ctid=1225&ml=3&mnp=43&mxp=42&typ=1
Along with your land, you get to hire someone to mow your lawn, the plumber when the boiler goes, you get to shovel your walk, you get all of the hassle of home ownership.
For my $2 million, I will take a high rise condo each and every day of the week.
Land meaning yard work and snow shoveling and a long commute and a view of your neighbor’s car?
The 340 blog needs to be evaluated for what it is – a real estate agent, who’s bought a condo that is now devalued, attempting to “hype” the building for the benefit of their pocketbook (and, with the listings she’s got in the building for their neighbors, too). It’s a nice building, but prices now are WAY out of line with the market and the flippers and sellers are just being unrealistic.
@Properties is one of the most egregious over-promoters, with a poor track record of success.
“a long commute” From Old Town? Hardly.
“the plumber when the boiler goes” Huh. Condos actually include service contracts? Or a maintenance staff?
“you get to hire someone to mow your lawn, … you get to shovel your walk” You’re paying for it either way.
But hey, either way, if you have the money, do whatever you want with it. Not my business.
I assure you that with the high rises downtown, you will never, ever have to call a boiler repairman, or shovel your walk. Of course you are paying for it either way; the difference in a high rise is that you pay your monthly assessment and SOMEONE ELSE has the hassle of maintenance (unless you are foolish enough to run for the Board). Right now, in my co-op, when my bathroom drain slows down, I send an email to building ops, and magically, while I am at work, someone comes in and fixes it. Magic!
Yeah, yeah, no “boiler” repairman, and no fixing the roof, and no tree trimming, but do condo owners really expect zero-maintenance? Are the air handlers serving your unit common elements or your responsibility? Does the association foot the bill for a plumber if you’re always stuffing a chicken carcass down your garbage disposal? Okay, they give you someone to call–but so can 2.5 million other Chicagoans.
And, K, as you well know, co-ops are a different beast.
5501 is GREAT real estate porn! Thanks for the pictures.
Sure, it varies from condo to condo. The smaller the number of units, the more work you’re likely to have to do yourself (which is why I specified “high rise” for my own personal preferences–I’m quite lazy). Also, the higher end the building, the more on-call/one-stop-shopping your maintenance is going to be. And you’re right, there’s a lot to be said for making residents internalize the cost of their own stupidity for certain maintenance items.
But no matter how much your condo makes you do for yourself–you still do less than if you were in a SFH.
I, as you can tell, don’t want to pay for a maintenance concierge. Especially in a collective system, where I am subsidizing someone else’s laziness–I have enough of my own laziness to pay for, thanks–and don’t want to be locked in to a stupid condo board that wants to have an electrician AND a plumber on-call and make me pay “my” share of it.
Plus, you pretty much have to pay union rates or have picketers in your driveway. Although the opportunity to have the inflatable rat visit for a day or two might amke it worthwhile to me.
Morgan: That was my thought when I saw the pictures of 5501 as well. Just stunning, really.
I personally like the big window in that bathroom as well. More developers should put windows in the bathrooms.
There is a lot to like about 340 OTP, but, in all honesty, the opinions of a real estate agent who lives in the building and who is the listing agent for multiple properties in the building must be taken with the largest grain of salt as she has a textbook conflict of interest. I have been in this building many times, and it is unique in some ways, but in many other ways it is really very ordinary. The south views are undeniably spectacular and arent going anywhere…for this, 340 OTP is unique. But many of the ceiling heights are rather low, the finsishes are exactly the same in every unit (the very opposite of unique), and the unit sizes and layouts are really unremarkeable. If you want to pay a premium for views and for architecture, this is the building for you. I have a feeling that buyers will not be jumping at the resales, however, until the prices come down. I hope I am wrong.
Hi Pete,
I completely agree with you. I think the South Facing views will always be OK in terms of resale but everyone else will be in trouble.
Hi SR – I agree with you too;) My only other observation is that, like most other residences, if an owner at 340 OTP bought because they love it, want to make it a home, and plan to stay for a while, then there really is no need to obsess over whether it is a “good investment” or what the resale value will be. If you bought preconstruction and you are living there for 10+ years you will be fine. Of course, I understand this site is primarily about flippers:)
The condo market today is all about the buzz of a new building. My question is what will value and sales be like when the building is 5 years old. The kitchen and baths become dated, and your competing on sales with other units in the building. All these new building seem to have a very temporary population base. My old condo had a very stable ownership base, many people lived there for 10 to +20 years, this has a stablizing effect on the building and property valuations. When I sold my unit their hadn’t been a unit for sale in the same tier for over two years. I had an offer in one week; but that was 14 months ago. The market has changed since then. If the market continues to decline we could have many unstable building out there.
Pete – I’m wondering weather you’re logic is sound or weather this is a watered down version of the logic that propelled the housing bubble along – ie housing has always gone up. That being said this downturn has taught me a valuable lesson about what the most important things about a building are:
1) view
2) stabilty of ownership
In this market I wouldn’t consider buying anything without an awesome view in a building that is stable (i.e. limited risk of foreclosures / special assessments because most of the people in the building have owned for a long time and won’t have to foreclose if the market turns down 20%). 30 OTP has 1) but not 2).
well at least 340 OTP has awsome views, fab ammenities, and high price pints unlike Momo or other lesser buildings
Do ANY of the new buildings have stability of ownership? In the buildings that have closed in the last two years, they have not. Most have had 30% or higher flips/rental rates.
When I said if you plan to stay in your condo 10+ years “you will be fine” I meant you are unlikely to lose money. I didnt mean you are guaranteed to make money. You shouldnt buy your house/condo to make money. If you get lucky and you do, terrific (or if you are a real estate professional and that is how you make your living, then making a “good investment” on your home is obviously more realistic). I also think that people overestimate the gloom, just as they underestimate the euphoria. Things look pretty bad right now, but in 3 years some of us may be looking backwards wishing we bought something now. My own personal view is that after this flipper-mania shakes itself out over the next couple of years, at least some of the higher-end buildings (or some of the units in some of the higher-end buildings) will end up being very sound “investments”. And I know some people may disagree, but I also think that if we get the Olympics, that changes everything (for the better).
Sabrina, I was looking at a loft and asked the showing realtor what percentage of owners lived there (this is a 6 year old building) and she said about 70 percent, as if this was a good thing. What do you consider a good, stable owner to renter ratio?
SLR, 1.) LOCATION 2.)STABILITY 3.) VIEWS… LOCATION/STABILITY in my mind and many realtors minds is far more important than views. I can find you a condo with amazing views that probably won’t do well regardless of what type of market.
For Example and only Example… 3660 LSD has some killer views from some se,s,sw,e tiers. For people wanting to live in Lakeview its an A location. Although some units have killer views I would never touch a unit unless I was able to pick up a large 1 bedroom for under 150k and a large 2bedroom for under 250k… But if we go next door to 3550 LSD you still get same A Lakeview location, a more stable (condo board) building with better results/apprecation for both investors/condo owners and some (se,s,sw,e) tiers with some amazing views…
If you want to follow the worst business plan for running a condo association “buy” into an American Invesco building.
Buildings with great views can form stigmas just like any building in this city. These stigmas form because of a (uneducated property manager, average doorman/women, unpolished board members, renters or bad neighbors not protecting common areas, investors or owners not wanting to build up reserves, monthly, yearly maintance checks on critical/minor areas of building, corrupt alderman, mismanaged school systems) you can bet this type of building will not appreciate as much as a similiar property with a similiar address sitting next door or across the street.
Shall I say Caveat Emptor…
city agent, how does a buyer find out all these things about stability and stigmas??
You work with an Agent “dedicated to protecting your best interests and your interests only…”
Even though most of the general public disagrees…Some good/great agents are really experts and are extremely knowledgeable about specific buildings/ certain locations or pockets of the city. I know an Agent that had seen all 163 different floor plans of a 180 unit loft building. He could tell me the difference between ceiling heights, kitchen appliances which units had hardwood or the best part of the exposed brick, outdoor space or which units had prime parking spots or if the Loft were on the concrete or timber side of the building.
There is a local market for every Real Estate Market. There is usually 1 market within every high rise building. I don’t care what the East side “high-rise” do if I’m buying on the West. I don’t care what the North side “high-rise” do if I’m buying on the South Side. I actually only need to know the type of market so I know how to react if I do decide to make an offer…I’m actually not even worried if the building across the street or right next door in an A location and has 10 foreclosed units that has never really done well since day one because 60% of original owners were investors…
Right now most of us agree that prices are falling. If you ask any person that’s been doing this for awhile they will tell you, “You make your money when you buy real estate and you lose your money when you sell…”
But let me also say that even some or all experts can predict wrong or bad outcomes. Most of us have heard the following: “In Real Estate the higher the risk the higher the reward or the higher the reward the higher the risk.” This is true in any business plan as well.
It takes money to make money. This is when you have to be careful when choosing to buy in new construction for either investment or home ownership.
Just to make this fun…How many NFL Experts had the Giants beating the New England Patriots this year? How many Weather Experts can’t predict a snow storm? How many experts pick the wrong stock or get beat buy a monkey throwing darts at the stock board… When you go to a 5 star restaurant in a fabulous part of town on opening night is it going to run the way it would if visited a year from now. The same goes for these fantastic buildings in superior locations. It takes about 2 years to become noticed by the general public.
It is impossible for anyone to predict what is going to happen with these newer buildings in the next 2-5 years… You should be able to the direction of the building after about 3 years of occupancy by the HOA (home owners association…) New construction in these luxury “high-rise” condo buildings is a crap shoot and we wont be able to tell about any of these buildings 600 Fairbanks, 340 OTP, 550 STC, etc until about 2-5 years from now.. Also for reference most HOA’s need to be 75% sold for developer to hand over…
I agree that a good agent should know about the buildings with stigmas and those things. But many times, unfortunately, the agent isn’t very good. Or, to get a sale done, the agent just leaves out the information about the new high rise that may go up in a parking lot next door (that the buyer doesn’t bother to ask about.)
Buyer beware!
That’s also why I started this site- to give people information that they otherwise might not get.
City Agent: I also agree with you that we won’t know the fate of these new high rise buildings for several years.
condoshopper on February 19th, 2008 at 11:23 am
Land meaning yard work and snow shoveling and a long commute and a view of your neighbor’s car?
—
Condo, obviously, you want a condo. Good for you. Whatever floats your boat. But being a condo owner does not mean there will be no repair bills. When you are done shopping, will be prepared for a special assessment? Do you really think that all these builders in their hurry to get the units online are not cutting corners? Time will tell. The condo unit I am renting now just upped their assessments. But the board will not spend its money on snow removal or lawn care. Each owner is forced to take a turn doing both.
What I was trying to say is that condo “owners” get short changed. The whole point of real estate is land. Property, and rights to it. Condo owners do not own anything. They do not own the land (way) below their feet. It is not theirs. All you might be able to claim is the air rights within your designated unit.
For the price of some of these units on here, a savy buyer could have a very nice building ANYWHERE else with LAND.
Stuck –
Funny – I didn’t mention repair bills or special assessments, just yard work and snow shoveling. Thanks for misreading my mind.
Does anywhere else include Park Ave. in NY? Sweet!
Sabrina, I would say for New Construction 25-75% of people do not work with an agent… Instead they work with the Developers agent. Seems like a conflict of interest to me??? It’s your job as the consumer to note that working with a buyer’s agent is an advantage over working the Developer’s agent.
Do you really think the Developers Agent is going to tell you that the Alderman just passed zoning for a 50 story building right next door? That’s really going to perk up sales… I don’t think so??? I blame the Alderman for keeping everything a secret these days… I also blame consumers for being ignorant about what could potentially build right next door. If I have a buyer that is looking at a unit with an empty lot in site I tell them to assume the worst thing possible. If they can’t resist because they like the building/unit so much I tell them we use the empty lot as leverage to get upgrades, free parking or anything my client feels is necessary at that point.
Does anyone know if the buyers of the southwest corner at 340 OTP where told that the bluecross blueshield building would be twice as tall in a couple of years? If you were not up to date on development plans in the city, based on the age of the BCBS building you would assume that the building wasn’t going anywhere for some time. This building was designed to be constructed in two phases, a knowledgable realestate agent would know this, and if they were working for the buyer they could advise them on this issue.
City Agent and Sabrina, thank you so much for your clarification and input.
City Agent, are you recommending the use of an exclusive Buyer’s Agent? If so, how does one go about finding one with expertise in the area where one wants to buy? I’m looking to buy a place to live in comfortably for 5-10 years without having to worry about a collapsing condo board or huge special assessments.
Sabrina, again my sincerest thanks for providing such an informative and important site.
When I mean buyers agent I mean an agent dedicted to you and not his or her listings or his or her companies new developments. Buyer’s Agents are too scarce in Illinois because its a new breed that over time will eventually get bigger. So I can’t direct you to a site becuase there is none…
Plus some really good agents like working with sellers too! I work with both buyers/sellers but when I do I’m not even thinking about taking a client to one of my listings or a new development unless I know its the right fit…
I’ve posted on this before but if you work with a specific agent from a specific company be careful. @ Properties actually gives away trips and or expensive watches to agents that work in house.
That’s how they have been so successful selling their own developements. They can parade sellers around to 15 different new developments and tell there buyer to choose from one… I can’t blame the owners either… They formed a niche market when a niche market was needed in Chicago Real Estate.
Work with someone you can trust.
Thanks again, City Agent! How does one know who trust? How does one find someone who specializes in the area where one wants to buy and has one’s interests at heart?
Ask,
Email Sabrina at cribchatter@yahoo.com… Have her forward my email over to you. If you let me know the location and or your requirments (2bedroom plus 1 den, 2 baths, outdoor terrace, window in masterbath, etc) I can get you in touch with a great agent if it isn’t already me…
Thank you very much, I will!
Does anyone have any information regarding leased units in this building (340 OTP), #’s, %’s, price ranges, that are not owner-occupied, that have been leased, that are listed for lease, etc.? Thanks!
Anybody out these…..???? 🙂
See above post. Thanks.
I am showing 23 units rented on the MLS. I am sure there are many rented by owner on Craig’s List or through friends.
Rental prices range from 2300/month for a 13month lease on a north facing unit to $11,000/month
Much thanks Streetville Realtor. I have read other posts that you have made and they’re all very informative.
23 units rented via the MLS plus the X not through the MLS probably means there are at least 40 units that are rented. With the ones still available to rent it looks like around 20%+ are rentals in that building. Seems a bit high for such a nice and “desirable” building. Your thoughts on this?
Does anyone think buying at the pre-construction prices or +5% in 340 OTP would be a safe buy, or were these overpriced from the developer too???
Everything that is currently being delivered will be proven to be overpriced by the developer, even pre-construction.
Why even consider buying in 340 OTP when brand new units can be rented there for a massive savings versus owning? Besides, until all of the stuck flippers are weeded out of the building nobody knows what prices will drop to, but drop they will. You will only come out ahead by renting there and waiting to buy.
I understand that some people believe the building is exclusive and are willing to pay a premium for that. How exclusive can it be when renters can get in for so much less than owners? Especially when they will occupy a good percentage of the building.
G – Good points. I have been examining the rentals there but could probably get one for around the pre-construction price (one an early pre-con price, the later a later price). Am touring it soon but need the confirmation to just go ahead and rent versus buy. With a parking space, is $450-$500 s.f. out of line if it is direct south view on 20+ floor?
I know, I know, I shouldn’t buy in this market. BUT if I can buy a 340 OTP “05” unit on a middle floor with direct SOUTH only view (no west or east windows), no balcony (preferred a balcony), 1224 s.f. one bedroom for $560K including one parking space should I entertain that??? Please talk me out of it since I know better. 🙂 That’s $425/s.f. plus $40K for the parking space. Brand new, never lived in. I probably should really just rent and wait for a foreclosure shouldn’t I??? Help! 🙂
If I were trying to talk myself out of it, I’d note that $560K represents about a $100K profit (or more) to the seller in a down market. There’s a *pretty good* chance that these units are going to go back to developer’s preconstruction pricing within a year. The building hasn’t even finished closing. The other way I’d talk myself out of it is noting that if I “lose” this “deal,” I can be guaranteed that in this building, ten identical “deals” will pop up within a year (and frankly, probably better deals, but almost certainly no worse.)
John: Several things to ask yourself:
1. How long are you going to live there? 5 years? 10 years? Can you wait out the further decline for a long while? Because it will be a long time before you can even break even on it if you have to sell.
2. I didn’t know that building had units without balconies. Caution! In Chicago, buyers like balconies. I’ve seen buyers not even interested if the unit didn’t have a balcony. And in that building with that fantastic view and the opportunity to hear the orchestras in Millennium Park (possibly) from your balcony? I’d want a balcony in that building.
3. This building only started closings 8 months ago. The sellers aren’t in distress yet- but they will be in 6 months to a year. Why not just rent a unit in that building and wait and see? You can rent far cheaper than you can buy (even for the south facing views.) You might find you don’t even like the building much after living there (at least that has been my experience.) And then you’re not locked in.
4. I also agree with Kenworthey. There will be real deals in a year or more. Right now, none of these “deals” are truly “deals.”
Wait for a balcony unit or just rent in the building for 1 year and see if you enjoy living there. You have an incredible opportunity to rent possible the exact same tier of unit you would buy. Go for it. Like a “trial” buy…
Right! I agree with SR. If you go to the 340 OTP owners forum you can see that some are having issues with where their thermostats are located and others had incredibly high energy bills (south facing units will have to run their A/C all summer long basically.)
You’ll still have the high electric bills as a renter- but at least you can find out all the other stuff first and then buy later. Many times, there are things that need to be fixed in new buildings. Let the owners deal with it and not you!
There are plenty of rentals- some at decent prices. Move in and enjoy without the worries.
The way I figure the cost of buying at $560,000 would be about $3,900 per month with an after tax cost of about $2,900 (Opportunity cost of $560,000 at 5%, Property Tax at 2% of the purchase price, condo fees of $600 per month, and a marginal income tax rate of 30% – feel free to adjust for your situation.)
If you can afford $2,900 per month, are absolutely sure that this is the place you want, and are pretty sure you will stay for many years, then go for it. (It still wouldn’t make sense as an investment, but owning your own place can bring comfort and happiness that can’t be evaluated in a financial model.)
But there is very little risk in waiting.
Prices are not going to go up for a long, long, time and they will probably go lower. More importantly, you won’t be able to sell this at breakeven for years! (You’d have to sell for at least $620,000 just to cover costs and come out whole – how soon is that going to happen???)
If you decide to buy anyway, do not compromise – if you want a balcony, they why are you even looking at places without???
If there’s any chance that you will need a bigger place in the foreseeable future, then don’t buy a one bedroom and hope you can trade up – if you buy this place now, you’ll be stuck there for a while!
I would listen to SR and Sabrina and test out the building by renting for a year. I don’t see much downside risk.
Another reason for renting before you buy in 340 is to try out the kitchens. Some kitchens have almost no upper cabinets. Units where the stove hood is against the wall (instead of over an island) have only one small upper cabinet on each side of the hood. That means a lot of stooping and bending to reach dishes in base cabinets. If you never cook, that’s not a problem, but if you do cook that could be a hassle.
Wally said:
“It still wouldn’t make sense as an investment, but owning your own place can bring comfort and happiness that can’t be evaluated in a financial model.”
And this is half the problem of the RE bubble Wally. People treated their home as something other than a financial asset with a utility value of providing a place to live. The other half is flippers who preyed upon people with this paradigm.
I also find it humorous that some people want to have that feeling of ownership and are willing to pay a lot more for it. I got news for you: the ownership of the property is likely not really yours or even if paid off its tentative: the bank has the title to it and even when paid off try missing a property tax or HOA payment and see what happens.
Wow – really great and thoughtful replies. Much appreciated….I’ve walked away from the ledge now. 🙂 Was nice to see the building this afternoon. Look at over 5 units. There were a few realtors in the building so there must be an interest in it….might just be renters’ interest though. I was surprised that the north facing units have a good view too with that park in the middle. Obviously the south facing units have fantastic views especially the higher you go up. I think 340 OTP is a very good building, does look like they are still finishing some stuff up. The one bedrooms are nice and spacious but the two bedroom “03” units are even better. I think there are some motivated owners there looking to rent. I think it is a good location, but maybe north of the river would be a better location? Good building….but will have to think about it, there are sooo many places to rent right now. Much thanks!
Thanks for the update John. I think there are agents in the lobby of that building every weekend. After all, there are over 60 units either for sale or for rent right now. It’s a HUGE building.
They are still closing on units. They haven’t even made it all the way to the top of the building yet. The construction workers will be there for awhile yet.
It’s a nice building in a good location if you want to be near Millennium Park/Grant Park and the Lake.
This really is a great website…. Sabrina, you should start a PayPal tip jar to help offset any costs +. Keep up the good work!
Ditto on that. Great site Sabrina
John, where do you see that listing? Couldn’t find it anywhere. If real, it goes to show that prices are coming down faster than I expected.
This was a possible non-listed resale. Final price to be negotiated.
Did anyone see this Crain’s Article??
http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=29353
Thanks SR — I think this means Peshtigo and Canyon Ranch are toast — for now, at least. Peshtigo’s 2 br starting at $730,000 never made sense under any but the most bullish market condition assumptions!
I hope the rest of the developers see the handwriting on the wall and start slowing down.
Not to be alarmist, but anything in Streeterville or River North that’s not out of the ground should be put on hold or cancelled.
I agree with you!
I have been looking at this building for quite some time. I am moving to the city and looking for a high end 1 br. I like the units facing south on a decent height floor. Anyone have an idea what I should be paying for one of those units? Right now most people are in the $3,000 – $3,500 range. I find that hard to justify considering the current glut of high end apartments available. Any thoughts? If not 340, what other buildings should I be looking at. Thanks,
Mike, You should also look at 600 N Fairbanks.
The Regatta and the Chandler, also in LakeShore East, have some nice (and cheaper) units.
The Palmolive might have some decent rentals as well.
The Palmolive has one rental (one bedroom) that is listed for 4,000 per month. It is a very boutique building.
So is $3,000 – $3,500 fair for these apartments? I have no clue about the Chicago rental apartment having only lived in NYC since college.
BTW Fairbanks My uncle owns an apartment in the building…very nice with great lake views.
Mike – Most owners would take 20% of the listing prices. I looked at the building too….depends on views and # of bedrooms. A 2 bedroom north view is around the same rent price as a 1 bedroom south view. It is a nice building.
Thanks for the info. I am looking forward to seeing it in person. Need a good weekend to head out to chicago.
I have seen these one bedrooms rent for less than 3,000 but that may be for the north facing units. I am sure you can knock at least 100 bucks off the asking price per month. I have rented some large “luxury” one bedrooms as well in the city and you might consider Riverbend (not as new but great views and cheaper) or Riverview. Good luck with the search.
Prices for some recently rented. Note, I have seen some listed for $3,600 rent for $3,100.
#801 – $3,100
#5602 – $4,200
#1306 – $2,250
John,
Where are you getting this information? When do you think I should start thinking about signing a lease for a July 1 start?
Here is the for rent/rented info from the mls for 1BR units:
FOR RENT:
Unit # asking mkt time (days)
301 $2,990 69
1406 $3,500 42
1407 $3,500 64
2106 $2,800 21
2702 $3,500 75
2905 $3,100 114
3505 $3,500 77
RENTED:
Unit # asking actual mkt time leased date
302 $2,350 $2,300 152 12/16/2007
305 $3,250 $3,000 57 8/29/2007
600 $2,500 $2,600 40 11/16/2007
605 $3,300 $2,600 71 10/31/2007
707 $3,500 $3,500 8 8/7/2007
1006 $2,700 $2,650 92 9/12/2007
1206 $2,600 $2,700 30 9/19/2007
1305 $2,800 $2,600 49 10/10/2007
1306 $2,400 $2,250 172 2/29/2008
1405 $3,100 $3,000 57 10/22/2007
2006 $2,600 $2,700 33 10/17/2007
whoever you are, G, you rock.
FYI,
I don’t think those are all 1br units.
Here’s a list of the Unit numbers and the corresponding # of bedrooms:
Unit Number / # of Bedrooms
Unit 1 – 3
Unit 2 – 2
Unit 3 – 1
Unit 4 – 1
Unit 5 – 2
Unit 6 – 1
Unit 7 – 2
Unit 8 – 1
Unit 9 – 1
Unit 1 – 3
Unit 10 – 2
Unit 11 – 2
(Unit’s 10 and 11 are one bedrooms combined into two bedroom units)
Wally – that isn’t correct. The “05” line is one bedroom…..same with the “07” line too…
Sorry guys, I was spacing out. Those numbers are for 600 N Fairbanks.
Sorry
LOL – no problem….
Thanks G. That is great information. Only one has rented in 2008? Interesting. More units continued to close during the last three months.
Some may have rented off of Craigslist or other ways that don’t appear on the MLS, however.
Seems to me that a renter should be lowballing on those units that have been on the market for two or three months.
It looks like any “pent-up” demand for 1BR rentals has been satisfied and they are currently going at a snail’s pace of one every couple of months.
I would think the first leased unit at $3500 gave hope to many flippers. Nobody else has come close to that rate and the most recent lease for $2250, along with the lack of activity, indicates that rentals have not stabilized here.
All of the current asking rents are too high. Way too high. The weak hands will begin to fold in this building before their one year anniversaries.