Dramatic Price Cuts on the Penthouse Levels at Grand Plaza: 545 N. Dearborn in River North
Thanks to the tipster who sent me information regarding the slashing of prices on the penthouse collection at Grand Plaza, the 2001- era high rise at 545 N. Dearborn in River North.
The price reductions appear to apply to units only in the penthouse collection on the 30th to 36th floor. The building’s website says the lower floors have sold out.
Stats for the building (out of 283 units):
- 27 listed for sale
- 4 listed for rent
Some units may be both for sale and for rent.
Some examples of the price reductions:
Unit #3303: 1 bedroom, 1 bath, 965 square feet, Northeast views
- Was listed at $505,900
- Reduced $186,040
- Currently listed at $319,860
- Assessments of $721 a month
- Taxes are “new”
- Parking is leased only
- See the pictures here
Unit #3205: 2 bedrooms, 2 baths, 1766 square feet, Southeast view
- Was listed at $885,900
- Reduced $194,124
- Currently listed at $691,776
- Assessments of $1193 a month
- Taxes of $10899
- Parking is leased only
- See the pictures here
Unit #3605: 2 bedrooms, 2 baths, 1232 square feet, South view
- Was listed for $728,900
- Reduced $203,841
- Currently listed at $525,059
- Assessments of $890 a month
- Taxes of $8836
- Parking is leased only
- See the pictures here
Read more about the special incentives in the building at the website: Grand Plaza Penthouses.
Still overpriced when you consider the firesale going on across the street and elsewhere in River North. I can’t imagine why someone would buy these here. These need another 20 percent.
maybe the 1BR tempts someone on the absolute price being affordable as a starter place…
They are calling units NOT on the top floor a ‘penthouse’?
how do they sleep at night calling that 1/1 a penthouse? I mean, the view is amazing but the interior is amazingly standard.
Only a RE agent can turn a basement into a garden, and an apartment with 6 units above it into a penthouse.
Its still a 300k+ 1BR no matter how you slice it. Until it falls to 275 ish and LOWER those assessments its gonna have a hard time moving.
And their deals are just like American INVSCO. 2 years free taxes/assessments.
$250k for a 1 bed in RN is about right.
Steve- Glad to see we can agree on something finally. cheers
See HD… it’s all bad underwriting standards. Don’t lose yourself in causation and correlation.. you should know better.
http://online.wsj.com/article/SB124657539489189043.html?ref=patrick.net
These are still massively overpriced and nasty.
that is the smallest “full basketball court” i’ve ever seen.
“David on July 6th, 2009 at 7:44 am
These are still massively overpriced”
-$3K+ a month with taxes, parking, and HOA for a 1/1
“and nasty.”
-dingy carpet, plain finshes, etc, etc, etc.
Could not agree with you more.
Ze, that’s like saying crack-cocaine isn’t the problem, it’s the crack-fiends who can’t handle the drug.
And furthermore Ze, how do you think FB’s get underwater?? IO loans are exactly that: interest only. No payment to principal. In a flat to declining market that’s toxic.
I do not see how the prices can be reduced any further for the space offered and the location. $200k, off the price of a penthouse level unit is a pretty sweet deal. And yes, more than one floor can be considered a penthouse…duplexes with all that outdoor space…yes you can call that a penthouse.
There is also that bonus $150k to upgrade or build you unit as you want. It is rare for a building to even allow modifying (believe me, I ask at every new place I look at), but for them to contribute to these modifications is VERY rare. Of course, that bonus would go pretty fast to do what I would want done to customize the unit to my liking.
The floor plans, are very sensible. It appears every foot is usable or could be customized to meet your own needs. From a ‘serious floor plan analyst’ (I have over 1000 of them on file for ideas) these are among the top few for usable space.
The only drawback for me would be the views. It seems only the East or SE facing units would be the ones with the best views. I would not take a west facing unit for anything.
I just don’t know what would make you all happy here. As proud as you all are of Chicago and this area in particular, I don’t see what would be holding you all back from buying. Just think of the boasting you could do to your lower neighbors who just may have paid more for their place on a lower level!
If you are seriously looking to buy, I think this building really does make sense. If you really are that cash strapped that you could not afford this, for what you get, you really need to strap on those knee pads and start rehabbing a $100k fixer upper in Rogers Park…or continue to pay someone elses mortgage every month. Not a ton of options for you….
Crazy expectations!!
Terrapin Properties is in financial trouble. The one story units are not very exciting. Finishes are blah for most units also. The high assessments give you hotel-like amenities. I would consider renting in this development.
“If you really are that cash strapped that you could not afford this, for what you get, you really need to strap on those knee pads and start rehabbing a $100k fixer upper in Rogers Park…or continue to pay someone elses mortgage every month. Not a ton of options for you….”
Or just wait. Yeah we’ll continue to “pay someone else’s mortgage every month”, but thats better than being liable for the entire asset value in a flat to declining market.
Also even if I had the money to live here (I could probably swing it if they did FHA), this neighborhood does not appeal to me. And today’s 100k fixer uppers in Rogers Park are tomorrow’s 100k fixer uppers in Edgewater, Uptown, etc. The deals are going to move closer into the city as time goes on.
The amenities are shared with the rental tower so why not rent? Much less expensive then owning here.
That has got to be one of the most arrogant, yet naive, statements I’ve ever seen on this board. I will enjoy the schadenfreude as I watch your beliefs about the infallibility of the real estate market crumble.
“If you really are that cash strapped that you could not afford this, for what you get, you really need to strap on those knee pads and start rehabbing a $100k fixer upper in Rogers Park…or continue to pay someone elses mortgage every month. Not a ton of options for you….
Crazy expectations!!”
westloop- the real shame is that their “penthouses” had standard finishes to begin with. carpeted living areas, basic SS appliances, etc. I’d like to see what restrictions they have on the 150K… Like replacing the floors w/ wood costs $75K or something…
-if you notice the before and after pics, they are FUNNY! 1 has the “master bedroom” before pic w/ no balcony and the after photo has a balcony… like they just built a balcony.
-also, all the upgrades I see are new countertops and HW floors, and adding furniture to an empty “before” photo.
dd-
per website: “Terrapin Properties no longer has any financial, managerial or sales interest in Grand Plaza. The Grand Plaza project, including The Penthouse Collection, is and will continue to be unaffected by any trouble the previous developer experiences.”
There’s a reason these have all been reduced so much…
BECAUSE THEY ARE TERRIBLE AND OVERPRICED! My god, with those assessments and taxes, as well as the god awful finishes in those places…. no thanks!
I’m not a fan of “full amenity” buildings or high rises personally but even if I was, that seems awfully expensive… 3k a month to live in a
but even if I was, that seems awfully expensive… 3k a month to live in a
Stupid internet eating my posts!
buying a condo at a building where parking is only available to lease is like sitting there naked waiting to be raped… i guess you don’t need a car in chicago.
this building does have some of the best doormen and management staff tho..
Those prices seem kind of high considering that 33 W Ontario is a couple blocks away and has comparable units on even higher floors
Craigslist has two beds for rent in this building for around $2,500. There’s a one bed for $1,500 that is listed five times with no takers.
These were rental properties first and the finishes show they didn’t do much before the converted to condos. Way over priced.
HD, interest-only is not why people are underwater. You pay very little principal on a loan in the first several years. Look at an amortization table sometime. If someone is underwater, paying the little bit towards principal wouldn’t have made the difference.
Russ,
The difference being there is no cushion. At month 0-36ish, almost any decline will put them underwater. The difference is even at 36 months this is still only 10% the duration of a 30 year mortgage. So yes the timing could conceivably be the same if valuations drop immediately after they purchase.
However with IO loans it is guaranteed that every time valuations decline at all from the purchase price, no matter what month, the homeowner is under water (if valuations declined beyond the amount their downpayment).
The principal paid during the first few years on fully amortized loan is small but not insignificant.
HD, given the amount of price declines we typically see, it is insignificant. If you are underwater, you are going to be underwater regardless if you were i/o or fully amortized. I have seen a lot of deals coming across my desk this year where borrowers have plain vanilla fully amortizing loans for the last five years and they are still underwater. On a $1500/month payment, only about $200.month or so is going towards principal in the early years.
Still yet, Russ, the difference is at least with the fully amortizing loans, they had to be able to afford the entire, amortizing monthly payment to qualify for the loan.
The problem with IO loans is that they don’t require the person seeking the loan to qualify for the entire, amortizing payment amount when calculating DTI ratios and the like.
So these people wind up driving up prices as instead of pocketing the difference between a fully amortizing loan and an interest only one and investing it, they instead use IO loans solely as a tool to get ahold of more house (leverage).
Yeah ChiGuy, I agree with the basic finishes available and in order to ‘upgrade’ them to acceptable higher end products will eat up a good chunk of that $150. I guess I am just more excited with the option of customizing the floor plans to be exacty what you need them to be.
In my rehabs, that is where my primary focus is…on making every inch usable and having the layout where you can live in and enjoy every area.
In the majority of high rises so much space is wasted with hallways, closets, kitchens and bathrooms that just do not make sense.
Steve Heitman wrote: “$250k for a 1 bed in RN is about right.”
That is if interest rates stay the same. If rates bump back up to 7%-8% I wonder what will happen to the prices?
Perhaps we could look at it as: “the monthly cost of a RN 1 bd mortgage should never top $1900″…. or something like that?
HD:
Where did I say or even hint at the idea the RE market is infallible? I realize, as I have said over and over that the days of making money in RE are over and in most cases will not return. No argument there.
I have repeatedly said that the props I picked up here will not sell for the amount of $$ I have invested in them. I am planning on renting all but two once they are all completed. I have one place rehabbed and I had it rented in under a week.
I do not care if they sell or rent, I still have $$ flow every month. Sell or rent it out, not a big concern to me.
Bob, will you ever remove yourself from the belief that home ownership is ONLY an asset and not merely shelter? I assume that you do have $$ invested in the stock market, right? So you do take some risk?
Think 30+ years down the road when your peers are living comfortably on their IRAs or SS (if it survives) because the risked buying a home in their 30’s. Their mortgages are paid and they owe nothing but their basic monthly expenses – RENT.
I imagine a person like you would buy and stay put for years, right? While you might take a small hit now (if you do not buy right, which with a bit of work is hard to do) but over your lifetime, just think of the $$$ you are pissing away a ton of rent you pay now that goes to building someone elses equity.
BTW, have you considered a two flat to purchase? With a bit of work on your part, you could have a nice place to live and a big part of your mortgage would be covered by your tenant’s rent $$$. There are so many on the market now that are doable…many with FHA mortgages.
I just don’t understand the idea of life long renters…while they do me the favor of paying a large portion of my mortgage, I feel bad that years from now they will own nothing…
Uh-huh.
“I just don’t understand the idea of life long renters…while they do me the favor of paying a large portion of my mortgage, I feel bad that years from now they will own nothing…”
Westloopemo is encouraging people to use FHA mortages (3.5% down) to buy a two-flat to rent one out because it will cover most of the mortgage. Don’t work for your money – make your money work for you. It’s 2004 ALL OVER AGAIN. What other ingenious and new ideas do you have for the neophyte renters here???
“BTW, have you considered a two flat to purchase? With a bit of work on your part, you could have a nice place to live and a big part of your mortgage would be covered by your tenant’s rent $$$.”
I have considered two-flats, but not in any of the ‘desirable’ neighborhoods. That being said, the incremental cash flow from owning a two-flat in most semi-decent (non-prime) neighborhoods wouldn’t be worth the marginal effort of being a landlord.
Landlording only makes financial sense when you have economies of scale or are interested in learning the trade and expanding. Like my landlord and his family own several buildings–I still see them out busting their arse all the time in my building and imagine they do the same in the others.
Had I had the 80k for a downpayment I recently saw a foreclosure for 400k I would’ve picked up. So I’m not against owning at any rate, just that the few properties that are priced right that interest me are currently out of reach for me.
I will probably be purchasing in my early 30s, but that is still three to six years away. Use to think four to six but that foreclosure really opened my eyes that there are some deals appearing.
I don’t know how someone could pay $320K for No. 3303 (the 1BR) and get those finishes in return. I hope it’s a case of bad pictures, but I’m sure it’s more likely junk finishes with a lot of marketing pizzazz.
I wonder what amenities are included in the assessments. For instance with the $721 assessment on the 1/1 listed for 320k, included in that assessment fee does it include a concierge, better yet will it help me pay my mortgage? 😀
We own our house now, no mortgage after 18 years. I did a rough calculation: if we rented, we would have had the same cash (when invested conservatively) as the house is now valued, so it’s a wash. The rental is not comparable to a house.
“The rental is not comparable to a house.”
what do you mean by this?
HD,
Once again turn my comments into a false statement. Jeesus Louisus! Sarcasm boys sacasm!
I do recall though, whether it was used in jest, but I think both of you have said that the only way you would buy would be on FHA. So settle down spot, I was merely being a smart ass.
Actually, I could give a shit if you took FHA or not.
Bob,
I totally understand where you are in this situation. Just know there are some deals out there, but it is highly unlikely you will find it on CC. An idea of where we are…maybe.
Bob,
What is this foreclosure you’re referring to. And has it sold?
Nobody has commented that GP is one of the ugliest developments of the boom. Acres of puke-colored concrete…
10 units are going to be auctioned…..
This is your chance for Luxury Living in River North!
Developer directs close out of final units. 10 Prestigious Penthouse Condominiums originally priced from $652,900 to $1,304,900 are for sale, with 5 units to be sold regardless of price, subject to published reserve prices of $345,000 to $775,000.
Featuring:
• Top Floors
•Spectacular Views
•Large Terraces & Balconies
•1,238 to 2,500 sq ft.
Read more…
http://www.grandplazapenthouses.com/