Flipper Alert: $49K Price Reduction in 340 On the Park
We last chattered about this one bedroom unit at 340 On the Park, at 340 E. Randolph, in Lakeshore East in early June.
At that time, it had recently been reduced.
It has now been reduced another $49,000.
By just square footage- that would make this unit a much better “deal” than in any of the other newer construction buildings such as 600 N. Fairbanks, 550 N. St. Clair or the Regatta – which is also in Lakeshore East. The one bedrooms in all of those buildings are much smaller.
This is a north facing unit and does not look out on Millennium Park.
Unit #406: 1 bedroom, 1.5 baths, 1081 square feet
- Sold in July 2007 for $314,000 (I believe this includes the parking spot)
- Originally listed in October 2007 for $620,000
- Reduced several times over the winter
- Finally listed at $499,000
- Listing withdrawn in January 2008
- (Spent several months not on the market)
- Re-listed in May 2008 at $499,000 (not sure if parking was included in this price)
- Reduced
- Was listed in June 2008 at $449,000 (parking $50k extra)
- Reduced
- Now listed at $400,000 (parking $50k extra)
- Assessments of $285 a month
- Re/Max Exclusive Properties has the listing
Something else to watch: 340 On the Park started closings in August of 2007. Some renters have been renting for a year now. We’re starting to see units come back on the market.
Take Unit #707.
It’s a 1,186 square foot 1 bedroom, 1 bath that faces the Park.
It originally closed in August 2007 for $486,000. It just came on the market as a rental for $2900 (available on Sept 1) plus $250 for parking.
Will these landlord/owners be able to re-rent these units at similar price points? How many owners will try and sell now that some of the rental leases are coming up?
Is the building going to institute a rental policy? (i.e. only a certain percentage of units can be rented)
Stay tuned.
The North facing units have lovely protected views of the Lakeshore East Park, and the closest building is a good 1-2 acres away. It is quite beautiful! They also have “slice” of lake view to the N/E.
Not a bad price.
“Not a bad price.” ?
Perhaps not, but I’m going to wait until prices come down to AT LEAST construction pricing. Or less.
Can you really see the lake here? Only the living room faces north. To the east you have The Lancaster and a bunch of other older buildings. How are you seeing the Lake from there?
Maybe on a higher floor- but on the 4th?
You can see it. Right through the building! Sailboats etc. I’ve been in either this unit or another one 1 floor above.
This is a much better building that any of the others you used as comparisons, and these are beautiful apartments.
But that does not matter. They are NOT going to be able to get 2007 prices for these places.
They are going to get 2003 prices, at best, and the rollback will have nothing to do with the quality of the units.
Dimon at JP Morgan Chase pretty well laid it out, and said in so many words that there were far greater losses to come, and that prime would fall next.
We are just in the worst credit unwinding since the GD, and until it finishes unravelling and the losses are counted, lenders and buyers both are going to be really wary and tight with the buck.
I would definitely recommend taking a look at the North facing units. Very pleasant
I looked at rentals in this community. The Tides and Shoreham are both renting 2 bedroom units for 2400-2600 (with first month free for tides). Across the park, sky 55 rents with unobstructed lake, park views for 2400. These flippers are kidding themselves.
aren’t they trying to build that childrens museum in right out front? that would piss me off if I were a resident.
There have been about 20 units turned over for large profits. You guys are kidding yourselves!
I am not sure, but isn’t there also townhomes and a food market going up just below the view of this unit? Would these projects impact the views from the north facing unit?
” townhomes and a food market going up just below the view of this unit? Would these projects impact the views from the north facing unit?”
If you consider covering the currently bare ground to affect the view, then yes. The THs and retail building will all be (max) about one floor above the level of Randolph, so nothing (perhaps a flagpole) impeding the northerly view from the 3d and higher floor units.
” You guys are kidding yourselves”,
Here comes the resident troll. I was just talking about the rent that is being asked for… do you read before you open your mouth?
Sabrina, how about an update on the flipped units here? I have been wondering, myself.
Here are the resales in the mls:
Unit # — Sale Date — SP
307 — 7/26/2007 — $415,000
307 — 3/24/2008 — $525,000
405 — 7/26/2007 — $441,000
405 — 11/27/2007– $600,000
601 — 8/6/2007 — $939,000
601 — 1/22/2008 — $949,000
703 — 9/7/2007 — $779,000
703 — 4/1/2008 — $1,032,500
807 — 8/30/2007 — $489,000
807 — 6/5/2008 — $675,000
1203 — 8/30/2007 — $803,000
1203 — 3/21/2008 — $1,100,000
1406 — 9/13/2007 — $386,000
1406 — 7/1/2008 — $519,000
1407 — 9/21/2007 — $619,000
1407 — 3/31/2008 — $690,000
1605 — 9/13/2007 — $1,294,000
1605 — 11/29/2007– $1,700,000
1701 — 11/2/2007 — $1,539,000
1701 — 4/25/2008 — $1,500,000
1804 — 10/8/2007 — $830,000
1804 — 11/7/2007 — $950,000
2302 — 11/5/2007 — $638,000
2302 — 4/25/2008 — $675,000
2601 — 11/2/2007 — $1,134,000
2601 — 6/6/2008 — $1,060,000
3301 — 11/26/2007– $1,644,000
3301 — 2/29/2008 — $1,677,500
5101 — 2/8/2008 — $1,601,000
5101 — 4/9/2008 — $1,800,000
5501 — 1/20/2008 — $1,617,000
5501 — 5/19/2008 — $1,895,000
Here are the closings since May:
Unit # — Sale Date — SP
1606 — 7/18/2008 — $515,000
501 — 7/7/2008 — $1,050,000
1406 — 7/1/2008 — $519,000
5901 — 6/18/2008 — $3,499,000
59T — 6/13/2008 — $1,949,000
2601 — 6/6/2008 — $1,060,000
807 — 6/5/2008 — $675,000
2104 — 5/27/2008 — $940,000
3201 — 5/22/2008 — $1,687,500
5501 — 5/19/2008 — $1,895,000
1100 — 5/12/2008 — $595,000
2204 — 5/6/2008 — $950,000
6001 — 5/1/2008 — $3,050,000
ch on July 21st, 2008 at 9:13 am
aren’t they trying to build that childrens museum in right out front? that would piss me off if I were a resident.
—
Hope you like the sounds of helichopters…
Mixed bag. Looks like some flippers are still making at least a little money, though about as many, especially after costs, are losing. Thanks for the numbers, G.
“sounds of helichopters”
Why would there be helicopters going to the Children’s Museum? Children’s Hospital is going up just south of Chicago Ave, nowhere near this.
K: “especially after costs”
But, K, it isn’t about “after costs”. The only thing that matters is that prices are going up and the realtors (and the city and county) keep getting their vig. Who cares if any owner makes money–real estate STILL always goes up (just not for you).
Just browsing some of these numbers, it seems that SOME people are making money in this building not because the market is holding up, but because the precon prices were seriously discounted on some units.
314k for a 1081sqft 1BD (possibly with parking included). I don’t expect the market to revert to that any time soon.
Can anyone else find recent new construction in Streeterville or Lake Shore East where you had 1BD’s at that level?
Not sure how big the smallest units in 600NF are but I think there were some 1brs there that sold at precon pricing for a similar amount.
I believe they were closer to 800sqft. And I believe they didn’t include parking (although Sabrina isn’t sure if the one in 340 OTP did).
290/sqft with parking would be a steal in this location and in this quality of a building. No second guessing that.
Prices will be coming down in the fourth quarter as the carrying cost burdens and real estate depression becomes entrenched. The hope of being able to be a serial refinancer have pretty much dried up. It is unbelievable the people that were sooo eager to take on such a debt burden. They are now learning the consequences or will soon. Mark my words, the forth quarter will be the quarter of capitulation as overpriced homes come down more substantially. Home prices that are consistent with the historical norms won’t see near the drops as in the speculation purchase areas. The hope is soon coming to an end…sorry Steve H. but you’ll be eating your words by Christmas.
“In The Market” said….”Wait Until prices come down to at least pre-con prices! Good luck & keep waiting. Both you and “sartre” are knuckleheads!
Yes- thank you G for posting the prices on those that flipped.
So about 15 units have flipped in the year since closings began. There are approximately 344 in the building (give or take as a few units have been combined.)
Many other flipper units never sold- they’re simply being rented out.
The 15 units is actually a decent number- given what is happening in other new construction buildings where literally no units have flipped.
I wonder what the monthly burn rate is on those rentals (amount the owner must kick in to cover expenses). Rents don’t come close to covering ownership expenses at current prices.
Pete,
Actually the monthly burn rate isn’t nearly as bad as if the unit is vacant. My estimate is around ~800 (for the 1brs) – ~1,500 for 2brs+ on many of these properties.
Its not enough to bring most people to financial distress who have okay day jobs. Thats why the really interesting ones worth watching are those that are unoccupied where you know the burn rate is far higher.
Bob,
I agree that it is a challenge. You want to rent the unit, but this makes if harder to sell. At the same time, renting might save a person from foreclosure.
Anyone seen any estimates on what percentage of condos in Chicago have become rentals?
It is pretty remarkable that most of the flippers were able to sell above their purchase price given the current market conditions. Also surprised by the number of resales that actually closed in 2008. Only a few new projects in downtown have had this kind of success.
With the housing bill passed it will stabilize the market and get some 1st time buyer in to move it along. SO the sky is not falling. But some of these flip are over-priced they should be lucky to get 5% maybe 10% appreciation if they bought pre-pre construction.
pa,
Case Shiller July tuesday is tomorrow. We shall see how close you are then when June numbers come out.
The investors/flippers/homeowners proved me wrong last month and Chicagoland was stable in May. We shall see tomorrow.
I am in the camp doubting the government intervention will stop the slide. It might slow it. Maybe stop it in areas that didn’t see ridiculous appreciation. But I’m no Deon Warwick of real estate so lets see. I know I’m not buying until this all shakes out and is in definite hindsight.
#406 went under contract this past week. Listed at $400,000 + $50,000 for parking. #3503 closed for $1,100,000 including one parking space. Without parking that is $670 a square foot. Amazing!!!