Flipper Alert: Closings Begin in ParkView at 505 N. McClurg
ParkView, MCL’s 47 story high rise in Streeterville at 505 N. McClurg, is to start closings any day.
The flips and rentals are now starting to appear.
There is a one bedroom rental already available with “move-in in April”.
Unit #1104: 1 bedroom, 1 bath, 921 square feet
- Available to rent for $1900 plus $300 a month for parking
- Baird & Warner has the listing
Or, if you’re interested in buying, a similar tier one bedroom is still available for sale from the developer.
Unit #504: 1 bedroom, 1 bath, 921 square feet
- Currently listed for $388,500
- Parking $60,000 extra
- Assessments of $312 a month
- MCL Management has the listing
These flippers are trying to re-assign their contracts on Craigslist because they must move due to “employment relocation” and “relocation.”
Beautifully upgraded, new construction, corner two bedroom condo located in fabulous Streeterville only one block from Navy Pier and Michigan Avenue! Closings to start in April 2008! Take advantage of this fabulous offer! Unit #805 has a beautiful SW view with tons of light and floor to ceiling windows. Only 6 units per floor! Many ammenities including an outdoor swimming pool!!
Originally purchased this condo over 3 years ago at the first pre-construction pricing offered and needs to sell due to employment relocation! Will assign sales contract at original cost!!
Paying 3% commission to you with your clients sales contract!!
AND
An MCL Company developement – Beautiful corner 2 bedroom unit, fully upgraded unit with a view of Lake Michigan in the fabulous Streeterville neighborhood! Located only one block from Navy Pier and Michigan Avenue! Tons of light and floor to ceiling windows! Unit # 802!!
Will re-assign this sales contract at original pre-construction pricing from 3 years ago!!! Must sell due to relocation!! Closings scheduled to start the end of April 2008! You cannot even get into this SOLD OUT tier for under $700k!!
Paying a 4% commission to you with your clients purchase agreement!!
It’s the same contact info for both of these “re-assignments”.
Park View is only about 70% sold even before closings begin.
Stay tuned for interior pictures.
ParkView Condominiums [website]
This should be interesting. It would appear that these should set the comps for the building at less than the developer’s pre-construction prices. Doesn’t that make anyone who closes an instant negative equity winner?
That definitely does look like this will be the case. 30% still remaining??
Time to cancel your contract and bite the bullet. I think they were requiring only 5% down for some buyers….not the end of the world.
These will probably be nice units with great views, in a booming area with quick access to everything…but man that’s alot of money they want for 921 square feet, even at those ‘reduced’ prices.
Great views?? I’d say good at best. Don’t forget Peshtigo’s lot will eventually get developed east, and the Spire is going up southeast, and there are lots available just north to build on.
If Parkview is only 70% sold I am dubious about this building. There will some walk-aways with investors not able to get financing and probably some actual buyers who will get burned by the credit crunch as well. MCL may choose to start renting them out as well. I am sure the finishes will be fine, nothing spectacular. I will check out an open house since I live nearby out of curiousity.
The prices have broker’s fee built into them at the rate specified. What do you think of prices if those are discounted? Leaves one in the mid 500s and the other upper 500s
At these prices might as well buy in 600 North Fairbanks – not that I would recommend buying now though.
The views South in this building should be nice since the River East Center will remain, but the townhomes South of Fox and Obel appear to be on land leases.
If you want to see some serious short sales, check out Florida. I was in Naples a couple weeks ago and came across this building. I looked at a unit that was originally $825,000 and now $475,000. The developer is WCI and the realtor said she had many people walk away from deposits ($200,000).
http://www.wcicommunities.com/default.asp?siteID=41&pageID=custom&fname=1007IncredibleSavings&shell=no&rhc=1
They got 89 years left on the land lease for those townhomes. Nothing to worry about in our lifetime.
“At these prices might as well buy in 600 North Fairbanks – not that I would recommend buying now though.”
These two buildings actually strike me to be fairly similar given area/finishes/size. Is there a general sentiment favoring one towards the other?
Hi, it seems like now is a good time to buy compared to even six months ago but is the consensus here prices will fall even more? Chicago is never featured in national news reports as one of the locations where the bottom is falling out of the market.
It seems like most postings here are pretty negative about the local Chicago market plus there is this strange gratification expressed about investors, developers and realtors loosing money.
To any real estate professionals: has the Chicago market has seen an unreasonable run-up in home values compared to other areas in the last ten years?
Thanks,
M
parkview does not have any of the highend finishes that fairbanks has.. miele franke subzero wolf waterworks snaiedro. Also fairbanks is pretty much sold out..
“fairbanks is pretty much sold out.” You’re kidding, right? There are over 40 units on the mls, and they’re not even done closing the building.
Just checked again, not “over 40” but “almost 40.” Still, nowhere close to sold out.
Kenworthey: I think what fairbankslover means is that 600 NF was originally pretty much sold out from the developer when they started closings.
There were maybe 5 units that were unsold as of last November and then a few more have come on the market from the developer because they’ve fallen out of contract (i.e. the buyer didn’t close.)
All the other units are flips.
It’s a different scenario when the developer is trying to sell 20% or 30% of the remaining units versus when flippers are trying to sell.
Just look at The Columbian. Only 70% sold when closings started and now the developer is throwing in free parking and other “incentives” to try and move the product. The flippers can’t come close to competing.
In 600 NF, there appears to be a standoff between flippers and buyers. The flipping prices are too high- but no one is yet really undercutting the other sellers in the building. Therefore, nothing has re-sold.
I suspect that will start in earnest by this summer, however.
Moni: It depends on where you are looking.
There are thousands of condos coming onto the market in the downtown area this year. Inventory is already high. It’s likely that prices aren’t going to hold with all that product out there.
There is also a glut of million dollar homes for sale on the north side. How long will those prices hold?
Do you want a bungalow for under $400,000 on the north side? Those prices may hold because it’s considered “affordable” and there aren’t many out there in that price range.
But even in Chicago, in my opinion, housing prices have gotten removed from incomes. Look at some of the areas on the South Side. I don’t have the exact stats in front of me, but the average family income in a neighborhood like Pullman must be about $35,000 to $40,000.
Pullman rowhouses used to sell for $85,000 to $120,000 only five years ago. Now, they’re selling for $135,000 to $200,000. Yet salaries in that neighborhood haven’t risen accordingly.
Will those home prices fall? Likely. Either that or incomes will have to rise.
I also think that foreclosures are going to eat away at prices in many neighborhoods. We’re already seeing it- even on the North Side.
Any agents with on the ground perspective?
Sabrina, good anaylsis. I would also point to rent v. own ratios to show affordabilty. I am pretty sure that it has never been 1:1. But why strech and hurt your budget just to be a “loanowner”?
http://bp2.blogger.com/_wFWqWIH-WFU/SAGv13No7BI/AAAAAAAAEbY/AunW0WqBHKE/s1600-h/cepr-costs.gif
You are correct that either home prices must fall or incomes must raise. Don’t count on incomes going up, count on people losing their jobs. Furthermore, I’d like to know from people here if they heard that Freddie Mac won’t buy loans with greater than 97% LTV. That means no more zero-down loans.
http://secondcitybubble.blogspot.com/2008/03/breaking.html
This is big news that I have not heard from the MSM. Is there any mortgage brokers here? Confrim or deny?
505 N McClurg is in a far worse situation than 600 North Fairbanks. With 30% of units remaining, closings just starting, and flips starting to show up………this is a disaster in the making. Personally I’d drop my contract if I purchased here. I think many will since even the first phase precon prices are a tough sell in this market. Don’t be surprised for this building to go back to 60% or even only 50% sold.
Anyone want to place bets as to what MCL does? Conversion of remaining units to rentals? Incentives of free parking?
That being said, the fallout from this building will certainly negatively impact 600 North Fairbanks and all surrounding new developments.
I would not be surprised to see quite a few of the unsold units marketed as rentals. Rentals are in demand in Streeterville, especially in that location.
Personally, I like this building better than Jahn’s 600 N. Fairbanks. I think SCB did a nice design and the floorplans seem more livable than 600 N/F.
But, I’d be concerned if I was buying here. The development includes the “park” and the yet to be developed Parkview East tower (25 stories?). If the west tower isn’t selling, then things don’t look good for the other building. With fewer units sold, who is paying the upkeep on the park? Condo fees could get very expensive for the few who actually move in.
The situation does appear more dire for 505 than for 600nf. It only remains to be seen if we aren’t comparing the Titanic and Lusitania here.
To add to MCL’s difficulties, I’d bet they’re having problems selling the Lofts at River East just across the street. Anyone have info on % sold?
YoChicago reported on January 14 that they had sold 30 out of 150 units at the Lofts at River East. That’s the last update I’ve seen on the building.
http://yochicago.com/today/new-condos/art-center-showcases-lakefront-loft-living-amid-streeterville-towers_6424/
Thanks Sabrina.
At least they made one good move: “(The developer re-launched the project in November after scrapping plans to include two stories of new construction to the roof.)”
The amount of incorrect information out there is staggering… ParkView Condominiums does not own the now-finished park. The developer, MCL, owns the park and is responsible for maintaing it. The 2-acre park was a great gift to the neighborhood and the city by the developer. Most highrises are stacked above ugly garages – look at the Fairbanks at 240 E. Illinois for an example of a bldg. plopped on a garage.
Concerning 600 N. Fairbanks, the “finishes” are awful – raw concrete everywhere. People are re-selling their condominiums there largely for that reason.
Back in 2008 unit 504 with parking was a combined $448,000.
Listed on 1/4/2011 unit 804 came onto the market. It has 921 square feet and probably the same floorplan as unit 504. It is listed for $349k with parking an additional 50k for a grand total of $399,000. As it is a higher floor it likely has a better view as well. But they’re competing with a comp that sold in the floor below for 62,500 less.
Other 04 tiers that recently sold:
1904 – 400,000 – 12/10/2010
704 – 337,500 – 8/11/2010
4204 – 453,000 – 8/24/2010 (not sure if same floorplan)
1704 – 385,000 – 5/10/2010
Did the owner of unit 504 ever sell their unit? Yes–on 10/9/2009 for $355,000.