Flipper Alert: Flippers Feeling the Heat in ParkView at 505 N. McClurg
We last chattered about ParkView, the latest new construction highrise in Streeterville, at 505 N. McClurg, in June as closings began.
Back then, some flippers had already listed units for re-sale hoping to get out of the properties quickly.
Two of the units we chattered about are still on the market.
One of them, Unit #2102, has been reduced $45,000.
Here’s the listing for Unit #2102 which has been reduced:
ParkView N/E corner w/ gorgeous lake and park views. Perfect floor height. Corner 2 bd/2bth w/ flr to ceiling windows, espresso 42′ cab., espresso HDWD flr, neutral stone finishes. Split br floor plan, open kitchen w/ window and east facing balcony.
Mbth w/tub and sep. shower. Ready to move into. Fitness ctr, outdoor pool, theatre room; new 2-acre park adjacent to bldg. Handicapped deeded pkg. space 60k P#58
Virginia Properties still has the listing. See more pictures here.
Unit #2102: 2 bedrooms, 2 baths, 1464 square feet
- Sold in May 2008 for $795,500 (included the parking)
- Was listed in June 2008 for $799,900 (parking is $60k)
- Reduced
- Currently listed for $754,900 (parking is still $60k)
- Assessments of $640 a month
- Taxes are “new”
This smaller 2-bedroom, Unit #601, is still listed at the same price as June. It remains the cheapest 2-bedroom available in the building. Here’s the listing:
More than $40K below any other 2 BR unit in the building! This beautiful brand new, never lived home offers wood floors, a gourmet kit w/42′ cherry cabs, SS Kitchen Aid apps, gran cntrs, Grohe and Toto baths, floor to ceil windows.
Split floor plan provides great privacy for guests or office. Mstr bath with sep shower, jacuzzi tub, dbl bowl sinks, WI closet. Full amenity bldg in heart of Streeterville. Gar park $60K
Andrea Farley at Baird and Warner now has the listing. See more pictures here (if the B&W link doesn’t work properly.)
Unit #601: 2 bedrooms, 2 baths, 1196 square feet
- Sold in May 2008 for $517,000
- Was listed in June 2008 for $499,000 plus $60k for parking
- Currently listed for $499,900 plus $60k for parking
- Assessments of $413 a month
- Taxes are “new”
I’ve been in the building a number of times and I was pleasantly surprised with the finishes.
I have a feeling that flippers are gonna learn a painful lesson in the next few years (especially about how chasing the market down is really bad). For me, I welcome the idea of the downfall of these leeches trying to make a quick buck for doing essentially nothing.
I viewed these and would have considered buying but the sales staff was horrrrrible. Our first showing we waited over 30 mins. We scheduled a 2nd showing and they still kept us waiting over 45 mins. Nobody there knew what was going on. Really bad. Eventually we bailed b/c we had other places to be and ended up putting an offer on something else we saw that day. That park is cute though.
Small kitchen.
The park is cute but I paid $50k less for a place down the street with higher end finishes and I still get to enjoy the park. Yes views are better at Parkview I admit.
“these leeches trying to make a quick buck for doing essentially nothing”
Without the leeches, many of these buildings would not have been built. They are essentially partners in the development, lending the developer their credit rating and assuming some of the risk in a quest for outsized returns (given the small amount of risk that existed from 99-06); now they’re all screwed along with any developers who haven’t sold out their buildings.
These prices are crazy, particularly for these sized units. They are 20% overpriced at a minimum. Wow.
Those balcony colors just don’t jive with the rest of the building. From an architecture standpoint I really like the building but you mean to tell me they couldn’t have gone with a matching color for those balconies? Uggh.
Sabrina,
Any info on the overall health of the building (how many units still avaible for sale/rent, number that have fallen out of contract as the market cont. to fall, etc).
As always, thanks.
If you guys are bored, read this, high comedy. Found it while clicking on a listing for a different post. Apparently “buy now or be priced out forever” has been modified.
http://rublogg.com/2008/10/30/buy-now-or-it-could-cost-you-in-the-long-run/
That blog article is hilarious. The author refers to himself in the third person the entire article.
Thanks for the laugh, mtc. From your link:
“They point out that the savings of a lower purchase price would be wiped out if interest rates suddenly begin to climb.”
Those realtors sure do know that buyers typically don’t stop and think – not on the way up, and not on the way down.
It is always better to buy at lower prices and higher interest rates for these simple reasons:
1. The interest deduction is higher (for those who qualify.)
2. The loan can be refinanced when rates drop.
3. You make your money on real estate based on your purchase price. Buying with “a lower purchase price” actually has a direct effect on this, believe it or not.
Another good addendum: often times in the real estate market you don’t have all the leverage. Once a homeowner if you wanted to move into a bigger or home at a different location you would probably need to sell your first residence first. So while you might get a good deal on another property in a down market you’re also going to take a hit on the sale of your current residence that will negate a lot of that. Also other factors like family needs might dictate the timeframe for you.
The only time you have _complete control_ and leverage over the real estate market is being a first time homeowner. You aren’t yet tied down with another property you need to sell and have managed your life affairs so far so as to be able to live with renting. No other subsegment of the market has so much control over their financial condition and future as those who are a potential first time homeowner (ie: renters). Patience will prevail.
And that’s why I love being a potential first time home buyer in Chicago within the next 2-3 years.
I like this building and it was a serious consideration. But the prices were too high and I heard the developer was in financial trouble. Parking was also a problem, as the garage (when we looked) had a public component and it was not clear on how that would be handled. The plans also included another building on the NE part of the site. Any word on the plans for the second building?
That blog link is a steaming pile of poo. Anyone who actually experienced a real estate bust can tell you it takes YEARS to recover. And even after prices quit falling, they stagnate for a long time before rising again.
“Buy now or pay more later” is just another of many realtor lies. You can really feel the realtor’s desperation in that page of drivel.
A big concern of mine regarding this property is who pays for the maintenance and upkeep of the park. If its the condo owners then I would stay away. If it was to split between the two towers who will pay of Tower 2 portion if it is never built. Addtionally this park is like Millenum, built over parking, so there will be long term issues and costs.
sent quickly sorry for the non-english
I believe that the developer was going to take care of the park costs but that sounded fishy to me… especially if the developer is in financial trouble.
Regarding the park…I know Lakeshore East has the same issue. The condo association pays for the upkeep of the park but yet it’s open to the public. There’s also several planned towers there that may never be built.
The park is a nice very touch though. Too much concrete in Streeterville.
Marco,
Your right, but Lakeshore east is a park that sits on the ground, while the park at 505 has parking below. The entire park is built over a parking garage. The long term costs are much greater here.
I have recently looked at units (new and resale) at 505 McClurg as well as at 240 E. Illinois and 600 N LSD. The developers at the first two seem willing to deal on price, but at 600 it’s take it or leave it. Has anyone else seen this? Also, where can I go to find the most recent closing prices at a particular building if it’s new construction? I guess some of these developer units won’t be in the MLS. Do I have to go to the Recorder of Deeds office downtown? Thanks for the help; I’ve enjoyed reading through all of the posts!
Anyone have access to tax records showing what % of units have closed in the building so far? Or if it’s publicly accessible online, a link.
Thanks
Be careful if the building allows rentals. Recently many lenders have refused to give mortgages in buildings that are not 80% owner occupied. If a developer gets in troube and starts renting units while you go ahead and buy, a subsequent buyer may not be able to get a mortgage and you are stuck looking for cash buyers only