Flipper Alert: Flippers have “Visions” in the South Loop
Vision on State, a new mid-rise building at 1255 S. State designed by Pappageorge/Haymes in the South Loop, started closings over the summer but has recently picked up steam.
The building was marketed as “affordable luxury” near the El stop at Roosevelt Road.
The floorplans they offered were tailor made for flippers. There were numerous floor plans:
- 5 one bedroom plans ranging from 610 to 831 square feet
- 1 plan with one bedroom plus den at 880 square feet
- 3 two bedroom 1 bath plans ranging from 890 to 1079 square feet
- Only 1 plan with 2/2 at 1068 square feet
- And 1 plan with 3/1 at 1600 square feet
The statistics in the building so far (out of 253 units):
- 23 units for sale
- 14 units for rent
Flippers are asking, on average, $50,000 more than they paid (on the bigger units.) Slightly less on the 1 bedroom units.
Here are some examples of what is going on in the building (it looks like the developer did a big dump of a bunch of the closings in November, so some might have technically closed over the summer but didn’t show up in public records until November):
Unit #1116: 2 bedroom, 2 bath, 1068 square feet
- Sold in November 2007 for $358,414
- Currently listed for $384,000 plus $35,000 for parking
- Assessments of $548 a month
- ITown Realty has the listing
Unit #1203: 2 bedroom, 1 bath, 995 square feet
- Sold in November 2007 for $326,548
- Currently listed for $348,900 plus $25,000 for parking
- Assessment of $480 a month
- Century 21 Pro-Team has the listing
Unit #1103: 2 bedroom, 1 bath, 995 square feet
- Sold in November 2007 for $282,097
- Currently listed for $328,900 plus $39,000 for parking
- Listing says it’s priced “way below market value”
- Century 21 Pro-Team has the listing
Unit #1004: 1 bedroom, 1 bath, 724 square feet
- Sold in November 2007 for $235,900
- Currently listed for $308,000 (includes the parking)
- Assessment of $308 a month
- Tenant occupied until August 2008
- Acorn Realty has the listing
There is one flipper with a 1 bedroom that paid $204,900 and is asking $229,000. At least that’s a little more realistic. But it’s still sitting on the market.
Rentals range from $1450 for one bedrooms to $2400 for the 1068 square feet 2/2.
Maybe it’s just me, but for the same rental price of $2400, why wouldn’t I rent down the street in a bigger unit at The Columbian (with straight on lake views?) But that’s just me.
Vision on State [website]
How much extra does a guy have to pay to get some hardware on the kitchen cabinets?
In 2004 during the pre-sales, their promotion was to give a free plasma screen with each unit. It looks like the unit owners either did not have them installed or removed them. Back 3 years ago a plasma was actually somewhat a big deal.
Also the oak cabinets and black appliances need to be updated especially in this market.
saw a couple of units in this building this summer…….a lot of flippers here will get crushed. total disconnect with reality in terms of pricing, imho.
Me: I agree. Why would any buyer pay over $300,000 for a one bedroom in this building? Heck, even $250,000?