Flipper Alert: Flippers in Zen Not Feeling So Harmonious
Zen, the new building at 225 S. Sangamon in the West Loop, is all about harmony and balance.
Or so says the building’s website:
The central theme of Zen is an individual living life in harmony with his surroundings, having balance in his every day life and an understanding of his place within the universe, his home.
This philosophy of life has been translated into an architectural theme by the award winning architectural firm of VOA Associates. There is an intentional blurring of the distinctions between natural and man-made materials that underscore the design elements of the building.
Zen captures this subtle flair with the interplay between polished concrete and stone, tinted glass set in metal framing, and an open canopy that highlights the soaring facade. The overall effect is a building that stands gracefully in the existing architectural landscape yet emanates a truly distinctive appearance.
The building started closings a few months ago.
There are 78 units in the building and currently 6 are for sale.
These flippers, like those at 901 W. Madison, are feeling the pain. Interestingly, none of the two bedroom listings have the square footage but they are small 2 bedroom units. The bedrooms are only 12 x10 and 11 x 10.
Unit #501: 2 bedrooms, 2 baths
- Sold in January 2008 for $371,500
- Currently listed for $389,900 plus $29,500 for parking
- Assessments of $329 a month
- Listing says it is a “highly upgraded unit”
- Prudential Preferred has the listing
Unit #406: 2 bedrooms, 2 baths
- Sold in September 2007 for $358,500
- Currently listed at $389,900 plus $29,500 for parking
- Assessments of $303 a month
- Prello Realty has the listing
Unit #806: 2 bedroom, 2 bath
- Sold in January 2008 for $371,500
- Currently listed for $389,900 plus $29,500 for parking
- Assessments of $329 a month
- @Properties has the listing
Zen Condos at 225 S. Sangamon [website]
I am not familiar with this building but the corner units look really nice. They only appeal to those liking the modern look currently in style. Seems a bit pricey but not bad!
I wish the room sizes were 15 to 20% larger. I am still trying to figure out the whole “flipping” thing here. In California, almost all new buildnigs make buyers agree to not sell units for 1 year minimum. What about people who are actually trying to buy a condo to live in as a home?
The bedrooms are only 12 x10 and 11 x 10.
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Someone that is truly Zen’ed out does not worry about sqare footage. Ohhhmmmmmmmm
Morgan,
It highly unlikely that the contracts out in California prohibit selling a condo within a year. If such a contract existed, the developer would have to haul the person into court to prevent the sale. The judge, especially in California, is going to say “This poor schmuck is in financial trouble and you want me to stop him from selling his condo? Yeah right. This clause is unconscionable and I’m not enforcing it.”
The more likely scenario (and legally enforceable) is a clause that says that if the buyer sells the condo within a year, the developer has the right to purchase it back at the original sales price. These clauses are common in Chicago. They aren’t enforced very often because:
1) The developer wants to wash his hands of the project and move on ASAP. Unless the profit potential is large, it’s not worth the time and extended liability for being involved in the project any longer than he needs to be.
2) The developer knows that no seller can compete against him when it comes to discounts.
3) The developer about the residents once the project is finished and sold off.
Sorry, #3 should say “The developer doesn’t care about the residents once the project is finished and sold off”
I would be careful in saying that California contracts don’t have the anti-flipping exclusion. Real estate laws can be very different in other states.
For instance, California used to have a law that a developer couldn’t start selling units in a building until it was already under construction (and a certain percentage of it already built.) Not sure they still have that law- but I think they do.
Can you imagine in Chicago? Almost no building would get built. The risk would be enormous.
Regarding no-flipping in California. It is true that most builders will not go after someone who decides to sell within the one year exclusion, but I actually like the rule. The reason they have it out there is to force people to show they can actually afford the payments, and it also allows the builder to control pricing better depending on how sales go. Imagine selling units to people who want to live in them!?
Regarding my experience with no flipping, my parents own a waterfront lot in a coastal community that they decided not to build on. The land is worth a lot more than they paid 3.5 years ago, but they can only sell it for the price they paid, not even a penny more, and the developer has the right to buy it back immediatly, which is what they are probably going to do. There is no allowance for appreciation, or the fact that taxes and association dues were paid, but you do get to price it up to 6% higher to allow for sales fees and transfer costs. We can expect that after the developer has the lot back, they will turn around and re-sell it at the current value and make a nice profit. The reason for the rule? This rule, which is very common in new projects where buyers are to build their own custom homes, is in place so that you do not have to live next to a bunch of empty lots for 10 or 20 years. Sabrina, doesn’t the almost finished One Rincon Hill tower in San Francisco have a no flipping rule as well?
Yeah- I think One Rincon Hill may have that as well as a few of the other new towers going up in SF.
But here in Chicago, there are few buildings that have the clause. Apparently 600 LSD does though.
i am interested to know more about this building and its value, units, etc. any comments are appreciated. thanks
6 are for Sale… 2 are flips. 4 of them are listed by the developers Listing Agent…
is the developer reputable? are the unit prices in line with the area? price per sq. foot?
http://www.zencondos.com or
http://www.oculus-development.com/about_our_company.htm
Oculus Development, LLC is a Chicago based real estate development company involved in the acquisition, construction, renovation, leasing, sales and management of major commercial, office, industrial, and residential properties throughout the United States.
Prices to me seem to be towards the higher end especially with it being a C-B West Loop Location.
The 1 bedrooms are very small with one being priced at 293k not including parking. I would say you could get the garage spot (35k) included in that price though.
Finishes for both Bathrooms & Kitchens are very nice though. I even like the hurricane windows… If I were to buy in the West Loop I would want to be closer to Randolph street.