Flipper Alert: One Bedroom Flip Closes in 340 On the Park
We’ve chattered endlessly about 340 on the Park in Lakeshore East.
Another flipped unit has closed. (Thanks to the Tipster who sent me the closing information.) I chattered about this unit in January 2008.
Unit #307: 1 bedroom, 1.5 baths, 1186 square feet
- Sold in July 2007 for $415,000
- Originally re-listed for $725,000 in July 2007 (don’t know if that included the parking)
- Reduced to $649,000
- Reduced again in January 2008 to $599,000 (not including the parking which is $50k extra)
It finally sold.
Closing price: $525,000 – without the parking space.
I know all of you will tell me what this means for the market in that building. Have at it!
It seems that $510 and change per sq foot is the going rate for the south facing units now. This seems to be the smallest floorplan facing south. Definitely more spacious than nearly all one bedrooms and on par with other “luxury” prices.
“It seems that $510 and change per sq foot is the going rate”
Sure may seem that way, but do the math–$525,000/1186 is $440 and change. Was this the result of a desparate seller? Maybe, but it will serve as the most recent comp.
Now, we can argue about what the premium is for a high floor (some, but not huge, at least in this building) and whether larger units are worth more or less per square foot (I say slightly less, in general), but the fact is the market for a 3d floor one bedroom is $440/ft, not $510.
And waht does this say about the value of the north-facing units? Still probably 20% discount from $440/ft (i.e., bascially pre-construction pricing)?
You are right ANON! I did not have my latte yet when I wrote that comment…thanks for the correction.
This is an interesting development. I am wondering how low the 2/2’s facing north will go (1500 sq feet).
the market has turned around!
What is the appeal of living in this building if you are on the 3rd floor?
The views are stunning on 3. South facing units all have fantastic views
Stunning?
“The views are stunning on 3. South facing units all have fantastic views” I guess that depends what happens with that proposed children’s museum or other construction to the south. Wasn’t this the unit that was chattered about regarding it was owned by an experienced professional flipper? Sadly, the buyer may have thought they got a great deal, they didn’t, if should have sold at pre-con pricing.
I would buy a 05 unit (large 1 bedroom) for $500K on a 20+ floor. But not a 07.
I would imagine the views are great on any south-facing unit in this building. However, they are different views than the upper floors. As you can see from the photos, you are around the tops of the trees in Grant Park. If you want to see forever – probably not so good. But if you want a ton of light and like a more intimate park-type view, I would bet that this is a great height for it. It all depends on the buyer’s preference.
I’d agree that this sales price is not good news for the low floors on the north side of the building.
Assuming he sold the parking place for $50K (a big assumption–we’ll see when the final public records come in), he sold for $575, and bought (according to the prior poster) for $460 total. He held since July, so 9 months worth of holding. Anyone want to make a best-guess on how much this flipper made? He didn’t get taken to the cleaners, that’s for sure–he sold at $115K above what he paid.
As far as I can tell, the initial sale may not have included parking so he had no spot to sell. 415K-525K is the spread. About right, 100K for having the vision to buy 3-4 years ago in preconstruction days
I think some of the 1500 sq foot two bedrooms facing north are listed around 689,000 or so…so after chopping off 10% you would be looking at around 400/sq foot. Very interesting.
For an equivalent floor and floorplan, I would certainly pay more than 10% for a south view vs north view. I would expect the premium to be more around 20%. Those south views are in fact quite nice – unobstructed, lake, park, and city.
Interesting to note he didn’t hold the unit for a few more months and take long-term captial gains on it. Either he had no gains after costs, or he really does expect the market to get worse soon and didn’t want to risk losing the buyer.
I think on the higher floors in this building the views north and south are comparably beautiful, although they may appeal to different people. I have been on the 40th floor facing north and those views (to me) were every bit as beautiful as anything I have seen facing south. The problem with the north views is that they are going to change – maybe for the worse, maybe not. But at least with the south view, you are getting a known commodity forever, and that is certainly worth a premium. However, I am not sure you can put a percentage on it (as much as everyone here loves to talk in terms of percentages, I dont think they are always a meaningful way to describe the difference between two units).
It certainly is meaningful if you are trying to decide the value.
The north views will not sell for more than the south. You might find a person here or there that prefers the north views, but you have to consider the market as a whole. And the south views are unobstructed, sunny, and feel more open. It really is a no brainer. I’d accuse you of being an owner of a North view unit, but that would be unproductive and speculative. 🙂
I would think the truly best units in this building would be the eastern units, facing either north OR south. The least appealing feature of the building is the BCBS next door, staring into your bedroom and/or kitchen. Aren’t the eastern views protected forever?
I mean, above a certain floor, of course… And by “forever” I mean for at least the next few decades.
Correct Kenworthey,
As long as you are high enough up, and 360 Randolph, 400 E Randolph, and Harbour Point don’t dissolve their condo boards and sell out to a developer, you are safe. So, SE is the absolute best.
Unless you’re on a really high floor, I don’t like the SE units since the angle means you’d have to have your blinds pulled most the time for the exposure on the east.
ja – I dont own a unit in the building, but I agree that percentages help determine “value” to a certain extent. However if you are buying a home to live in for 10+ years, the most important thing is that you love it, not whether the person you are going to sell it to will love it. Some people think they would love a lake view (as an example) until it gets dark outside and you are looking at a black hole. The south views in this building are great, but I like the north views at least as much. But there are lots of reasons I wouldnt buy a unit here if I was in the market.
Pete,
I was being facetious about your owning.
That being said, I find the “who cares what you pay for it as long as you love it and plan to stay for 5+ years” argument to be ludicrous. One need not view her home as an investment but can still make an intelligent and informed purchase. Plus, it’s not like these are one of a kind units – there are 30 or so for almost every unit type.
If I said “who cares what you pay”, I take it back. But I would be shocked if I said that. I think we have both said our peace here, so I am done with this topic.
So why is the closing price reported here (525K) different than the closing price the poster posted in the more recent 340 OTP thread (460K)? I’d say that Sabrina was wrong about parking not being included… except that why would the parking have been 65K, which is higher than other spaces in this building? Did the $525K fall through somehow?
Ok, nevermind (I think). It looks like records show original buyer bought for $460 with no parking, and sold for $525 with no parking.
The parking sold for 75k, it was a premium space. The owner walked away with $600,000. The selling price for this unit is not a comparable for floors 5 and above. On the third floor there is no lake view and therefore cannot demand the lake view price tag!!!!
You mean the owner walked away with “$60,000” – not “$600,000”- right?
$525,000 for the condo and #75,000 for the parking = $600,000
All this sale proves is that a sucker is born every minute. I bet the falling knife-catcher thinks he got a hell of a deal and is bragging to everyone about “saving” $75,000!
“$525,000 for the condo and #75,000 for the parking = $600,000”
Hey, why didn’t I get a call about the free condos? I swear I signed up for that.
Yeah- I think Nicole means that this seller got $600,000 but, in reality, they actually “made” a heck of a lot less (more like $150,000- after carrying costs, realtor fees, closing etc.) That’s IF the parking space was included- which isn’t clear from the MLS and public records.
And that’s more than some sellers are making in the building, actually. Some of the larger units on the upper floors are flipping for much, much less. It’s the one bedrooms that have been flipping for a premium in the building. The mark-up has been higher.
#407 was listed for sale on 7/11/08 for $699,000 plus $59,000 for parking.
Let us know when it sells. Then again, I probably won’t be in the market in 5 years.
PS No appraiser is going to appraise #407 at anywhere near 699k given #307 closed this year for 525k. At best you’re looking at a 25k argument for one floor up if you really press hard to present a case that one floor up really “opens” the views.
The party’s over, someone needs to alert the seller. Even if he does find a sucker, he needs to find an all-cash sucker.
Has anyone analyzed the price difference for high-floor north versus south facing units at 2800 Lake Shore? The contrast in views seems similar to that at 340 Randolph. In both buildings, the south views of the park and lake command a premium. At 2800, prices for north-facing units, even those on high floors that clear neighboring buildings, are lower than for south-facing units. 2800 has been around for decades, so the price differential probably is pretty stable. If someone is really curious to know how 340 north/south prices might resolve themselves, it might be worth some research.