Flipper Alert: One Year Holding Period Expires in 600 N. Lake Shore Drive
We’ve chattered about how Belgravia Group’s twin towers at 600 N. Lake Shore Drive were not inundated with flippers last year apparently because of the 1-year lock-up in the sales contract.
Here are the building stats (out of 155 units):
- 19 for sale
- 11 for rent
Some may be both for sale AND for rent. Also, Belgravia doesn’t appear to be listing all of its available units on the MLS.
Belgravia has also been renting out some of its units (as per this Craigslist ad):
“We also have some available units with leases and approved tenants already in place (no down time or finder’s fees to contend with!) — take advantage of great values now, even if you’re not ready to make the move just yet!”
With the 1-year holding clause expiring on many units, will we see a bunch of units suddenly for sale?
One 2-bedroom unit came on the market recently literally nearly 1 year to the day it had closed. The listing calls it a “fabulous value.”
Here’s its history:
Unit #2202: 2 bedrooms, 2 baths, 1373 square feet
- Sold on Dec 19, 2007 for $577,000
- Currently listed for $645,000 plus $50k for parking
- Assessments of $497 a month
- Taxes are “new”
- Gina Dunning at Baird and Warner has the listing. See the pictures and listing here.
You can also rent the same unit 2 floors down, Unit #2002, for $3200 plus $300 for parking.
The listing states: “Owners seek renters who will take immaculate care of this special unit.”
MCH Properties, LLC has the listing. See the listing and pictures here.
Blah! I think I like 530 LSD better!
Talk about poor staging! These units aren’t as bad as they look in the photos, but flippers are not good at interior design. Too bad, because the standard selections offered by the developer were pretty good. Even if they chose the ugliest cabinets and stone offered, they could still throw on a coat of paint and Unit 2002 should move the broom out of the picture!
That aside, if they were smart, they’d try to get out quick with a more realistic price. I’m guessing even a good building in a great location by a reputable developer in Streeterville should still go down at least 10 to 20% from peak prices. That means this should be worth between $460,000 to $520,000. (But the market always overcorrects, so the bottom is probably going to be lower for guys that can’t hang on.) Unit 2202 is asking $695,000 including parking – a 20% increase over his cost!!?
Meanwhile, the developer is doing a masterful job controlling the marketing. They really have a unique building with stunning views toward the lake. These smaller 2br units on lower floors with so-so views and crappy design choices are another matter. They are a great opportunity to live in a high amenity building for a reasonable price, but not until reality sets in.
Wally,
The closing price from December was probably a pre-construction price that was negotiated at a discount to market back in 2005 or 2006, FYI. Does this unit have a view?
These buildings have a lovely entrance fronting Lake Shore Drive, with some nice lighting. However, driving by last night I noticed that the walks were not shoveled and in fact were roped off! For a brand new building! The only way inside appears to be in the back way. Seems odd – – – you’d think with all the new residents in there now, they’d make an effort to have the front doors accessible.
Chitown,
I noticed that too! Very odd
Perhaps there is an unresolved falling ice/snow issue. The roping off may be an action to limit liability.
Lighten up guys, it’s still under construction.
The front entrance is not finished — installing the granite entrance was delayed because of the weather. The sidewalk in front has been cleared of snow for pedestrian traffic, but the front entrance won’t be ready for another month or so.
Actually, the residents will seldom use the fancy front entrance. Side entrances are available to each tower without going through the lobby and many residents enter via the parking garage.
But, the “back way” through the porte cochère entrance is very nice, and the lobby is pretty amazing.
This project is very well done. The units are really solid, dead silent (especially impressive given its proximity to LSD) and yes, the lobby is amazing. (Door men are way too chatty, though–personal pet peeve–and is why, according to a friend of mine who lives there, many people enter through the side.) Yes, they’re a bit vanilla–but if you wanted modern you would have bought in 600 FB or 550 N St Cl. The only downside in my mind to this development is there is one MONSTER of a windtunnel on the north side of the building.
I doubt there are many flippers–the one year moratorium should have discouraged that (who could have afforded to plan to eat carrying costs for a year?) The only thing that makes me worry about whether these units will hold their value is just the economy generally. The seller above, for instance, likely did buy in 2005, so is trying for 7% appreciation per year between then and now. I’m skeptical she/he will get that. Probably, the seller should be happy to get the $577,000 back…
Well, look at 530 N LSD as an example. Similar location and developer
Sabrina,
Can you do an update for us on 530?
SR–as an example of what?
Off topic but of interest. IAR just released November sales data for Chicago PMSA. Sales are off about 32% from last year. No surprise since we already saw how the months supply of condos had skyrocketed due to lower sales. Actually the surprise is that the falloff wasn’t greater. I updated my graph (second one on page):
http://blog.lucidrealty.com/chicago_real_estate_statistics/
and while you are there make sure you check out the employment graph at the bottom for an indication of what’s to come if you haven’t seen that before.
There is erroneous information in this post. Belgravia Group is NOT leasing out any of its developer units. Belgravia Realty Group, the company’s brokerage division, has listed a couple of units (for sale and/or for rent) for owners who have already closed on their units, due to changes in their circumstances a couple years after purchasing pre-construction. You also have wrong information on the total number of units in the association. And the total 19 units for sale that you cited are not all resales (or units that are being “flipped”), but mostly units still available from the developer as the Sales Center still has about 30 units left (out of 450).
Sorry, total number of units in the association (including both North and South Towers) is 400, not 450. Cold typing fingers 🙂
Glad to hear that it’s a logical explanation for the front entrance. I just think it looks so pretty when I go past it every day, and those lights are really nice.
Laura: Thanks for the clarification.
The 155 units is off the realtor websites and reflects one building (not both of them.) But thanks for letting us know the total for both buildings. I should have been clear on that.
How many have closed in the second tower then? I thought closings were continuing in that building.
Also- you say that Belgravia, the developer is NOT renting out the units, but that it is Belgravia Realty Group which is doing so. But aren’t they a “co-developer”? (as per the Craigslist ad?)
From the ad:
“Belgravia Realty Group, co-developers of 600 N. Lake Shore Drive are proud to offer some of the nicest units at Lake Shore Drive’s last brand new building for resale and for rent.”
But I understand your point- that Belgravia Realty Group is trying to rent out investor units (and/or sell those) or where “circumstances” have changed for the owner.
Kenworthey:
I don’t know exactly what SR is getting at- but someone is still trying to sell some units at 530 N LSD – and that building closed years ago. They come up on the MLS and the listing will say things like, “Never lived in!” – when the unit is several years old.
I’ve also done several posts on 530 N. LSD so you can see what is going on with the re-sales in that building (several years later.)
Kenworthey:
You’re right, that cost was probably a pre-construction deal, so disregard my doom-and-gloom pricing senario. The $577,000 is probably a good starting point for this. (But $695,000 including parking still seems a little steep!)
Besides, this is not the south loop. With the downturn, this and Parkview East may be the last new condo construction completed in Streeterville for years. (I don’t have much faith in Peshtigo being built anytime soon.)
The Chicago market pricing may be headed down a bunch, but supply and demand may keep something like this above the fray.
Alan Lev, the head of Belgravia, stated this past spring that they will never lower their prices in their developments. I laughed when I read it. We shall see.
Lev’s position is more nuanced than G suggests, and likely to survive G’s ridicule. If you want to understand Lev’s actual approach, watch this video (price discussion begins at about 3:45):
http://www.youtube.com/watch?v=nz9EdXloihQ
Is there a word for a shill for shills?
Plenty of units still available I figured around 125 units for sale from the developer and not one single price decline. They have plenty of those 3 bedroom units that go for around $1,500,000 which must hit the pocket book of the developer.
public record you can check it out for yourself.
Looks like this one sold — this is from the Tribune property transfer listings:
$600,000.00
600 N LAKE SHORE DR 2202, CHICAGO, 60611-5062
05/08/2009
I assume both the original sale price of $577,000 and this sale include parking. Looks like the owner got most of their money back and had nice place to live for a year and a half.
Not bad in this market!
If this unit sold a month ago- then mysteriously it has returned to the market (just two days ago) for $598,000 plus $50,000 for parking.
Anyone know if 2202 actually sold since being listed last December?
A deed was recorded b/t two individuals (well, a couple and an individual, to be precise). I doubt anyone would pay the transfer tax just for fun.
Buyer’s financing was from Belgravia Mtg Grp (1st for $417k) and Herget Bank (2d for $92,940). So it appears buyer has ~15% into the place
The MLS shows 2202 closing on 4/29/2009 for $600,000 including parking
“The MLS shows 2202 closing on 4/29/2009 for $600,000 including parking”
No offense, but I’ll take recorded deeds as evidence over the MLS. And the deed records show $600k, too.
Haha, so would I!