Flipper Alert: The Latest on Flips in 600 N. Fairbanks
Here’s the latest update on 600 N. Fairbanks in Streeterville. New listings come onto the MLS weekly.
Here is the current status (out of approximately 227 units):
- 36 for sale
- 14 for rent
Some units may be both for sale OR rent. Closings still continue in the building.
Prices are all over the place, yet hardly anything is re-selling. There are a lot of one bedroom units in the building, so you’re seeing them competing with one another- even within the same tier.
Unit #2603: 1 bedroom, 1 bath, 873 square feet
- First listed for $419k plus $50k for parking
- Recent price change where they RAISED the price to $429,000 plus the parking
- Assessments of $323 a month
- Listing calls it “very special”
- Rubloff has the listing
Maybe they raised because of Unit #2703 which just came on the market (and this unit is the same as #2603, just slightly different finishes choices).
Unit #2703: 1 bedroom, 1 bath, 873 square feet
- Currently listed at $450,000 plus extra for parking
- Assessments of $298 a month
- Koenig & Strey has the listing
The cheapest one bedroom on the market is actually:
Unit #1603: 1 bedroom, 1 bath, 873 square feet
- Was listed in December 2007 for $410,000 plus the parking
- Currently listed for $394,900 plus $60k for parking
- Assessments of $262 a month
- Rubloff has the listing
The rentals are also pretty competitive. Cheapest 1 bedroom rental:
Unit #1604: 1 bedroom, 1.5 baths, 873 square feet
- $2200 a month includes the parking
- Re/Max Signature North has the listing
Why would 2603 have $25 more in assessments per month than the exact same unit ABOVE it (2703)? Anyone know?
Also, Sabrina, what HAS sold, and at what premium? Because the party may be over for 340 OTP, for instance, but early flippers there were making $150-$200K above cost. Was/is there a similar honeymoon for 600 N Fairbanks?
I’ve been in dozens of units in the building and I LOVE the white kitchen! Very modern/clean lines w/ the dark floors.
I know of at least 1 2/2 that sold for about 100K more than the seller paid. Another one is under contract/contingent for about the same 100K over original closing.
Kenworthey,
I like that buyers have options in terms of the finishes in this building. Have you toured multiple units at 340 OTP in the same day? It is mind boggling that the 1.5 million dollar units have the same exact finishes/kitchen as the 499K units. NO differences were allowed in floors, cabinet colors, counters etc.
Long term, I predict problems for 340 OTP. People want to think their unit is unique/special.
SR,
I’ve not visited them like that–my visits have been restricted to the unit of a friend who owns in the building (ditto 600 N Fairbanks). I think I’d have to see that white kitchen in person to know whether I like it or not.
As for the future of 340 OTP–I suspect you are right. More beautiful from the outside (in my opinion) than the Jahn–but people have to live INSIDE it–and not only are the finishes pretty much all the same, many of the inside units don’t have stunning or lasting views. Those that do also have to live with BCBS office workers peering inside their bedrooms.
But the building I really, really can’t figure? 512 N. McClurg. There are tons of units on the market. They’re fine–not luxury, just fine–and the building is (according to friends who live there) well constructed. But the owners are generally asking for about as much as 600 N Fairbanks next door per square foot. And given that the units fairly regularly disappear from mls, I presume at least some are selling. Just can’t. Figure. It out.
Streeterville Realtor: Even when you look at the pictures on-line at 340 OTP it is a bit freaky that every unit is exactly the same. It’s very boring.
But, to be honest, all of the units at a building like 600 N. Fairbanks begin to blend together as well. Yes, there were at least different finishes to pick from- but most picked very similar finishes. That white kitchen is the first one I’ve seen like that in the building. I guess no other buyers liked it.
Kenworthey: I think people have posted the flips before. There was a 2/2 that sold early on for about $100k over the original price.
There is a one bedroom that is under contract, but hasn’t yet closed so we don’t know on that one.
Other than that, I haven’t seen anything else that has closed.
Hi Kenworthey,
512 McClurg has a nice location and good sized units, 1 bedrooms at least 950-1000 sq ft, and 2 bedrooms are 1300 and up. The units are very boring and apartment like with carpet, outdated kitchen and bathrooms, and no outdoor space.
I suspect that owners in that building see all of the new construction in that neighborhood and are simply asking the same as the new stuff.
It doesn’t work. My buyers don’t even look at 512. I’ve rented a couple units there though.
Makes a great rental building!
Kenworthey,
You and Sabrina should check out 340 OTP on a Sunday at open house time and go see 5-6 units at the same time. There are usually tons open and agents wait in the lobby to grab whoever comes in.
I agree that the South facing units have a great view. Long term, I think the North facing units won’t resale well. I also think that people will have to change the units, perhaps, change the flooring or redo the kitchen in a couple years to demand a premium price.
Regarding the white kitchen, white is back! Cherry/dark cabinets are out.
Go check out 10 E Delaware sales Center. I recently remodeled my kitchen (not modern though) with white cabinets, marble counters, and dark wood floors.
I think the white kitchen is really nice. hard for me to see how wood won’t end up being dated again – too bad i have a new wood kitchen!
the “outdoor space” in these photos is SO LAME – why bother? i would rather just have that extra living area and windows that really open wide – with those floor to ceiling windows you feel like you’re outside anyway.
SR,
Any more details on “open house time” at 340OTP? I’d be curious to go check out a few south-facing units (not lookin’ to buy, just oggle some real estate).
Hi David,
I would recommend heading over there around 12:30-1 pm on a Sunday. Also, check the Tribune out on Sunday. They have been advertising open houses for the New East Side/340 OTP and the Peshtigo en mass.
2 things:
1. The 1-bedrooms that are listed seem to be mostly the “03” and “04” lines. These are the smaller 1-bedrooms — interesting that there are not as many “08” and “09” units being flipped (the larger 1-bedrooms).
2. Per bubbleboi’s comment about the outdoor space — I agree that in the photo’s it looks very small, but having been on the actual balcony space, it’s much larger than you’d think.
The balconies are essential to the units as they are the only operable windows in the bedroom or living area for fresh air. The two bedroom units have small operable windows for air. I live in the building and I see a lot of agents showing units to clients. There have only been a couple of “flips” in the building so far that are closed but ANYTHING in this market is favorable in my opinion. At least the prices are not falling below pre-construction prices as has happened in other buildings.
“At least the prices are not falling below pre-construction prices as has happened in other buildings.” I think you left out the “yet.”
Just look at the rent/own comparison. Also, the fact that flippers are not selling means that some will have to stop the bleeding eventually. At that time, new comps for the building will be set.
This is just another building whose buyers exhibit a lot of irrational exuberance. The cocktail parties they held to drum up buyer enthusiasm must have been quite intoxicating.
G, delighted as always by your wit.
And yes, “yet” is the operative word. As I see this playing out, flippers will wait through Spring market to see if there is any activity. At that time, if things aren’t selling, you will see price reductions start. Come fall/winter if these units still aren’t moving, expect to see them priced at developer pricing and below.
But, of course, that’s IF things don’t sell here. Although I have no reason to be optimistic they will right now.
I my goodness, G thinks the market is going to get worse! What a shock! I guess I should walk away from my deposit too and move into my underground bunker! G, do you have a bunch of gold bullion in your basement too just in case?
D
What a shock! Deaconblue has absolutely nothing to add to the conversation.
I’ll bet he did much better at those cocktail parties where the purcahsers praised each other for their obvious brilliance.
Deaconblue,
Just curious, but what respectable RE analyst DOESN’T think the market will get worse???
Fairbanks: Interesting comments about there being almost no way to get fresh air into these units, unless you prop open the doors to the balcony.
If I remember correctly, there are also no screens on any of the operable windows and there is no screen to the balcony- so there could be quite a few bugs visiting in the summer months.
Should be interesting.