Get a 1-Bedroom on the Mag Mile for Under $90,000: 535 N. Michigan in Streeterville
This 1-bedroom at 535 N. Michigan in Streeterville recently came on the market listed at $89,900.
It is bank owned.
The building is right in the middle of the Mag Mile.
It was constructed in 1962 and has 460 units.
It is a full service building with a pool and exercise room.
As you can see from the pictures, there’s not much left of the property. Both the kitchen and bathroom have been removed.
The living room has hardwood floors however.
While there is central air, there is no in-unit washer/dryer.
There is rental parking in the building.
Given the location, is this a steal at $89,900- even without the kitchen and baths?
Juan Peralta at Panamerican Real Estate has the listing. See the pictures here.
Unit #1605: 1 bedroom, 1 bath, 755 square feet
- Sold in August 1998 for $122,000
- Sold in August 2006 for $215,000
- Lis pendens filed in December 2008
- Bank owned in April 2011
- Listed on July 6, 2011 for $89,900
- Currently still listed at $89,900
- Assessments of $489 a month (includes heat, a/c, doorman, cable, pool)
- Taxes of $2865
- Central Air
- No in-unit washer/dryer
- Parking is rental in the building
- Bedroom: 15×14
- Living room: 22×14
Great well maintained building. One of the few that has never done a special assessment and replaced all of the bay windows.
Yes, put in 40K and you have yourself a great in town.
This place is in trouble – I think that it will sell for 60-70k. There are many issues with a place like this:
1. It is going to need a cash buyer (that takes out 70% of buyers out there).
2. It is going to need someone who has the patience and ability to oversee/perform a total renovation (that takes out another 20% of buyers).
3. It is going to need someone who wants to take the risk of putting 100% of their money into it (probably a total of 120k) without any security of a profit (and definitely not a big profit – a totally renovated unit may go for 175). That probably takes another 5% of people out there.
In terms of an in-town, most of these people are rich and wouldn’t want to take on such a project (especially with such a small unit in this price range).
It is snug for sure and the views are nothing to write home about, but the assessment is very reasonable. Lack of in-unit W/D and rental parking (no option to buy) and obviously state of the property are negatives. I still think for the location this is a good price. Cannot someone fix this up and then rent it out?
Also it will be an ok place for a student.
I have owned a unit in this building and it is good for rentals.There are lots of interns and residents from Northwestern who live here,so there is a steady supply of renters.
The only issue is with current condo guidelines,the place only makes sense for a long term investor/owner.The current owner occupancy in the building is somewhere around 50%,making it not eligible for financing.
Unit is perfect for a young architect whose parents will help w/purchase, and will finish renovation with own labor using IKEA. We know plenty of architects who’ve bought their units under this scenario. Place could be finished for less than $20,000.
TomB how much this unit will rented once it is fixed. I am almost tempted to buy it and renovate : )
i’ll go with clio on number 1 but take that to about 95 percent. Anyone with 90+ in cash isn’t buying this to live in. With financing a great place for bob. Then he can go to 55 E Erie and mock them for paying so much more to live where he lives.
“Unit is perfect for a young architect”
Really? I always thought of architects as those who design and draw places, not those who get their hands dirty and perform renovations themselves. Doesn’t seem like a place like this, without much flexibility in the floorplan, would suit the talents of an architect at all. More like a carpenter or other tradesman who trades his own labor for that of other tradesmen. Of course, I could definitely be wrong. It’s just the architects that I’ve met I could not picture wielding tools successfully (obviously a small sample, and mostly while in school)
Any thoughts on the real renovation costs on this? 20K? 40K? Assuming all work is farmed out. I need an in-town for work, and I have the cash to buy it.
Kevin – you need to read Dwell. Every issue seems to have a story about an architect that rehabbed/built their own place and using their education (which always includes required time actually getting dirty doing construction) they find cool and inventive ways to design and build/renovate.
“More like a carpenter or other tradesman”
Kevin – good point as they would have the expertise and friends in each trade needed to complete the project on a low cost or barter deal. That is not uncommon. The issue is that many of them have tools and trucks and do not live in the central business district. Perhaps one of them that wants to buy it and create an income property. I don’t know about architects although some of them must be quite creative and a few are very mechanical so it might work. I’d say a young designer at the mart might be another potential option.
Miumiu – The main issue i see is that the view STINKS which means that it will never command a premium rent and likely does not lend itself to a long term tenant. It will end up being a challenge to constantly find new tenants and keep it looking attractive enough to get a decent rent price each year.
Chukdotcom – This might actually be a great option for you. In regards to your question the answer is that ego is what moves the cost of reno up dramatically. People can get carried away on a reno project by picking expensive finishes that do not belong in that type of unit.
If it can’t be financed and someone puts 40-60K into it. Can it really be resold? Does anyone know what a 1 bedroom in this building rents for? What they sell for? Recent sales?
Hi,
I own in the building. I would say 30-40K to finish the unit nicely. They rent for anywhere 1200-1600 month depending on how remodeled the unit is and the views.
I no longer live in my unit I should add but I still love it. I redid the kitchen (gut job) and the place already had nice real hardwood floors and a remodeled bathroom
“I own in the building. I would say 30-40K to finish the unit nicely. They rent for anywhere 1200-1600 month depending on how remodeled the unit is and the views.”
So, if this can be bought for 80k cash, and put 40k into it, that’s $120k total. If rent is 1200, that is 10x rent. Not bad…
“So, if this can be bought for 80k cash, and put 40k into it, that’s $120k total. If rent is 1200, that is 10x rent. Not bad”
Dont forget those pesky things called taxes and assessments. Then there is upkeep, MIA rent checks, and damage to units when XXXX screws up and gets kicked out of med school for making a mistake.
Right. And I wouldn’t be renting it out. I would be using it myself. I’m just using the 10x as a rule of thumb to figure out pricing.
10 * 1200 = $120,000?
Is this the new math I’ve been hearing so much about?
The building is very financially secure and has never done a special. They actually recently replaced the roof as well.
The assessments cover a lot (heat, a/c, cable, 24hr doorman, receiving room, pool, rooftop gym/deck, etc)Oh, and they began remodeling the hallways which I think will make a HUGE difference.
“Is this the new math I’ve been hearing so much about?”
Sorry, I missed a step. 120000/(1200×12) = 8.3x
120k is 100x 1.2k. 8.3 years rather than 10 months.
And yeah, there’s also the assessments and taxes which add up to about $750/month. If you subtract that from the rental amount, a landlord would only be taking in $450/month. At that point, you’re looking at 22 years to replace the cash you put down on the condo based on savings vs renting a similar place. That, of course, excludes any appreciation or depreciation of the unit, etc. I still don’t think it’s a bad deal.
local,
They honestly sell for anywhere between 150-220 these days for a 755 1/1. There are larger 1/1s in the building (850 or so sq ft w/a window in the kitchen) and 1 bed plus den which some converted into 2 bed/1bath. There are some larger 2/2s + from combined units
Isn’t the commercial at ground level a different association?
I can only imagine what someone from NYC would think: A one-bedroom in the top location in town for under $90K.
But with those views, I could never, ever consider this place. Too depressing.
I believe the association sold off most of the commercial space.
There is Bandera, La Perla, that Atlas Art Gallery, etc attached
Oh so this is the La Perla building. Wow that is one crowded location, but great for in town if you are a shopoholic : )
too bad the regal beagle closed
There has to be some guys here who want to live in the building where La Perla is…
it is so expensive here though. they used to have an amazing outlet near Florence but they just closed. the prices were excellent and the stuff they carried were much nicer and less tarty compared to the US store.
Let’s just say they don’t stock my size in that store!
David,
What is the deal on parking? I’m tempted if there are no back assessments/taxes and I can get it for a little less than 89K. I have a relative (NU law) who would actually rent it long term and might keep it as an intown after that.
Forget the size, the prices are whack. They had a simple swim suit for over 400$ and this was years ago. BTW, sometimes you can buy la perla on yoox.com. it is a great shopping site and their sales are great.
LOVE yoox.com, I have bought way too many Furla purses on there. Got some great deals on Diesel jeans for the old man too. Shipping policy here is not as great as it is in Europe though.
Back to the unit – I think it will be under contract by Aug 1, and I’m going to say $85k. With Children’s Memorial coming I can see these smaller places getting snapped up by those with the cash to do it. It really only needs a kitchen install, and a small one at that, and a sink/vanity and maybe some tilework in the bathroom. The rest is mostly cosmetic.
“And yeah, there’s also the assessments and taxes which add up to about $750/month. If you subtract that from the rental amount, a landlord would only be taking in $450/month. At that point, you’re looking at 22 years to replace the cash you put down on the condo based on savings vs renting a similar place. That, of course, excludes any appreciation or depreciation of the unit, etc. I still don’t think it’s a bad deal.”
Looking at current quotes…
I can get 110 30yr T-Bonds ($119,497.00) that mature in 2036 – so very close to your 22 years. They have a 4.5% coupon – I would earn $9900 per year – $825 per month. With almost zero transaction costs to dump the bonds if I change my mind, I think that might be a better use (right now!) of $120,000 than to constantly chase after good tenants.
120K in t-bonds that pay 4.5 percent aint 9900 per year.
“Back to the unit – I think it will be under contract by Aug 1, and I’m going to say $85k. With Children’s Memorial coming”
Good point on Childrens…that will add more residents and young nurses who would rent this space.
local,
Parking is Rental, valet only. I believe it is $250/month but you would have to check on that.
i’ll bet in ’36 this thing is worth a lot more than 120.
“i’ll bet in ‘36 this thing is worth a lot more than 120”
Odds? Over-under? Anything? ‘cuz that’s a sucker bet.
120k @ 4.5% = 5400 a year (a little less after taxes)
sheesh people learn how to use a calculator
“120K in t-bonds that pay 4.5 percent aint 9900 per year.”
Also there’s a $13 billion 30-year note auction today and the projected yield is 4.21. Not 4.5.
“i’ll bet in ‘36 this thing is worth a lot more than 120?
Real or nominal $’s?
“Odds? Over-under? Anything? ‘cuz that’s a sucker bet.”
It’s been proven already on CC that there’s at least one sucker who won’t shy away from a sucker’s bet…oh wait, he should be gone now.
“Real or nominal $’s?”
He’s clearly betting on the nominal.
“Also there’s a $13 billion 30-year note auction today and the projected yield is 4.21.”
There’s an auction for 30-year notes that are due in 2036? That’s a weird offering.
David,
Do you now what company manages the building?
My math was screwed up. I admit it.
However, you can buy and sell US Treasuries in seconds on trading exchanges. Most people don’t buy them at the auction. They are super liquid all the way from issue to maturity.
well the bonds will return you your 120k so apples to apples.
“well the bonds will return you your 120k so apples to apples.”
That’s why it was “clear”.
as an investment i like this place. Could prep it for rent at 20k. Bet monetizes itself so not many worries, great location, seems like an easy rental. I like seeing stuff like this showing up.
community specialists manage the building. there’s a website for the building as well…i bought in this building last year, but have seen prices keep dropping. i thought i could afford it, but when you add in the assessments ($450/mo for a small 1 bed! which went up this year) and taxes and parking ($245/mo!), i would have been way better off renting. the building is very strict w/ renting out apts (everyone needs a credit check, move in fee, and to attend a meeting and be screened/interviewed), and strict with many rules! the location is great, but again, renting would save me at least $500/month (i put very little down).
I’ve been in this building multiple times.
As another data point, the people I knew in the building were
1)associated with nw medical
2)living in the suburbs and this was their in-town.
It’s a great location.
I think it would work fine as a rental.
It’s not high-end; it’s a place to live.
I’ve never tracked pricing in the unit. calling out the Master G…
“I’ve never tracked pricing in the unit. calling out the Master G…”
meant
I’ve never tracked pricing in the building. calling out the Master G…
I have a small 1BD in lincoln park that i rent for $1350. It covers my mortgage, taxes, and asst. The nice thing about a low-rise is that the ast are only $120/month, the taxes are $250/month and the rest in revenue. I thought about this unit at 535 but then even at $90K it is STILL better to invest in a low-rise in a good neighborhood. No hassle with condo board, weird rules on renting, etc. Low-rises are the way to go for investment. I prefer them for living too… but that’s a personal choice.
“No hassle with condo board, weird rules on renting, etc. Low-rises are the way to go for investment.”
The condo boards can be way worse in low rises (in my opinion) – especially when it comes time to do major building repairs.
There’s also more risk (if one of the units goes into foreclosure etc.) Heck- there are hundreds of low rise condo buildings all across the city that have been decimated by foreclosures leaving the other owners with a worthless investment.
Also – some small buildings also have rental restrictions (but it depends on the size of the building.) I know of several 12 unit buildings in Edgewater and one 24 unit building in Lakeview that all have rental restrictions in place (to make sure that buyers can get mortgages in the building.)
“I have a small 1BD in lincoln park that i rent for $1350. It covers my mortgage, taxes, and asst.”
Yeah you might be making a small profit but you don’t have the cachet of saying “I own a place on the Mag MYLE, brau!” quite loud at the bar to try to impress the laydees!
If there’s easy financing a bozo who is socially awkward with the laydees may very well buy it thinking it’s his ticket to riches/getting laid. And there are enough infomercials to support their confirmation bias.
That’s why easy financing was so toxic: it opens up the floodgates to people with nothing more than a FICO to outbid you on real estate transactions.
It really needs to be 20% down. If you can’t afford 20% you need to rent. Unfortunately our government won’t support such a thing because they know that sort of requirement would catastrophically devastate housing prices. That and the fact that turnkey properties are trading at 300%+ premiums in the green zone where they need only +50-70% of purchase to rehab them shows me Chicago has a long way to fall.
Too many people thought they could have it all in Chicago proper, raising the kiddos and all, then they hightail it out to the burbs. Look for some pain as those that bought during the boom realize the public elementary school isn’t up to their standards, and *gasp* not all of their kids are going to get into a magnet school despite every parent talking about their offspring as an Einstein. Every kid is gifted and talented and they’ll all surely be astronauts when the next shuttle is ready. LMFAO!
Bob:
How many people with kids who live in Chicago do you actually know?
Well he has a point though. It pisses me off how everyone thinks their kid is a genius too.
“Well he has a point though. It pisses me off how everyone thinks their kid is a genius too.”
Yeah, I, too, subscribe to the “you’re a worthless sack of crap who will never amount to anything” school of childrearing. Anyone who does anything else is a pollyanna who is doing their kids a disservice, and pisses me off, cuz thats the real problem for the future of society.
Everyone with small kids in the city that I know believes that they will get in a magnet high school. But the odds and statistics say it’s not true. Then what will they do?
“Everyone with small kids in the city that I know believes that they will get in a magnet high school.”
Okay, but what about people with 9, 10, 11 year olds? School-aged kids with a standardized test track record–what do their parents think? Or does no one know enough of them to have a plausible sample?
“Well he has a point though. It pisses me off how everyone thinks their kid is a genius too.”
you haven’t met my kid yet, he is a real genius not like the ones bob and you describe the real deal. he is also training for a triathlon. he has no set training schedule he just starts when he feels like it and dosent stop until i make him.
he is a hard guns a blazing trainer too. i watched him crosstrain by working on his leaping and core strength. he jumped from the night stand onto the bed over and over and over i think its was like a 20 repetition set. i had make him take a break. after a few sippy cups of water and grapes he was off to knock out reps of resistance running. for this he used a large sit on fire truck with a handle. he would sprint pushing the fire truck from one end of the house to the other. this was only 15 reps he tripped and bumped a previous oweeeee. after new band-aide was attached it was now on to spinning drop drills. which was accompanied by the song “ring around the rosy”. the was a short 10 rep set as mommy cut it short due to the dizziness and him falling into the wall. head bump was minor but we were kicked out of the house by mommy to continue training. outside we did climb slide sip training drills, this consisted of him climbing up the slide, sliding down the slide, printing to the deck stairs pick ou the the water bottle sip and repeat, only yelling weeeeeeeee every other slide as to conserve ogygen and not hit the V02 max.
i cut the traing short as i didnt want him to reach his lactic acid threshold before we headed to the park for combat training.
so Bob and MuiMui i dont even see professional athletes train this hard and this long on only a few strawberries and the promise of chocolate milk after.
“Everyone with small kids in the city that I know believes that they will get in a magnet high school. But the odds and statistics say it’s not true. Then what will they do?”
I have a small kid and don’t believe that. Certainly not counting on it.
“I have a small kid and don’t believe that. Certainly not counting on it.”
Hell, we talk about the contingency plan of renting/buying in the ‘burbs for HS, and we’re still at the “future problem” stage.
‘course, barring further economic calamity, I’m willing to bet that LVHS will (in the 4-6 year future) join LPHS as a city school roughly comparable to the 2d tier of suburban schools–in the general range of the Maine TS schools.
There are large differences between the maine TS high schools. the the difference between ‘maine waste’ and ‘maine south’ is huge so your comparison is not entirely valid.
“the difference between ‘maine waste’ and ‘maine south’ is huge so your comparison is not entirely valid.”
Shows what you can do when you don’t have to deal with poor kids.
““the difference between ‘maine waste’ and ‘maine south’ is huge so your comparison is not entirely valid.”
Shows what you can do when you don’t have to deal with poor kids.”
its a very true statistic, sad but true.
but from what i have heard (didnt look it up yet) Hitch Elm and 70% low income but still scores at 90%. so there are exceptions.
The dumber and less accomplished your kids are, the better. This country is going down because of all the liberals/socialists. Why educate yourself and work hard when all of your effort will be going into paying for idiots and morons? Also, why work hard and educate yourself when there are so many free programs to “assist you”?
I’m sure you lie and cheat plenty in order to not live up to your obligations, clio. That appears to be your nature, right?
G, G, G….. what are we going to do with your obsession with me? Just breathe deeply and let it go – it’s childish and idiotic (but then again, what else can I expect?).
If you are looking for rental return 2 bedrooms are a better way to go, I bought a 2 bedroom in E Rogers park for 52k (it sold for 195, in 2005). The taxes and assessments are about 400 total a month and I’ve been renting it out for 1100. So after taxes and assessment i’m getting a 16% return. Plan is in a couple months to tell the tenants that if they bought the place for 120k from me their mortgage would be half as much as their rent.
gesc –
Which el stop is your Rogers Park rental closest to and how long is the walk?
Its actually closest to the Rogers Park Metra stop.
That’s a nice ROI. Congratulations on your purchase!
Really late, but… I saw this unit last winter when it was listed significantly higher. Whomever was renovating it was going for some weird tiki design. It took about five minutes to get the front door to open and when eventually got in, there were no lights. It is probably better off is this condition than the original plan.
If I recall correctly, the view was uninspiring, but not terrible.