Get a Full Floor Residence on Lake Shore Drive: 1418 N. Lake Shore Drive in the Gold Coast

This 3 bedroom full floor residence at 1418 N. Lake Shore Drive in the Gold Coast has been on the market since February 2011.

1418-n-lake-shore-drive.jpg

In that time, it has been reduced $151,000.

Redfin also has it listed as a short sale.

This building is unique as it is not vintage construction but was built in 1984.

1418 N. Lake Shore Drive was the first condo building to be built since the 1920s with full-floor residences meant for families.  It has a small footprint- at only 44 feet wide. 

The building has just 27 units and all have east and west windows.  The angled glass allows owners to have north and south views. 

According to the book Chicago Apartments: A Century of Lakefront Luxury, the units are 3,100 square feet and originally sold for $544,000 to $678,000.

According to the listing, this unit has 41 feet of floor to ceiling windows facing the lake but you can also see the Navy Pier fireworks.

The kitchen has stainless steel appliances and what looks to be stone counter tops.

The listing describes the floor plan as “semi-open” and that it “feels modern yet warm.”

This building has been hot in the last year with 3 sales in that time.

  1. Unit #4: sold in April 2010 for $1.4 million
  2. Unit #13: sold in September 2010 for $1.379 million (it had previously sold in August 2007 for $2 million)
  3. Unit #27: sold in November 2010 for $1.575 million

The unit has central air, in-unit washer/dryer and parking is valet in the building.

Do the recent sales in this building prove that something good actually did come out of the 1980s?

Pamela Sage at Baird & Warner has the listing. See the pictures here.

Unit #14: 3 bedrooms, 3 baths, 3150 square feet

  • Bought before 1985 (original owner???)
  • Originally listed in February 2011 for $1.55 million
  • Reduced
  • Currently listed as a “short sale” for $1.399 million
  • Assessments of $2616 a month (includes doorman, gas, cable, parking)
  • Taxes of $20,235
  • Central Air
  • Washer/Dryer in the unit
  • Bedroom #1: 17×16
  • Bedroom #2: 14×12
  • Bedroom #3: 14×11
  • Family room: 22×15

86 Responses to “Get a Full Floor Residence on Lake Shore Drive: 1418 N. Lake Shore Drive in the Gold Coast”

  1. Amazing unit. This will go quickly. LOVE the kitchen, LOVE the views. Great place. I hope the ‘short sale’ doesn’t scare buyers away!

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  2. Great place/price for someone downsizing from the burbs!! The only problem I would personally have with this place is lack of outdoor space – this, for some reason, creates a lot of anxiety for me.

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  3. “this, for some reason, creates a lot of anxiety for me.”

    No way, this means no yardwork. The world outside your door is your playground. Beaches, parks and streetscapes everywhere.

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  4. Do you have any idea what rich people spend on paying people to take care of their outdoor space for them? If you were rich you would!

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  5. HD, you did see the fairly recent comps within the building, correct? I’ll venture to guess that by “outdoor space,” Clio meant some sort of decent balcony space, etc., not a yard.

    Guess what…there are people who’ll pay $1 – $1.5 million for a 3,000 sq ft condo on the lake front. I know it’s easy to forget, but this is still one of the largest cities in the richest (large) country, one that is home to thousands of doctors, biglaw partners and successful small firm plaintiffs’ lawyers, executives, directors at consulting/accounting firms, etc., who can afford this unit and for whom it might be very attractive, and who…gasp…have no desire to live in a SFH in the city.

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  6. YES annony, I saw the comps above, that’s why this is a great deal. Every post so far has been a positive post about the property. By outdoor space, balcony, etc, I was thinking more along the lines of yard, given that clio has a large landscaped yard in Oak Brook. Which is why he lives in Oak Brook and not in downtown chicago becuaes no outdoor space makes him anxious.

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  7. “Do you have any idea what rich people spend on paying people to take care of their outdoor space for them? If you were rich you would!”

    It is a ridiculous amount of money – just from that last storm, I had to spend 4k just to remove trees – now I have to buy more shrubs/trees to replace them!!

    For a 2 acre property without a pool/tennis court/putting green, I would say that you are looking at an extra 10-12k/year minimum. If you add in a pool/tennis court/putting green/outdoor lighting/decking, garden maint, you are talking significantly more.

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  8. “Unit #13: sold in September 2010 for $1.379 million (it had previously sold in August 2007 for $2 million)”

    Ouch.

    So are banks just letting anyone do a short sale these days or is there a process you go through or criteria to meet? If this owner has a $500K stock portfolio that they could use to bring money to the table and not do a short sale, will the bank still let them do a short sale?

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  9. HD – you are correct, but I am beginning to realize that the cost of xanax is a lot less than the cost of yard maint!!!!!

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  10. Interesting art on the wall by the piano. Is that a painting of the wife. If so that must be pretty uncomfortable at dinner parties.

    I do love the wall covering idea in the Master bedroom. We thought about doing this in our bedroom as it is a great way to quiet a space and absorb sound. The good news is that we rarely have sound transfer issues in our space so it was not needed.

    Odd ceiling details. Can we get a smaller fire sprinkler head than that one from 1984?

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  11. “just from that last storm, I had to spend 4k just to remove trees – now I have to buy more shrubs/trees to replace them!!”

    A sincere question, is that kind of damage covered by insurance?

    I was somewhat concerned our skylight was done for, but it made it. People parked on the street were not happy. No windshield damage that I heard of or saw, but dents everywhere.

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  12. “I do love the wall covering idea in the Master bedroom. We thought about doing this in our bedroom as it is a great way to quiet a space and absorb sound. The good news is that we rarely have sound transfer issues in our space so it was not needed.”

    WOW talk about TMI. I don’t need to know about (the lack of) sound transfer issues coming from your bedroom.

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  13. For me, the condo vs. SFH is not about green space in as much as those stupid, non tax deductible assessments. And losers controlling where the money goes and how it’s spent. And don’t even get me started on dog gone foolish special assessments from losers who don’t know what they are doing! And it’s hard to figure out if the condo is managed well or not before you buy. And once you are in, it’s too late.

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  14. I hate the decorating but it is hard to find this kind of square footage these days. Someone will buy this, but it will take a special person as those assessments are a beast.

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  15. This is a very beautiful and interesting modern apartment in one of the best locations in the midwest. Very, very good deal for the money at this price and I expect it will sell quickly.

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  16. “WOW talk about TMI. I don’t need to know about (the lack of) sound transfer issues coming from your bedroom”

    Actually it was the neighbor who moved in that was installing huge speakers that were hung by chain link from the timber framed ceiling. That scared the crap out of me. His living room/TV/entertainment area backs up directly to one wall of my bedroom. The good news is that he is married now with a baby and we rarely hear anything coming thru the walls.

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  17. “A sincere question, is that kind of damage covered by insurance? ”

    No, tree/shrub damage is not covered (unless it damages your house). However, if you have to replace trees, they DO have a value and you can deduct this from the profit (if any) you take on the house.

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  18. “Someone will buy this, but it will take a special person as those assessments are a beast.”

    ….not as awful as the expenses of owning a SFH (averaged over several years).

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  19. There are balconies on the west side of building.

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  20. I guess I am again not getting the beauty of this place. My taste must seriously be off. The interior is pretty ugly to me: the ceiling, the floor, those hideous cabinets, the bar and the last bathroom photo makes it look like an old tasteless dude man’s place from seventies. Oh and he thought he is edgy…lol

    But seriously $2600 in assessments?! I’d rather buy in Legacy or Aqua or MPE (I know not GC). They have million dollar units with amazing views and more reasonable assessments.

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  21. “I’d rather buy in Legacy or Aqua or MPE (I know not GC). They have million dollar units with amazing views and more reasonable assessments.”

    Why not San Diego then? Or anywhere else that has better million dollar units that is not in Chicago’s nicest neighborhood?

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  22. The Aqua is to new to know about assessments…you can’t compare an established building’s assessments with one that is less than 4-5 years old…eventually the condo board of the new buiding figures out that they need to raise the assessments well above what the developer set to continue to have the same level of finishings and service…

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  23. I like this condo, but would want at least a small balcony.

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  24. location, yes, interiors, absolutely hideous.

    change them, ok, but the plan is still a long dark tunnel.

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  25. Can’t believe people like this place! Look at the ceiling height! Each time I walk by this building, I think of what an eye sore it is for the beautiful building next door (1420). You can get a nicer SFH in the GC for the same price these days (and have the freedom to rent it out if you wish, not have to pay assessments, etc.).

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  26. It appears that there is a small balcony off of the Master bedroom. Look at the photos on Bing maps. Should be decent but likely have to walk thru private spaces to get access.

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  27. Bob 2 (Not Bob) on July 5th, 2011 at 12:36 pm

    Looks like a gut rehab to me. Is this style called old money trying to be hip?

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  28. “It appears that there is a small balcony off of the Master bedroom. Look at the photos on Bing maps. Should be decent but likely have to walk thru private spaces to get access.”

    The listing states balcony is accessible from 3 bedrooms. Balcony seems to run most/all of the west side of building, tho seems narrow. Seems consistent with photos and seems like all 3 beds run on the west side so as to have windows. So you’d probably have to go through a bedroom but you could keep one of them as relatively public space.

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  29. I love this building. Not crazy about all the decor, but i recognize this unit.

    The way the ceiling lighting is placed makes the unit very visible from lakeshore. When I was much younger my father would take us up to Rogers Park and Edgewater to help him volunteer at a facility in the evenings. My favorite part of driving up lakeshore was going past this building, i was mesmerized by the
    stuck-on tray ceiling type effect the lighting had in the living room.

    Many years later when i had my own room, i made it a point to get similar lighting in my bedroom. Yeah, looking at it now it’s pretty ugly but it was the coolest thing in the world when i was 13-14. Mine was better though, the LED strip changed colors.

    Agreed with clio, need outdoor space at this price point, and living room feels a bit narrow. nonetheless, the sentimental side of me loves it.

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  30. “You can get a nicer SFH in the GC for the same price these days.”

    Really? A SFH, with “nicer” finishes than this place, in the GC (let alone the prime northeast section of the GC), for $1.4 million? When folks pay that for SFH’s in Lakeview?

    You do realize that the rather exorbitant assessments of $2,600/mo despress the unit price, right? Were the assessments, say, $1,000/mo less, the unit price would almost certainly be higher.

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  31. 2600 a month is an ouch on assessments.

    A question for you guys :

    I understand that in neighborhoods like the gold coast, parts of river north, streeterville, lincoln park, etc, there are plenty of rich folks. But here’s the thing:
    Why would i want to drop 1.5 mil on this place and pay assessments that are this insane? I know everyone says ‘if you’ve got that kind of money’ it doesn’t matter, that’s simply not true..maybe if you’ve got 100 mil, but if you’re looking to buy 1 or 2 mil dollar property, i don’t think most people would be keen on 2k – 3k in assessments when they could pay a decent amount less in other , newer buildings.

    As time goes on, are assessments going to get more and more ridiculous? I mean, looking at lake point tower, or the mies van der rohe buildings, or some of the co-ops in GC or streeterville, the biggest problem with selling the units is the ridiculous assessments. Even a simple 1 bed at my place on astor has nearly 800 dollars of assessments for a unit likely valued at 220-250k. Why would anyone buy these units vs. new construction? and where does it end? in 10 years will the assessments on this unit be 3k? Maybe NYC salaries can afford these types of assessments but is that sustainable on a chicago budget?

    My doorman told me some of the employees/doormen of these older buildings can make up to 25-30 dollars an hour, plus pension, plus free healthcare. At some point doesn’t the condo board need to put a cap on this kind of stuff?
    ( i know. the union thing. but still. )

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  32. Part of the exclusivity of this building is that there are no small units (I believe the full floor ones are the smallest—there are also some combined/duplexes). Not like Aqua where your million dollar unit may be next door to a studio or 1 br.

    You get an extremely high level of services w/ only 27 units.

    Assessments are very high, but a better comparison than other $1.3 MM dollar units, would be to compare to other full-service units w/ 3100 square feet (i.e., there are plenty of 1500 square foot units with assessments of close to or over $1000). This all goes to annony’s point that the price is already discounted to reflect high assessments.

    I remember wathing this get built–a major feat constructing a high rise from the “inside” between 2 buildings on a narrow lot, and with LSD right in front.

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  33. Isn’t part of the rising assessment issue, as noted above, due to (a) brand new buildings possibly having unrealistically low assessments set by the developer and (b) building needing higher assessments as they age? So if you bought a new place and you go to sell in say 15 years, you will have some issue with assessments. So it’s not as if you fully escape it with a new building.

    A further issue with this particular building is that there aren’t that many units. Maybe it gets you a higher level of service, but I’d guess that part of the high assessments are attributable to having fewer units across which to spread out costs. You also don’t get the 360 degree view benefits that you would in other full floor apartments (well, I suppose the non existent N/S views are not much different from what you would see were there actually N/S windows).

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  34. i’m sure it appeals to some people, but valet would be a deal killer for me.

    obviously at some price point it wouldn’t matter (i.e. i’d buy this place for $300K), but i value deeded parking WAY above its market price. i hate valet and avoid it like the plague.

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  35. I like this condo a lot and also remember when they built the place. I was amazed they could fit anything in such a narrow space (I think the width is about half of the width of my suburban lot).

    Still, if I were to buy in this area I’d choose vintage over something from 1984. The building two doors north of this, 1430 N. LSD, is one of my favorites, and also has just one apartment per floor. It was built in around 1926, and has all kinds of wonderful vintage detail. Prices are about the same as for this place, as are assessments.

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  36. Strike what I just said about prices at 1430 N. LSD. A full floor is available there and they’re asking nearly $3 million. Not saying they’ll get it, of course, but obviously it’s going for much higher than the one at 1418. This may be a unique unit, however, as it has a terrace. I’m sure I’ve seen others sold in this building for under $2 mln.

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  37. Interesting art on the wall by the piano. Is that a painting of the wife.

    Whose wife?

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  38. Yes, annony, you CAN get a SFH in the GC area for this price, but it will take work. There are a handful of very nice SFH in the short-sale/foreclosure process, all with comparable finishes (I can’t speak for the decorating though). It takes patience, but I’ve just seen two go within two blocks of this condo.

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  39. wow what a fabulous place!

    Not exactly my taste but a few minor tweaks and it would be a fantastic place to call home!

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  40. “wow what a fabulous place!”

    Now I see why you like Vegas : )

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  41. “Why would i want to drop 1.5 mil on this place and pay assessments that are this insane”

    Riz, people completely underestimate the maint. costs. If you are comparing this to a 1.5 million dollar home, I bet the average costs of maint. of such a house would be as much (if not higher than these assessments). If you are talking about another 1.5 million dollar condo – take a look around at what is available – the assessments aren’t that out of line.

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  42. @ anonny, but I’d rather get this and save me a half the money
    http://www.redfin.com/IL/Chicago/31-E-Elm-St-60611/unit-2A/home/14122370

    or even this one:
    http://www.redfin.com/IL/Chicago/22-E-Division-St-60610/unit-1/home/14124859

    Those assessments are a lot anonny. Not everyone who buys a million dollar place is ubber rich. Say a Couple earning 300-400K might buy such a place if they have enough savings, but I bet they think nearly 3K a month is a significant sum of money.

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  43. minor tweaks! not in need of a gut rehab, but there is a lot of High quality stuff in this unit if you look very closely

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  44. and you can’t really talk, since you emphatically prefer the pottery barn look

    this isn’t anywhere near that type of style, so I wouldn’t imagine you’d “get it”

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  45. I wish people would stop mentioning Pottery Barn. I keep getting Pottery Barn google ads now on the main page now.

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  46. you are right i prefer PB to this one any day. As i prefer riviera to Vegas any day. just different tastes : )

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  47. that is why i use PB instead : )

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  48. newsflash…PB is no “riviera”…not a reasonable analogy by any stretch.

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  49. bahahaha

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  50. This place is amazing. They’ll get $1.375 for it.

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  51. thanks for correcting me because you have lived there not me…lol

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  52. “As time goes on, are assessments going to get more and more ridiculous? I mean, looking at lake point tower, or the mies van der rohe buildings, or some of the co-ops in GC or streeterville, the biggest problem with selling the units is the ridiculous assessments.”

    Sorry to say this- but most of you are completely unrealistic about the costs of maintaining large buildings and all that goes into them. We’ve discussed this before but you have things like:

    1. Twice or three times a year window washing
    2. Landscaping maintenance
    3. Snow plowing/shoveling
    4. Heated/air conditioned 8 story parking garages!
    5. 24/7 doormen (or sometimes two)
    6. On site maintenance/engineering
    7. Indoor/outdoor pools
    8. Big exercise rooms with lots of equipment
    9. Elevator maintenance
    10. Fresh flowers in the lobby
    11. Garbage/recycling issues
    12. Cleaning issues- how many people does it take to vacuumm the long hallways of a 60 floor tower at least once a week?

    Then we have the longer term maintenance issues:

    1. Building maintenance
    2. Window issues (cracks or replacement)
    3. Balcony replacements (happens more than you know)
    4. Painting
    5. Ever wonder how much it costs to put new carpeting in all of those hallways in the same 60 floor tower because it wears out every 5 years?
    6. Ever wonder how much it costs to paint those same hallways because the renters are moving in and out every year?
    7. Ever wonder how much it costs to heat/cool those same 60 hallways all year round?

    I could go on and on.

    People who are all smug about their “low” assessments in their “new” buildings don’t understand the reality of what high rise living is all about.

    Please look at the assessments in slightly older buildings like The Bristol at 57 E. Delaware. Built in 2000. This is the reality of what you will be facing. It has an indoor pool/doormen etc. Assessments on an 1800 square foot 3/2 run about $1200 a month.

    The 1500 square foot 2/2s are around $950 or so.

    The building in this thread is only 27 units. They have to split the cost of the doorman and maintaining the building with just those other owners. OF COURSE you have to pay for that. It’s not cheap to have someone sitting at the front door to get packages and ring up guests 24/7.

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  53. I also disagree that you can say, “it would be so much cheaper to live in a single family home in the neighborhood for the same price.”

    Have you ever had a basement issue in an 1890s vintage home before? Or what about a roof? Or tuckpointing? Or electrical issues? Perhaps if you’re buying a fully rehabbed SFH and you’re going to hire a gardener and whatnot to maintain it- you can get away with lower “costs” for a few years. But houses have to be kept up or they decline. It doesn’t happen magically.

    I agree with Clio- that most people underestimate how much it costs to actually maintain a single family home.

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  54. Oh- and one other thing. Someone looking to buy with large square footage in a high rise with views of the lake (which is what they are, essentially, buying) is NOT going to want a SFH instead.

    There are view people and there are the non-view people. People buying along LSD are “view” people.

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  55. “I agree with Clio- that most people underestimate how much it costs to actually maintain a single family home.”

    I haven’t really seen any realistic estimates of what it costs here – it’s usually just parroted about as “OH MY GOD” so expensive as a justification for living in a condo building with expensive assessments, so I don’t know if people really underestimate the costs or if it’s just a false concept bandied about around here.

    In the real world, people I know frequently talk about what they are spending on repairs for their homes and comparing stories and strategies, so I don’t really get the feeling that people in general underestimate the expenses (except maybe for people who have never owned a house before).

    I keep meticulous track of spending on maintenance and repairs for the properties I own, and the single family home I live in is the cheapest to maintain based on purchase price. I’ve spent under $10k a year in the several years I’ve owned it and 1% of purchase price per year is the estimate I use for maintenance costs in general. Yes, a big expense in a year can jack that up, but even a decent masonry or tuckpointing job or a major appliance replacement or 3 won’t jack you up too far past $10k.

    You can always find extreme examples to provide for exceptions; if you are comparing the average condo to a true Victorian, of course the Victorian is going to cost a lot more to maintain. However, if you compare properties of the same vintage, you’ve going to find that a similarly priced single family home will cost you significantly less to maintain than the assessments on a condo in a large building. Condos have their benefits but to suggest that you’re saving money by paying assessments instead of dealing with the maintenance is just disingenuous.

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  56. also in a SFH, the owners can do some of the work themselves if they are handy, no such option for a condo.
    I still believe some of these buildings are grossly mismanaged and the assessment can be reduced. I have been to buildings that one boils in the garage in winter and freezes in the corridors in summer. Heating and cooling cost can be astronomical. Also I have seen the management going for cheap options that don’t workout and then having to redo the whole thing, hence wasting money.

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  57. With just 27 units in a high rise like this, I can understand the high assessments.

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  58. All depends on how you “maintain” it JJJ.

    My brother has a 1970s house in the suburbs (your average split level.)

    In the last 8 years he has:

    1. Put in new windows on some levels: $10,000
    2. Put on a back porch: $4,000
    3. Put in new landscaping in the front yard: $3,000
    4. Put in a new tile in the entry hallway: $1500
    5. Is about to put in a new driveway- estimated cost $4,000

    So- if you want to do NOTHING – but simply cut the lawn- then yeah- maybe it’s not “costing” you much.

    Wait a minute- I remember something happening with the roof too (after some storm) and they had to have a roof guy come out for repairs. Not sure how much that cost.

    And this ISN’T a money pit house- in the least.

    Many people reading this site do not own a single family home (they are looking to buy- remember). They don’t even know what it’s like to replace a filter in a furnace (and I’m being completely serious- as they don’t do it in their rental apartments- and many don’t do it in their condo units but that’s another story)- so they really have NO idea what maintenance costs are all about.

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  59. “Heating and cooling cost can be astronomical. Also I have seen the management going for cheap options that don’t workout and then having to redo the whole thing, hence wasting money.”

    You’re buying into a community miumiu- where people have lots of different standards. I never said it was going to be easy (and yes- probably a lot of them DO waste money.) Is it really necessary to have fresh cut flowers at the front desk every week?

    For some buildings- the answer is “yes.” If you don’t like it- don’t live in a condo building.

    Also- there are certain elite buildings where the condo board literally buys $500,000+ artwork for the walls. If you’re rich- wouldn’t you want “real” artwork on the walls of your building? Of course. But is this a “good” use of the associations money for ALL the residents? Who knows.

    Again- there are certain people who will only live in high rises. They don’t want anything to do with hiring someone to come over to the house to cut the lawn or clean the windows etc. They want it all taken care of for them. And there are others for whom that lack of control would drive them crazy.

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  60. But how often does your brother have to put in new windows, tiles, and drive way? The close to 3K assessments are every month every year. At least in cases that they include most utilities I can fathom that. However, there are buildings which have very high assessments for nothing but perhaps a doorman.

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  61. Sure- he does all these repairs once. But they add up. People think they can just move into a SFH, mow the lawn and pay for electric and gas and that is it. That’s not what I’ve seen (at least not if you want to get some of your money back out of it when you go to sell.)

    We’ve seen plenty of homes on this site where that is all they have done.

    His house- by the way- cost him about $300,000- so all of these repairs start to add up over the years.

    Living in a high rise is expensive. You cannot maintain those buildings without significant money. For instance- every 10 years all balconies on all highrises (and midrises) MUST be inspected per the city of Chicago ordinances. How expensive is that to even do the inspections on some of these massive buildings? And then what happens when you find something has gone wrong?

    I’ve seen this especially in loft buildings where they put the balonies on- basically hanging off the building. Perhaps architect can speak more on this- but from what I understand having lived in one of those buildings in the past- is that the heat/cold wear and tear starts to add up quickly and usually warrants a replacement of the cables etc. that hold those balconies onto the building.

    How expensive is that?

    And don’t even ask how expensive it is to replace elevators in an older building.

    By the way- it’s apples and oranges- but why are Chicago high rise maintenance costs so much less than Manhattan’s? I’m always stunned by what my friends pay there when buildings don’t even have pools etc.. (does it cost more to maintain doorstaff or something?)

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  62. Also- I would also add that some buildings are better “run” than others. Do your homework when buying. The 1950s/1960s/1970s buildings that say in the listing “never had a special assessment”- say that because it actually means it’s a well run building.

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  63. Is this opposite day? HomeDelete loves it, Clio hates it….

    This assessment is a full 2.5% of the asking price, per year. That’s before you spend a cent on interior maintenance and improvements. In this luxury price point, you’ve got to figure the owner is putting in 150k in improvements every decade (new kitchen, floors, bathroom, etc…). So that’s another 1%. All the human services you get here (described by Sabrina) can’t be worth more than 500/mo. I agree with JJJ, you pay full freight with assessments like this.

    Also, heated/air conditioned garages? Its a car, four walls and roof work just fine.

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  64. “All depends on how you “maintain” it”

    I maintain the hell out of my properties. Almost every time I have a vacancy (average of every 2.5 years, per my records) I have some updating and rehabbing done and put in some cool new feature or item if I have the chance. I’m slowly converting all my bathrooms into custom shower tiled enclosures with body sprays, because for a few thousand dollars (if that), I have found that to be a thing that gets tenants interested and gets them to stay. I ride my tenants relatively hard about replacing filters (usually, I remind them the first few months they’re in the unit and drop off replacement filters, than I ask to see the filter once a year or so to make sure it’s getting replaced), but there’s always deferred maintenance to be done as well. I’ve found that keeping properties in excellent shape works well for me in terms of getting the kind of tenants I want.

    “In the last 8 years he has…”

    I’ll maybe give you the windows and the driveway being actual maintenance, and I’ll even throw in $5k worth of roofing repairs for a bad issue that needs to be fixed short of a tear-off. A new porch, new landscaping and new tile aren’t maintenance – they are improvements. Even the windows and the driveway sound a lot like improvements, but since that was all you could come up with, I’ll give you that. That makes $19,000 in maintenance over 8 years. That’s around $200 a month, or what we would consider a cheap assessment around here. As a note, an inexpensive house is going to be more expensive to maintain on a per dollar of purchase price basis – when I’m thinking about maintenance costs of 1% for a SFH, I’m thinking of million dollar or so home in the city. When you add suburban yards and pools into the mix, that does drive costs up a little bit.

    Anyway, you’re making the wrong argument. The argument for high-rise/high-assessment condo living is the security, views and amenities. That’s fine to say – you can be honest about the reasons it’s attractive to you or to others. I’ll admit, it would be attractive to me, too, to have that stuff available all the time, but it’s just not something that I want to pay for. I look at those kinds of assessments, and that’s another car to play with for me (well, I don’t generally finance cars, but that’s basically what a $1000/month assessment says to me). Just don’t claim that expensive assessments aren’t expensive because it costs money to maintain other properties as well – that’s not an honest statement.

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  65. “That’s fine to say – you can be honest about the reasons it’s attractive to you or to others. I’ll admit, it would be attractive to me, too, to have that stuff available all the time, but it’s just not something that I want to pay for.”

    Like I said- there are high rise people and non high-rise people. You JJJ, are clearly not a high rise person.

    If you’re making $500,000 a year- paying $2000 or $3000 a month in an assessment isn’t really that big of a deal. And that’s what we’re talking about here.

    Now- if the unit is priced at $200,000 and the assessment is $1600 a month- THEN there can be issues with resale etc. Because you’re talking about an entirely different buying demographic. Or- if the building has very high assessments without the amenities (i.e. no doorman, or pool, or exercise room) then there are buyers who would question where the money is going.

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  66. “Also, heated/air conditioned garages? Its a car, four walls and roof work just fine.”

    Have you ever had to walk to your car in an unheated parking garage in a high rise when it’s negative 10 degrees outside? Even if there aren’t exposures to the outside (some are open to the elements)- it’s quite nice to come home to a heated garage after a long day at work in the winter. Many, many people are willing to pay for this- especially those in the upper bracket.

    As for cooling the garage- just reverse the benefit of that. I’ve been in several buildings that have south facing parking garages where there is natural light coming in. They have ALL been cooled (or else it is a steam bath in there!). Again- is this cheap? Nope. But it’s an amenity that the building offers (these were in nicer, luxury buildings.)

    I’ll say it again- most people here don’t really “get” how high rises operate (and the expenses involved.) Sit in on some board meetings sometimes. It’s a real eye opener. Or just rent and avoid having to deal with all of it!

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  67. “If you’re making $500,000 a year- paying $2000 or $3000 a month in an assessment isn’t really that big of a deal.”

    10% of take home income isn’t a big deal? Want to start tithing to the Human Fund? I can post wiring info, if anyone is interested, since its no big deal.

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  68. “If you’re making $500,000 a year- paying $2000 or $3000 a month in an assessment isn’t really that big of a deal. And that’s what we’re talking about here.”

    I’m in that category and you’re dead wrong. Especially in a big city, there are plenty of earners making this sort of money. In my case, if I get laid off or my industry hits a rough patch, my income goes from >500k to

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  69. (cont)

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  70. not sure what’s going on… my entry’s disappearing.

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  71. “I agree with Clio- that most people underestimate how much it costs to actually maintain a single family home.”

    Condos are for those who are tired of doing maintenance themselves and having to contract for work using a lower grade of workmen. At a certain age and earning level it is far easier to pay for professionals to take care of maintenance issues than doing it yourself. Assessments may seem high, but if they include utilities and cable, $400-$800 per month should be lopped off for a comparison to a SFH.

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  72. And yea, don’t get me started on how much we will be spending on mainenance and repairs on a SFH the next few years.

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  73. Assessmentslike taxes rarely go down so if you want to llive in this building you better be prepared to pony up the monnthly assessment fee. If you are concerned about the fee, then you shouldn’t be living in the building. Go buy a house in Plainfield or something.

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  74. I agree with Sabrina. People really don’t get what all is included in assessments. What about a gym membership for the family? When I lived in the burbs, that gym membership was nearly $500/mo and I had to drive nearly 5 miles to get there! And how do you figure the cost of the commute? For my Lawyer at $250/hr and has a 45 minute commute each way…you do the math. Also what about the actual cost of the commute, car, gas, insurance, maintenance.

    I’ll give you that assessments are IN YOUR FACE, but there really are no hidden costs after that. Most people do not “reserve” for capital improvements on their home, where condos and co-ops do.

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  75. Reinzi, I am a condo fan, but how can you compare a dingy little room with few machines and couple of weights to a full service gym. I of course love having a gym that I can pop in anytime especially these days that even half hour of not having a baby clinging to me is precious to me, but many people in condos with gyms still buy memberships for better equipped places.

    Also there is always possibility of special assessments as there is the possibility of something going wring in a SFH.

    I’d rather buy in a newer building and sell it in 7-10 years and move on that deal with a terribly managed older high rise.

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  76. Coogan99 :not sure what’s going on… my entry’s disappearing.

    Are you using a “less than” symbol? The site reads that as an html tag and won’t display anything after it.

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  77. gringozecarioca on July 6th, 2011 at 7:04 am

    expensive suburban home vs expensive condo. Not even close. Expenses can get insane on the home. Clio says mulch and you might think he’s kidding but a big well lanscaped house can easily cost 5-10k just on mulch. Pools, decking,painting,retar driveway, few trees fall and need to be cleared, painting, roof maintanance, air handling system…. Not even close!!

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  78. Yeah Madeline, thanks.

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  79. thanks ze – you are right, I am NOT kidding about home maint. costs. These expenses were acceptable when you had 5-10% appreciation/year but now, when there is little to no appreciation and no foreseeable huge increases, the expenses become an unwanted and terrifying burden.

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  80. “10% of take home income isn’t a big deal? Want to start tithing to the Human Fund? I can post wiring info, if anyone is interested, since its no big deal.”

    Someone in that income level can afford it. Who do you think is buying these condos? There aren’t enough $1 million earners out there to buy them all.

    Heck- there are people making under $250k who are paying the $1800 a month to live in the buildings all up and down LSD (in the cheaper co-op/condo vintage condo buildings.) Somehow- they swing it.

    I guess this only confirms what I’ve been saying over and over again. How long for the person making $500k to save the new, bigger downpayment on a place like this? Apparently- if they can’t pay $24,000 a year in an assessment- then I’m guessing a decade or more to save the downpayment.

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  81. Bob 2 (Not Bob) on July 6th, 2011 at 9:07 am

    “I’m always stunned by what my friends pay there when buildings don’t even have pools etc..”

    Stuff like pools and fitness rooms cost next to nothing. The major items are heat/ac where included, personnel, ongoing maintenance and pumping up reserves for the inevitable major repairs.

    Most new condo building skip the last step, which is why assessments are so low.

    Btw, the doorman if he’s 24/7 will cost you 500+ a month in a building like this and only 27 units.

    I don’t get the assessment bitching either. There’s no room for cutting corners in a high rise compared to SFHs, many of which have tons of deferred maintenance problems. Doing it right is expensive.

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  82. Yeah while there are a few times a year I wish my building had a gym and a pool, I am very glad that I have the choice of joining a great place like EBC instead for only 150 a month, and Im sure my assessments would be way over an extra 300 a month for that crap and it would be far inferior.

    I really wish people would stop complaining about assessments, especially on million+ dollar condos… people that are paying that much for a property DO NOT CARE! And its just like paying your electric bill every month, My assessments are like 350 a month and include gas, water, cable, internet, snow removal, common area cleaning, etc., and I don’t really find them to be a burden at all, more of a conveinence than anything.

    Also you can save a lot of money in either a condo or a SFH by DOING THINGS YOURSELF!

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  83. sonies, we complain about the assessments as there are other million dollar properties with better amenities with lower assessments and many of them even have better views. It is a RE blog and we have a right to bring that up as you have a right to debate it and perhaps show us wrong.
    BTW, I know at least 2 couples one in Hyde Park and one in GC that are contemplating moving out of their buildings precisely because of assessments and these folks have lived in their homes for a long time. So assessments can get frustrating.
    I pay roughly 300$ assessment like you that includes everything in a full amenity building and I have no problem with it. As a result, I find other 1BRs with assessments over 1K in building with nothing but a doorman unreasonable ( least for me).

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  84. Miumiu, your ignorance is showing. The last place I lived in my assessments paid for heat, a gym and pool that was as nice as EBC, and I didn’t need to even leave the building! This gym had everything that I needed. My personal trainer came and met me and she was a WHOLE lot less than a PT at EBC!! Plus I had one of the very best locations $$$$ could buy. During the summer I run along the lake, I love it!! If you buy in a newer building, you WILL NOT live on LSD in the area of this building. If you buy in a new building you will NOT have these great views. And you be living next to people that paid $300-500k for an apartment instead of living next to people that paid $1.5-2+M. It also has to due with the demographics.

    I’m not saying that High-Rise living is cheaper than a suburban home. Heck, I moved DT last year from the suburbs and I love it and Hate it. Each has it’s pro’s and cons. I can tell you that my home was NEVER as well maintained as the condo I live in on LSD! We have guys that mops our lobby 3-4x/day. They polish anything that shines. I tease most of the guys about cleaning the light bulbs in the lobby.

    And I can tell you that I DON’T miss cutting the grass, snowblowing, paint the trim, washing windows… the list is ENDLESS. And when I owned a HUGE home I never got to see the sunrise over the lake or the sunset over the city- NOW I DO, and I pay dearly for that.

    Bob2 is right. Doing the right way IS expensive.

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  85. Reinzi, We own in SL and definitely fewer over a million units here but we don’t own one ourselves so we are in you terrible 300-500K range. I have no problem living with the kind though : )
    Our building has as good views as you can get any where. So again you are wrong sir. Also I love high rise living, proximity to the lake and all that jazz so not sure what you are exactly accusing me of. Also I won’t be caught dead in a suburb : )

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  86. “Someone in that income level can afford it. Who do you think is buying these condos? There aren’t enough $1 million earners out there to buy them all.”

    I’d be curious to find out, but I would guess that most people in a property like this are not wage-earner types at a measly sum of $500k a year. I would guess bigger incomes for wage earners and more likely to be people 40 or above with significant wealth and maybe a decent number of second homes.

    For the record, I think that this is really an awesome property and that between this one and the Lakewood gut rehab there have been two really cool properties in the last few days. Assessments actually seem reasonable for what this subject property is. Very unique in this location.

    Without doing the math or knowing anything about this building, I would guess that the present value of this one is pretty close to a $2.5 million very nice house in a very nice suburb with maybe a personal assistant to manage all of the workmen doing your maintenance.

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