Has a Once Hot Building Cooled Off? 600 N. Fairbanks in Streeterville
We chattered about this higher floor 2-bedroom unit at the modern high rise at 600 N. Fairbanks in Streeterville back in March 2009.
See our March 2009 chatter here.
At the time, the unit was looking to be sold for the THIRD time in just the prior 2 years.
- The original owner bought it in December 2007.
- The original owner flipped it just 4 months later.
- The second owner put custom upgrades into the unit.
- The second owner listed it 11 months later.
The listing in March 2009 described the $100,000 worth of custom upgrades including waxed venetian plaster walls and Swarovski crystal chandeliers.
The unit has finally sold after 17 months on the market.
It sold for $62,500 less than the 2008 purchase price.
Has 600 N. Fairbanks lost its sizzle?
Francesca Rose at Prudential Rubloff had the listing.
Unit #2307: 2 bedrooms, 2 baths, no square footage listed, faces south-west
- Sold in December 2007 for $535,000 (included the parking)
- Sold in March 2008 for $612,500 (included the parking)
- Originally listed in February 2009 for $625,000 (parking extra- about $50k to $60k)
- Reduced
- Was listed in March 2009 for $595,000 (plus the parking)
- Sold in July 2010 for $550,000 (included the parking)
- Assessments of $488 a month
- Taxes of $7204
- Bedroom #1: 13×13
- Bedroom #2: 12×14
The second owner is a brainless moron who very much deserved to lose a pile of money on this place. A textbook example of how not to flip a condo.
I am from NY so not super familiar with all the neighborhoods in Chicago however when I was in town the other day I had an interest in checking this building out because it looks decent from some of the real estate blogs/listings. I must say i was deeply disappointed, not so much with the building itself but the neighborhood/area. The sidewalks being so narrow around this building and area almost force you into the four lane roads surrounding it. I dont think I saw a tree, and every restaurant (very few) were franchises. It reminded me of living around penn station or 42nd street in NYC with views of the lincoln tunnel and cars whizzing by. Just not a place where you really want to call home the feel of the area was mostly a place to pass through by car not to walk and enjoy the city – of course its within walking distance to Michigan Ave but to me being that close to Michigan Ave is like living next to Times Square. New Yorkers generally avoid Times Square like the plague.
Anyway I think its a good rental but to really lay roots down I dont get the hype.
building never should have been that hyped to begin with. hype is the new ritz place on n. mich ave – those are hot.
nice unit in the F-banks, decent floor, worth half mil w/parking for sure. Im not a fan of how small the living rooms are or should I say, functional like the kitchens, cozy? Beautiful bathroom setups though. watchin the sun come up and down though the city and those windows…
Yes, I like streeterville btw.
@ Barbaro I also am not a fan of Streeterville in general places west of here are cheaper, and more neighborhoody, restaurants are more local and the tourists are still around, but not as many (except near the god damn R&R McDonalds, Ed Debevics, Ginos and rainforest/hard rock…
Also you have the gold coast just north of streeterville, but that is a lot more expensive
Barbaro, Did you walk up and down Ohio or Ontario? They are both tree lined as is St. Clair! You must have only walked up Fairbanks, which is definitely not the most pleasant street. Anyways, that neighborhood is not for everyone. I think a lot of the people who buy places in buildings like this are either doctors at NW or are second homes for people who just want a convenient location to be in the city on the weekends.
As for the unit, am I reading this correctly? Did they really buy the unit, put $100k into it and then list it for $17k less a year later? The timing (financial crise) makes me wonder if the owner lost his/her shirt in the crash and this was a distressed sale. It will be interesting to see if other similar units go for this much less or if this was a desperate seller.
I’m pretty sure that Streeterville is more expensive than Gold Coast
“I’m pretty sure that Streeterville is more expensive than Gold Coast”
Pretty much guaranteed this is a true statement.
Streeterville was on top of my list of preferred neighborhoods as it was a safe and well traveled area for most of the day. The presence of upper income level residents was readily apparent. More of new money than in the GC wouldn’t you all say? The Palmolive building, to me, is the epitome of luxury Chicago residential buildings.
@Barbaro: 600 Fairbanks is not cited on a very quiet corner. That stretch of Fairbanks is a very wide, highly trafficked road and the stretch of Grand by the movie theater is also pretty crowded. But other streets in Streeterville are much quieter and, yes, tree-lined. And there are plenty of restaurants nearby that are not chains. Try Market House (directly across from 600 Fairbanks), India House, Sayat Nova, Bice, etc. I agree that Michigan Avenue is best avoided, but you have just about all you need east of it.
India House is a chain…
India House is on dearborn and grand. Indian Garden is by fairbanks, which isn’t a chain.
It’s hard to compare Streeterville to the Gold Coast because there are three parts to Streeterville that are all very different. The north part of Streeterville (near the Hancock Tower) is essentially an extension of the Gold Coast- old money and low, old buildings. Just south of that area is Northwestern and south of that is the “new” Streeterville where 600 NF is. This area is almost exclusively new high-rises the likes of which don’t exist in the GC, so it’s really it’s own neighborhood in a lot of ways. It’s not for everyone but it’s extremely convenient and has all the necessities in one compact area.
Indian Garden is a chain in the sense that there is at least one other location, on Devon Ave.
Another two bedroom just sold, S facing 2307. Not sure what the price was, trying to find out…
600 n fairbanks is the best looking building in Chicago – i can only dream of owning a unit there – I love the rooftop but I am not a fan of the pool
Here are the 12 closings from 2010 with prior sale prices. It is interesting to note that 4 of the buyers did not want the parking the seller was offering. The PH seller (4001) appears to be the only money-maker.
1407 12/6/2010 $540,000 w/pkg 11/12/2007 $507,705 w/pkg
1508 3/31/2010 $401,000 w/pkg 12/10/2007 $411,505 w/pkg
1901 12/1/2010 $765,000 w/pkg 11/26/2007 $838,000 w/pkg
2303 2/26/2010 $373,500 no pkg 12/7/2007 $370,500 no pkg
2307 7/7/2010 $550,000 w/pkg 3/20/2008 $612,500 w/pkg
also 12/28/2007 $586,000
2506 3/12/2010 $382,500 no pkg 4/14/2008 $423,000 w/pkg
2705 5/7/2010 $540,000 w/pkg 2/6/2008 $585,802 w/pkg
3111 3/9/2010 $890,000 no pkg 2/25/2008 $925,215 w/pkg
3408 3/9/2010 $437,000 no pkg 3/7/2008 $529,000 w/pkg
3506 6/29/2010 $408,000 no pkg 4/25/2008 $485,500 w/pkg
3905 3/16/2010 $1,280,000 w/2pkg sold by developer
4001 12/31/2010 $2,500,000 w/2pkg 6/5/2008 $2,075,500 w/2pkg
Here are the 12 closings from 2010 with prior sale prices. It is interesting to note that 4 of the buyers did not want the parking the seller was offering. The PH seller (4001) appears to be the only money-maker.
Thanks G…… A shout out to those parking owners, if anyone wants to sell one for 20k I am all ears…….
BTW what ever happened to Turd?
Glad you caught it valasko. I thought it was better to put it here.
All I can figure about the parking is that the starchitect’s name must be luring faraway out-of-towners to buy. Suburbanites want parking for empty nests or pied-a-terres. I can’t imagine an investor buying at these prices, but even they would likely want parking. I haven’t noticed any other bldg’s resales with a similar pattern.
Thanks for the data, G! Interesting observation re: the parking — really odd.
I’m curious as to how much the sellers were holding out for for their spots — must think they’re worth a fair amount if they were willing to hold on to them (what a hassle) vs. selling to the buyers at a discounted price.
This building seems to be holding up awfully well compared to the rest of the market! It’s hard to know how much owners spent on upgrades though, so the comparisons may not be quite as favorable as they seem.
Along with upgrades, don’t forget:
1. 6% minimum transaction costs.
2. Loan fees/points at purchase.
3. Loss due to cheaper rental equivalent. A considerable amount for owner occupants that have 100% occupancy, a huge loss for investors with tenant turnover.
In fairness, the offsets:
1. The joy of home ownership.
2. I got nuthin.
G-
Many people can get loans without points or fees.
As to the benefits of home ownership, I can add a few points:
1. Opportunity to be creative with your living space. (customization potential to create a much more comfortable environment).
2. Potential profit – yes, there is still a lot of money in real estate. Take a diamond in the rough, polish it off and you can make some serious cash.
3. Mental stability – knowing your payment is somewhat fixed and you don’t have to move. There are very few renters that have this type of security.
4. Increased connectivity to your surroundings – many will say that if you actually own property, you take more interest and awareness in the community around you. I know that many will think this is not true – but I have personally experienced it.
I didn’t say this building has been a good investment, but prices seem to have fallen much less than other downtown condos. I’ve been watching this building for a while, hoping to get a good deal but things are not dropping like I thought they would. I’m hoping for a foreclosure from a desperate flipper but haven’t seen any yet!
Icculus – I’ve lived in the building for two years and love it.
What type of unit are you looking for? Association meeting is this week — usually a good forum for ferreting out any desperate sellers, or would-be-flippers who may be renting their until at a loss. Not sure that I’ll find any (as you said, MV’s are holding up relatively well here), but will keep my ears open.
I made an offer on a unit in this bldg 1st quarter 2010. Cash; close 30 days; contingent on inspection only.Seller requested additional time to respond; I refused; the realtor then confessed this was a “pre-short sale” and required added time to deal with bankers. Seller was willing to sell w/o parking saying the parking space would go fast for 60K. Not wanting to get tied up in another’s financial problems, I dropped out.
The bldg HOA had no rental cap in place at that time; the developer had placed its remaining units on the market for siginificant discounts; and repairs were being made on the exterior.
I suspect one contributor to the parking being sold separately is the sellers’ belief thay can get these high prices and cover losses on the units.
I am smitten with the “cool factor” of this bldg, but would be very concerned about its fiscal stability.
I doubt a HOA meeting would be a good source for information about individual owners and their financial status.
From a purely aesthetical perspective, it is a beautiful building. There are very few, well executed contemporary modern buildings in the city. This is certainly one of them.
However, I have never appreciated how the developer handled this building. They came to the market at a perfect time, and they got out just fine. So, the amount of investors they have allowed in initially, was unwarrented. They didn’t need to do that in order to sell out, the building was selling well. So, the current instability of pricing is due to nothing but to that fact and it’s unfortunate.
I am not too crazy about the location of the building either.
I would like a two bedroom ideally in the NW or NE corners. I’ve looked at a few units and the hard thing is that the finishes vary dramatically from unit to unit. Some of the countertop/cabinet combos I saw were just awful!
most of the units i’ve seen have finishes the work well with the architecture, but a few of the pre-con buyers did go way wrong in their selections.
sounds like you’re looking for an 02 or 05 unit. curious what kind of price you’re holding out for, and if you’re also looking at 240 e illinois.
notjustlooking
Any news from the HOA meeting you cited earlier?
I sold my client’s unit back in July 2010. It was a NE 2/2 with elegant finishes (copied the builder’s vinet!) haha
He got exactly what he paid preconstruction so a manageable loss after fees/ etc
Francesca Rose is the most knowledgeable agent for this building. Give her the head’s up if you are looking for a deal and she, if anyone, can make it happen!
I have a friend that lives in this building and raves about it – she says the neighbors are quiet and immaculate – the roof deck is to die for – and it is interesting that every unit is so different on the inside. I would love to buy a unit there if I could only sell my home in the suburbs.