Rent Versus Own: 510 W. Erie in River North
Erie on the Park, at 510 W. Erie, is the Lucien Lagrange high-rise completed in 2002 on the far west side of River North.
In the last six years, the park along the river has been completed and recently, a dog park was built directly west of 510 W. Erie.
Thanks to the tipster who sent me information regarding this one bedroom rental in the building.
It’s been listed for sale but recently came on the rental market to quite a frenzy with dozens of people going to look at it. It apparently rented within “days”.
Unit #1404: 1 bedroom, 1.5 baths, 2 car tandem parking, around 800 square feet, west facing
- Sold in August 2002 for $265,500
- Currently listed for $319,000 plus 2 car parking available for $30k each
- Assessments of $402 a month
- Taxes of $3732
- @Properties has the listing
OR: you can rent it (apparently the more popular option according to the Tipster).
Unit #1404:
- Rental price of $1420 a month
- Parking is $125 a month
Should you rent or buy this one bedroom?
I myself would neither rent nor buy at those prices, but I would say rent if you really want it, otherwise save your assessments/property tax money for more actual property in another neighborhood. looks pretty cramped inside, and that diagonal beam across the window gets on my nerves.
That seems like a phenomenal rental price, considering I’m paying that for a moderately larger one-bed plus den loft in “West Bucktown” (I don’t think that phrase can be written without quote marks). Not surprised it rented within days — a MUCH better deal than buying.
I agree with Michael – were it closer to my lease expiring I would have show up check in hand. My Gold Coast 1 bedroom is smaller, older and more expensive.
Don’t most River North 1-beds rent for closer to $1800?
That’s a phenomenal rental price. Assume the owner who paid $265k in 2002 locked in an ultra-low 4% interest rate putting 20% down. They’re paying 4% on 212k = $706 per month in interest. Add in the $402 in assessments, and the monthly expenses are roughly $1100, ignoring taxes. That leaves $320 / month, or $3840 per year – roughly what they have to pay in property taxes.
So in an ideal world with no maintenance, depreciation, cost of capital, or taxes, the owner is breaking even.
Party like it’s 2002, I guess.
comparable 1 br rentals with parking are going for $1600 in river north — to answer the above question. the sale price seems a bit agressive.
I agree; that is a great deal on the rental, for what you’re getting. Much better than most Gold Coast rentals, if you can live without the lake view. And anyone wanting to buy it instead of renting would be insane.
Well there are almost (7) 1beds for sale in the building, and the owner of #1404 is an investor. He priced it to sell – but it is not on the favored side of the building (buyer preference). Not to much to look at looking straight west over Erie Cafe and the Tribune Printing Plant. Take a look at http://tours4.vht.com/PPI/T1155844/nobranding which is unit 2002. It looks South over Erie Park. It is under contract. Listed at $364k w/ Parking.
RiverNorthLiving: You think #1404 is “priced to sell” at that price? If so- why isn’t it selling then? The rental price would seem to indicate that it’s at least $75-100k overpriced.
Straight west is a nice view, in my opinion. The west view always is (city lights, the river etc.)
The building is tricky… It eats realtors alive. Some know how to price and sell in there and some have trouble and the listing languishes. 04’s have enclosed bedrooms which are rare, its one of the only layouts that does. Unit 1403 sold for $315 w/ Parking I believe with an Open Layout. The not all buyers liked that side of the building and it took longer to sell. Since 1404 is right next door I assume they were facing the same problem – or maybe the showing agent really didn’t know how to market the unit and building. Its hard to say. Looks like he played it safe and decided to bring it out for sale in a better market in a year or so. I believe the same seller has sold off 2-3 of his units in the building so far.
Actually come to think of it there is almost a 10% swing in closing prices for East Facing units (+10%) vs. West Facing Units. For example there has never been a 1bed 1.bath that has sold on the west side for $325k (including parking) where as there have been may units on the east side that have. Even with the eventual building of a condo building at 469 W. Huron. Anyway, that has been my experience in the building.
Seems like a bargain rent for this apt in the River North neighborhood.
It would rent for almost that much in Edgewater.
If it really can’t rent for more than $1420, then that means it’s only worth $227K to buy. It also means that somebody is taking a massive hit month to month.
The monthly rental price is about $200 less than other one bedrooms in newer condo bldgs. in the same area.
I’m not surprised to hear that it got rented very quickly.
Obviously, this example supports the old adage if you price a property right (either for rent or for sale) it will sell quickly.
Sorry.. can’t see where to email you so doing it here.. according to public docs 740 Fulrton has contractor’s liens