Some Buildings are Hot: The Double Flip at 600 N. Fairbanks in Streeterville
We return to chatter, once again, about 600 N. Fairbanks in Streeterville.
A 2-bedroom unit has come on the market that has previously sold not just once, but twice since 2007, and is now on the market for the third time.
The original owner was fortunate enough to flip the unit in early 2008 and made a profit.
Since the first flip, the unit has been extensively upgraded with “waxed venetian plaster walls, Swarovski crystal chandeliers, Glass panels and a soft blackwashed matte ceiling” that the listing says cost $100k.
Is this a steal for the building? (especially given the upgrades?)
It is still priced $45,150 higher than the next cheapest 2/2 in the building, which is Unit #1707.
Unit #1707 is the same floor plan.
Francesca Rose at Prudential Preferred has the listing. See the listing and all the pictures here.
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
- Currently listed for $595,000 (plus the parking)
- Assessments of $403 a month
- Taxes are “new”
- Bedroom #1: 13×13
- Bedroom #2: 12×14
Linked listing sez:
“Parking yes
Garage 2 Car”
Does this unit have two spaces available to it?
And, also from the listing, to the point from yesterday about “guaranteeing” profit, how is it okay for everyone to claim “below market price” when it just clearly isn’t true in almost all cases?
I think it’s a great new development but resales in this building are no differant than any other in the area they are in trouble. To much supply and not enough sales prices need to come down.
I think 600 NFB looks like a boxer with a bunch of teeth knocked out. I walk by this building all the time, and I still just. do not. get it.
This unit with the split bedrooms wastes valuable space. The kitchen is like a hotel kitchen and the living room is tiny.
“And, also from the listing, to the point from yesterday about “guaranteeing” profit, how is it okay for everyone to claim “below market price” when it just clearly isn’t true in almost all cases?”
Good question, but the determination of market price is a little more difficult to determine and isn’t really guaranteeing anything. Its like saying “it appears cheap compared to other properties appraised value in the area” which may be overvalued as it is, but to the best of the realtor’s knowledge it isn’t. And just because you buy something “cheap” its not implying guaranteed profits like when you say “Finish building this house and make a profit”
anon, I believe there are extra spaces still available from the developer. Additional spaces made available are just another example of demand not meeting supply. No different from the lack of demand for this building by owner-occupants.
Bummer, I have a room with waxed venetian plaster walls which sounds way more pretentious than it is. I was hoping for a good photo of that aspect of this unit to compare. I can say it is a huge pain in the rump to finish but I really like the look. Many friends have commented positively about the room (at least to my face heh)
Here’s a comment of mine in the last thread on 600 NF, from 2/12/09, pertaining to the lack of demand by owner-occupants:
“To date, 58 of the units have been put back on the market. The last unit count I found for the bldg was 212, so 27% have already attempted to resell. Add in the 18 “investors” who rented without offering their unit for sale (MLS only, definitely undercounting those who rented other ways,) and it appears that at least 76 units, or 36% of the total, were purchased by those not planning to live here at all, or at least not for very long.
In light of these numbers, and the lack of recent sales, it is safe to say that this building is a long way from reaching price stabilization.”
G:
Yeah, but my recollection is that some of our CC friends in the building implied that there was a shortage of parking. Or maybe that was just of “desireable” parking.
And how can you list is as having parking and not include the parking in the price?
Sonies:
You still need to explain to me how saying “perfect for someone looking to make a profit” is a guarantee. Please distinguish it from “perfect for someone looking to pay below market price”. They say basically the same thing to me.
“perfect for someone looking to pay below market price” doesn’t imply future profits.
“perfect for someone who wants to finish a house and make a profit” does imply future profits.
That’s not an explanation. And an implication is nowhere near a guarantee. And “below market price” implies that if you were willing to buy and hold out for “market price” you’d make money. The extra (il-)logical step doesn’t sway me.
anon, I am mostly with you on the parking. These are deeded separately, so they could keep it out of the deal. I couldn’t agree more with you about those that aren’t separately deeded, however. The realtors could clear up the confusion with a couple new fields in their mls database, but trickery apparently rules over transparency.
I noticed some listings in this building (and others) have taken to saying “parking available” even if not from the seller.
I like the building and I like the unit. However, this isn’t Manhattan. IMO, no 2 BD condo in Chicago should go past 500k unless its at least 1600-1700 sq ft and you are truly getting an above average unit. Some of these units in Streeterville are just overpriced shoe boxes.
anon(tfo) & Sonies, you’re both right. The statement that “perfect for someone who wants to finish a house and make a profit” is akin to mere puffery. The realtor insinuates that there is a profit to be made, which is false advertising, but since no one would ever believe it, especially after seeing how much profit the previous seller and the bank made, we know it’s just puffery.
“That’s not an explanation. And an implication is nowhere near a guarantee. And “below market price” implies that if you were willing to buy and hold out for “market price” you’d make money. The extra (il-)logical step doesn’t sway me.”
Well then we agree to disagree!
G:
Using the same thinking/rationalizing, if there were a unit for sale next to the one offered, you could say there is a “guest suite” available. Or “extra bathroom and bedroom available for $300k”. The possibilities are endless.
Its a nice building, but 600k for a 2/2 is still LOL to me unless its really a luxury building.
As others have said you can get a 2/2 for 300k these days…maybe not in as nice of a building but I don’t that justifies the 100% premium.
anon, I agree. I posted something like this on another thread where this issue was raised:
Unit #2307: 2 bedrooms, 2 baths, no square footage listed, faces south-west
Currently listed for $495,000 (plus the kitchen and bathroom)
Why not? It will surely get attention in MLS searches.
I love this building and this unit. Just not at this price. Its hard to shell out that kind of cash for something that is that size. I could see if it had a good view of the lake. (of course if that was the case, it would be a lot more)
” posted something like this on another thread ”
Yeah, I saw that. May as well go nuts, and list is as:
Unit #2307: $175k (Parking additional)
Parking: $500k (must transfer with unit).
SOuthern exposure is kiss of death in this building. I do like the oversized couch though if it were placed in a room that it fit.
Ze why do you say Souther exposure is the Kiss of Death? People who have North exposures pay heating bills of over $300-$400/month whereas you rarely need the heater for the south exposure. The city views on the south side look nice too.
This exact same tierd unit 07 was listed on craigslist by owner with parking and it said high floor for $520,000
Nothing better than a 2nd bedroom with a glass door. Wicked privacy.
^thats the door to the balcony
#
Ze Carioca on March 5th, 2009 at 1:56 pm
SOuthern exposure is kiss of death in this building. I do like the oversized couch though if it were placed in a room that it fit.
It’s probably pretty nice if you plan to grow vegetables in your living room. A little pricier than good farmland though.
The north side gets hit with heating bills and the south gets hit with cooling in the summer…it is all a wash…I have a two bedroom on the north side and my bills are only $150
the sun is high in the summer and the south elevation really only gets sun in the morning. some north elevations get afternoon sun.
east and west exposures are much worse for summer, imho.
Tip. I was referring to the open parking lot with regular plans for a hotel on it. will be directly in your face with the see thru windows.
South people don’t get hit too bad with cooling costs since AC is covered by assessments.
The air is driven by the same electric system and is not included in the assesement. Only gas is included in the assesments
As far as the hotel goes across the way…they are working on repaving the lot….the Graves Hotel has pulled out and Draper and Kramer have pulled all ideas for marketing the highrise.
I bet it would be many years before anything goes up!
true, but the major costs are for heating up the inadequate coil system hence costs are much higher in winter vs. just blowing cold air in the summer..
We were orig owners of 2307, and orig price of $535 did NOT include parking. We bought unit based on plans, but when we saw unit, we felt rooms, particularly bedrooms, were just too small. We also thought cement walls and ceilings were too grim. Glad to see current owners took care of that. Last time we will ever buy a unit from plans.
This unit has a weird layout, but the living room is two walls of glass with jaw-dropping views of the Tribune, Trump and Sears Towers. There is no lake view but their is no risk of this exposure losing it’s view regardless of what goes up south of it. Here is a pic of the SW view from the 41st floor roof deck. It’s panned out so you are actually much closer to the Tribune in person than this image would have you believe, but it gives you an idea. http://farm4.static.flickr.com/3653/3335852327_7e6df9fb6d.jpg?v=0
This building is a unique product, there are simply no modern buildings this good in such a good location. 550 St. Clair doesn’t have the layouts, views or floorplans to compete and is suffering for it. Plus, anything over the 30th or so floor looking north has fantastic lake views. I’m simply saying this because it means you can’t really compare these units to other buildings based just on square footage. There is a segment of the market who likes modern living and they are willing to pay a premium for it.
G, if you are going to post data, why don’t you share with the group the 8 or so flips that have closed for higher prices since September?
“G, if you are going to post data, why don’t you share with the group the 8 or so flips that have closed for higher prices since September?”
While 600 NF has been seeing some successful sales since it closed in 2007, it might help to point out that there have been ZERO closings in 600 NF in 2009. It is getting hit along with the rest of the market (just not quite as severely.)
The last closing was on 12/8/08- exactly 4 months ago.
But several agents tell me that there has been a steady stream of lookers in the building in recent weeks (which is more than some other buildings are seeing right now.)
I stand corrected.
Thanks to the Tipster who wrote me that there have actually been 2 closings in 2009 in the building. They just haven’t shown up in the public record yet.
Thanks for sending me the correct info.
Sabrina,
Also, According to G in the other discussion on this building:
“2107 sold 12/10/2007 for $533,000 w/pkg
2107 sold 2/5/2009 for $500,000 ?/pkg (deed not yet avail.)”
That is one of the two units that sold so far in 2009. From what I’ve been told, it sold WITHOUT the parking.
So- did they flip it for more than 2007 after paying their realtor, for carrying costs, and closing costs even though they still own the parking space?
It doesn’t appear so. But I’m sure someone will figure out the math.
I don’t care if they flipped for a profit, but I do care that units haven’t dropped in price. Maybe they will, but they are holding up better than I expected.
I just recently got an email from Schatz Development promoting their first ever developer price reduction at 600NF. Apparently there are 8 units left. It mentions saving of up to $85k.
[scooby song]
Deacon, DeaconBlue,
Where are you?
We’ve got some negative equity to sell you.
/[scooby song]
Units 1603, 2105, are currently under contract. Unit 2703 closed today and not at a loss. The building is popular with a specific buyer. It is the best modern building in the downtown area (maybe Contemporaine is comparable but different locations).
and the developer did reduce today on few remaining units as did other owners in the building.