The $110K Lakeview 1-Bedroom High Rise Condo: 3660 N. Lake Shore Drive
This 1 bedroom condo at 3660 N. Lake Shore Drive, or The New York building, in Lakeview just came on the market.
We’ve chattered about distress sales in this building before.
This high rise building was converted from apartments into condos in the last 10 years.
This unit is on the 36th floor and has city skyline views from its balcony.
It has carpeting throughout and a kitchen with white cabinets and white appliances.
But with it priced $138,600 under the 2000 purchase price, does this make sense to buy rather than to rent?
Rosario Terracciano at Resurrecting Real Estate has the listing. See the pictures here.
Unit #3605: 1 bedroom, 1 bath, no square footage listed
- Sold in December 2000 for $248,500 (looks like deeded parking was included)
- Lis pendens foreclosure filed in October 2009
- Currently listed for $109,900 (parking extra)
- Assessments of $374 a month (includes A/C and doorman)
- Taxes of $3254
- Central Air
- No in-unit washer/dryer
- Bedroom: 12×10
- Living room: 14×18
- Kitchen: 8×8
This would be a great in-town (?Milkster), or would be a great place for a young single/couple who aren’t going to be ready to buy anything for the next 5 years. I can almost guarantee that in 5 years, the appreciation will be there to make it worthwhile. If I wasn’t already sick of being a landlord, I would buy this place today!!
No, clio, its not. And you are obnoxious with your omnipresence around here.
This thing has $645 in fixed expenses before counting the mortgage. Its nowhere near cash flow positive vs. renting a comparable unit.
1/1 for rent in this building for $1,000:
http://chicago.craigslist.org/chc/apa/1988205934.html
And a 110k mortgage is certainly more than $355.
Uggh that was for a studio, 1BRs are going for $1,300 last check:
http://chicago.craigslist.org/chc/apa/1983185055.html
Maybe its a deal to someone. Certainly NOT as an in-towner.
I have friends in orland park that recently became empty nesters and have no mortgage on their home. One son lives in wrigley and rents. We were at the Cubs game two weeks ago and the husband actually asked me about this building that night. They are interested in an in-towner near the lake for weekends. Their business is still good but believe that if things got tight that they could rent it back to their son for a few years. I’d agree that many would not see this as an in-towner but not everyone thinks of RN or Gold coast for a weekend home!
My girlfriend lived in this building during law school. She rented a studio for $1300 3 years ago (hardwood floors, etc.), then the landlord wanted to raise her rent even more (I’m guessing because his mortgage readjusted) and she moved into the exact same unit one floor below (8th floor) for $1100 (with carpet and not as nice of finishes). The building was ok. Lots of renters in investment properties. Overall the building was maintained pretty well. I haven’t seen any of the 1-br units. I know her kitchen was really small and it appears this one isn’t much larger. To me, it’s obvious that the units in these buildings were rentals because the original finishes are not very good (those look like the original cabinets with granite thrown on them).
“This thing has $645 in fixed expenses before counting the mortgage. Its nowhere near cash flow positive vs. renting a comparable unit.”
Bob – you assume that everyone needs a mortgage. What about an investor that puts 100k down in cash? He can then rent out the unit for 1200/month which gives him a profit of 525. This translates into a 6.3% return on his money which is a GREAT return right now. In addition, you know that the unit will appreciate in 5 years for an even higher overall return.
I agree with clio on this one. I think this would make a good investment. If I had the money I would do it. A lot of people like this location (wrigley/lake/view) and asking $1200-1300 a month is pretty typical in this unit. Also, the higher up you go the more you can get and this place is on the 36th floor.
That said, I’d want to see what kind of shape the association is in, because the owners might be keeping assessments down at the expense of their reserves because not a lot of owners live there.
We live a block from here. Perfect location! It actually makes sense for my parents who end up staying at a hotel down the street every time they come visit because the baby is now in the other bedroom. Couldn’t be any more convenient.
“This translates into a 6.3% return on his money which is a GREAT return right now. In addition, you know that the unit will appreciate in 5 years for an even higher overall return.”
Its not a bad investment I agree but the unit won’t be yielding 6.3%. You forgot to account for concessions at lease signing as well as some vacancy. Also insurance.
Not a bad investment overall, true, for an investor. Still not good for an “in-towner”/investment for an amateur.
“It actually makes sense for my parents who end up staying at a hotel down the street every time they come visit because the baby is now in the other bedroom.”
T.S. your parents maybe should consider renting. The era of the amateurish investor is over as most are going through pains these days.
I think this building was an Invsco building. I have a friend that lives in a comp building nearby and their association really feels hosed that people are treating Invsco building’s as comps, given that Invsco buildings are basically financial WMDs.
I’d like to express my sorrow to the poor soul who bought this place in 2000 — 2000! ten years ago — and is now looking at a loss of almost 50% (assuming parking is 20k or so). If one bought in 2005-07 and lost almost 50% on a condo, then that’s terrible enough on its own. But to have bought at the very beginning of the bubble and then lost so much is truly unfortunate.
I also wonder somewhat if the $109,900 price is meant to trigger a bidding war. If it is, I’m guessing that the owner is going to be disappointed. There was a unit in my RN condo building that was put on the market as a short sale at a price that was $35-40k below recent sales in the same tier. Since they all included parking, the only reason I could figure out for that low price was to get multiple bids. This unit did sell over the original asking price, but by only about $7k, meaning it sold for around $30k less than recent comps in the same tier. I’m guess that the 3660 unit might also sell for slightly more than the list price, but only slightly.
Bob — it is an Invsco building. Prior chatter about the building includes this post:
http://cribchatter.com/?p=4950
I don’t know why, but it really bugs me when people refer to this building as “The New Yorker” instead of “The New York”. I think it would bug me more if I lived in the building. And I think it would bug me a lot more if I hired an agent to sell my place and the agent called it “The New Yorker” in the damn listing. Especially if the agent also included a picture of the sign out front that clearly says “The New York”.
When this place was first built, they had trouble finding enough renters to fill it. (Does anybody else remember those ubiquitous ads in the Reader: “I’m moving to The New York because…” ) And when it went condo, they had trouble selling the units. I had a friend who rented a 1 BD here, and while the view was phenomenal, the unit itself was nothing special.
yes! when it went condo they had parties there at night to try and get potential owners loaded so they’d sign up for a condo.
also, as noted by stephen in the 08 posting. Rob Lowe’s character in Waynes world resided here. so that has some cache that might appeal to clio types.
TS, I know of a girl who rents out her unit in park place nightly and/or weekly. my brother’s in laws stay there when they come visit. if you are interested (not sure if it’s close enough) i could find out the details.
“yes! when it went condo they had parties there at night to try and get potential owners loaded so they’d sign up for a condo.”
Not sure if its applicable in Illinois, (it probably is), but contracts signed while one party is under the influence of drugs and/or alcohol are not legally binding.
Right on Bob! I’d suggest that any unit owners who made that purchase back in 2000 that attended a party and signed should hire an attorney to get them out of that pesky contract. I’d bet that they should be able to get back all their money with interest. Wonder if Harvey Walner and associates will take the case?
Can see the floorplan here:
http://www.thenypr.com/doc/toc.asp?assn_id=13710&link_id=109191
I hate this building and everyone that lives in it…. awful!
This building was in Wayne’s World. Pretty awesome!
annecdotal but….
I went to a pre-auction showing here almost 3 years ago. At that time they were going to auction off 7 units that were in forclosure. I met a guy in the elevator who told me he was pretty far underwater and the association was having touble getting fees. Also that most people worried that they would eventually build the second tower they were planning off and on which would sit to the east of it
“most people worried that they would eventually build the second tower they were planning off and on which would sit to the east of it”
The city said no to that. But with all things city involved, it’s just a matter of paying the right person(s) the right amount to get that to change. For now, at least, even separate from the construction market (ie, nonexistent) it’s completely dead.
people love that view, especially with a balcony and I do not think that these are available at a better price. plus there is an ffc in the bldg. i bet this will be under contract by eom
what takes it?
100 k w/parking?
80k?
50k???
Give it away???????
Lots of foreclosures in this building, making this risky with assessments. I do think this building has a nice silhouette, neat floor plan, and great views.
Pick up a copy of the “News Star” or other “Inside Pub.” neighborhood freebie (comes out every Wed.) and check out the “Real Estate for Sale” legal notices.
It seems like just about every week, another 3660 condo goes bust and gets offered for purchase at a “sheriff’s sale.” Not a good sign!
Plus it appears that every condo conversion in Ravenswood/Albany Park is in trouble, judging from the ads. Sabrina, do you keep track of these on a regular basis? Scary…
And its off the market…. Pretty quick.