The Downtown 2-Bedroom Under $200,000: 8 W. Monroe in the Loop
Someone recently asked if it was possible to get a 2/2 somewhere downtown (Loop, River North, Streeterville, South Loop etc.) for under $200,000.
I found this 2-bedroom, 1.5 bath unit at The Metropolis at 8 W. Monroe in the Loop listed for $195,000.
It has been on the market over a year and has now been reduced by $104,900.
It’s also now listed for $179,000 under the 2006 purchase price.
We’ve chattered about distress sales in The Metropolis before.
The unit has 12 foot ceilings, hardwood floors, a newer kitchen with granite counter tops and black appliances. It also has central air and an in-unit washer/dryer. There is parking in the building.
Is this a deal for its location and size?
John Mousser at Chicago Real Estate Resources has the listing. See the pictures here.
Unit #1600: 2 bedrooms, 1.5 baths, 950 square feet
- Sold in August 2006 for $374,000
- Originally listed in October 2008 for $299,000
- Lis pendens foreclosure filed in July 2009
- Reduced several times
- Currently listed for $195,000 (parking is $30,000 extra)
- Assessments of $465 a month (includes heat, A/C, Gas, Doorman)
- Parking assessment of $135 a month (if you purchase the parking)
- Taxes are “new”
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 16×11
- Bedroom #2: 10×10
- Living room: 15×10
- Kitchen: 11×8
looks like a depressing place to come home to after work.
Nice photos of the shiny floor and vacuumed carpet!
Logansquarean:
Hah! I thought the same thing when I saw the photos! I love this site for showing me all the things I won’t do if I ever sell my place. Nothing appealing about any of those photos.
Someone will buy this. Unfortunately there are alot of “I bought anything just to say I buy and you rent” people left.
It’s less than $200,000. What, exactly, do you expect? Frankly, it strikes me as a good deal.
Wondering if prices could go to 0, (or even negative), if you have increasing assessments. 200k for a 2br is not a lot.
I agree – I think this is a decent deal if you want to rent it out. The concerning part is what kind of issues does the building have and how many people can deal with a 15×10 living room. I thought my 17×15 living room was tiny!
You know…if you got a great painter in there, used some color, put up crown molding, curtains, and maybe paint the kitchen cabinets… the place could be cute.
Check out units 707 and 1008 in the building. Different floorplans but the owners actually did something with the units
Taxes may be ‘new’ but they are also $4343.55. Though I won’t call shananagins on this RE agent, that bill did only come out a few days ago.
It is BS however when the listing is never updated to included the not-so-new taxes.
1) This is not a ‘deal’ by any stretch of the imagination but it’s good to see the pricing on 2 bedroom apartments…sorry, condos, returning to the earth.
2) This is not a not a decent deal if you want to rent it out. It will not cash flow any significant amount to make renting it out worthwhile, and furthermore, there will be little or no appreciation to be expected on apartments like these in the upcoming years. Now why again would anyone want to buy this as a rental unit?
3) Yes the pictures are terrible, maybe even horrendous, but the location isn’t too bad. Close to work, a short bus ride from the west loop and river north, close to the parks, trains, etc. No it’s not LP and it’s plethora of Big 10 themed bars but if you’re not into that sort of nonsense then this could be a decent urban experience.
Not a bad price for the unit, but why the parking assessment of $135 a month? Is that standard for this sort of thing? Is it valet? For that, I’d expect my car to get detailed monthly.
I believe the parking is valet.
lets say you throw an offer of 180k and skip the parking (your in the loop use a zipcar)
yeah you probably have no view and on weeknights its a ghostown, unless some hidden problem we dont see.
you are buying a decent 2br (one 1br office/den) right by work and the lake and shopping and park and trains. that has Central A/C, washer dryer in unit, $400 ass fee includes heat and air. is it a great deal NO, are you being ripped off, NO. but you are getiting a fair price for a blank slate to do as you wish 🙂
Depressing condo in a dead neighborhood. This would be a 10 minute walk to work for me but I’d rather be in that Budlong Woods condo and have the long commute on the Brown Line.
Valet parking sucks.
This price is not bad, I was expecting the assessments to be at least $800 a month and they’re only $465.
Those taxes are surely without the homeowner’s exemption, so overall not a bad deal if you actually want to live in the loop.
Lots of crazies, touristas, and bums at this intersection for some reason too, so keep that in mind.
“Lots of crazies, touristas, and bums at this intersection for some reason too, so keep that in mind.”
Straight shot from the north exit of Union Station, right?
“It will not cash flow any significant amount to make renting it out worthwhile, and furthermore, there will be little or no appreciation to be expected on apartments like these in the upcoming years.”
Would this not rent for $1350+ (w/o pkg, nut is around 1350, assuming no tax appeal)? It’s not all about cashflowing or appreciation; if you take a long view, you can end up owning an asset free and clear that someone else paid for, which is a pretty good thing, I think. Yeah, it’s not worth the hassle to you (and, really, prob not me either), and that’s fine, but just b/c it’s not the investment you or I would make doesn’t mean it’s inherently bad.
Even though this place is a small two bed that could use a lot of work, it is still a good deal, at least at current price levels. This is a premium location and this place could be beautiful with some work and imagination. There’s a lot here a person might want to redo and that will cost a lot of money.
I am sorely tempted because this strikes me as a bargain for the area. This much I’ll say, it makes two-bed units in non-prime areas like Edgewater and Rogers Park look outrageously overpriced.
The $465 assessment is reasonable. After all, it includes heat, doorman, and the rest of the common areas utilities. Residents could economize by doing without a doorman. The main thing is to make sure this building has a decent reserve, and that there are no big liabilities.
Anon(tfo), do you really to own this unit free and clear in 30 years? a two flat, a building, maybe even a house, but a condo conversion in a down town building? I couldn’t imagine holding on to this for 30 years until I owned it free and clear. There’s no way this unit will ‘cash flow’ to pay off a mortgage in 15 years.
“Straight shot from the north exit of Union Station, right? ”
That would be Adams, but close enough… perhaps they are on the way to millenium park? (big sleeping grounds there for bums) I brought my dogs there once not knowing that they were not allowed. One of my dogs shat on the grass and this bum started screaming at me saying “hell nah, I sleep there wtf!” I told him to stfu and that was that.
“I told (the bum) to stfu and that was that.”
Tough guy with a poodle. nice.
“There’s no way this unit will ‘cash flow’ to pay off a mortgage in 15 years.”
Well for some of us inflation bulls, paying this off in 15 years will be easy as hell.
“Tough guy with a poodle. nice.”
nice try, but no.
“Well for some of us inflation bulls, paying this off in 15 years will be easy as hell.”
And there is an example of someone (not necessarily Sonies) for whom this could be a reasonable investment.
It is illogical and irrational to belive this is a reasonable investment. It is an investment, yes, but reasonable, no.
There will not be much inflation, only deflation. How large will your raise be this year? Or next year, or the year after that? How will your tenant be able to pay rent increases ?
I dont see this as an investment, more as a place to rest your head close to work and transportation. some people hate the commute after a 10 hour work day
and after a shytie day a two block walk and your HOME!! is a beautiful thing.
HD, tell us what you think is a reasonable price for a condo,townhome, or house in a big metropolitan city like Chicago.
This is a former office building converted in an condo, but unfortunately, the building is best suited for rental apartments for the young college kids attending the various campuses. within walking distance. This is classic bubble malinvestment. These are $80k units that should rent to college kids for 1200 bucks a month. Granite countertop are overkill. This private student housing at U of I. No assessments necessary bc the landlord works it into the rental price.
Russ: not the 2006 price, and apparently not the current listing price either.
“These are $80k units that should rent to college kids for 1200 bucks a month.”
If they would rent for $1200/month w/o a doorman and with lower per unit taxes, then they probably are worth ~$200k/unit.
“not the 2006 price”
Next you’ll tell us that water is to drink and the sun rises in the east.
Anon(tfo), no doorman, and a much lower selling price, higher cap rates, we’re talking private housing college slum lord, lots of profit. thin profit margins are for grocery store owners, franchises and stupid CRE investors looking for a deal, any deal, to justify coming into the office every morning.
Sonies is right – bums, tourists, ghost town on weekends, no view. Perfect for a broke ass 19 year old roosevelt student to live near campus.
“These are $80k units that should rent to college kids for 1200 bucks a month.”
I dont think 80k gets you this apartment in Peoria
“I dont think 80k gets you this apartment in Peoria”
He’s talking about $80k/key for the whole building. Which is probably about what the developer paid, but then it was a C- office building, rather than apartments, requiring a lott more $$ to make it overpriced condos.
Hey the building was a bad investment all around. 8 W Monroe didn’t work well as Class C office building and it’s working even worse as high end ‘luxury’ downtown condos. Again, classic malinvestment. The developers but lots of money into a terrible investment decision, and it was the bubble that bailed them out. The current owners are the bagholders. That’s what happens when you invest too much money in bad things.
As far as the $80k in Peoria: FAIL
Plenty of 2/1’s and 3/1’s with land for $85k.
http://www.realtor.com/realestateandhomes-search/beds-2/price-75000-100000/pg-10?cmid=1104717
homedelete: You dont want to live where any of those are located. Having gone to Bradley, I know those areas are shady ghettos. People shot, raped, stabbed etc on a regular basis in those areas.
Hey, I’m not saying that I want to live there! I don’t go south of I-80 in IL unless I’m going to Shawnee National Forest which has occurred only twice in my life.
As far as the $80k in Peoria: FAIL
ur such a queen
Homedelete, I like your investment strategy at $80K per unit, but if this were a wholly-owned apartment building, with all of the units identical to this one, it would probably trade for closer to $140K/door. $80K per door gets you a 1980’s garden-style community in Aurora with some deferred maintenance, not a recently rehabbed building in the loop.
“but if this were a wholly-owned apartment building, with all of the units identical to this one, it would probably trade for closer to $140K/door.”
Someone should email this link to the VP-Acquisitions of Equity Residential and get his opinion.
JP$: $140k is fair enough if I owned the entire building. It would need to be substantially discounted from the $140k as a single unit condo conversion investor for me to make any money off it. For the last 10 years the market has been filled with ‘investors’ who purchase with almost the sole intent to resell for capital gain within a few years time. Very investors have been buying to cash flow. I told y’all I saw somebody who bought a house for $10k in Harvey, put $20k into it and is trying to rent it for $900 a month, section 8 or regular tenants. Hell, your deadbeat tenants can even miss a few payments a year and you’re still coming out ahead with a $30k basis. When you start buying at $200k there’s little margin for error in the cash flow situation. Sure there’s the whole aggressive real estate depreciation thing going on to offset income and taxes; but, you pay that back when you resell the unit later, and unless you plan on keeping this unit until after your death….i just can’t see how this is a deal at $200k for investment purposes.
I believe this building has also attempted to auction off multiple units on several occassions over the past year. Starting bid on the parking was $15,000 or so. Anyone know the success/failure of the auctions?
The building is right next to the B of A Theater – some would argue its in the theater district, which I think is a stretch. But, because of the theater and Palmer House as well as State Street shopping, there tends to be a lot of foot traffic in the area until 9:30/10 in the evening during the week. Weekend traffic (except during Summer/late Spring/Early Fall) is muted. Near the Art Institute and Millenium Park. A jog to the lake. Close to work. Quick cab ride to better bars/restaurants (or red line) – not a bad location.
I disagree on the bums – most of those are farther south on State Street on the other side of Adams.
“a recently rehabbed building in the loop”
How good is this developer’s record on sticking buyers with deferred maintenance issues after “rehab?” I know that at least one of the developers stuck the owners of a SL bldg with defects (and a special assmt) over a decade ago. And, that was at a time when the developer was awash with profits. How much do you suppose is still sitting in the LLC’s accounts?
Besides, sales like this one will put most owners underwater in this bldg.
Anyone who thinks this is a reasonable investment at list is not properly pricing in the risks, nor considering that this price is not likely to mark the bottom in this bldg.
“When you start buying at $200k there’s little margin for error in the cash flow situation. ”
true that, but given that cf can be done, with some marketing this location can be a bonus. and your getting closer to tempting valuations. More people want to pick at that apple. esp. those that stayed out during the first one. Like the church idea this location has its tourist based ones.
There is the temptation to laugh at the knifecatchers/fb etc. or keep your power dry, but there will be comp on the way down, thats how you get there! and back.
Depends on how you see it.
I know this is minor – but there is no such thing as “laminate hardwood floors”. Laminate is NOT hardwood. There is laminate, engineered hardwood (which IS hardwood), and hardwood. I hate when people (in this case the realtor) either tries to pass off laminate as hardwood – or doesn’t even know the difference. Laminate is smooth, shiny, and “soft”, and in many cases floats – not providing a truly solid surface. YUCK. It’s SOOO 1999. haha.
Turns out this building has open litigation, the Building Board of Directors is suing the Developer for 1 million dollars. Given there are 170 units the per unit liability is no so big, but no lender will do traditional loan on this building.
Does anyone know of a lender who doesn’t request a condo questionnaire if you put a high down-payment upwards 25%
“Does anyone know of a lender who doesn’t request a condo questionnaire if you put a high down-payment upwards 25%?”
Can anyone answer this question?