Three Bedroom Deals in The Chandler? 450 E. Waterside Drive
There’s been a lot of chatter about three bedroom units in some of the new construction high rises with around 1700 to 1900 square feet. We’ve seen these routinely listed around $800,000 to $1 million.
I recently stumbled across these two units selling in The Chandler, at 450 E. Waterside Drive, in Lakeshore East. The building is a new construction highrise that started closings in the Summer of 2007.
They appear to still be for sale from the developer.
- Unit #2408: 3 bedrooms, 2.5 baths, 1900 square feet, listed for $739,000 plus parking
- Unit #2008: 3 bedrooms, 2.5 baths, 1900 square feet, listed for $739,000 plus parking
But I was struck by the price, which, even when you add on a parking space, seems much cheaper than many other units of similar size in other buildings. And even within The Chandler themselves, many of the other “08” tier units sold for more.
Could Magellan, the developer of the property, be lowering prices in the building on some units?
Here are some that have sold:
- Unit #2908: Sold from the developer in February 2008 for $891,000
- Unit #2808: Sold from the developer in March 2008 for $832,500
- Unit #2708: Sold from the developer in December 2007 for $831,500
- Unit #2608: Sold from the developer in December 2007 for $857,000
- Unit #2208: Sold from the developer in November 2007 for $793,500
I have no idea if some of these other 08 units had massive upgrades or other things that would push the price significantly higher. And, yes, being on a higher floor is a premium.
Adding in $50k for parking you would still be looking at $789,000 for either of these two units- and that’s before negotiations on the price.
Here are pictures from Unit #2008:
Unit #2008: 3 bedrooms, 2.5 baths, 1900 square feet
- Currently listed for $739,000 (parking extra)
- Assessments of $763 a month
- Magellan Realty has the listing
But TWO parking spots @ $50k would put you at $839–right in line with the other sales.
Yeah, yeah, “who needs two cars in that location”–whatever. If you’re buying a 3 br, it’s very plausible that you have two cars and/or have frequent vistors with a car.
It hardly seems worth it to spend $330/month in debt service (on $50K) for a parking spot for guests, considering there are probably pay garages in close proximity and many highrises, at least those with attended garages, even have deals for short-term paid guest parking.
But if you have 2 cars, yeah you need 2 spots, but I’d haggle hard on the $50K asking price… assuming a 10×18 stall, that’s $275 per square foot for a parking spot, or put another way, $330/month + garage assessment.
Yeah, it may not be “worth it”, but there are more than a few people who buy such place as in-towns and will mostly only have one car, but occassionally two, plus frequent guests. We’re talking about folks spending 800k for an apartment in Chicago w/o much of a view. An extra $50k to avoid any possible inconvenience ain’t that much.
what is the general consensus on this building? Good investment? good value? i am looking for a 1 bed in the building
John, what is an upper floor one bedroom in this building on average being listed for at present?
a month or two ago I looked at a one bedroom next door in 420 E. Waterside (same developer), and a one bedroom, around 800 sq ft on a high floor (33?) was listed for 399K without parking. small and a bit unimpressive in terms of finishes, looked older than the actual age of the unit, but amazing view looking north west down the chicago river. also very nice amenities (amazing pool).
The one bedrooms are listed for the same as 420 E. Waterside (that’s the Regatta) around $399k without the parking.
Similar in price point to 600 N. Fairbanks, 505 N. St. Clair etc.
Lakeshore East is definitely popular. The community is rounding out now with Aqua going up quickly and the townhomes being built.
moving to chicago where did you end up moving too?
John – ended up closing on a 1 bedroom at Fairbanks at Cityfront Plaza two weeks ago. I was hoping to get a little more info and opinions on the building from the regulars here, but the post didn’t get much attention. In the end, I loved the location, the developer was reasonably negotiable (came down around 35K from list), building doesn’t appear to be flooded with investors, and I plan on living here for at least seven years, so we’ll see. I am a little concerned in the short term about the value since, as pointed out there is a glut of unsold inventory on the market in Streeterville, but I hope this building will do well in the long-run. Thanks for asking.
Thats actually good info i was considering streeterville just because LSE seems to be a decent walk to any of the basic shopping needs. Grocery, restaurants, etc
“LSE seems to be a decent walk to any of the basic shopping needs”
Not to defend LSE (I’m not a big fan), but that will change in the fairly near future as the market building gets completed–there’s to be a Treasure Island and other stuff upon completion. And the completion of Aqua will bring a bunch of other amenities to the nabe. Not sure where the development schedule stands, but someone prob. knows. And Fox & Obel isn’t too far, either, tho of course much closer to Fairbanks.
just my two cents, but since i’ve moved in, i’ve had not trouble finding anything i needed in the area by walking for five to ten minutes. dominick’s, fox and obel, walgreens or cvs (can’t remember which) beside the amc, plenty of restaraunts (though nothing spectacular i’ve found so far, but for a quick bite, more to offer than at LSE). one thing i really enjoy about the particular building (240 E. Illinois) is that since its located on upper illinois street, there is not thru traffic and remains relatively quiet, given your squeezed between michigan ave and columbus. however, since you can connect to north water and get on columbus, its easy access to lower wacker/90-94/290. hope this helps.
oh, it seems from looking thru the tribune that the building hasn’t stalled in sales like some others right now, and there a good number of tenants living in the building right now, not as empty as some other buildings i looked at.
I am considering buying a 1 bedroom $500k condo in 240 E Illinois. I am looking to live in it ~4 years. I would really, really appreciate your thoughts.
I am considering buying a 1 bedroom $500k condo in 240 E Illinois. I am looking to live in it ~4 years. I would really, really appreciate your thoughts.
Jessica
500k for a 1 br? what sq. ft?
Jessica,
I would not spend 500k on a 1 br… 4 yrs is not a very long time frame given what is happening these days…
“I am considering buying a 1 bedroom $500k condo in 240 E Illinois. I am looking to live in it ~4 years. I would really, really appreciate your thoughts.”
Let’s assume that you have 20% ($100K) down, to get a conforming loan. Let’s also assume that you are willing to commit yourself to a payment spike if you don’t sell in 5 years.
According to BankRate:
5/1 IO ARM (0 points) — best is Quicken at 5.75%
5/1 IO ARM (w points) — Quicken is 5.125% at 1.25pts, Countrywide is 5.0% at 2 points.
5/1 ARM (0 points) — FSB Hegewisch has 5.410%
5/1 ARM (w points) — still FSB Hegewisch at 5.410%.
The Countrywide 5% IO ARM has a payment of $1666/mo and the 2 points amount to $166/mo over 48 months — total is $1833/mo. The Hegewisch 5.41% ARM has a payment of $2248/mo, but $445 of that is principal in the first month — net $1803/mo. Call it $1800/mo of deductible interest.
You would also need to pay association assessments (probably at least $500/mo) and property taxes (perhaps 2%/yr or $800/mo).
The interest and taxes are deductible from your income taxes — *if* you are already itemizing your deductions you would save about 35% of that amount, or $900/mo. If you are currently taking the standard deduction, you will save only about $450/mo (if single) or $20/mo (if married).
Your monthly outlay is thus about $3100 less the taxes.
(I am ignoring taxes, because condo owner’s and renter’s policies do not differ that much in rate. If this were a SFH, it would be a more significant factor.)
But, you are planning on selling this place in only four years, so the transaction costs will be important — call them 6% total, with realtors, local governments, inspectors, title insurers, lawyers, and other folks. That is $30000, or about $600/mo.
So, if you are single you will be effectively paying about $3250/mo for buying the condo. You will be taking on many risks that renters don’t have to worry about — home repairs, liabilities of the association, market risk, interest rate risk if you can’t (or don’t) sell within five years. You do get to keep the appreciation, but if prices rise less than about 1.5%/yr you may find yourself bringing cash to closing.
If you could rent a similar place for under $3000/mo, I think that you would be better off renting than buying.
If rents for such places are really far above $3000/mo, buying could be a reasonable choice. I don’t think that the rental market is supporting anything near that level for 1BRs, however.
“(I am ignoring taxes, because condo owner’s and renter’s policies do not differ that much in rate. If this were a SFH, it would be a more significant factor.)”
Typing too fast — that should be “I am ignoring insurance, …”
Kevin (first): Don’t forget for many that mortgage interest and property taxes are not FULLY deductible thanks to the AMT. Also, don’t forget about the holding costs if the unit doesn’t resell quickly….if you move out state there could be significant travel expenses, etc. Of course, the four years could turn into two instead (and vice versa to six). This looks like a good case to rent in this market with prices continuing to decline. I’d rent.
move a few blocks north and save yourself a couple of bucks. geez.
240 is the nicest of the new group. the private cul-de-sac clinches it.
The Lake Shore East developments are beautiful from the outside, but very disappointing on the inside. The exception being 340 OTP, which is nice both inside and out.
We’ll see how Aqua turns out, but nominal 8’8″ ceilings is certainly a let down.
Is there a chance to rent any of these three bedreoom units for a year?