When Rentals Destroy Value in a Condo Building: 8 W Monroe
8 W. Monroe had such promise. Otherwise known as The Metropolis, it was a conversion of a loop office building into loft-ish units with high ceilings and, for some of the units, peek-a-boo views of the lake. The building is located in the heart of the State Street shopping and theater corridor at State and Monroe. It even has deeded parking spaces available in the building.
What went wrong?
For one, the finishes are awful. Truly cheap and nasty looking. (Sorry to anyone who owns in the building- but the truth hurts.) The granite is the cheapest granite I have ever seen and the kitchen cabinets are ugly oak wood. Plus- Black or White Appliances! ‘Nuff said.
Also, the units are very small. There are one bedrooms that I swear are not more than 675 square feet. Many of the two bedrooms are also on the small size- under 1100.
Now, small isn’t necessarily a bad thing- if the price is right. But here, the prices are way too high for the product you are getting.
Add on top of that that investors have bought up dozens of units in the building and are trying to sell or rent. With that you have a recipe for a failed condo building. I was in this building over a year ago and saw five units all owned by a “New York investment group.” The agent showing the units told me that the New Yorkers thought it would be a good investment because it was right near the subway. Clearly- they had no idea what they were doing.
At the time, the investors were “motivated” and were willing to take a look at “any offer”.
When many of these investor owned units failed to sell, they simply rented them out (at any given time there seems to be nearly a dozen units for rent in the building, out of a total of 170 units available.) The developer is also renting out units. It seems at least half of the building has never closed so I’m assuming most of those have been turned into rental units.
Some poor owners who were not flippers or investors are trying to sell. Pity them.
Unit #1008: 2 bedroom, 2 bath, 1065 square feet
- Sold in June 2006 for $350,500
- Currently listed for $419,000
- Parking available in the building for $38,000
- Has been on the market for forever (well over 6 months)
- Jerry Sider at Coldwell Banker has the listing
The one bedrooms are also struggling.
Unit #1106: 1 bedroom, 1 bath, 700 square feet
- Sold in June 2006 for $232,000
- Currently listed for $259,900
- Sergio and Banks has the listing
It’s much cheaper to rent in this building than to ever buy here. There is a one bedroom rental for only $1350 a month. And you can probably get it even cheaper than that.
Hold on here! Why should anyone pity a homeowner trying to sell for a 20% profit after 16 months of ownership??? If the $350,500 sale price included the parking, that’s a attempted gain of 30%!
Normally- I’d agree with you. But they’re not going to get that price. It’s been on the market for forever.
We’ll see what it’s listed for in the spring.
Sabrina,
Unit 801 just went under contract. Originally priced at $283,500 down to 259k.
The investor/seller then decided to come down to 225k.
From then at this price it sold in 24 days. In this location I think its a steal at 225k. If you want me to send you pictures of this specific unit let me know.
PN: Nothing is a “steal” in this market. It’s a declining market! All of those units will go cheaper.
Sabrina,
I’m assuming the buyer paid less than 225k thats why I said “steal” so I apologize… For a young professional that wants to live & works right in the “Loop” I think it’s a good deal…
Do you know anything about unit 1108?