Will Second Price Reduction Be the Charm? 600 N. Fairbanks

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With nothing re-selling at 600 N. Fairbanks in Streeterville over the last few months, at least one seller is getting aggressive with price reductions.

I chattered about Unit #1301 about three weeks ago- when it had its first price reduction.

It has been reduced again.

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Unit #1301: 3 bedrooms, 2.5 baths, 1746 square feet

  • Sold in November 2007 for $805,000
  • Originally listed in January 2008 for $929,000 (plus $60k for parking)
  • Reduced
  • Was listed in March 2008 at $895,000 plus $60k for parking
  • Reduced again
  • Now listed for $839,000 plus $60k for the parking
  • Assessments of $585 a month
  • Koenig & Strey has the listing

That’s about a 10% reduction off the original list price.

The thirteenth floor is the lowest residential floor in the building. But several other 01 tier units are also on the market on similarly low floors:

  • Unit #1501: Currently listed for $1.1 million plus $70k for the parking
  • Unit #1901: Currently listed for $1.095 million plus $70k for the parking

There have been no flips of 01 tier units yet.

Current building statistics:

  • 37 units for sale
  • 11 units for rent

Some units are both for sale and/or rent.

Stay tuned.

24 Responses to “Will Second Price Reduction Be the Charm? 600 N. Fairbanks”

  1. The storage units are also on that floor. My dog would be barking everytime someone goes down there to get to their locker. I may be interested if the unit gets down to the original price from the developer.

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  2. Streeterville Realtor on April 3rd, 2008 at 6:46 am

    The unit look beautiful to me! And if you compare it to any other high end buildings in the area, the price is Very competitive.

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  3. Millie: Wouldn’t your dog bark anytime anyone walked down your hall then? (storage locker or not)?

    There are pretty many units per floor in that building (8 or so) so wouldn’t that mean your dog is barking non-stop as people come and go?

    Is a storage locker really an issue? How many people go to them? You put your luggage in there and get it out once or twice a year (has been my experience.)

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  4. fairbankslover on April 3rd, 2008 at 7:37 am

    plus 1301 and storage lockers are on both ends of the flr. So there would be no reason for them to go past 1301.

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  5. $70K for a parking spot?

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  6. Thanks for the info fairbankslover. I wonder how flexible the owners are? I am currently renting a 2 bedroom at the Heritage and would consider buying, depending on the price.

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  7. David,
    $70,000 for a parking space is ridiculous. I’d be interested to know how much the developer was charging for them originally.

    From the perspective of buying it to rent to a monthly parker, it’s worth $30,000 – $35,000. Add in $5,000 – $10,000 as a convenience bonus if you live in the building and want to use it for yourself and you get a maximum value of $45,000. Anything more and it’s better to just rent a spot from someone else in the building, and I’m pretty sure that it will be many years before it becomes difficult to rent a parking space in the building – if it is ever difficult.

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  8. fairbankslover on April 3rd, 2008 at 8:25 am

    70 is not that outrageous if it is on flrs 3 or 4. Markup is not much. anything above 4th flr is a ripoff.

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  9. Hard to tell from the pic above, but is that column in the middle of the kitched or along the back wall. Thanks

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  10. I have been to this floor plan. It is indeed quite a dramatic floor plan, and in my opinion the ONLY livable floor plan in the building. The only thing I am not sure about is the view though from this exposure. I was up on 3001 at an open house last weekend or so, and the view was still blocked and buildings right on your face, it’s not an OPEN view floor plan like the 02 tier, for example. I am not saying the 02 is a perfect floor plan either.

    The 02 tier has an AWESOME view (if you are up high), but the POLE in the master bedroom turns me off. You can hardly fit a queen in there! King-sized bed is definitely out. The 03 tier has a nice-sized bed room, but the living room is so tiny, given it’s like 873sqft or something like that.

    Prices overall in the building are still over the top, generally speaking. However, I have seen stupid buyers willing to pay at 100% asking price (which makes me puzzled sometimes, if you pull all the history of the units sold in this building and the various TIMING when they bought and closed etc., which I did study for sometime now).

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  11. So, tell us the history. How many have sold? At what prices? What is the trend? Any patterns wrt to tier, floor?

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  12. fairbankslover on April 3rd, 2008 at 10:10 am

    What’s with the tiny tiny laundry in the 01 units? You can only do half a regular load if your lucky?

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  13. I only think two two bed/two baths have resold. One 05 tier and one 03 tier. They went for about a 10% premium over developers prices back in 2005-6.
    A lot of the units have rented.
    It will be interesting when all of the amenities are ready to see if the building sales pick up at all.
    As for the column in the 05 bedroom…..the room is 18 by 12…a lot of “penthouse” units I have seen in some buildings only have a 13 by 14 master bedroom….at least here you have space for a desk and a chair as well..in addition to a queen bed. I have an 05 so I speak from experience.

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  14. Here is the original (August 2005)pre-construction pricing from the developer (I dont have the pricing for the parking):

    1 BEDROOMS
    821-926 SQ FT
    from
    $320,000-$460,000
    2 BEDROOMS
    1185-1258 SQ FT
    from
    $462,000-$656,000
    3 BEDROOMS
    1746 SQ. FT
    from
    $707,000-$962,000
    2 BEDROOM
    PENTHOUSES
    1540 SQ FT
    from
    $883,000-$1,002,000
    3 BEDROOM
    PENTHOUSES
    2993-3177 SQ FT
    from
    $1,720,000-$2,065,000

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  15. I forgot to add that, if 1301 is the bottom unit available in the ’01 tier, than the developer was originally asking $707,00 without parking. So the $805,000 close price in November 2007 must reflect $100,000 in upgrades or a combination of upgrades and the parking spot…unless this buyer didnt buy at the original asking price, but instead bought at a price later increased by the developer. In any event, instead of asking whether this is a deal or not, I would ask how much the seller would take under than the current offer…if closing costs were $25,000, maybe he/she would take $830,000 with parking instead of the current $899,000. That’s a 15% reduction off the original asking price.

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  16. If you absolutely want the place and are willing to pay that or more, then yes, that is the right way to look at it.
    But if instead you are trying to figure out what the place is worth (in other words, what to pay for it such that in a couple of years you aren’t upside down), then you might not be willing to pay even what they initially paid for it. The seller’s sunk costs are not your problem.

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  17. Maybe he just got tired of living in a fishbowl where everyone can see in. Whoever said the blinds are down on the south side only because of the sun, well hasn’t been much sun lately and all those blinds are still down. As for floor to ceiling glass, i think pretty much every building near it that was recently built is floor to ceiling glass.
    And tell the person on the fourth floor corner above the garage those yellow,blue,and red crates in their living room don’t work. I mean c’mon this thing really is an eyesore.

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  18. I agree with you. And you are right, I was only considering what deal could be struck if I was interested in the place now, not what it is “worth”. As for being upside down in a couple of years, I am also assuming that the buyer would put 20% down. Anything is possible, but I think that it is very unlikely that you would be upside down on this unit in two years if you bought it today for $830,000 and put 20% down (that is, if we have the same definition of “upside down” – to me, that means you owe more than the house is worth, not that the house is worth less than what you paid for it). In any event, and I have said this before, I cannot imagine very many (realistic) scenarios where buying a house/condo is a good idea when you are certain you will have to sell in two years, in any market.

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  19. fairbankslover on April 3rd, 2008 at 4:37 pm

    just received a postcard from koenig. 2402 sold for 723000 in one day. what was closing price from before? Says sold for full offer price.

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  20. SUCKERS! lol

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  21. fairbankslover, regarding 2402 from MLS…i’m assuming the difference in sold price and list price is 55K for parking as thats what they were offering in the listing.

    List Price: $669,000
    Orig. LP: $669,000
    Sold Price: $724,000
    List Date: 12/04/2007
    LMT: 23

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  22. Thanks Marco. So the market time wasn’t one day.

    From info I’ve seen, it looks like it was a sale from the developer (so no flip.)

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  23. Perhaps this unit just reflects “new developer pricing”? Originally this unit was marketed for around 590-600,000 I believe.

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  24. fairbankslover on April 4th, 2008 at 9:40 am

    either way I say misleading advertising by Koenig…

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