So looking at the square footage price comparisons the large one bed was selling in the mid to high $400 sq ft. The other smaller one bedrooms were even selling into the low 500's sq ft. There wasn't any new construction at that time go for those prices let alone a rental conversion building.
I believe some of the units that are in foreclosure being sold now are still over priced because it doesn't leave you with much room if prices go lower.
212 E. Ohio, Chicago, IL
A similar program was used to lure investor to purchase units at The Sterling - 345 N LaSalle. At the time, the program seemed to be a good idea - prices will never go down, right?
Well - many of the units have gone undergone short sale or foreclosure due to the fact that many of the investors who had hopes of flipping these units got caught either without tenants, or were unable to sustain rents to cover their mortgage payments.
Bottomline is this - be sure that the building's finances are strong. In the case of 345 N LaSalle, owners were faced with a special assessment. Advantages would be purchasing a property in an ideal location at a reasonably good price. Disadvantages may be having to work thru potential financial issues related to a number of units with outstanding assessments etc.
Hope that helps.
While you may have found a great deal it is wise as you are doing to see what the overall market climate is not only of the area but of the building. In this case it is a great location building but 64 units for sale in the building does raise questions about the stability of the investment no matter how good a deal you are getting. You are entitled to review the condo docs after your contract is accepted (if it ever is) and you can back out at that point, but it tends to put your home search on hold for a while and can be a long process.
Now to the good news on the area you are looking: Last quarter saw a median price increase of 2.44% from 2007 however sales volume was down almost 15%. The macro climate looks good...the micro building/unit needs a bit more scrutiny.
Advantage Lower price. There is 250 units in this building. over 70 units on the market right now. 14 under contract or pending. Small city. There is going be always activity in place like this. "Short sale" has nothing to do with the building just with income of the current owner.
Sign of times.
Downtown condo should be good investment. There is always quite big buying/ selling activity.