$650k Reduction in the Palmolive: 159 E. Walton
There are some buildings where units continue to sell well and that includes The Palmolive, at 159 E. Walton in the Gold Coast.
We chattered in April about several $5 million+ units that had sold in the building in the last year. Since that time, another one has sold.
- I don’t have the unit #: Sold in June 2008 for $6,025,000
- Unit #32A: Sold in February 2008 for $6,898,000
- Unit #27A: Sold in February 2008 for $5,150,000
- Unit #34A: Sold in October 2007 for $5,387,000
But Unit #20A hasn’t been so lucky.
It’s been reduced $650k since we last chattered about it in April 2008.
Katherine Chez at Coldwell Banker has the listing. (The website has more pictures.)
Unit #20A: 4 bedrooms, 3.5 baths, 2 car garage, 4700 square feet
- Sold in December 2005 for $3,416,500
- Was listed in April 2008 for $5,250,000
- Reduced
- Currently listed at $4.6 million
- Parking included but there is a valet fee of $255 a month per space
- Assessments of $3,699 a month
- Taxes of $7,442 (yes, this amount is correct because the building has a historic tax feeze)
Taxes of $7,442 (yes, this amount is correct because the building has a historic tax feeze)
Historic tax freeze?
What kind of cronyistic bullshit is that?
What is a historic tax freeze?
it encourages preservation of historic buildings… a good thing.
Property Tax Assessment Freeze from state law. It’s temporary–12 years from the start of rehab–to encourage the preservation of designated historic structures. Look at the Illinois Historic Preservation Agency website for more info.
Probably the tax break involved with restoring a historic landmark.
a friend worked at Draper and Kramer when they started this project, they were not happy at the rate units were selling. is the building sold out yet?
I’m not sure the purchaser of this unit can rely on the tax freeze. The tax freeze can only be enjoyed by the owner of the property when the work is done and paid for. The freeze may terminate upon sale to a new purchaser. Anon is right. The Illinois Historic Preservation Agency’s website is the authoritative source for information on the freeze. This is from the IHPA:
Applications for the Certificate must be submitted within two years of project completion. If the property is sold within the eight-year freeze period, of if its use changes from that of a single-family owner-occupied residence, the Certification will be revoked. Subsequent rehabilitation work must also meet the “Standards” or the Certificate will be revoked. The property owner is required to file an affidavit with the assessor each year verifying ownership and use.
Note with co-ops you don’t have this problem. A new purchaser inherits the freeze. This is because ownership of the building does not change when a cooperative apartment is sold; only the certificate of beneficial ownership in the entity that owns the building changes hands.
sorry- super dorky and off-topic, but, co-op owner – i thought that with a co-op that the shares in the corporation transferred (which is considered personal property rather than real estate) and with those shares comes a proprietary lease for a specific unit?
i’ve never heard of certificate of beneficial interest, so please educate me.
Bubbleboi,
You are correct. It is shares of the corporation that are transferred and with those shares comes a proprietary lease for a specific unit. Co-ops can be owned by a corporation, a partnership, or any other legal entity. Mine is owned by a trust and so instead of shares in the corporation, we receive shares of beneficial interest in the trust. The certificate of beneficial interest is the equivalent to a certificate of shares in the corporation. Slightly different terminology but same concepts. Bottom line: apartments change hands but ownership of the building does not.