A 2-Bedroom Listed Under the 2006 Sales Price at 159 E. Walton in the Gold Coast
This 2-bedroom in The Palmolive at 159 E. Walton in the Gold Coast came on the market in June 2021.
The Palmolive was built in 1929 and has 99 units. This art-deco building used to be a commercial building and was first the home of Colgate-Palmolive-Peet and then was the former home of Playboy and was called the Playboy Building.
It was converted into luxury condos in 2005-2006. It has attached valet garage parking, doorstaff, an exercise room and whirlpool.
During the housing bust, the building’s pricing held up well as it was sold out during the boom and was considered one of the top buildings in the city. Celebrities like Vince Vaughn owned units in the building during that time.
This unit is a southwest corner unit.
It has high ceilings, hardwood floors, custom millwork and a fireplace.
The kitchen is an eat-in kitchen with white Polyform cabinetry, Wolf, Subzero and Miele appliances with an island.
It’s a split floor plan.
The unit has the features that buyers look for including central air, washer/dryer in the unit and 1 car parking is included.
This building is just steps away from the Mag Mile and Oak Street Beach as well as the restaurants of Streeterville and the Gold Coast.
Originally listed in June 2021 at $1.525 million, it has been reduced $425,000 to $1.1 million. That is $364,000 under the 2006 sales price.
Is this a deal?
Caroline and Matthew Druker at Baird & Warner have the listing. See the pictures here (sorry, no floor plan.)
Unit #14F: 2 bedrooms, 2.5 baths, 2347 square feet
- Sold in September 2006 for $1.464 million
- Bank owned in October 2010
- Sold in February 2011 for $961,000
- Originally listed in June 2021 for $1.525 million
- Reduced several times
- Currently listed at $1.1 million
- Assessments of $2381 a month (includes heat, a/c, gas, doorman, cable, clubhouse, exercise room, exterior maintenance, lawn care, scavenger, snow removal)
- Taxes of $32,832
- Central Air
- Washer/dryer in the unit
- 1 car valet parking included
- Fireplace
- Bedroom #1: 15×13
- Bedroom #2: 16×12
- Dining room: 16×12
- Living room: 15×14
- Kitchen: 15×15
Nice to see the Drukers putting in the work. Guessing the 2350 sf listed is as close to reality as the initial ask
Place is boring as fuck.
And still bragging that VV lived here? Real world class city…
“During the housing bust, the building’s pricing held up well”
Sold in September 2006 for $1.464 million
Sold in February 2011 for $961,000
Yes, f/c in between, but 1/3 off is *exactly* in line with Case-Shiller (Condos-NSA) for that sale pair.
11F sold recently for $1.1:
https://www.redfin.com/IL/Chicago/159-E-Walton-Pl-60611/unit-11F/home/22989661
Can find the floorplan on dreamtown, but the image sucks. All match as to the 2347 sf.
The $32K+ in property taxes are scaring away buyers. Who wants to give the city of Chicago ~ $3,000 a month, and for what?
“The $32K+ in property taxes are scaring away buyers. Who wants to give the city of Chicago ~ $3,000 a month, and for what?”
There are always appeals, right?
“Sold in September 2006 for $1.464 million
Sold in February 2011 for $961,000”
Foreclosure anon(tfo). But the building held its value well. Remember the woman who lived in her unit in there for like 8 years before the bank finally took it back? (a one-bedroom). Lol. When the bank finally sold it, it was well off the lows and they actually did okay on the sale.
The Palmolive sold out during the boom. It was THE best building in the city. Everyone who was everyone bought in there (CEOs, prominent families, actors etc.)
But now there are many other “new” luxury buildings. And even the rich want “new.”
No 9 Walton has surpassed The Palmolive now. And those units have terraces. Additionally, even Tribune Tower is probably taking away sales because it has a similar feel and is “new.” And now One Chicago, if you want views.
The Palmolive was also converted during the time when amenities weren’t a big deal. They put a small gym in and nothing else. But now, everyone wants amenities. The amenities in the Tribune Tower are insane and the gym is massive and beautiful. The lack of amenities has to hurt with the younger buyers.
“And still bragging that VV lived here? Real world class city…”
At the time that the building was converted, Vince Vaughn lived in Chicago and it was a reflection on the popularity of the building (same was Oprah living in the Water Tower.) No one talks about him living in the building today because he hasn’t lived there for nearly a decade and the building isn’t “hot” anymore. Same with the Water Tower.
The Vince Vaughn equivalent today, which would mostly be sports stars, have bought in No 9 Walton.
“the Best Buy next door,”
WTF are you talking about? That closed in early November of 2019.
“No one talks about him living in the building today because he hasn’t lived there for nearly a decade and the building isn’t “hot” anymore.”
You literally noted that he lived there LOL
“The $32K+ in property taxes are scaring away buyers. Who wants to give the city of Chicago ~ $3,000 a month, and for what?”
“There are always appeals, right?”
I am certain the Palmolive condo association appeals the property taxes every year, with very little success. The property tax appeal process is the biggest racket in Chicago. The assessor sets the assessed value anywhere from 10-20% above any recent comp sales, so everyone will “appeal” and hire attorney’s to pocket 50% of any savings, if any. Next year, repeat. Literally, it’s maddening.
A completely broken system, which is yet another big reason why high income people are leaving the state and city.
I paid my property taxes yesterday, they went down a bit for 2021 after a large increase in 2020. 2020 and 2021 were brutal for values in my building in East Loop.
“the Best Buy next door,”
WTF are you talking about? That closed in early November of 2019.
Edit: Imagine all the diversity that could mug, rape, stab or carjack you walking past the empty retail next door, you don’t even need a car (which would just amass tickets anyways).
“I paid my property taxes yesterday, they went down a bit for 2021 after a large increase in 2020. 2020 and 2021 were brutal for values in my building in East Loop.”
I was bracing for an enormous property tax increase this year. During my purchase, my lawyer said that my taxes would likely go up 40%, so I’ve been setting aside a lot of money for an escrow shortage. My taxes only went up only 5%, which seemed fair given the house’s relatively low taxes. Glad yours went down a bit. The taxes for my old condo really spiked 2 years ago, so I thought the house would also see a spike since the taxes for the new place hadn’t spiked in the past. The taxes on my parents’ centrally located townhouse went down 10%. They had been overtaxed for many years.
@Ed:
“Edit: Imagine all the diversity that could mug, rape, stab or carjack you walking past the empty retail next door, you don’t even need a car (which would just amass tickets anyways).”
I’m not sure I understand what you mean by “diversity” in your comment above. Could you explain further?
“what you mean by “diversity””
It’s all imagined, per his own admission, and his apparent absence from the city for 3+ years.
View of another building’s rooftop garden? That’s a selling point? If I pay this kind of money, couldn’t my own building have a decent outdoor space of its own? Or at least could my unit have a view of something besides another building? Come on!
Sad to see it listed under the 2006 price. Not good.
“11F sold recently for $1.1:
https://www.redfin.com/IL/Chicago/159-E-Walton-Pl-60611/unit-11F/home/22989661
Can find the floorplan on dreamtown, but the image sucks. All match as to the 2347 sf.”
They took a $400k hit from 2020- ouch
Who was it that said prices were up 20% over the last 2 years?
“Who was it that said prices were up 20% over the last 2 years?”
No one.
Literally.
No one has said that downtown prices were up 20% in the last two years.
“I paid my property taxes yesterday, they went down a bit for 2021 after a large increase in 2020. 2020 and 2021 were brutal for values in my building in East Loop.”
Lots of people reporting declines downtown where values have actually fallen.
“I am certain the Palmolive condo association appeals the property taxes every year, with very little success.”
Huh?
Every building I’ve lived in has been successful in appealing. And with the decline in values in the building, why wouldn’t they be too?
“A completely broken system, which is yet another big reason why high income people are leaving the state and city.”
There have been a record number of sales of properties over $4 million in the city and suburbs of Chicago this year, it appears that just as many rich people must be moving into Illinois as are fleeing.
It’s laughable that people are actually saying this stuff with a straight face right now. There is literally NO evidence that “high income people” are leaving the state and city, unless you’re using the 95% occupancy rate in the Class A rentals, of which the rents are now at all-time highs.
Lol.
“You literally noted that he lived there LOL”
Yes, to put the building in context for when it was built, how it sold out during the housing boom, and why it held up well during the bust.
Duh.
A lot of people are young, JohnnyU. They weren’t adults in 2006. They weren’t following real estate. They don’t know the history of some of the buildings.
“unless you’re using the 95% occupancy rate in the Class A rentals, of which the rents are now at all-time highs.”
So basically lots of higher income folks are out there willing to kill for the chance to pay all-time high rents for luxury units, while there’s a growing surplus of luxury condo sale listings going for their lowest price in nearly two decades?
“So basically lots of higher income folks are out there willing to kill for the chance to pay all-time high rents for luxury units, while there’s a growing surplus of luxury condo sale listings going for their lowest price in nearly two decades?”
Step 2: ???
Step 3: Profit!!
“So basically lots of higher income folks are out there willing to kill for the chance to pay all-time high rents for luxury units, while there’s a growing surplus of luxury condo sale listings going for their lowest price in nearly two decades?”
Yep. Too many luxury condos. 400 in the St Regis. 70 in One Chicago. A couple hundred in Tribune Tower. All priced over $1 million. And then throw in the existing too. Meanwhile, the richest generation, the Baby Boomers, are retiring/dying and moving. As we’ve discussed ad nauseum. Many of them were already snow birds pre-pandemic. The pandemic shocked them. Many determined they no longer wanted to split their precious time and would go to the south permanently. Lots of older luxury units downtown being listed. And the luxury condos going up in the hottest neighborhood: West Loop are also taking buyers away from downtown.
But not enough apartments. Those aren’t a million dollars. Meta and Google workers can afford the $2500 a month for their 600 square foot unit.
Will they overbuild on apartments? So far, they are being absorbed because the job market has been good. But how many of those tech/start-up workers will be laid off in Chicago? Some will likely be (or are already.)
I guess it just seems odd that more owners of luxury units don’t opt to rent them out instead, given the demand for luxury rentals. In 08 when looking to rent a place, we looked at about 12 apartments and 2 condos. Most of the apartments had been newly updated and were asking whatever peak market was for rents. We almost rented one of the apartments, I believe it was in Lakeview, close to the el. Then at the last minute, we viewed and were on our way to sign a lease for the first condo we saw, located in the Best Buy building on Clark – it was nicer and cheaper than the best apartment we were considering. Then at the last second, we viewed and ultimately rented the second condo we saw, located in the Marlborough – it was far nicer and bigger than the other condo, and even cheaper! Just seems like either luxury condo owners or prospective luxury unit renters are a little mixed up at the moment, or are having a hard time finding each other.
“A couple hundred in Tribune Tower.”
162, to be precise.
The problem is the carry on the $1m units–when rates were 3%, an $800k mortgage was $3400; at 7%, $3400 gets you a $510k mortgage (and $800k costs $5400).
Like Sabrina sez, $3k/month is “affordable” to a lot of people (@28%, $130k annual, about 80th %ile); $5k/mo is a much smaller pool (@28%, $215k, about 95th %ile).
“I guess it just seems odd that more owners of luxury units don’t opt to rent them out instead, given the demand for luxury rentals.”
Market is smaller for “luxury condos.” Usually the owners want a bigger deposit. Can move in for a few hundred dollars in the new buildings.
Not as many amenities in terms of paying by direct deposit through an app or whatnot like the new buildings do. They make it much easier than dealing with a single owner/landlord.
Apartments are usually more up to date now. Used to be the other way around.
Some buildings have rental caps.
Also, it’s only a matter of time before the next largest generation, the Millennials, has enough money to move up from the apartment rental to the condo. But we’re in between the cycles right now as GenX isn’t a large enough generation.
Condos will fill up again, but may take 5 to 10 years.
Also, a lot of people ask why Chicago’s downtown home prices don’t go up like other big cities and blame it on the state’s financial issues. Instead, they should blame it on the empty parking lots and available land.
In no other major city are they able to build dozens of mega-high rises every few years with thousands of units, both rentals and condos. There are plenty of big parcels of land downtown. Look at all the big developments still ongoing. Heck, Lakeshore East, which was started about 17 years ago, only just wrapped up all of its construction. Thousands of units there now.
It’s supply and demand. Too many parking lots, still, downtown. Lots more building still to come. And just wait until they convert some of the Loop commercial buildings into housing too.
For fans of “new”, it’s a great city to live in. Lol.
“The problem is the carry on the $1m units–when rates were 3%, an $800k mortgage was $3400; at 7%, $3400 gets you a $510k mortgage (and $800k costs $5400).”
The “carry” rate is irrelevant to this discussion. Sales were slow when rates were 2.75% in all of these luxury buildings. Just too many units. Tribune has sold about 60%. Most of those were pre-construction but probably about 10% after the building opened. That’s another 60 condos sitting there (which is why there is little to no discussion about building the second big tower, unless they make it rentals.)
But there were certainly some buyers who stretched to get into the Tribune as it would be a dream building for vintage lovers. The low rates allowed them to stretch to get in there. The $1 million would have gotten you a smaller 2/2 in the building (although they had some in the base for around $850k to $950k.)
Everyone else isn’t “stretching” in that building. It’s a luxury building. Was always meant for the top wage earners/wealthy people.
Don’t forget, it’s not all about the mortgage. Assessments a big part of the equation when you live in a full amenity high rise.
But certainly, if rates remain elevated, it’s going to take longer to find the buyers as there are fewer who can afford the higher costs. But different choices will also be made. Those who would have bought the $1.5 million unit, will now buy the $1 million unit to make it work with the bank. But we need rates to stay elevated for a lot longer than 3 months to see that happen.
That is why everything has ground to a halt. The buyers are on the sidelines “waiting.” They are fine continuing to rent or living where they are living until they see what happens with their job and with the rates.
“Everyone” is saying the Fed will be cutting by next year. And look, the rates just fell 50 basis points last week. If you wait until next spring, rates could be back at 5%, or lower.
Think about how “cheap” it will seem if rates fall back into the 5s? Amazing how that works.
Also, it’s amazing to see the housing market come to a halt with unemployment still under 4%. We’ve never seen a housing market like this before.
“It’s laughable that people are actually saying this stuff with a straight face right now. There is literally NO evidence that “high income people” are leaving the state and city, unless you’re using the 95% occupancy rate in the Class A rentals, of which the rents are now at all-time highs”
Illinois reported the largest outmigration of residents of any state during 2021, marking the 8th consecutive year of population decline in Illinois. Chicago similarly saw more residents move away than any metropolitan area in the nation.
https://www.illinoispolicy.org/illinois-leads-u-s-for-people-moving-out-8th-year-of-loss/
There are 19 units for sale right now at the Palmolive. Supply definitely exceeds demand right now for condos > $1MM.
The building also had (not sure if modified) a 10% rental cap
“Also, it’s only a matter of time before the next largest generation, the Millennials, has enough money to move up from the apartment rental to the condo. But we’re in between the cycles right now as GenX isn’t a large enough generation.
Condos will fill up again, but may take 5 to 10 years.”
If the 30-40YO Millennials cant afford a condo today, what life changing event is going to happen causing this increased income level? At 30 generally you know if you’re going to be stuck as a middle manager or if you’re one of the anointed ones.
So first time condo buyers are going to be 40-50YO?
“In no other major city are they able to build dozens of mega-high rises every few years with thousands of units, both rentals and condos. There are plenty of big parcels of land downtown. Look at all the big developments still ongoing. Heck, Lakeshore East, which was started about 17 years ago, only just wrapped up all of its construction. Thousands of units there now. ”
and yet despite this little factoid, taxes keep going UP UP UP
strange huh
“Lakeshore East, which was started about 17 years ago, only just wrapped up all of its construction”
There’s still one more building to go, which afaik, hasn’t even broken ground yet.
And Magellan started construction on LSE in *2002*.
^there are 2 more major building sites… building “I” in the northeast corner, and building “O” in the southwest corner…
“2 more major building sites”
I forget about O, as I’m not on Columbus nearly as much as Lake Shore or Wacker, and it’s such a seemingly skinny site
“There’s still one more building to go, which afaik, hasn’t even broken ground yet.
And Magellan started construction on LSE in *2002*.”
Just proved my point anon(tfo). Thanks. Chicago can build and build. Will take them similar 20 years to get Lincoln Yards done.
The buildings are going up in the Moody’s Bible College development already, by the way. Probably will still take them nearly a decade to build out that land.
“strange huh”
Nope. Pensions were underfunded for years. Younger generations paying the price now. Everyone knows this sonies. It gets really tiring when people who left Illinois years ago come on this blog whining about it.
“There are 19 units for sale right now at the Palmolive. Supply definitely exceeds demand right now for condos > $1MM.”
I repeat: it is laughable that people are on this blog saying all the rich people are fleeing Chicago (or even Illinois for that matter.)
And don’t give me these bullshit articles about how all this population of people is leaving Illinois and/or Chicago which has nothing to do with high net worth individuals. Oh, and by the way, the housing market has been incredibly hot and strong given all these people are fleeing. I guess just as many are coming in then? How else to explain record sales and record low statewide housing inventory?
Come on. Give me SOMETHING that says you know something about what is going on in the state, the housing market, and the job market.
The Hughes home in Lake Forest came on the market at $15 million in August and found a buyer almost immediately. Just closed for $13 million.
https://headtopics.com/us/lake-forest-estate-owned-by-the-late-widow-of-filmmaker-john-hughes-sells-for-13m-31839554
The number of sales over $4 million is setting a new record.
Don’t give me the stats in the Palmolive, with 19 units on the market, and then try and say that the upper bracket is terrible. It’s not. Is there too much inventory? Yes. But it varies from building to building and neighborhood. It’s nothing like 2008-2011, when nothing was selling. And all of this is happening even with the stock market declining, which is a big shock. I would have thought the stock market would be impacting Chicago but I got it wrong this time. Rich are buying anyway.
Maybe they all work for CF Industries or AbbVie, I don’t know. Lol.
“And don’t give me these bullshit articles about how all this population of people is leaving Illinois and/or Chicago which has nothing to do with high net worth individuals. Oh, and by the way, the housing market has been incredibly hot and strong given all these people are fleeing. I guess just as many are coming in then? How else to explain record sales and record low statewide housing inventory?”
Does Sabrina only think low-income residents are the only ones leaving Chicago?? Unfortunately, most of them can’t afford to leave, so the ones that are leaving include the ones that are receiving generous relocations packages. Owners of Chicago DT real estate have seen basically no appreciation in the past 3 years, unlike anywhere else in the U.S. I would like to send a survey to the Palmolive owners and ask them if they think the market is “hot”. My theory is there are 19 owners who have their places listed and 19 more that would like to sell if they could get out.
“Owners of Chicago DT real estate have seen basically no appreciation in the past 3 years”
Using this one as an example, it’s basically no appreciation over 3 years, 10 years and 15 years.
“Unfortunately, most of them can’t afford to leave, so the ones that are leaving include the ones that are receiving generous relocations packages.”
The rich are getting relo packages now? If they were, they’d sell these luxury units to the relo company because their new company would pay them for the property. But they’re not.
So, JJ, you really don’t have any data showing the rich are “fleeing” Chicago. It’s just because you say they are. Or because there are a bunch of units available in the Palmolive. How many are available in No 9 Walton? I’ll answer: 3 units. And one of those is the unbuilt out Ken Griffin penthouse. This is one of the hottest luxury buildings in the city.
Sadly, the Palmolive is no longer “hot” as we’ve discussed on this site. It’s an older building now. It was converted nearly 20 years ago. There have been a bunch of newer luxury buildings in the time period since then.
Additionally, the rich want their units updated (doesn’t everyone though?) and many Palmolive units have the original kitchens and baths. The finishes are not what is “in” in 2022. This is likely hurting re-sales in that building as well.
The market is fickle. Everyone wants new. And Chicago has plenty of land to keep building luxury buildings so we are. The demand isn’t there for the Palmolive right now. There are too many luxury condo units.
“Owners of Chicago DT real estate have seen basically no appreciation in the past 3 years, unlike anywhere else in the U.S.”
This is incorrect. Prices have actually gone DOWN in most buildings downtown.