Flipper Alert: Escape from Burnham Pointe
We’ve seen one or two early “flip” attempts in Burnham Pointe at 730 S. Clark in the South Loop in the last few months. Closings are expected to start in the building in late summer/early fall of this year.
The building will have 298 units.
When I last chattered about the building in October 2007, it was only 50% sold. Here are some pictures from the developers website:
Currently, the developer is offering $5,000 to buyers who send their friends to the building to buy units.
But this investor recently appeared on Craigslist trying to sell a penthouse unit.
He is not trying to sell it for more than he paid- he simply wants someone to buy out his contract. The ad says closing is expected in December 2008.
Unit PH-2709 – Gorgeous North/East Corner Unit
PENTHOUSE – 1601 Sq Ft. PLUS 200 Sq Ft TERRACE
The ENTIRE N/E Corner “09” Tier in this building is SOLD-OUT
In Central Station this unit would be $1M
This unit is FABULOUS!
Price: $849,900 (includes 1 parking space)
The Residences at Burnham Pointe [website]
One of my biggest complaints about most new towers is what they call “penthouse” units. Take this unit for example, a tiny kitchen, bedrooms that would feel cramped with any bed larger than a queen size, and it looks like this person counted the balcony space as part of the sq. ft. You would think developers would add at least 3 or 4 feet the ceiling height, or create a different plan but for the most part they just plop the same units and charge more for being on the top floor.
I almost purchased a 2 bed room unit there in ’06…Luckily I did not. Does anyone know what would be the legal implications for the investors who decide to bail out? They will lose 5 or 10% down payment, but a lot of some have signed a promissory note for 5 to 10% as well.
Will the developers actually spend money to go to court to make the person pay the note?
Maybe it’s just me, but comparing this unit to one in Central Station for a million dollars doesn’t seem to be the greatest marketing point. None of those are selling either.
huh–the owner took the craigslist ad down. Maybe it sold! 🙂
“huh–the owner took the craigslist ad down. Maybe it sold! :)”
Or perhaps he was getting a lot of mocking spam from CL real estate voyeurs telling me that he’s out of his mind asking $800+k for a lame “penthouse” with only 1292 sq ft (per builder’s specs).
it looks like this person counted the balcony space as part of the sq. ft
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Balconies, teraces and such are counted as sq ft for tax purposes.
Will the developers actually spend money to go to court to make the person pay the note?
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IMHO, No. The builders have no money just projections.
Jeff:
The legal implications are dependent likely on the terms of the contract signed since there may be express provisions on the issue. Absent that, the developer COULD sue for specific performance and try to force a closing since the sale of real estate may entitle it to such relief, but I suspect many would opine that the developer will take the downpayment as liquidated damages (if that is what it is entitled to under the contract) and try to sell again.
It’s usually hard to get specific performance against a buyer–a seller can determine monetary damages, at least eventually.
I concur, but the question was not how difficult one choice might be compared to another, but rather the “legal implications.”
Too true. Of course, in Cook County, it’s not worth it to a developer to run into court over a single, not multi-million dollar, condo, as it’s too likely to drag out for 4-5 years. And they can’t be trying to sell it during that time, or their argument for specific performance is pretty well shot.
Cook County cases in Chancery (where a specific performance case would be filed and heard) will not take that long but I agree the cost and time delays are factors a developed or anyone would want to consider. Actually, a developer should be trying to sell it during that time to mitigate their damages, but we are getting off topic.