Flipper Alert: First Flips Appearing in 2 W. Delaware in the Gold Coast
This 2-bedroom unit in the new construction high rise Walton the Park, at 2 W. Delaware, in the Gold Coast recently came on the market just 3 days after its previous closing.
It is a larger corner 2-bedroom unit with a 7×7 den and floor to ceiling windows.
The kitchen has stainless steel Viking appliances and granite counter tops on the large island.
The listing says it has 2 master suites.
It also has wide plank wood floors.
The building is a full amenity building with an outdoor pool.
Can you still flip new construction condos in 2010?
Bryan Eugenio at Coldwell Banker has the listing. See the pictures here.
Unit #1907: 2 bedrooms, 2.5 baths, den, 1520 square feet
- Sold in August 2010 for $1,008,000
- Currently listed for $1.1 million (parking extra)
- Assessments of $678 a month
- Taxes are “new”
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 14×12
- Bedroom #2: 12×11
Those assessments seem too low to last.
Nice, but not 1.1 million bucks nice.
What *is* that on the walls in the master bath?
Also don’t understand the v.common placing of a microwave above a in-wall oven–are those actually also convection ovens? If not, does anyone really use their microwave that much?
Yes – typically the microwave is also a convection oven. At least it is with the more upscale brands.
Its refreshing to see citizens engaged in productive economic behavior such as this and not just mere speculation and rent-seeking activities.
“SPECTACULAR CITY, PARK & SOME LAKE VIEWS” (from listing):
Is this mostly a west and north view? Ok but not spectacular I would think. I imagine you’re not getting much of lake views toward the east these days anyway.
“If not, does anyone really use their microwave that much?”
Use it more than the oven.
I used to rent a place across the street 2/2 for $2350. You can see the unit I rented http://www.youtube.com/watch?v=iEnxsMKDN_8. I liked the location as it was close to work and all the restaurants and bars you could imagine. Loud at night around here and I eventually moved a bit north to slow my pace down a bit. I wouldn’t be the one trying to flip a place in this area in this market. The Elysian hotel across the street came out very well (from street view) and I’d probably have taken a gamble with that place instead. and for over a million bucks I’d imagine you could find a nicer 2/2 around here. Looks like a nice pool though.
“Yes – typically the microwave is also a convection oven. At least it is with the more upscale brands.”
Do they work at all well as either?
except i really hope it not one of those architecturally flawed pools that is directly north of building and sits in the shade the entire day
“Use it more than the oven.”
If you never use the oven, then I’d agree. Like having the micro stashed in the pantry, out of sight, but usable.
i agree w/all of the above posts – if this was an investor who bought pre-construction, he/she might be better off renting for a few years (depending on his situation/carrying costs). I bought 5 units preconstruction w/ American Invesco in early 2000s (111 E. Chestnut and 33 W. Ontario). The rents on these particular units covers my mortgage interest/assessment/taxes. I, like many investors are just timing out the market (as I suggest this person should do – if he is an investor).
What kind of tile is that in the shower? I like it and wonder if that is something I could install myself?
“What kind of tile is that in the shower? I like it and wonder if that is something I could install myself?”
I’m sure you could “install” it yourself – just use the shower as your toilet
Oh boy, why would you admit that on this board? You must be newcomer.
“I bought 5 units preconstruction w/ American Invesco in early 2000s (111 E. Chestnut and 33 W. Ontario). “
Clio, how many units do you own in the Sterling?
Regardless of whether Clio is real or fictitious, I do enjoy good writing and character development. Please keep posting.
Don’t see this as a million dollar unit- Personally I would buy in trump at this price. You can get the same type of unit in the fordham for much less.
“Don’t see this as a million dollar unit- Personally I would buy in trump at this price. ”
IMO, Trump is completely over-rated. The location is “so-so” (not a very pedestrian friendly area – especially at night). In addition, there are a LOT of renters/visitors, etc. that make you feel as though you are living in a hotel. The condos seem like an afterthought and don’t seem very well planned. No private outdoor spaces (yeah, except for those few units that cost a lot). A lot of nouveau-riche douchebags live there – most likely attracted to the name.
Trump is the best located building in the city for those that work in the loop..
And I don’t quite understand your comment clio, are you saying that is doo-doo tile?
“A lot of nouveau-riche douchebags live there”
I can’t help myself:
I thought you said your city place was further north?
“And I don’t quite understand your comment clio, are you saying that is doo-doo tile?”
Yes, that’s what he’s saying, and I agree, unless it looks much different in person.
“nouveau-riche db’s”
Clio, you are the best part of my day.
Shine on, you crazy horse-owning diamond!
Hey look, it’s a slightly smaller version of Vetro’s 2+Den in a better location with upgraded finishes. And only three times the price. What a steal. *rolls eyes*
“clio on August 18th, 2010 at 11:28 am
A lot of nouveau-riche douchebags”
Anyone who uses the phrase “nouveau-riche” is pretty much a guaranteed douchebag himself.
“Clio, how many units do you own in the Sterling?”
that made me laugh for a first time in a while, thanks hd
clio, what color is your lambo so I can look for it on walton. I promise I wont throw anything at you
My money is so old it’s growing white hair.
OK – let’s get back to this building…
I think it would be important to find out who are the other buyers in the building (occupation, intention – owner occupancy vs rental, down payment amount, etc.). It is incredibly important (especially in these times) to make sure your neighbors are as wealthy as you.
I was fortunate enough to once have the opportunity to buy in a co-op. The application process was unbelievable!!! They want to know about all aspects of your life (not just financial) – in addition, you need letters of recommendation, etc. The process took 6 months (and had nothing to do w/finances). As a result, these co-op buildings (ELSD) are incredibly stable (and one of Chicago’s best kept secrets!!!).
“one of Chicago’s best kept secrets!!!”
Who in Chicago–with any clue *at*all* about high end real estate–consider the ELSD co-ops a secret, well-kept or otherwise?
“clio, what color is your lambo so I can look for it on walton. I promise I wont throw anything at you”
It is “rosso vik” – I guess a fancy term for “candy apple red”. It is a convertible (spyder) – but I won’t be there until the weekend of 8/27 (not my permanent home).
“As a result, these co-op buildings (ELSD) are incredibly stable ”
yeah because they are IMPOSSIBLE to sell…
“clio on August 18th, 2010 at 12:01 pm
It is…“candy apple red”. It is a convertible (spyder)”
lmfao.
Basically after broker fees, closing costs, taxes etc i think the extra 92k basically covers expenses. Seems to me its not so much a flip then perhaps some other transaction transfer. I am not a broker so I dont know why someone would want to do this within the same month but flipping a million dollar apt for a measly $10k you would think someone with that kind of coin wouldnt try such a high risk flip.
Co-ops are great if you want to live in a fully owner-occupied building. There are benefits which come with that. They are virtually impossible to rent out, so you don’t have the problems which come with renters and investors.
However you are seriously limited if you find yourself in a position where you have to rent out your unit. My building permits rentals for 2 years within a 5 year period, but tenants have to submit applications with finances and letters of reference to the Board, and I would have to pay a monthly commission to the Board, so that pretty eliminates any profit.
“I imagine you’re not getting much of lake views toward the east these days anyway.”
picture 14…right side of the picture…there’s about a 30 foot gap between two buildings a mile or so away…
“some lake views” are better than others…
“I am not a broker so I dont know why someone would want to do this within the same month but flipping a million dollar apt for a measly $10k you would think someone with that kind of coin wouldnt try such a high risk flip.”
I am sure that the person selling doesn’t “WANT” to sell but probably HAS to sell. You are right – this is not a flip- this is likely a pre-distress sale.
“I am sure that the person selling doesn’t “WANT” to sell but probably HAS to sell. You are right – this is not a flip- this is likely a pre-distress sale.”
Any idea of the amount of the deposit for contracts in this building?
Any (realistic) chance buyer gets out for less of a loss (including buy+sell costs, carrying costs, etc) than if they’d just walked away from the deposit?
p.s. will people really pay this kind of a premium to be in a new building with above-average (though not breathtaking at all) views, new appliances (in a cramped kitchen with average at best counter space) and a roof-top pool?
and parking not included?
math seems way the hell off. those perks make this place worth $700K+ MORE than tons of other 2 bedroom/2.5 bath places near the Loop?
i think whoever listed this place is off their meds.
I agree with Old Hickory. New construction is now similar to time-shares. You pay a super premium in order to buy and be one of the “chosen few” who has gotten in at the “ground floor,” but when you turn around to sell the unit, it’s only worth 50% of what you paid. Welcome to the new reality.
“Any (realistic) chance buyer gets out for less of a loss (including buy+sell costs, carrying costs, etc) than if they’d just walked away from the deposit?”
A good thought – but these people likely already closed on this unit and cannot just “walk away” from their deposit. True, they can stop mortgage payments, etc. but I bet they are not willing to go that route (they probably have several other assets, etc.) which would be negatively affected.
“I am sure that the person selling doesn’t “WANT” to sell but probably HAS to sell. You are right – this is not a flip- this is likely a pre-distress sale.”
Its hard to believe someone would close on a property and then it would become a distressed sale in the same month.
I dont think a bank would underwrite a mortgage post 2008 where they didnt do enough homework on the guy’s finances to the point where he is defaulting the first month the mortgage is due. I dont even think the first mortgage payment is due until 2 or 3 months after you close.
50 e chesnut is still nicer!
“It is…“candy apple red”. It is a convertible (spyder)”
lmfao.
– Oh really…. what is so funny about it, Bradford?
Nouveau-Riche DB
Clio,
Oh the irony…..You make me laugh!
In my opinion most people driving a Lambo fit that description. There are exceptions to every rule but I’d bet that not that many old money guys are sporting a candy apple red spyder. They are styling around in Bentley sedans, high end Mercedes, and a few of those f-you type personalties in RR’s.
This place stinks for that price. I think that there are many better options to choose from in RN for that $$$$$. Perhaps that extra $100K was deemed appropriate because of all of those expensive window treatments the owner put up and is including in the sales price.
“Its hard to believe someone would close on a property and then it would become a distressed sale in the same month.”
Haven’t seen a mortgage that doesn’t include first partial month’s interest in the closing costs, but I’m sure it’s happened.
As to my suggestion, it’s not about buyer’s remorse, it’s about deciding that trying to flip it would result in less total loss than walking from the deposit. Thinking about that, assume they paid cash–so their costs are: buy cost + sell cost + assessments + taxes + Insurance + op cost. And assume the deposit was 15%–$151,200. Call the total buy/sell costs $70k; op cost is effectively 0, in the short term, and T+A+I will burn a little under $2k/month–even if the actual sale price is the same as purchase, he’s got three years to sell it before he would have been better off walking. Obviously, a mortgage would shorten that substantially, but it’s still not an obviously irrational move to close.
“50 e chesnut is still nicer!”
uh, yeah…but that building has all full floor units and they are 2-3 times more expensive then this.
My final thought on this subject is that I enjoy looking at the great cars and think that they are a great fairly safe hobby for some individuals but they are not my thing. I laugh at the people that take out 72 month loans to get into a higher end car that they really can not afford to look important. There is no disrespect for people that can truly afford them. If that is your thing enjoy!
If I had that kind of budget to blow on transportation then I think that I’d buy a nice stretched out (just extra back seat legroom) Caddy or other moderate luxury profile sedan and have two drivers on call. That would be pimptastic! I’m often in the car trying to get work done. With a driver I could easily be handling calls, texting, e-mailing, and hitting Crib Chatter more often for my mid afternoon laughs. I know that my productivity would rise, stress level would lower, and my parking ticket budget would be eliminated.
It’s not everyones dream but for me that would be way cooler than owning a depreciating $300K asset!
“It’s not everyones dream but for me that would be way cooler than owning a depreciating $300K asset!”
Although a laborghini is a depreciating asset, the amount of pleasure I receive from it far outweighs it’s costs. jP3chicago, do you feel the same way about vacation/dining out? Those things cost money that you are not going to regain – it is the same thing for people w/ expensive cars.
“It’s not everyones dream but for me that would be way cooler than owning a depreciating $300K asset!”
You mean renting instead of owning? 😀
So much for my final thought….I agree with the pleasure comment! In my dream I will also not regain the annual costs of the drivers. Over time I would have spent just as much money. On the plus side I could expense some of that cost to my business.
On the other comment you hit me right on the money.
” jP3chicago, do you feel the same way about vacation/dining out?”
How did you know my two vices? My wife lets me do all our vacation planning. I consult her opinions but she knows that we will always travel in style. We have been around the world and typically stay at the Four Seasons or similar and often will book suites. (See my profile on trip advisor same name) As for dining we just had a celebration dinner at Trotters kitchen table two weeks ago. It was crazy expensive but brought us great pleasure and a wonderful memory.
Disposable income is meant to bring pleasure. what that is differs with every individual.
Good location, decent but not spectacular views, but the kitchen is TINY. Barely any counter space by the range. Kitchens cost a lot…probably the highest cost per square foot in a condo. Developers are cutting corners and making them tiny. If I spent a million dollars on a condo I want it to have a larger kitchen then my 2000 per month rental. Even thought the finishings are nicer its still an apartment style/rental kitchen.
the pool is on the northside? the sun gets blocked by the tower?
“the pool is on the northside? the sun gets blocked by the tower?”
Yes, the pool is on the north side of the building. There is a second tower that is scheduled to get built (eventually- maybe-someday?) north of the pool. Basically, the pool area is designed to be in between the two towers.
The tile appears to be Timber Stone. It looks somewhat like wood. You can find it at the nicer tile/home stores.
Regarding “tiny” kitchen – have you ever seen a kitchen in an un-rehabbed “original” space in Marina City? I have.
It was – and apparently still is – assumed by many builders of downtown-area condos that the residents will probably spend more time buying convenience foods, eating out or ordering out, than making meals “from scratch,” and thus don’t need a lot of prep. space – just a nice fridge for storing the leftovers and Lean Cuisine, and a microwave for reheating!
“New construction is now similar to time-shares. You pay a super premium in order to buy and be one of the “chosen few” who has gotten in at the “ground floor,” but when you turn around to sell the unit, it’s only worth 50% of what you paid.”
Wish that my timeshares were worth 50% of what I paid for them. Then again I knew they would loose value. They were not an investment. Like homes today, they are places to live albeit for one week at a time in a place you want to be. If I had to do it again I would only buy on the secondary TS market, but I loved those Marriott points. I have gone all over Europe with them. Off to Hilton Head over Labor day; Fort Lauderdale in December; and Maui in May. all with trades from my TSs worth less then the places I traded into.
Wise economic decision–probably not. Enjoyed them–absolutely.
Isn’t this the same price as that sweet penthouse from last month? Anyone remember the addy on that?