Palmolive 2-Bedroom Short Sale Closes 31% Under 2006 Purchase Price: 159 E. Walton
We last chattered about this 2-bedroom unit in The Palmolive at 159 E. Walton in the Gold Coast in September 2009.
See our prior chatter here.
At that time, the unit was a short sale and had gone under contract within 3 weeks. It had been heavily commented on in the media due to it being located in one of the Gold Coast’s most popular luxury buildings.
Basically, the gist of the media reports was, “even the rich are struggling.”
It looks like it fell out of contract at that time because it was re-listed in February 2010 for $1.15 million.
It has finally closed with a sales price of $1 million (the parking was not bought with the unit.)
That is 31% under the 2006 purchase price. It sold for $536 a square foot.
Did someone get a deal?
If you have a redfin account you can see the pictures.
Carol Collin at Baird & Warner had the listing.
Unit #13B: 2 bedrooms, 2.5 baths, 1867 square feet
- Sold in May 2006 for $1.307 million
- Originally listed in February 2007 for $1.8 million
- Reduced several times
- Withdrawn in October 2007 at $1.6 million
- Re-listed in March 2008 at $1.629 million
- Reduced
- Withdrawn in October 2008 at $1.55 million
- Short Sale and re-listed in August 2009 for $1.15 million (plus $50k for parking)
- Under contract in September 2009
- Re-listed in February 2010 for $1.15 million (plus $50k for parking)
- Sold in November 2010 for $1 million (no parking included)
- Assessments of $1,347 a month
- Taxes of $10,000
“(the parking was not bought with the unit.)”
looks like someone else heard about the valet parkers!!!
OK – finally something I know more than anyone here about!!! The building is nice, finishes are awesome – but the problem with these units is that, unless you get a really big unit (over 2500 sq feet), the condos feel a bit cramped and the layouts are odd. In addition, the less expensive units overlook the horrible Westin hotel. Only a very few units have outdoor space. All in all, the price you are paying is for bragging rights and the opportunity to live with other rich (some well known) people. Location is good but very very congested as soon as you walk out the door (because of the Drake). I personally loved the Drake MUCH MUCH more than this building.
In terms of this unit, I personally wouldn’t buy in the building at this price. I think for a million dollars, there are several better choices. It is only when you get to the 3-4 million dollar places here that it makes sens (because these units are spacious, have better layouts, have outdoor space and better views)
Unit 8E is a short sale, is 1848 sq feet w/ 2 bed and 2.5 bathrooms and is on the market for 810k (? short sale). THIS would be a good buy for someone (but again, weird layout, bad view and no outdoor space).
i love this building. there was a cc post on here a few years ago about unit that sold in the 600s i think.
The 1 bedroom 1 bath units (only 8 in the building) have gone for high 500’s to 700 or so during the sizzle years
http://cribchatter.com/?p=6050
Out of immense curiosity, what is it about this building/these units that people like so much? I bought into the hype and have to say that I am somewhat disappointed. Construction is very solid and high end, but seriously, the layouts and views should not command these type of prices.
im thinking of 190 e. walton. nevermind.
Clio,
It appears that the parking was not purchased with the unit, is there any oversupply of parking spots available? If not, very bad move on the purchasers part.
@Clio, were you driving north bound on state on saturday around 12:00. If so I saw the red lambo, made my day!
“If so I saw the red lambo, made my day!”
Personally, the attendant shower of rose petals sort of pisses me off.
My guess is that without parking perhaps the unit was purchased by a neighbor unit to be combined into a larger space. I’m still surprised that they did not buy the spot(s) but to each their own. If they just were trying to save cash n a million dollar place then they are in for a stupidity beat down when they list this unit for sale without parking.
“@Clio, were you driving north bound on state on saturday around 12:00. If so I saw the red lambo, made my day!”
I WAS driving north on state to ontario around 1230pm on saturday. Wow – what a small world.
Parking is strange in the building- although you can buy spots, parking is valet and I am not sure if you get a specific assigned space (deeded spot) or if you just get ” a space”. Either way, it doesn’t matter – you can’t park in your spot anyway – the attendant just takes your car. I initially rented a spot because I was only going to be there a few nights a month and it was cheaper to rent (250/month). Of course, becasue of some personal issues with the parking attendants, I now rent a spot close by.
I love the Palmolive and if I had $700K to drop on a smallish place,or $1.5M to spend on the one featured here, I’d probably be dumb and clueless enough to buy one of the smaller units, so besotted with this building am I.
Something about the architecture, and the severe elegance of the rooms. There is nothing else exactly like it.
Sorry I’m late to the party but
Are we running out of land? $500+ a sq ft?
FREDDIE MAC ATTACK!
“Freddie Mac Raises Mortgage Fees as It Seeks Adequate Payments”
http://www.bloomberg.com/news/2010-11-22/freddie-mac-raises-some-mortgage-fees-to-lenders-selling-it-riskier-assets.html
It appears from the article all loans backed by Freddie Mac as of 3/1/11 will need at least a 25% down payment in order to dodge the new origination fees.
I wonder what impact this Freddie Mac attack will have on house valuations*
*Normally this would be a facetious comment but here in Chicagoland where we have the biggest debt junkies of the midwest it could be the case that so few mortgages have 20% down as it is this won’t have a significant impact.
Clio-
Just buy a unit at 30 W. Oak and be done with it. It’s the best building in town.
MGG
Laura,
I love the way the building stands out (especially when you are driving south on LSD). However, although the architect/builder did the best job possible, the building was just not meant to be condos. I am telling you, after being in many units, there is something very odd about the layouts. It is not conducive to normal living. You really feel as though you are in an old hotel. There is something very claustrophobic even with an 1850 sq foot unit. I don’t know if it is the lack of an outdoor space, the odd layout, or the lack of any type of view (all I stare at is a wall of windows from the Westin). Believe me, you would NOT like living here. I don’t know how people who live facing south do it. In order to make it worthwhile, you need to face north and clear the Drake (then, of course, you are talking in the 3-7 million range). Otherwise, you feel like you are in the servant’s quarters (and are treated as such by the staff!!!).
Matt,
funny you should mention it, but I am VERY interested in unit 6F in that building (yeah, it’s the cheapest one bedroom). I think it is priced pretty well. Do you know the building well?
Clio-
I am very familiar. Standard half floor units are the best with 12×24 terraces, but you can’t go wrong.
MGG
Clio,
I know someone who is looking for a high end 2/2 and was looking at the Palmolive and other high end condo buildings. Since you know a lot about the Palmolive and aren’t giving it a whole lot of props unless you have a unit towards the top in the 2 million plus price range, would I being doing my friend a favor by pointing him towards a 2/2 in a building such as Superior 110. I realize that building does not have all of the luxurious amenities that the Drake has, but 2/2’s at Superior 110 are going from 568k to 638k which is a huge discount compared to the million plus for a 2/2 in the Drake with an odd floor plan? I don’t know their exact budget but from his comments they were looking for under 1.3 million. Thanks
“It appears from the article all loans backed by Freddie Mac as of 3/1/11 will need at least a 25% down payment in order to dodge the new origination fees.”
Bob: It says it will add on $10 a month to a $200,000 mortgage. Will this really have that big of an impact?
“Parking is strange in the building.”
Isn’t it about $70,000 for a spot? So maybe someone ran the numbers and decided that renting a space made more sense.
Mike,
The Drake and Superior 110 are 2 completely different types of buildings that would appeal to 2 totally different personas. The Palmolive (159 E. Walton) is ACROSS from the Drake and is a mix. Having lived in the Drake and Palmolive, I can only speak to the positives and negatives about these two buildings. I didn’t mean to sound overly negative about the Palmolive as there are GREAT things about it for the right type of person. I can summarize the positives and negatives (as I see them) for both buildings:
Drake positives:
– direct access to the Drake and it’s lounges/restaurants. This was the biggest perk for me because, in the winter you wouldn’t even have to get all bundled up to grab lunch/breakfast, drinks, etc. Also, if you go to the bar/lounge, it is always entertaining and you have a revolving group of people with whom to converse, etc. Also, you can live in a much smaller unit (mine was 1200 sq feet) without feeling claustrophobic because the lounge and common areas of the Drake can serve as your living room (I often met friends in the lobby and went from there).
– prestigious building/address – doesn’t get much better
– nice nice nice people. older, but very well mannered and cultured
– awesome mechanical rotary in front
Drake negatives:
– high high assessments (mine were 2200/month for a unit that cost about 600k).
– doesn’t allow financing (although I think they may now allow 50% financing)
– no outdoor space
– units are older
Palmolive positives:
– high high high end finishes – very very solid excellent construction – surround sound in every unit I have seen. the highest quality finished I have seen. also, you can’t hear your neighbors at all
– prestigious landmark building
– well known/famous neighbors
– nicer gym/spa than the drake
Palmolive negatives:
– expensive for the amount of space you get
– no outdoor space for most units
– terrible awful gut wrenching, vomit inducing, nauseating views if you are facing south. the most depressing view in the city (Westin Hotel).
– have to go outside to get something to eat/drink, etc.
– neighbors are not as friendly as in the Drake (a little stand-offish)
All told, if I had to advise someone about buying a permanent home, I would go for another building with more space. 1.3 million is not going to go very far in either building (whereas you can get huge vintage or modern units in nearby condos/coops that are much nicer). For an in-town, both are great (I like the Drake better) but the buildings (esp the Palmolive) are really meant for the uber-rich who can spend over 3-4 million. Every other unit seems like an afterthought.
“Bob: It says it will add on $10 a month to a $200,000 mortgage. Will this really have that big of an impact?”
Well its an additional $1,500 due at origination of a 200k mortgage. If the mortgage is held to maturity then yeah its only 10/mo. If it is isn’t that additional origination fee isn’t refundable.
Mike HG –
Wait a minute – I just re-read your post – your friend is interested in a 2/2 at the palmolive? uhhh, actually the Palmolive is a great building and 2/2s are awesome. In fact, I may know someone (wink wink) that may be willing to sell!!!
I’m wondering if the fact that the Palmolive was originally an office building has something to do with the funky layouts. As in the infrastructure was fine for offices, but wasn’t as easy to build around for living space.
Somewhere out there is a picture of the Palmolive when it was the only tall building at that end of Michigan Ave. The searchlight is on at full blast and shining out over the lake.
“Well its an additional $1,500 due at origination of a 200k mortgage. If the mortgage is held to maturity then yeah its only 10/mo. If it is isn’t that additional origination fee isn’t refundable.”
Won’t people just roll the fee into their loan? Or if they can’t for some reason- someone buying who doesn’t have $1500 extra to close, shouldn’t be buying.
Yeah- the fees add up- but most people don’t pay any attention to them. How many people are thinking about the 1.25% transfer tax when they buy? Not many.
Now- if Fannie actually made people put down 25%- that’s a different story.
By the way- why’d the Palmolive even bother with the smaller units? Why do any of these luxury buildings?
Because 30 W. Oak has some too- and they don’t exactly have the greatest views either. Don’t those look into the townhouses or something?
“Yeah- the fees add up- but most people don’t pay any attention to them.”
Their cumulative effect definitely impacts affordability. Thinking back to the condo segment which Fannie had already implemented this requirement (possibly Freddie too), at the margin it raises the APR of a 30yr mortgage like 20bps, at least with the properties I was looking at.
Its funny our central bank says their trying to lower interest rates and not trying to monetize the debt, yet what they are doing via pushing down interest rates is in opposite lockstep with what the GSEs are doing.
Sabrina,
You are correct. The 1 beds in 30 W Oak don’t have great views. There is one on the market (off and on) for months, around 540K plus parking now.
Palmolive appeals to a certain type of buyer. You cannot be a “view” person to live there unless you do have the big bucks. Agree with Clio there.
There are 4, 1 bedroom units on the market in the Drake. 179 E Lake Shore drive
Compare and contrast-TOTALLY different feel
Gold Coast thoughts:
Personally, I think there is a completely different feeling depending where you are on in the Gold Coast. ELSD (Drake and Palmolive) is closest to that NYC 5th ave type of feeling. Then there is the enclosed older money area of Astor street. Finally there is 30 W Oak which I think more of Mothers and Viagra triangle.
—
Just south of 30 W Oak, how many floors up is the new school going to be?
“Just south of 30 W Oak, how many floors up is the new school going to be?”
It will be three stories high, plus a green roof with playground, so it won’t be blocking anyone’s views.
Yes, but 30 W Oak has a nice modern feel…the buildings finishes are far less Viagra than the Drake, ELSD or the Palmolive.
The assessment at The Drake includes real estate taxes. Also, valet parking, as of a few years ago, was only $110/mo. Considering the type of property it is, I don’t think the $2k assessment that Clio spoke of is terrible. You’ve got an E. LSD address, an elevator operator, access to the hotel that Clio mentioned, etc. It’s pretty sweet if you like to be fussed over. Someone I know pays about that much in assessments and taxes for a crummy condo building and their monthly, crash happy valet car parkers cost $300/mo + daily tip.
Clio’s right, they allow 50% financing. However, I’d be more inclined to say that the financially sound folks live at The Drake given the financing restrictions and the, if memory serves, $1 mil net worth requirement. I don’t recall if that has to be liquid or not, but the building knows how to keep people like me out of there. When folks buy into a building like that, you know they don’t expect a quick resale because a lot of buyers don’t have the means. Furthermore, people are less inclined to walk away from their homes because, at the very least, they have 50% equity in it. That, in my world, would qualify someone as being financially sound.
I love the Palmolive and its location. I’d definitely consider living there if I had the money for a premium view. I looked at a unit facing the Westin when the building went to market, but I couldn’t justify the purchase. I’d go nuts looking into that wall. I live in a much less desirable building, but the view ain’t bad and because of that, and the lower price point, it should be easier to sell when the friggin market recovers.
“I don’t think the $2k assessment that Clio spoke of is terrible”
dave – you are right – but the 2k assessments was for a 1200 sq ft 1 bedroom in-town. The assessments for the larger units (where people live full time) are 4-6k which starts getting “up there”. Regardless, I would/will move back there in a heartbeat when/if I get the chance. It is an awesome building and, even though, you may not personally know your neighbors and evry maint. person/door person, you feel like one big family. If any door person/maint. person wants to know how to act, they should go to the Drake Towers. I have to say they are the best!!
Drake and Palmolive’s location seems like golden prison bars to me. How many times can someone walk under LSD, smell the piss, and go look at the lake??? it gets old after awhile. Plus, the lake is inhospitable most of the year, colder and winder than a North Sea oil platform.
you can’t walk anywhere!
Go where? To the Hancock plaza? It’s a long hike to State Street in the wind. Crossing Michigan is a pain, there is tons of traffic. Getting the car out would be another colossal hassle. I feel these locations are limiting rather than liberating, despite their high cost.
Dan – you are 100% correct. These places are not for everyone. This is why it is so important to examine your life, friends, lifestyle before buying any place. For me, the location was ideal because I patronized the Drake lounges/restaurants and it was very convenient(in the winter, I wouldn’t have to leave the building but still wouldn’t feel cramped or get cabin fever). Also, I cab it wherever I go (I never walk around) – so having a doorman/valet at the Drake to get cabs was great. Also, at 3am when I wasn’t that coherent – just saying “the drake” to the cab driver (without having to explain how to get there) was priceless.
If I was someone who walked around and explored the city by foot (or lived permanently downtown), I would never live in the Palmolive/Drake. There are better choices.
” It’s a long hike to State Street in the wind. Crossing Michigan is a pain, there is tons of traffic.”
wow, impressive whine. I live around here and complain a lot about the area but crossing mich ave and walking to state street is really easy unless you’ve no legs. Or stumps like cotton hill and groove
I guess my point is that I live in a glorified frat house and don’t pay that much less in assessments, and taxes, for about 1,300 sf. That said, The Drake looks very appealing to me. I also like the thick walls and, from my experience, more mature demographic. I value quiet neighbors whose significant others don’t come home after a night of boozing and kick doors in. Anything’s possible, but I’ll bet it happens where I live a whole lot more than it would there.
” I value quiet neighbors whose significant others don’t come home after a night of boozing and kick doors in….”
this is true – even if they won’t say anything to your face, there is a “shame” you feel the next morning when you know you were too loud. It is a type of “code of silence” to which everyone adheres. When I brought overnight guests back who were a little inebriated, I, myself, was annoyed at the noise they would make. It is almost like living in your parents house and bringing someone home. You have that type of respect. It is strange but true – and I haven’t experienced this in any other building in which I have lived.