Selling a 3-Bedroom in Walton on the Park: 2 W. Delaware in the Gold Coast
This 3-bedroom in Walton on the Park at 2 W. Delaware in the Gold Coast just came on the market.
It last sold in 2010.
We haven’t chattered about this building in 6 years. The last time we did was in November 2010 when the developer cut prices.
See that chatter here.
Last spring, however, the building was back in the news because a developer had bought up units that were being rented with the intention of re-selling them as condos.
In another sign of the resurgent downtown condo market, a venture led by Letchinger plans to convert Walton on the Park, now primarily a rental building, back into condos. Begun in the waning days of the condo boom, the 201-unit tower at 2 W. Delaware St. was one of several downtown developments that ran into loan trouble after the bust and were reborn as rental properties as the apartment market took off.
Now, with downtown condo prices back above their peak 2008 levels, Letchinger aims to profit by returning Walton on the Park to its original state. Condos in the building will start in the mid-$700,000 range and go up to about $3.7 million, he said.
“It’s really responding to the demand that’s out there for new condos and the lack of supply,” said Letchinger, president and founder of JDL Development.
But to further complicate the picture, the second tower, No. 9 Walton, which was always planned with this development, is currently being constructed just to the north of this building.
Letchinger was aware of that because he owns it. No. 9 Walton, a luxury boutique building across the street from the Ogden School, is nearly sold out.
You can see No 9 Walton under construction below. That is Walton on the Park behind it.
This unit has both north and south facing views and you can see No. 9 Walton in some of the listing pictures.
It has a Viking kitchen with custom Italian cabinetry.
Two of the bedrooms are ensuite.
The unit has central air, washer/dryer in the unit and one heated garage parking space included with another available for $50,000.
The listing says “developer controls the management” meaning that there is no condo board.
The original sale included both parking spaces so if you include the second space at $50,000 this unit has come on the market for $70,500 less than the 2010 purchase price.
Is this a deal for a 3-bedroom in this location?
Mariah Dell at Berkshire Hathaway KoenigRubloff has the listing. See the pictures here.
Unit #801: 3 bedrooms, 3 baths, 1920 square feet
- Sold in August 2010 for $1,319,500 (included 2 parking spots)
- Currently listed for $1.199 million (includes one parking spot but second one available for $50,000)
- Assessments of $1243 a month (includes heat, a/c, doorman, cable, clubhouse, exercise room, pool, exterior maintenance, lawn care, scavenger, snow removal)
- Taxes of $18964
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 15×12
- Bedroom #2: 16×11
- Bedroom #3: 11×10
Per agent comments on listing: “One owner owns 85% of the building. Investors will need cash. Owners will need at least 25% down. “
““One owner owns 85% of the building. Investors will need cash. Owners will need at least 25% down. “
Seems like a great place for foreigners to park some ill-gotten gains while they still can…
looks like they are selling for below the 2010 price because they must be losing their view on the North side of the building.
So when they say one owner owns 85% of the building, does that mean some random developer / investment firm bought a bunch of units at some point and is renting them out? Or as HD said, is this just a parking spot for some illegal foreign money?
Riz asked “…does it mean some random developer/ investment firm bought a bunch of units and is renting them out…?”
Sabrina’s summary hints at the answer but imo doesn’t explain it. In 2011 the Dart family (billionaire heirs to Dart Cup Co who’ve disavowed US citizenship for tax planning purposes) paid $83 mil to purchase 160 rented/ unsold condos in 2 W Delaware plus adj 17K sq ft site approved for more condos from defaulting developer borrowers. In 2014 Darts sold their investment to Crescent Heights for $160 mil. In 2014 Crescent Heights resold the development site to JDL for $70 mil – JDL is building 71 unit ‘9 W Walton’. JDL says it’s 90%+ pre-sold @ average sale price of $4.5 mil w/ 4500 sq ft avg unit size. In 2016 JDL purchased the 160 units at 2 W Delaware from Crescent – JDL intends to sell the formerly rentable units after spending $20 million upgrading the building & combining smaller (ie 1 & 2 bedrm units) rented units into larger high end condos but at lower PSF price point than what it costs to purchase brand new @ 9 W. Happy Thanksgiving all!
Typo alert: Avg sale price at 9 W Walton reportedly is $5.5 mil not $4.5 mil.
Riz: I forgot to give my opinion FWIW after falling into a brain fog from drafting what sounds like a biblical recounting of real estate (‘Ron Shipka & Richie Stein begat Dart who begat Crescent who begat JDL twice’). When JDL first announced its plan to rejigger & resell its units at 2 W Walton it stated its price range at mid $700K -$ 3.7 mil. If I were you & had any interest in the subject unit, recognizing the subject unit’s a target of opportunity for someone who’s able to close a purchase, I’d try to find out more detail re what JDL’s unit sizes at 2 W. will be and what their projected average PSF closing price will be (their quoted prices are likely base ask prices). 2 W Delaware building will be a construction zone for some time but ultimately IMO the floor for this unit’s value at re-sale time will be set by JDL’s closing prices.
no privacy, you’d always have your blinds drawn
My favorite part of this listing is how that rug on that pathetic balcony, isn’t even straight.