Vintage Week: A New Renovation in the Drake Tower at 179 E Lake Shore Drive in the Gold Coast
This 2-bedroom in the Drake Tower at 179 E. Lake Shore Drive in the Gold Coast came on the market in October 2021.
The Drake Tower was designed by Benjamin Marshall in 1927. It’s a co-op with 68 units.
The building has attached rental parking, an exercise room and door staff.
The listing for this unit says it is a “new renovation.”
It has new plumbing and new space pak air.
It has wainscoting and crown molding as well as a built in buffet in the dining room.
The foyer has a cove ceiling and what appears to be a wine refrigerator.
The galley kitchen has white cabinets with Wolf, Miele and Subzero appliances.
While there are two bedrooms, it’s the second bedroom that has an en suite bath, and NOT the primary bedroom.
There are 3 walk-in-closets.
The unit has the features buyers look for including in-unit washer/dryer and rental parking in the garage for $200 a month along with space pak air.
The building’s exercise room has a pilates reformer.
There is also a wine locker and the unit has a large storage room.
The listing says you get “white glove service” in the Drake Tower and “true security.”
Listed at $799,000, will being “new” on historic East Lake Shore Drive get this sold quickly?
Curt Ratcliff at @Properties has the listing. See the pictures and floor plan here.
Unit #603: 2 bedrooms, 2 baths, 1435 square feet, co-op
- Sold in September 2018 for $555,000 (according to Zillow and Redfin)
- Currently listed at $799,000
- Assessments of $3100 a month (includes heat, gas, taxes, doorman, cable, exercise room, exterior maintenance, scavenger and snow removal)
- Taxes are included in assessment as it’s a co-op
- Parking is rental in the building for $200 a month
- Dogs and cats allowed
- Space Pak cooling
- Washer/dryer in the unit
- Bedroom #1: 13×20
- Bedroom #2: 16×15
- Living room: 11×19
- Dining room: 6×12
- Foyer: 5×6
- Kitchen: 12×6
- Laundry: 3×5
A unit of this size at this price point is intended for the pied-a-terre folks. Assuming a cash purchase, monthly payment on this is $3,100, or $37,200 annually.
I suppose if you have a certain amount of money, it doesn’t matter, but it seems like it’d make more sense to check into a 5 star hotel 70-80 nights per year for the same cost without having concern for maintenance, leaving the $799k purchase price in the stock market.
Chicago continues to be in a state of decline, and that’s reflected in the Near north side stagnant home prices. Barring a miraculous flip in leadership — we know this place won’t appreciate much over the next 20 years.
Pretty low floor and no private o/s space and pay for parking
Unless you always dreamed of living here, there are better options
Imagine JB Pritzker trying to make a Thanksgiving meal in that kitchen
This is a lovely unit, though it has just one window facing the lake. The price is relatively low for this building and location.
Still, even if you pay cash for the unit, you face $3,300 a month in HOA and parking fees. I imagine the buyer exists who is willing to pay this, but it might be a while before that buyer shows up.
How much do you think the bathrooms cost to remodel? I know in these old condos it can be quite expensive compared to single family homes. I have gotten quotes for my condo that are all over the place.
“Imagine JB Pritzker trying to make a Thanksgiving meal in that kitchen”. That was my first thought when I saw the kitchen.
Overall, nice remodel (see 2015 pictures) with finishes appropriate for the building’s style. Much nicer than anything else for sale in the building currently. I don’t like that office is in the living room. What’s in the u pictures second bedroom?
Jenny- At least you had better results in actually getting estimates than I did for a kitchen reno. Contacted 10, 4 can out, and only one came back with an estimate.
“Still, even if you pay cash for the unit, you face $3,300 a month in HOA and parking fees.”
This includes the property taxes, don’t forget, which are over $1000 a month, right?
But you still have fairly high assessments because there are just 68 units that are absorbing the costs of the older building maintenance and having full time door staff. (as we’ve discussed before when discussing assessments.)
There’s something to be said for not having to maintain a home and to just pay out the $3300 a month and you’re done.
But is the prestige of East Lake Shore Drive still there?
That’s really the question. Because otherwise, you could buy a 2/2 in another location that has lower HOAs.
“Unless you always dreamed of living here, there are better options”
East Lake Shore Drive used to be the dream for many. Question is: is it still a prestige street/address?
“Chicago continues to be in a state of decline, and that’s reflected in the Near north side stagnant home prices. Barring a miraculous flip in leadership — we know this place won’t appreciate much over the next 20 years.”
That’s a bit dramatic, isn’t it?
You KNOW that prices won’t go up over 20 years? 20 years is a LONG time. That’s forever in housing.
Right now, there’s a generational shift happening on the Near North Side as the Silent Generation and older Baby Boomers die or decide to finally move full time to Florida and Arizona. There is a lot of turnover in the older buildings.
Eventually, that will run its course.
You are assuming no one will ever want to be on the Near North Side again.
Yet condos are selling briskly in the new buildings like Tribune Tower. Tribune Tower has sold about 50% of its units during a pandemic and when it’s located on the Mag Mile which was one of the epicenters of the looting/riots.
It’s going to help to get a lot of Millennials into the neighborhood through new construction apartments like One Chicago, The Guild and the new building that will go in in the Barnes & Noble location on State. There hasn’t been much new construction in the neighborhood as it’s mostly built out. But the younger renters want the “new” so they will be moving in. That will bring a lot of new blood.
Additionally, when you rent in a neighborhood and like it, you start to look around for something to buy there.
I wouldn’t be buying for the short term in this location, however. Because there IS a lot of inventory and that has to work its way through.
‘ That’s a bit dramatic, isn’t it?
You KNOW that prices won’t go up over 20 years? 20 years is a LONG time. That’s forever in housing.’
I’m just going off fact based evidence. Prove me wrong. Show me some 2+ bed/ 2+ bath co-op properties in the Gold Coast thats values have increased faster than the rate of inflation over the last 20 years. Closed sales only in last few years. Obviously major rehabs don’t count.
“East Lake Shore Drive used to be the dream for many. Question is: is it still a prestige street/address?”
For those <55, no
Honestly whats the draw to this area? Everytime I see properties in this area "Glory Days" pops into my head.
Chicago has a lot of (relatively) cheap land. Buyers buying in the new HAWT ™ areas are going to spend a lot of time chasing the dragon over 20 years. Those that hold on too long are going to be stuck with an asset thats declining
Chicago aint NYC
“Imagine JB Pritzker trying to make a Thanksgiving meal in that kitchen”
It would be dubbed “Operation Lard Ass”
“Imagine JB Pritzker trying to make a Thanksgiving meal in that kitchen”
I don’t think there’s room for two turkeys in that kitchen.
Only one window with a view, the rest of windows are just concrete views. Just not enough pro’s with this unit to offset the major con of 3.1K/mo in HOA’s (+taxes).
“That’s a bit dramatic, isn’t it?”
More dramatic than this:
“Society has been collapsing for several months. There are no rules now.”
??
“I don’t like that office is in the living room.”
The writing desk? The “office desk” is in the 2d bathroom.
Interesting decision to have the primary bedroom be the one w/o en suite bath.
“More dramatic than this:”
Yeah- it IS more dramatic to say that the near north side real estate will not appreciate for 20 years.
Come on.
But seeing as we had a drive by shootout at 1500 N. Milwaukee over the weekend with 4 or 5 shot, yeah, society IS collapsing. There are no rules.
Thank goodness the marathon went off without a hitch both here and in Boston.
“Those that hold on too long are going to be stuck with an asset thats declining”
That’s news to those who live in:
Lincoln Park
West Loop
Fulton Market
South Loop
Lakeview
Logan Square
South Shore
Hyde Park
Norwood Park
Portage Park
Irving Park
Bucktown
Heck, I could probably list out just about all of the city’s communities and all of them have seen price appreciation.
Downtown is the only area that has gotten hit due to COVID, the rioting/looting and over building in the luxury price point. Gold Coast seems to be dragging as other areas of the city attract the $3 million to $4 million price point including Graceland West. Living on Astor Street, for example, seems “out” right now.
But if you live in a popular building, like 30 W Oak or 9 W Walton, your chances of selling for a nice gain are pretty high.
“Show me some 2+ bed/ 2+ bath co-op properties in the Gold Coast thats values have increased faster than the rate of inflation over the last 20 years.”
Wait- so you’re not allowed to update the property now?
Every property needs updating.
And they have to be co-ops? And only in the Gold Coast and no other near north side neighborhood?
Well- there aren’t many co-op buildings in the Gold Coast, so that’s certainly going to narrow it down.
So let’s be straight. Your “doom” prediction is ONLY about 2/2s, unrenovated, in the Gold Coast and they must be co-ops.
Everyone else isn’t doomed presumably?
I thought pic 19 was the living room with a printer in it. Guess it is the second bedroom and an ok place for a printer.
Dear Sabrina,
This post centers around a 2/2 Gold Coast co-op. The discussion is around the value and salability of the property. I indicated that, based on recent 20 yr history of other Gold Coast co-ops, I didn’t believe the featured property would appreciate over the next 20 years. This is the same data that any reasonably intelligent and budget conscious prospective buyer would look at.
You said I was being dramatic for concluding that this property won’t appreciate in the next 20 years. So I’m asking you, what data are you looking at to form your opinion?what 2+/2+ (Or more) Gold Coast co-op properties have you seen appreciate? Yes, only Gold Coast co-ops are relevant in this analysis. Comparing Apples (co-ops) to apples. Not apples to oranges (condos and houses).
Here’s the list of the 84 Gold Coast co-op properties with at least 2 bedrooms and 2 bathrooms that have sold in the last 3 years.
Short of someone doing a major rehab (due to decades of incremental updates being neglected), I couldn’t identify any properties which appreciated faster than the rate of inflation. Could you?
https://www.redfin.com/zipcode/60611/filter/sort=lo-days,property-type=co-op,min-beds=2,min-baths=2,include=sold-3yr,mr=2:26091
“based on recent 20 yr history of other Gold Coast co-ops, I didn’t believe the featured property would appreciate over the next 20 years”
KK:
you need to clarify that by “appreciate” you mean specifically “appreciated faster than the rate of inflation”.
(yes, I know you did, but it’s necessary around here to not only beat the dead horse, but to beat it until you’ve beat its bones into dust on this subject)
Some here will insist that a 20 year hold where sale price = purchase price plus [CPI minus 10bps/yr] = “appreciation”. And, if even willing to respond to being calle out on it, say something like “you have to live somewhere, would’ve paid rent instead”.
Do these same people ignore property taxes, maintenance, capital expenditures, etc in their calculations?
“ignore property taxes, maintenance, capital expenditures, etc in their calculations”
It’s almost like there have been no rules for a long time.