Walton on the Park Slashes Prices: 2 W. Delaware in the Gold Coast
The new construction high rise at 2 W. Delaware, Walton on the Park, in the Gold Coast just cut prices.
The 201 unit building recently started closings.
In September, Crain’s reported that nearly 100 units were still unsold and that plans for a second tower were scrapped. It also reported that the developers had gotten a loan extension to March 2011 which could then be pushed back to September 2012.
Some of the price cuts include:
Unit #704: 1 bedroom, 1.5 bath, 1000 square feet
- Was $545,000
- Now $508,000
Unit #2103: 2 bedrooms, 2 baths, 1280 square feet
- Was $840,000
- Now $686,000
Unit #1101: 3 bedrooms, 2 baths, 1920 square feet
- Was $1.28 million
- Now $1.155 million
With all of the price cuts we’ve seen on new construction buildings in the last few years, do they even help to sell units anymore?
Ralph Olivia at Coldwell Banker is handling the sales. You can see the model pictures here.
Or check out the building’s website.
Shipka, Stein win condo extension [Crain’s Chicago Business, Andrew Schroedter, September 1, 2010]
Do those cuts really count as a ‘slash’?
Reminds me of the old Eddie Murphy comedy tape…
WHAT A BARGAIN!
Read recent Crains article on Mesirow Stein’s office tower problems too.
cut all those prices in half and then you might drum up some interest.
yea that’s more like a haircut than a slash
$508/sf? LMAO! When is the liquidation auction? I’ll pencil it in for next fall.
“$508/sf?”
for the puny 1 bedroom! the others (above) are $535 and $601/sf.
What a joke.
“Read recent Crains article on Mesirow Stein’s office tower problems too.”
They either have facts they didn’t disclose or they are making suppositions that are plausible (likely, even) but not certainly true. That story was not.good.
The assessments for the units in this building have to be sky high….
What does this mean? sounds like Geithner/Bernanke/Greenspan-speak….
“They either have facts they didn’t disclose or they are making suppositions that are plausible (likely, even) but not certainly true.”
“What does this mean?”
The sale price is $380mm. The two loans total $374mm. They say that $380mm is “less than it cost to build” *and* that Mesirow is going to take a loss, while also having a few shekels thrown at them. It doesn’t necessarily add up as the author describes it, which is most likely either because the author withheld some info he has or he made conclusions that are not necessarily correct.
Walton on the Park: The Fed is going to extend and pretend…and so are we!
anon — think you’re forgetting the equity that will get wiped out.
and there’s a lot of fees to take out of that $380MM…it said that transwestern won’t get all their mezzanine.
Hardly a slash. I never liked or understood the concept of this building, but if they truly slash prices, I’ll consider buying into it. However, I’d need to see an additional $150K reduction on the 1 bedroom before I’d be enticed. I simply can’t justify any more than that.
“anon — think you’re forgetting the equity that will get wiped out.
and there’s a lot of fees to take out of that $380MM…it said that transwestern won’t get all their mezzanine.”
I’m not forgetting it, but (1) I still don’t think that article is telling close enough to the whole story, (2) it’s setting up an equivalence to Zell’s bottom feeding where the hard costs weren’t covered by the sale price, and (3) that loan was made at a time when legit borrowers–like a Friedman-Mesirow partnership–wouldn’t necessarily need to put real dollars into a deal–the LoC may have been the “equity”, with the $44mm Mezz taking out the equity from the contribution of the land. I’m not stating that as fact, but as a non-absurd possibility which isn’t ruled out by any numbers presented in the article. And I have a real problem with the comparison to Zell’s buys because they aren’t nearly the same situation.
They say that $380mm is “less than it cost to build”
I call bullshit on that one
“They say that $380mm is “less than it cost to build”
I call bullshit on that one”
That’s my single biggest problem. But I guess it just depends on what your definition of “cost to build” is.
Fannie & Freddie Bailout to cost around $685B. Funny about the timing of this release.
http://online.wsj.com/article/SB10001424052748703805704575594300330039336.html?mod=WSJ_hp_LEFTWhatsNewsCollection
humor me: why would someone rather live here then Superior 110?
I mean GC vs RN … maybe??? There’s not that much of a psf difference either.
The architecture of Walton OTP reminds me of The Streeter(s) and 757 Orleans.
I think the future value of the units in the building is uncertain — at best. Oringally, the preconstuction loan was with Corus. Corus imploded and was taken over by the FDIC. The Walton on the Park loan was sold to a hedge fund. Hedge funds are looking for returns for their investors — period. If the market dosen’t rebound in the next 12-24 months and ‘value’ investing in real estate dosen’t generate returns that exceed other investments with comparable risks, what prevents the hedge fund from discounting the remaining unsold units by 25% – 35% (or more) to simply unload this as an investment. The building is already sort of ‘tainted’ in the eyes of most sophisticated real estate buyers, so given the large shadow inventory of units available elsewhere, I don’t see how this building will be able to close the 80% of the unsold units at the current list prices. Pricing will be volatile in this building for the forseeable future. No surprise by the price reductions. There will be many more that follow.
why would someone rather live here then Superior 110?
Good question. I’ve been in both and looked at both Penthouse’s. Superior 110 has a way better penthouse, however Deleware has a much better location and way better view and a much lower price!
Woo those mansions on the Park really do look like Mansions, capitalized and everything.
But I tellya, they did one heck of a “broker’s preview luncheon” a few years back when there was just a trailer on the vacant lot, with a model unit and samples of the upgrades on display!
Wonder how many agents had enough wine to cloud their judgment and “invest” in a few units on the spot.
question: i’ve lived in the neighborhood for 35 years. i’d like to buy a unit here and pay cash. what %-off-asking-price would be realistic, thanks. [no jokes or catty replies, please]
“what %-off-asking-price would be realistic, thanks. [no jokes or catty replies, please”
This is an inexact science. They just lowered
Many units in this building are now rented through the developer, correct? What does this do to the value of the units? Is a developer with a mezzanine loan that has been extended going to be able to cover the assessments for all of the unsold units? This building was marketed about 18months too late.
Thanks, desteve, for your honest answer. The asking prices will take another hit next year. Honestly, this is a great little neighborhood and Walton on the Park just hit the market at the wrong time.
I totally agree that this is a great little neighborhood. I liked it even better pre-Walton on the Park/10 E Delaware/Elysian. It was a dark day when Intermix replaced The Chalet at Rush and Delaware, which had the best cheese counter in Chicago.