By: Andrew Schroedter May 17, 2010
(Crain’s) — An options trader is taking a gamble on the Elysian Hotel & Private Residences, paying more than $7.25 million for a condominium in the Gold Coast skyscraper that he hopes to flip for more than $10 million.
Igor Chernomzav, a co-founder of Hard Eight Futures LLC, bought a 12,000-square-foot unit on the 56th and 57th floors of the 60-story tower at 11 E. Walton St., which also features a 188-room hotel, according to property records.
Mr. Chernomzav, 33, who paid cash for the five-bedroom, two-level condo, plans to remodel the unit and put it back on the market, according to Tricia Fox of residential real estate firm Keller Williams, which brokered the sale.
The asking price will be between $10 million and $11 million, Ms. Fox says.
This is the second unit Mr. Chernomzav has purchased in the Elysian, after paying a reported $8.18 million in March for a 52nd-floor unit, which he is also remodeling. Whether he also plans to flip that condo could not be determined.
A spokesman for Mr. Chernomzav declines to comment.
Mr. Chernomzav started Chicago-based Hard Eight in 2004, five years after earning a philosophy degree from Princeton University, according to his firm’s Web site. Originally from San Antonio, he began his career in 1999 as an options trader for Susquehanna Investment, part of suburban Philadelphia-based Susquehanna International Group LLP.
For his recent purchase in the Elysian, the entrepreneur bought a contract for a unit signed several years ago by a speculator represented by Ms. Fox. The identity of the speculator and how much Mr. Chernomzav paid for the contract could not be determined.
But Mr. Chernomzav is paying developer Elysian Worldwide 25% less than the speculator’s original asking price of $9.5 million for the unit, which features a 25-foot living room ceiling and 360-degree views.
Zaga Arsic, also of Keller Williams, represented Mr. Chernomzav.
The deal is a sign that the high-end market is improving as sellers cut prices, says Craig Hogan, managing broker of Keller’s Gold Coast office.
“If the price is right, people will come look,” he says.
Mr. Chernomzav has paid the highest prices for units in the Elysian, surpassing the $6.88 million that James McNulty, former CEO of the Chicago Mercantile Exchange, paid in January for a 7,400-square-foot condo on the project’s 37th floor, according to property records. Mr. McNulty didn’t return a call seeking comment.
Buyers have closed on 31 of the 51 residential condo units in the building, says developer David Pisor, who in November was forced to abandon a plan to also sell the 188 hotel units in the building.
Another 15 residential condos are under contract, says Mr. Pisor, president and CEO of Chicago-based Elysian Worldwide LLC, who adds that sales traffic has picked up in the last 45 days.
“It was pretty brutal there for a while,” he says.
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