The price is good. The location is great. The construction quality is mediocre. And your resale value is limited. The question is how this meshes with your checklist related to buying a new home. Check out the other box developments in the area (247 Scott and the complex across from the Dominick's at Sedgwick and Division) to gain a sense as to the limited nature of this purchase serving as a profitable real estate investment.
The Real Estate Lounge Chicago
This is one of the rare times I disagree with Tom's usually excellent commentary. I think Parkside of Old Town is an excellent opportunity with the potential for great appreciation. The location is about to be one of the best in the city. 5 years from now this area is going to explode with retail, restauarants and the like and it will have a completely different look than it does now.
To me the south facing units in the mid-rise buildings seem like the biggest no-brainer in the city. It's so close to downtown. 3-4 blocks from the red line. Many of these south facing units have amazing views of downtown that will not get obstructed. I have seen similar type construction selling in Lakeview (3232 N. Halsted) for in the low-mid 400s with lower level finishes and not nearly as nice of views.
The mixed income community has worked fabulously in the first phase of redeveloping the area over on te 1300 block of Halsted. The original owners there have seen incredible appreciation and that was before the area was all developed. My clients that live over there tell me that the only problems they have ever had are with the people that paid full price not the lower income residents!
As I tell all my buyers, your time frame needs to be 5 years when you are buying a place to expect a reasonable amount of appreciation. It may take another year or longer to work out of this real estate market and no one knows how long it will go. You should not expect to flip these for a profit 1 or 2 years from now.
Best of luck!
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