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Does anyone know anything about Jeffrey Spoon or Spoon Properties? Supposedly, he/they are buying the apartment complex that i live in and turning part of it into condo's. The old landlord kept the place really well maintained, and rent increases were (for the area) pretty modest. It sounds like my choices will soon be (1) buy a condo from Mr. Spoon, (2) rent an apartment from Mr. Spoon, and (3) find a new place to live. Sky-high prices & rising interest rates make buying look pretty dubious right now, but renting risks both having a crappy landlord and being booted out again when the CondoBorg hits the new apartment. (It's Arbor Village Apartments, next to St. Francis Catholic Church on E. Stadium near Washtenaw.)
31 responses total.
Are those the apartments that are right next to Trader Joes? Duh, I guess if they are E. Stadium near Washtenaw, they would have to be. I dont know anything about Mr Spoon. I do know that buying a condo isnt usually quite as good as an investment as buying a house. But, that doesnt mean it is a bad investment. I have a friend in Berkeley, CA who just had a similar situation happen to him. He ended up buying his place but is now going to be paying a LOT more per month than he was when he was renting. I dont think you would suffer the same issue. YOu might find that you'll be able to buy your unit without significantly increasing your monthly expense.
There are 2 apartment complexes right next to Trader Joe's - Arbor Village (mine) on the west, and Ann Arbor Woods (less desirable to my eye, but it seems to attract the police occasionally) to the east. (Then there's the LampPost Inn (?) that's actually on Stadium, in front of Ann Arbor Woods - it seems to be a motel that advertises weekly & monthly rates...) My impression is that Ann Arbor housing prices have been rising far faster than personal incomes for quite a while...at some point, the bubble's got to pop when too few people can afford the sky-high price tags...and rising mortgage rates mean yet-higher monthly payments...
I have to wonder how bad it will get before the bubble bursts. Because my friend in Berkeley was buying a house, we all spent a lot of time talking about California Bay Area real estate. Rents are way higher than they are here and the prices of houses are higher still. It is probably cheaper to rent in the short term there. My poor friend had been renting 1/2 of a duplex for under a grand a month. The owners decided to sell and it was buy or risk getting the boot from the new owners. So he bought. $640k!!! Now mind you, this place is itty bitty. I dont know the size of the other unit but I was at my friends place and I would guess it was around 900 sq ft. Sheesh. You would think that housing bubble would have burst when people started losing their jobs around there. I dont know how anyone can afford to live there. Houses in the "ghetto" in Oakland sell for $200- $300k for fixer upper shack type places. It is insane. There is a part of me that really wants to move there but if I did, I am not sure how I would be able to afford housing. The jobs dont pay more or at least not as far as I can tell. I have to wonder...where do their cops, firefighters, bookstore clerks, teachers, etc live? I am glad I bought my house when I did because if it were on the market today I wouldnt be able to afford it, even though my salary has increased since the time I bought this place. I love my house. But even so...the housing market has been making me feel trapped. If I sold my house, I wuoldnt be able to afford a better one in this area or *any* one in the Bay Area.
Well, i've talked to quite a few folks, and still nothing very useful about Mr. Spoon. It sounds like he's fairly new to Ann Arbor, talks big, and has some high-end projects downtown that aren't working out so well. Zilch about how he treats his tenants/customers. One condo-savvy & condo-owning building trades guy advised me to move out regardless - the new condo's are a big unknown, and the not-yet- condofied apartments will get 2nd-class treatment one way or another; meanwhile, there are plenty of other established-known-quantity condo complexes out there and similar apartments complexes where renting is their #1 business. I don't know...this place is a LONG was above the last apartments-only complex i was in...
Have you thought about buying a house or do you prefer the apartment thing?
Not really. I don't have any interest in the maintenance that a house needs, prices for houses strike me as being foolishly high, and i just don't have the emotional want for my own house. (Not that i've got the $$$$$$ that Ann Arbor houses cost anyway.) I have peeked a bit at The Village (the big co-op of duplexes south of Arborland between Washtenaw & Packard) on the web & asked them for some info. Parts of Walden Hills (on Pauline 'tween W. Stadium & S. Maple) also look half-way reasonable. Of course, a big part of really buying is doing all the math to figure out what my current rent budget equates to after mortgage costs, interest rate deductions, paying for heat, association fees, etc., etc.
I have noticed that the condos in The Village havent been increasing in value at pace with the rest of Ann Arbor. Of course, while that might mean they arent the best investment, it also means that they probably are affordable. FWIW, I have known people who have lived there over the years. They are nice little places. They have basements which means extra space and the basements have hookups for a washer/dryer. They generally have hard wood floors and the living rooms have nice high ceilings. A lot of them have pleasant decks out back although if you dont like kids or dogs, they might not be the place for you. The complex has a pretty decent swimming pool which would be a plus for me. The kitchens are small but functional. The only thing that would bug me about the place is that because all the parking is on the street, it can sometimes be difficult to park near one's unit.
Hmmm... I lived in that area for a while; the only pool I remember is Forestbrooke. 'Twas nice, but I don't know what the membership fees are.
I'm really not interested in home-buying as an investment - especially since prices have been skyrocketing for a while, it's like investing in tech stocks in late 1999. Ah, somebody who knows stuff about The Village! Do tell... How good & solid is their basic construction? Are they half-way decently insulated & weathersealed, or is heating/cooling expensive? Any issues with the co-op's board, management company, etc.? Any problems with unwelcome critters (2-leg, 4-leg, 6-leg, or more)? Noise issues? Problems with theft or other crimes? I don't mind kids or dogs (if passably well- behaved & cleaned-up-after), and walking a bit to park is good exercise. Issues with vintage plumbing & fixtures? Anything else to think about or look (out) for in a unit there?
Digging through the listings at www.Realtor.com, it looks like i may also want to consider the bottom end units at Geddes Lake Coop. For $30K more than typical The Village 2BR units, i'd get 200 more sq. ft., an extra 1/2 bath, *attached garage*, lower association fee, no goofy 9.875% blanket mortgage, 30 years newer construction...on the other hand, it's a sprawling flat-roofed doorwall showroom (likely huge heating/cooling costs) and convenient to nothing except Gallop Park & the high school. Other than the lower monthly costs, i don't need any of that (though garage is nice in cold or bad weather. "Cheapest in Geddes Lake" may be discounted for condition as well as size. One 2BR unit on Fernwood in the Village is selling for ~$10K below the rest - agent says it needs paint, floor refinishing, and new countertops, but is in a more-desirable location. I know at least a couple builder guys who give referrals, and painting isn't too hard...
Oops...a friend who used to live there says that Geddes Lake probably *does* have a blanket mortgage after all...sounds like they were in the midst of conversion to condo's a couple years ago (friend's last update) with heavy foot-dragging by the old "coop/hippie" crowd there.
I dont recall the construction at The Village as being particularly bad although the unit my friend was renting had some issues that her landlord wouldnt fix. A leaking toilet had damaged the subfloor in her bathroom for instance. But, to be honest, I am kind of dippy about such things. My friend who was renting at The Village didnt have major problems with critters. I dont know how well it was insulated but it was much better insulated than my house although that doesnt say much as my house pretty much isnt insulated at all and is rather drafty. As for noise. I think my friend *was* the noise problem and she doesnt live there anymore ;) Seriously though, Geddes Lake is much more quiet than The Village which seems to have more younger people and people with kids. I dont mind that kind of noise but some folks do. I like Geddes Lake better than The Village and if I were making the choice, I would go with Geddes Lake. I think the garage and the general lay out of the units would do it for me. That 200 square feet extra makes a difference. Well, I dont know how many different floor plans Geddes Lake has but the one I have seen where some friends lived was pretty nice. It had a nice pond view and had a cozy but not to cramped feel.
I got a peek at a FSBO 1BR unit at The Village on Saturday. Nice in a lot of ways (owner worked for a builder & had been fixing it up in his spare time), but the kitchen seemed mighty small for my enjoy- puttering-in-the-kitchen tastes. (Supposedly no larger in the 2BR units, but note the source's bias.) Walked almost the whole complex - seemed a quite nice area with loads of trees, parkland, etc., but the exteriors of noticable number of units looked overdue for fixing/ painting...is their regular maintenance schedule stretched a bit? The monthly cost there is also starting to feel like an issue. I'd probably be paying ~$725/month in blanket mortgage, association fee, & property tax, plus gas, plus my 2nd mortgage (at higher interest) ...vs. renting at $775/month now. (Mr. FSBO said gas ranges from a low of ~$20/month to ~$85/month in winter - doesn't sound too bad.) And hard to ignore your suggestion to prefer Geddes Lake, when other sources all seem to confirm your scoop on The Village. I also looked at a $138K FSBO 2BR/1B balcony-overlooking-a-pond unit at Geddes Lake. Too pricey & too many little strangenesses to be of real interest, but several others have also recommended there, so i guess there are better units...but probably still a heavy winter heat bill (~$180/month). Probably have to have a Realtor to see some of the ~$115K units listed on the web. My eye's recently been caught by a 2BR/1B 2nd-floor balcony unit at Independence Condo's (Packard at Independence, just up from George- town Mall (Kroger)). It's been vacant on the market for a bit at $123K, with a $300/month association fee that includes heat. It's got a balcony, and huge cathedral ceiling in the main living/dining/ kitchen space. 938 sq. ft., carport, laundry off the 4-unit lobby. Listing Realtor says the Kitchen needs remodeling & is mailing me more info. Straight condo means considerably better interest rate on the mortgage. Obvious questions - condition, what the balcony faces, etc. They've announced pricing for the condo's here at Arbor Village (to be "The Arbors") - "minimally fixed up" starting prices run from $125K for 1BR/1B to $140K for 3BR/2B...the latter's got about 2x the floor space of the former. Add up to $15K for "choicer location" units and up to $15K for "new kitchen/paint/carpet/etc." units. With the high minimum prices, i don't see it being reasonable for me. The older couple next door have already plopped down deposit on their 3BR/2B unit...probably a good move for them.
I just got the new Ann Arbor Observer & looked at its June 2004 Home
Sales page. They noted a divergence in condo prices - rising for the
newer & feature-rich stuff, weak for older units. Median price up by
5% from Jun03, but the dragged-up-by-big-numbers-at-the-high-end mean
price is up 10% from Jun03. Particular complexes: Chapel Hill held
steady, Oak Meadows dropped 17% ("comparable floor plans"), Walden
Hills fell 11%, and Weatherstone slipped 4%. OTOH, The Village was up
7% & Geddes Lake up 3%.
The FSBO guy at The Village had noted to me that the number of units
up for sale there had surged following a fairly recent price rise, as
a number of people tried to cash out at recent higher prices...will
that push prices right back down?
Now, what? I'm tempted to get preliminary "what we'd loan you" numbers
from a mortgage place, eyeball a unit or 3 in several complexes to
identify places i'd like, then start graphing prices over time, like
stock geeks supposedly do (trying to pin down the "right time" to buy
or sell).
Meanwhile, my friend with a ~1400 sq. ft. mobile home in that nice park
out on Jackson in Scio Twp. is now hoping she can clear $20K on it...
hard to beat that price, but i've no idea what monthly costs are.
And the vacancy rate for apartments here at Arbor Village is still far
from zero - can i dicker it down a bit?
(The mean price for houses was only up 4%, hinting weakness in the top
end of the market. Hopefully this'll curb the "miles of McMansions"
sprawl a bit.)
One of the nicest things about ownership is that, eventually, you do own the home. That perk might seem so far away as to not feel tangible, but you're still going to need housing in 15 (or 30) years and how nice if the biggest chunk of change in your budget isn't always a mortgage or rent. If you're going to be in the area for the long haul, and you can afford it, go for ownership, and go for a 15 year mortgage. We actually know someone who was so scared to make the move into owning instead of renting that he posponed the decision right into not being able to retire because of monthly rent payments. Don't go there.
Er, postponed.
Walden Hills is pretty nice - my old office was in that complex. Solid construction, so less noise between units.
I pulled out the info that the listing Realtor's junior "Buyer's Agent" guy mailed me when i called them about the Independence Condo (see #13, 2nd paragraph above) yesterday. (FWIW, Mr. Eager-to-be-my-agent mailed pitifully little info, 99% of it duplicating what he knew i'd already seen on www.Realtor.com.) The complex is considerably nicer than my (dim memory & driving by) impression. A very friendly older resident i ran into was happy to talk about things, and (allowing for some bias) spoke favorably of both the complex & vacant unit's current owner. It sounds like she had several cats...i'm allergic...but the carpeting is "new" - was it cleaned & recarpeted *after* the cats left? He did note that the association fee has gone up considerably to fund new balconies & other substantial maintenance projects in the past few years...well, far better to know & have some of it fixed already. Hot (& cold) water are also included in the association fee, the balcony overlooks an nice landscaped part of the complex's central courtyard, and the windows at the top of the cathedral ceiling do not open (though some other folks have paid to get that changed). Sounds like Ann Arbor Realty (?) is the management company...yet another entity to investigate... Anybody know the sales commission rules for A^2 Area Realtors? I'm wondering whether Mr. Underwhelming Realtor would collect double if i didn't have a Realtor of my own (to collect her own %), or if the $ would be left in the seller's hands (letting 'em drop the price?). I probably should decide strategy on that before trying to get a look at Realtor-listed units in any of the complexes i'm considering. (I could also check how long the Independence unit's been on the market & mail the owner a letter if it looked like her contract with her Realtor might be up...but i'm a ways from being that serious about the unit.)
The commission is something like 15%. If there are two real estate agents, they split the commission. If there is only one, that one gets the whole commission. In this case, the listing agent and his associate would split the commission. IIRC, agents' contracts include a clause giving them the commission if a person they contacted eventually buys the property, even if the contract has since expired. It's usually time-limted, three to six months after the contract expires. The clause is there to protect them from exactly what you are considering doing, Walter. NB: "Realtor" is a registered trademark of the Board of Realtors. Not all real estate agents are members of the Board of Realtors, so not all real estate agents are Realtors.
Hmmm. With 15% going to the Realtor(s), it sounds like i need to start looking at FSBO's. That $123K unit at Independence would be $104.5K net to the owner...and peeking through the Real Estate Closings page in back issues of the A^2 Observer seems to reveal that units there have actually sold for $70.0K to $116.5K in the past 3 years, and one with the same street address as the listed unit sold for $103K last year... best guess is that it's right under the one for sale. The $70K+ sales are in '01 & the $88.5K in Jan02, so the '04/'05 Observer City Guide's "$90K to $115K, 1 to 3 bedrooms" is starting to look real, and the $123K price tag on the listed unit looks ambitious. Makes me wonder if the local standard is to list stuff at "hope & prayer" prices, then settle for 10%-20% less if no eager spendthrift happens by. The "either ~$104K or ~$115K" price split at Independence since May02 could be explained as "either FSBO or (commissioned) agent", too.
Nah, it's the "list high and hope" syndrom. Generally, the initial offer is less than the asking price. Real estate and cars are the two places bargaining is still expected.
Hmmm...it sounds like i'll need to redo my approach to this...if the asking price is within ~25% of plausable, then review the actual sales price history to decide whether the place merits a closer look...but if, as the above data point suggests, the A^2 Observer City Guide is an accurate source of real prices, then the new algorithm could still be pretty quick. Then there's the local reality for each property i figure's worth a closer look. Mr. Wanna-Be-My-Buyer's-Agent spilled that the unit at Independence needs ~~$6K of work on its kitchen when i caught him a bit off guard with a candid question, then forgot it fast (not in his hand-written summary that re-repeats several small favorable details). Sounds like, "Buyer's Agent" or not, i'd better be ready to do quite a bit of my own detective work, and hire experts as needed. Renting is looking better and better...
That 6K can be knocked off the purchase price, PDQ. Sellers are obligated to reveal the defects they are aware of. Getting the house inspected is expected. I used Patrick Lions, The Buyer's Inspector.
Peeking at www.Realtor.com this morning, another 2BR/1Bth 2nd story condo at Independence has hit the market - at $133.9K ($10K more than the other one). Has a unit sold high recently that they think they can get it, or is this a fantasy price? They didn't bother posting a little blurb (to mention features which might support the price), nor did they post any interior photos. The point on the wanna-be Buyer's Agent was that he seems to be showing active hostility to my interests (paying a low price, not through the nose) while he's trying to convince me to take him on as a trusted and well-paid agent. The whole real-estate-related industry has pretty clear interests running directly against the interests of (potential) buyers - this does not inspire confidence. If the $123.9K unit was listed at $104K (plausable price to judge by the Observer's history) - $6K (fix the kitchen) = $98K, then i might feel some real interest. As it is, i find myself looking harder at all the 900-1000 sq. ft. units over at Walden Hills listed at $102.5K - $117.5K and wondering what they really close for, wanting to really see a 2BR unit at The Village, ask my friend more about her $20K mobile home out at Scio Farm Estates (?) on Jackson Rd., etc.
Hmmm...fair number of little things have happened since #24. There were a load of open houses at The Village last Sunday, and i visited most of 'em. Yep, the 2BR's kitchen/living/dining is NOT bigger than the 1BR's. Met a Realtor (Charles Oliver of Coldwell Banker/Schweitzer) who really seemed like i could work with (up front with both features *and* problems of the unit he was showing, suggested both a high and low offer to make (both way below list) when i noted that the unit seemed a touch pricy, far more eager to discuss stuff i'd need to know & what he'd be doing for me (vs. naked bids for my business) when i was more interested in him than the particular unit he was showing). The unit i liked best was a middle 2BR FSBO - nice young couple eager to sell in my timeframe, only $707 per month co-op bill (on Pittsfield near Packard), stove & 'fridge switched in the kitchen (big improvement in my eyes), and many differences from the "standard" mostly in the direction of my tastes. Dunno...not in love with it, and priced at "but we're eager to bargain" $89.9K I've traded voice mails with Charles Oliver & updated him on things. As of Friday, www.Realtor.com still showed the $123.9K list-far-over-the- sales-history condo at Independence as available. Maybe ask the yucky (listing) Realtor to show it to me, then (*if* it seems nice, checks out as cat-hair-clean, kitchen isn't too broken-down, etc.) try to lowball it? I've heard more favorable things about Walden Hills, but haven't gotten in there yet. One "lived there" source says the assoc. fee on smaller units was low as of a few years ago; the yucky Realtor told me otherwise (while trying to steer me toward more expensive stuff he was listing). I called Scio Farms Estates about my friend's big mobile home - sounds like lot & water/sewer is about $475/month, making that far less a bargain for me. (I do not need 1400 sq. ft., deck, yard, extensive landscaping, & such...plus, she had cats & i've got allergies.) Flip side, it's vastly cheaper to own than any condo, and i could probably move out & pay to have it hauled to the dump after 10 years, yet still come out 'bout the same as renting an apartment - powerful arguments. But how fast does the lot rent rise, and could disruptive ownership changes strike there? Meanwhile, renting another year here at Arbor Village is looking less good. Local rumor's explanation for the *still*-sitting-unpaved parking lot here is that Mr. Spoon's in financial/legal trouble. A less-unreliable-sounding rumor is that they've got the place rented almost full again - so i can probably forget dickering a deal on rent next year (lease up Sept. 30th). The construction here *is* a mess, and was fast/intense only at first (the tear-everything-up phase)...how much to discount living here for that (how long will it go on)?
Next time you speak with Charles Oliver ask he was the Charles Oliver of M-net, circa 1987. If so, tell him Mary says, "Hi".
Hmmm...it's been a month since #25, and a load of stuff has changed. The hunt for something to buy is over & dead. I'm not eager for the big floor space, yard, or magical feeling of ownership. Plenty of folks have told me that real estate is a sure-fire great investment ...with an overall mix of faith/facts similar to that for dot-com's and tech stocks in 1999. It doesn't work on a cost basis either - if i owned a $100K place with $300/month association fee (& periodic stuff that a condo owner's got to do), i'd be paying a total of $500 per month after adding in property taxes. If i owned $100K in cash, i could get over $400 a month from stashing it in a long-term high- quality bond fund...i could find a really nice apartment for $900/ month ($400+$500). No $$$% back-end load to a Realtor if i wanted to sell out of the bond fund, no assessments to fix leaking basement & roof, etc. Back here at Arbor Village, i gave 30-day notice to the landlord on Aug. 31st - so out by Sept. 30th or else. After weeks of wild & crazy rumors, we got official word last Friday that Mr. Spoon will close on the place mid-month...but that the condoization of my side of the complex will be turned over to another (unnamed) developer. I'm assuming that i'll have signed a new lease elsewhere before i learn that developer's name...even if there isn't yet another delay. So on to the hurry-up apartment search. Working with (more like sucking off) a savvy fellow searcher from Arbor Village with similar needs, asking family & friends, etc., i've cooked up a short list of prospective landlords & apartment complexes - all that are on it are First Martin Corp. (the U-M AD's firm) and Nam; the complexes are Homestead Commons & Mill Creek (FMC, both near Stone School & Eisenhower in south Ann Arbor) and Mapleridge, Mulberry Row, & Thorncrest (Nam, on Dexter Rd. on the west side, at the Packard / Eisenhower split on the south side, and a few blocks north of down- town Saline respectively). For now, better drive-through and web-rating impressions put First Martin's properties in the lead. Both offer basic, practical ~1980 construction at under $700/month+heat for 1BR units. Both offer a cure for hearing too much of your upstairs/downstairs neighbor - townhouse layout at Mill Creek and concrete-lined floors at Home- stead. Mill Creek's a bit cheaper, but looks it and is closer to the freeway; Homestead supposedly has an obnoxiously intrusive set of application paperwork but is right next to the brand-new branch library. I'm still trying to learn about more good landlords & places to consider, but sorting/cleaning/throwing out is ramping up...in a bit over two weeks, i'd better be busy *moving* to a yet-to-be- decided new place...
That sounds pretty stressful!
Update: hopefully my hunt is over. Since #27, i've toured Homestead Commons (nice in lots of ways, with unexpected bonuses in several spots, but under-spec dimensions in some critical spots, a too-cramped feel to the kitchen, and the floors in the kitchen/bath were that flat, feature- less material that only seems to come in a color best called "septic". Nam fell off the list after a drive-through of his Mapleridge property gave me a "don't want to live there" impression and my fellow searcher was underwhelmed by them on the phone. Meanwhile, i checked out stuff at Craigslist.org on Meg's suggestion and cold-called several of the higher-rated complexes from apartmentratings.com. One sounded-great-&- only-$600/month-with-utils "upstairs of landlord's house" apartment on W. Summit (just NW of downtown) fell through for lack of fast references. I did discover that some places are very eager indeed for tenants - free first month's rent, up to $500 of moving costs reimbursed, and similar. Meanwhile, Traver Knoll Apartments (between Traver & Plymouth right by where the A^2 RR tracks cross Barton on the NE side) was offering $200 per month off a big 1BR apartment, 9 month lease, free A/C & heat. A great location, ~40-year-old unit, excellent bottom line ($640 per month plus non-AC/non-stove electricity), passable condition with seemed-hyper- energetic maintenance patching up the bad parts, faces to Traver through a dense tree line, top of 2 floors, "Modern" (older) part of the complex, eager to close the deal *now*. It took some digging & opinion-soliciting in their parking lot to get any references beyond the one web site, then i put down my deposit early Friday. There's no way that Traver Knoll can compete with Arbor Village (my current apartment) in the architecture dept., and i'm sure i'll miss it every day. That stark "modern" look was a fad that faded for some good reasons. Nice real wood vs. decent metal kitchen cabinets. Close-to- perfect (for their age) white tub & tilework vs. was-a-trend-blue stuff that really needs recoating & serious fixing. Shallow apartment with generous roof overhang & balcony projecting over well-landscaped court- yard vs. deep, with windows only onto the cut-flush balcony. Earthy muted red brick with white wood trim & modest-sloped shingle roofs vs. stark white-with-black-metal-outlines cubes. A jillion other things, though Arbor Village isn't built perfect. On the other hand, i still have no idea who'll even own my side of Arbor Village on Monday, or who'll work here. (Mr. Spoon supposedly will own the other side of the complex as apartments while this side is turned to condo's by ???.) Most of the security lighting has been dead for months. All the office & maintenance staff that i'm aware of (the other half of the really good place that this *was*) believe that they're being let go after being ill-treated at best...and the great maintenance was why i came here to begin with. Enough blogging - time to do errands, start packing, etc.
I used to live near Traver Knoll and kind of liked living on that side of town. There are some nice walks around there and the shopping is decent and it doesnt take long to get downtown. I didnt like the house I lived in though. Eventually I ended up at Windemere Park apts and I liked those a bit better. Good luck with the move.
I lived in Traver Knoll for a couple of years, and I really liked those apartments (I was in the older "modern" ones, too). Shopping isn't as good as it was, since the Broadway Kroger closed a few years back. But the Plymouth Rd. Kroger isn't incredibly far, although probably too far to walk.
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