December 3, 2007 – We told you about The Art Of Feng Shui Exhibit that was to be held at the sales center for the Mandarin Oriental this past Saturday. Evidentially that event didn’t help attract enough good chi to the project as it struggles to obtain a construction loan. Crain’s reported that architect Solomon Cordwell Buenz and Associates filed a $2.5 million lien for unpaid services and another $550,000 lien was filed by a contractor for unpaid sewer line work. Repayment of the $43 million loan from iStar Financial in New York that covered the land purchase price and initial start up costs has been pushed back until January.

Chris Kenny of Palladin Development issued a statement that both the contractor and architectural firm would be paid before the end of the year. Sales figures released by the developer claim that 55 percent of the hotel units and 60 percent of the condos have been sold. Normally the magic sales number is 50 percent to qualify for construction financing, but with the current housing slump and stiff competition among pre-construction developments, apparently lenders are tightening their purse strings.

Construction of the 74 story Mandarin is estimated to cost $750 million. The new date for breaking ground is set for sometime in January 2009 if financing is in place by then. Despite bearing the Mandarin Oriental name, this particular high-rise isn’t owned by the Hong Kong company. The agreement between the developer and parent company was in name only plus management once the building was completed. As many developers are finding out, even if you do reach the halfway mark when you Sell your Chicago Condo, it doesn’t necessarily mean you’ll be able to secure financing in today’s market.

[tags]Mandarin Oriental, Chicago Illinois, Chicago Condos for Sale[/tags]

December 1, 2007 – CMK Development Corporation evidentially hit a sweet spot in pricing with 235 West Van Buren. Despite the current housing market slow down and having just officially kicked off sales this past fall, the project has already moved enough units to begin construction. A look at the building site confirms that piles are being driven and foundation work begun.

According to Crain’s, around 370 of the 714 units in the building have been sold. The prices for these condos start in the upper $170,000 range and top out in the $350,000 neighborhood. For a luxury condo in a building with a nice assortment of amenities, you’d be hard pressed to beat those prices. Those numbers are attracting buyers, and the location of the project is also probably a big draw for anyone who works downtown and doesn’t want a long commute. 235 West Van Buren is also said to be the biggest condo development to go up in the downtown area in close to thirty years. That fact also had to help generate some buzz about the project.

Parking downtown is always an issue, and CMK opted to have only 570 deeded parking spaces available at this development. But with the prime location that may not be an issue for some buyers.

Barring any delays, first deliveries should start sometime in late spring or early summer 2009. You could classify the units in this building as Cheap Chicago Condos and mean it as a definite compliment.

[tags]235 West Van Buren, Chicago Illinois, Chicago Condos for Sale[/tags]