April 30, 2008 – A planned development for River North looks as though it has managed to weather the market storm and is headed for ground breaking sometime soon. 9 West Erie is 30 percent sold according to a recent post on Yo Chicago. The sales information was given out by Andy Magliochetti from Real Living Helios Realty. The write up claims that 30 percent, not the normal 50 percent or more that most developments need, is the magic number for 9 West Erie to begin construction.

Reasons given as to why Provence Development has been successful with this project include the popularity of the floor plans with one bedroom. With an affordable price tag from $280,000 up and 750 to 850 square feet of living space, these units evidentially struck a chord with new buyers. Magliochetti cited the fact that average prices in River North for a one bedroom Chicago condo in a new development run as high as $700,000 so the lower cost had to play a part in pushing the sales numbers up.

The building itself will have 10 residential floors with just 6 condos per floor. Those 60 units are one and two bedroom, one to two bath layouts. A fitness center, roof sun deck, theater room, dog run, ground floor retail and three levels of underground parking round out this Chicago real estate development.

Interior perks include many eco-friendly details since this building is aiming for LEED certification, which isn’t common yet in River North. Bamboo or eucalyptus flooring, low VOC paint and materials, floor to ceiling windows, exposed 9 foot concrete ceilings, large balconies and energy efficient appliances are all standard, making these units similar in style to some of the more hip Chicago Condo Lofts.

[tags]9 West Erie, Chicago Condos, Chicago Real Estate[/tags]

April 29, 2008 – Finally after all the promotion, construction, controversy and trial run, the Trump Hotel and Tower had its grand opening yesterday. The 92 story luxury high-rise is still under construction, but began delivering hotel condo units in late January. The tower should be completed by summer of 2009, but is already raking in good reviews and generating a lot of business.

“It’s better than we ever expected,” Donald Trump’s son Eric was quoted in as saying in Crain’s today. “We had a few more (sales) last week. As the hotel becomes more established and as people get to know about it and the spa, we expect that to pick up.” The elder Trump put the sales figure at 75% for the tower. The article said 130 hotel condo closings have occured in the past 10 weeks. Rates for a lake executive room run $625 per night and the three bedroom suites are priced at $3,200 a night. Closings on the Chicago condos should begin later this summer.

Trump Tower was also recently honored by being named one of the world’s top new hotels by Conde Nast Traveler magazine. The hotel will be mentioned in the May 2008 issue’s Hot List and received three out of three “flames”. Of the 136 world wide winners, Trump was the only new U.S. hotel to make the list. Chef Frank Brunacci is in charge of Sixteen, the building’s restaurant, and diners will be able to enjoy their meals outside on the open patio that will be finished next year. Rebar, the upscale lounge named for the hefty 50,000 tons of reinforced bar that went into the building’s construction, also opened recently. From special in house drinks and juices to the fantastic view, it has already received great reviews as well.

Other unique amenities at this ultra luxury Chicago real estate development that will be in full swing soon are The Spa at Trump and Trump Health Club, complete with 53 spa guestrooms that will be available. In the Chicago Luxury Condos category so far, this development seems to be the one to beat.

[tags]Trump Hotel and Tower, Chicago Condos, Chicago Real Estate[/tags]

April 28, 2008 – First deliveries for MoMo began back in late January, early February, and the high-rise hasn’t yet been renamed for the Joffrey Ballet. It seems even though that option is open to the company, the name change has to first be approved by a majority of the condo residents, according to the Chicago Tribune Skyline blog. Be it MoMo or Joffrey Tower, the 151 North State Street high-rise can probably be called a success in terms of sales and design.

Situated above the base where the Joffrey Ballet will take up residence in June is a large void carved out of the tower. These empty legs serve to raise the following floors so that lower level condo residents can see beyond a nearby parking garage. Loehmann’s also occupies part of the four story tower base.

Another dramatic effect of this Chicago real estate development will be the visual of the ballet dancers through the third and fourth floor windows. There will also be a fourth floor preview studio where patrons can catch a sneak peek at future productions.

The tower was designed by Laurence Booth, and because of the city’s insistence on developer Smithfield Properties enticing the ballet to relocate there, some aspects had to be configured to accommodate that. Ten layers of drywall had to be installed for sound proofing in the lower level ceilings so that the rehearsals wouldn’t reverberate in nearby floors. Joffrey purchased their new MoMo home in part with state funding of about $4 million.

There are still Chicago condos available in this high-rise, mostly from investors and as flips. These units weren’t billed as typical luxury condos, but if you’re looking for nice Downtown Chicago Condos, they might work for you.

[tags]MoMo, Chicago Condos, Chicago Real Estate[/tags]

When it comes time to sell your condo in the Loop, the floor plan plays a big role in determining how long it will take to find a buyer. One-bedroom units are the easiest to sell in the Loop, while owners of units with three or more bedrooms will have to wait the longest to find a buyer.

According to MLS data collected on April 26, the market supply for one-bedroom units in the neighborhood was just 5.19 months, with a total of 229 listings currently on the market. A market supply of less than 6 months is considered a seller’s market in the city.

Two-bedroom units are the most common listing on the market in downtown Chicago. A total of 298 two-bedroom condos are currently listed in the Loop. However, with a market supply of 7.5 months, buyers should be able to negotiate a lower price for these units.

The largest units are the most difficult to sell in the Loop. The market supply of units with three or more bedrooms is currently at 9.8 months. The market supply for the smallest condominiums also showed a buyer’s market in the Loop. The market supply currently stands at 7.32 months for studio units.

The current market supply for all Chicago Condos is 8.82 months, with a total of 15,210 units currently listed on the market.

[tags] Loop Condos For Sale, Chicago Condos, Downtown Chicago Real Estate [/tags]

April 26, 2008 – Kimball Hill, ranked as the 13th biggest home builder in the Chicago real estate market, has made the difficult decision to file for Chapter 11 bankruptcy this past week. The news was reported in Crain’s, where Kimball Hill CEO Ken Love was quoted as saying, “We have had significant discussions with potential plan sponsors and our senior lenders already, and we hope to agree on a reorganization plan in the next 90 days. We will continue to sell, build and deliver homes without interruption.”

The factors that played into Kimball Hill’s financial problems include the obvious. Foreclosures, difficulty in obtaining credit and construction loans, slow sales, cancelled contracts and the housing slump all combined made it increasingly hard for them to do business as usual.

The company is attempting to renegotiate its credit lines and loans, which the article said totaled about $500 million. With debts of roughly $632 million and assets of $798.5 million, the developer is trying to find investors interested in buying into the company and claim as many as 26 potential groups are considering it. Kimball Hill has stakes in California, Nevada, Texas and Florida. As part of the restructuring, the company plans to pull out of the Florida market and reduce its workforce.

Perhaps the two most recognizable developments that Kimball Hill is invested in around Chicago are Park Boulevard and Parkside of Old Town. These Chicago condo projects most likely won’t be affected by the bankruptcy because they have other major partners and investors involved. The problems faced by Kimball Hill and other struggling developers may not create a huge ripple in the market, but All Condos for Sale in Chicago are subject to the same challenges and market fluctuations.

[tags]Kimball Hill, Chicago Condos, Chicago Real Estate[/tags]

April 25, 2008 – If you’re in the market for a new penthouse that comes with some great incentives, then the Grand Plaza Penthouse Collection may be worth checking out. Recent press releases about this Chicago real estate development, including a write up in the Tribune, have been advertising the last phase of the high-rise. Jaeger Equities is offering an incentive package worth up to $100,000 with the purchase of one of the penthouse units.

The 37 story Grand Plaza has a selection of one and two story penthouse suites that range in size from 818 to 2,566 square feet. While the building’s lower levels house one to two bedroom Chicago condos that are priced from $400,000 on up, the single story penthouse units start at around $700,000 to over $1 million and have from one to three bedrooms.

The duplex penthouse units come with stunning wrap around terraces for some amazing views and luxurious two story living rooms. All of the units come equipped with fire detection and sprinkler systems. The $100,000 incentive can be applied to upgrades, closing costs, taxes or assessments. You can upgrade to stainless steel Viking kitchen appliances or Kohler plumbing fixtures. You can even use the allowance to change the floor plan, put down different flooring or add new cabinetry. It’s possible to really personalize your living space with this incentive.

The building itself offers plenty of amenities including 24 hour doormen, winter atrium garden, 50,000 square foot Club Floor with pools, saunas, fitness center, putting green and much more. The Grand Plaza is pulling out all the stops to market these units and compete with the best Chicago Luxury Condos.

[tags]Grand Plaza, Chicago Condos, Chicago Real Estate[/tags]

April 24, 2008 – The trail of mismanaged Chicago real estate developments left behind by developer Andruis Augunas, aka Rokas International, has grown according to a recent Sun Times article. The Chicago condo developer is thought to have returned to Lithuania, which is his native country, leaving everyone connected to his projects to pick up the pieces.

The most prominent developments affected by Augunas’ are 2100 Condos, the 205 unit project for 2100 South Indiana. With a $12.5 million foreclosure suit filed by First DuPage Bank, the outlook is bleak for that proposed development. Motor Row Condominiums on 2300 South Michigan is left unfinished, and the 91 unit development also has liens against it. Perhaps the most ambitious of Anginas’ proposals was his failed bid to develop Franklin Point into a marina and some 3,000 residences.

The article states that one development that Anginas did get built may also be in jeopardy. The condominiums on 2800 West Chicago now may be the focus of an Attorney General investigation for sales fraud. The condo association there is being sued for $6.6 million by American Charter Bank, which holds the mortgage and contractors are also wanting their pay. Besides all of that, taxes and assessments for last year have yet to be paid. These legal suits mean that anyone who owns a condo there won’t be able to sell or refinance until the matter is resolved. There is also some question as to whether Anginas falsely obtained the construction loan for this project by making false sales to himself and family members to inflate the contract number.

Worst case scenarios like this one remind buyers to thoroughly check out the developer before purchasing one of the Pre Construction Condos in Chicago.

[tags]Rokas International, Chicago Condo, Chicago Real Estate[/tags]

April 23, 2008 – Terrapin Properties Chicago real estate troubles don’t seem to be lessening, and the developer may be forced to sell their luxury condominium project, Burnham Pointe, to an investor willing to take on the nearly complete development and turn it into high-end rental apartments. A story appeared in Crain’s today stating that Terrapin is actively trying to sell the 28 story tower to an investor and has gone so far as to hire Holliday Fenoglio Fowler L.P. to market it for them.

The difficulties began for Terrapin when they apparently became overextended financially and found themselves faced with a foreclosure suit by a lender for a project in Wisconsin. The two principals of Terrapin had personally guaranteed the $13 million loan and may now be forced into bankruptcy. That spelled trouble for the developer’s other projects, putting the unfinished and only partially sold Burnham Pointe in jeopardy.

Around half of the development’s 298 Chicago condos had sold, but unnamed sources claim Terrapin will cancel those contracts. Construction on the high-rise should be complete by October, but the developer wants to find a buyer for the tower before then and is accepting bids until May 6th. The article states that Terrapin wants about $98 million for the tower, which translates to about $327,000 per condo. But HFF, whom they hired to sell the property, is rumored to be setting the price higher at around $110 million which would be $369,000 per condo. Equity Residential came close to purchasing the property but backed out of the deal. Terrapin had construction loans on the project totaling around $97.5 million.

Condo Developers in Chicago are facing increasingly difficult financial situations with projects that haven’t sold well and have construction loans coming due.

[tags]Burnham Pointe, Chicago Condos, Chicago Real Estate[/tags]

April 22, 2008 – It looks as though a group of developers are expecting to put the icing on a deal to construct a pair of 21 story high-rises on the former Fannie May site. If the application for zoning approval is granted and the City Council reviews and approves the project, then marketing could feasibly begin in a few months.

The tentative plan for the 1137 West Jackson location is for a total of 380 homes in the two towers, plus an additional 9 story retail building that would contain a Sundance Cinema. The Robert Redford chain of theaters is known for showcasing independent films and documentaries, according to the Sun Times. There will be a total of 290,000 square feet of retail space. In addition to the cinema and shops, there are also plans for a health club. It hasn’t been determined yet if the 380 residences will be Chicago condos or rental apartments.

The project is being developed by IBT Group LLC, BlackRock Inc. and Marc Realty. The size of the future development has also been hashed over by local residents and Alderman Robert Fioretti. The Alderman is probably best known for his opposition to the height of the X/O Condominiums. The previous proposal for these two towers had been for 30 stories, but was scaled down to 21.

With a few less Chicago real estate developments on the horizon this year, we’ll have to wait and see if this project turns out to be condos or Chicago Apartments.

[tags]1137 West Jackson, Fannie May, Chicago Condos, Chicago Real Estate[/tags]

April 21, 2008 – Although it has been several months since first closings at The Columbian began, it seems that the building is still having difficulty moving the remaining units into the sold category. The 46 story Art Deco tower stood at 70 percent sold when delivery began for these Chicago condos and that number basically hasn’t changed for some time.

Back in February the developer was offering a discount on certain two bedroom units and also throwing in free parking. It was a package deal said to be worth about $40,000. The building, which is located at 1160 South Michigan, has 220 condos that range in size from one to three bedrooms and are priced from around $350,000 to more than $2 million.

Now there is a unit at The Columbian under foreclosure, according to a recent post on Crib Chatter. The unit in question is a 1,479 square foot, two bedroom, two bath layout on the fifth floor. The post states that the condo was sold back in September of last year for $550,500 and is being auctioned for $406,320. The stats listed for this particular Chicago real estate development include about 57 units currently on the market and several for rent. Investors seem to be having a hard time reselling their condos, especially with the competition from the developer who is still marketing units.

With the influx of so many Chicago New Construction Condos this year, as well as the developers marketing pre-construction units, anyone trying to resell a new condo may find it increasingly difficult.

[tags]The Columbian, Chicago Condos, Chicago Real Estate[/tags]