November 30, 2008 - Sales of condos and lofts plunged by nearly 40 percent in October in Lakeview. It was the second straight year that sales fell in October after reaching a peak in 2006. Condo prices also fell for the second straight year in the neighborhood.

According to data from the Chicago MLS, a total of just 84 new and resale condos and lofts were sold in Lakeview in October, down 39.5 percent from a year ago, when 139 units were sold in the neighborhood during the month. In October 2006, a total of 154 units were sold in the area. Demand on both the high and low ends of the market was down. A total of just 13 units were sold for more than $1 million in October, down more than 40 percent from the same period a year ago. Sales of units priced at less than $250,000 fell by just 20 percent, with 28 units sold in that price range during the month.

The sales price fell to a three-year low in Lakeview. The average sales price hit $346,437, down more than 6 percent from a year ago, and nearly 10 percent below the peak of $382,317 seen in October 2006. However, condo owners who did sell their units during the month waited more than a week less than a year ago. The average market time fell to 87 days in October, down from 98 days a year ago.

Buyers could continue to see falling prices for Chicago Condos in Lakeview as well as in many other popular neighborhoods around the city.

Technorati Tags: Chicago Condos, Lakeview Condos, Chicago Real Estate

November 29, 2008 - The Deutsche Bank Trust Company has filed a $40 million lawsuit against Donald Trump over the loan that came due on November 7th. This suit is hot on the heels of Trump filing his own suit against the bank because they refused to extend the loan. In that suit Trump claims that the bank has made it more difficult to sell the remaining units in the 92 story Trump Tower by not allowing Trump to market the Chicago condos for a lower price and that the global financial meltdown is an extenuating circumstance that should allow a payback extension, according to Crain’s.

The original amount of the 2005 loan was $640 million, of which some $334.2 million came due. Trump had personally guaranteed $40 million of that himself. Other construction funds came in the form of Trump putting up $64 million in equity and also $12.8 million more as work progressed. Another lender, Fortress Credit from New York also financed $130 million for the project.

Sales are still at around 75%, and Trump has offered to purchase the remaining units himself but Deutsche won’t agree on a price. Total sales of the condos and hotel units amount to around $200 million and Trump says another $353.1 million is under contract. Competition from buyers who are selling their investment units in the Chicago real estate project for as much as 30% below developer prices have slowed sales for Trump.

Deutsche is also trying to have Trump’s lawsuit thrown out, reasoning that Trump’s continuing construction projects are evidence that he is able to repay the personal guarantee. Trump was quoted in a Scottish newspaper as saying that, “we are doing very well as a company and we are in a very, very strong cash position.” The comment was made in reference to a large golf course with time shares he is building there. Trump’s attorney, Mr. Schlesinger, said in reference to the Deutsche suit that, “we’ll have a knock-down, drag-out for the next six months over this.”

The outcome of this legal battle could really influence other disputes between lenders and developers of Chicago Luxury Condos.

Technorati Tags: Trump Tower, Chicago Condos, Chicago Real Estate

November 28, 2008 - If you’re shopping for a town home or single-family home and willing to branch out a little into some Chicago area developments from Ryland Homes, then you can wrap up a pretty good deal during their Red Bow Event from now until December 31st. The home builder is offering buyers the option of taking 50% off the cost of upgrades or as much as $100,000 off the list price of a residence, according to a press release in the Tribune.

There are A total of 12 Ryland developments that have move-in ready homes that qualify for this offer. Both Tuscan Woods and Shadow Hill/Cedar Grove in Elgin are eligible for the incentive. Tuscan Woods has 2,436 to 3,415 square foot single-family homes that run from $299,990 to $356,990. Shadow Hill/Cedar Grove has 2,420 to 4,336 square foot single-family homes from $289,990 to $404,990 and town homes that are 1,764 to 2,185 square feet and are priced from $209,990 to $257,990.

More town homes can be found at Emerald Bay in Round Lake. They run from 1,314 to 1,673 square feet and list for $154,990 to $172,990. Lakewood Springs in Plano has a selection of town homes that size up at 1,314 to 1,673 square feet also and cost from $129,990 to $155,990.

Other Ryland Chicago real estate developments with single-family homes include Beacon Point in Hoffman Estates at 2,624 to 3,122 SF and from $399,990 to $488,990. Blackberry Crossing West located in Montgomery homes run from 1,748 to 3,686 SF and $229,990 to $352,900. Then there is Bryn Mawr in Crystal Lake. Those homes range from 2,807 to 4,238 SF and cost from $333,990 to $419,990.

You may want to visit some of these developments before the end of the year to take advantage of the offer, or you can find other great Townhouses in Chicago that may interest you as well.

Technorati Tags: Ryland Homes, Chicago Townhomes, Chicago Real Estate