December 20, 2008 – This may be the last weekly Trump Tower spire installation update for a while. The weather didn’t corporate any more this time than it did last weekend, and construction manager Tim Snyder made the call Friday to once again scrap plans for an attempt after checking the weather forecast, according to the Tribune. The windy conditions last weekend foiled efforts by the workers to align the spire sections lifted by the helicopter and now the snow has put a big chill on the project.

The Trump Organization has been trying to get the spire installed on the 92 story high-rise since October and something has derailed plans every time. Snyder told the Tribune that, “Discussions are ongoing with the City to find available alternative dates but there is nothing to report at this time. We hope to hear something before the Christmas break.” But with the unpredictable weather and also holiday events, that chances of that seem unlikely.

Trump has other worries besides the spire, namely the ongoing litigation he is involved with concerning the default on his construction loan. The latest article in Crain’s about the law suit says that Deutsche Bank is using quotes from Trump’s book, “Think Big: Make It Happen in Business and Life.” In the book, the Chicago real estate developer claims that during his financial troubles in the 1990′s he basically told his lenders that they were at fault for loaning him money in the first place for risky investments. To quote, “I figured it was the bank’s problem, not mine.”

Trump’s lawyers claim that the words are taken out of context and that Trump is an honorable businessman and doing well now financially. But Deutsche has pointed out that if he is indeed doing well, then there is no reason why he cannot pay back the loan. Unless Trump can sell the remaining units in the tower at a reduced price, that may not happen any time soon. Investors who bought Chicago condos in the building are putting their units up for sale and now also for rent at very competitive prices. While you still can’t call these Cheap Chicago Condos, the prices are certainly much lower than those sold by the developer.

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

December 19, 2008 – April 2009 seems to be a popular month for first deliveries on new construction condos for several Chicago real estate projects. The latest to announce that time frame for first closings is the Mondial, located at 900 West Huron Street. According to it’s developer, CITTA Development, there will be a new model ready for prospective buyers to tour sometime in January and there is still a good selection of units available for sale.

The 15 story Mondial topped out in September and of the 142 Chicago condos in the building, about 40% are under contract. Because the tower is taller than most of the neighboring buildings, the units have some good views of the cityscape. The condos have from one to four bedrooms and have balconies with glass railings. Prices on these condos run anywhere from the mid $200,000s on the lower end on up to the high $900,000s for the largest units.

In other development news, with pre-sales in a rut for the planned 28 story luxury high-rise The Huron, there is some speculation that the project is going to be canceled. So far there has been no word back from the sales office. The last information we received from sales agent Tricia Fox was that 9 of the condos were under contract, and that number never seemed to climb any higher. The tower was to have only 2 residences per floor and prices range from $1.1 million for a three bedroom unit to about $4.7 million for a four bedroom condo. With the marketing effort running for over a year now, the developer may have finally decided that the project couldn’t generate enough sales to get financing.

It may be interesting to see how long it takes for the projects that are delivering this coming spring to sell out their remaining units. Even without developers launching many new projects, there will still be a fairly high number of Chicago New Construction Condos on the market.

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

December 18, 2008 – Whether or not the third time will be the charm for the proposed Addison Park On Clark development to be located across from Wrigley Field remains to be seen. But if the previous two attempts at getting approval from the Community Directed Development Council are any indication, then odds may not be in favor of the project. The most recent design changes came before the committee last week, but there still wasn’t total support, according to the Chicago Journal.

Steve Schultz, the Chicago real estate developer working on the project came up with two new designs presented to the committee. But the developers won’t actually apply for the necessary zoning changes and building permits unless the community supports the project. One plan would include around 200 residential units plus parking spaces for up to 500 cars, retail shops, a health club and a Hyatt Place hotel. The other design presented is similar but without the hotel. Most concerns are centered around size, and while there is interest and support for the hotel, the developer claims it will be cut from the plan before any Chicago condos will.

Community and alderman support for a project of this size may not be the biggest concern in the long run. Even if an agreement can be reached on the size and height of the structures, financing would still have to be secured and retail tenants signed on as well as buyers or renters for the units. The real challenge would be making enough sales in a very slow market for Chicago Condos. Addison Park on Clark may need extra innings to ever make it to the score board.

[tags]Addison Park on Clark, Chicago Condos, Chicago Real Estate[/tags]

December 17, 2008 – At least one Chicago real estate project is moving ahead rapidly at a time when many planned towers are being put on hold. A few posts ago we told you about M&R Development purchasing the site for the planned Parc Huron from Lenner Corporation last month and switching it from a Chicago condo development to a rental apartment development. They have already broken ground and started work on the high-rise, according to a press release in the Midwest Real Estate News.

M&R is keeping the Hartshorne & Plunkard design of the building basically the same and only making a few small changes. The developer also plans on reaching Silver LEED Certification for the tower. The 21 story high-rise is going up at 469 West Huron Street in River North and should be completed sometime in the summer of 2010. Once ready for occupancy, the building will be managed by RMK Management, which is an affiliate of M&R. According to the article the corporation has plenty of experience from managing over 8,000 apartments in Illinois and Minnesota.

Apartment sizes at Parc Huron vary, and the 5th through 21st floors will house units with from 969 to 1,443 square feet. There will be one bedroom units available with 614 to 729 SF and one bedroom plus den with 780 to 781 SF. Two bedroom apartments will run from 1,100 to 1,350 SF and the three bedroom units will have from 1,375 to 1,443 SF. The 233 car garage will take up the 2nd through 4th floors and a small amount of retail will occupy the ground floor.

The River North location of the Parc Huron will put its residents up close and personal with an array of art galleries, restaurants and the Merchandise Mart. Chicago Neighborhoods that have a good assortment of entertainment, dining and retail options are always more attractive to residents shopping for a new home.

[tags]Parc Huron, Chicago Condos, Chicago Real Estate[/tags]

December 16, 2008 – The outcome of the lawsuit that Donald Trump is embroiled in with his lender in an effort to extend the payback date of the loan could possibly trigger other Chicago real estate developers to follow the same route as more loans come due on projects with unsold units. According to a recent article in Crain’s, most lenders have been willing to extend deadlines and work with developers, but that good will may not last forever if buildings with large numbers of unsold Chicago condos continue to default on loans.

The default of the Trump Tower loan has been the most publicized recently, but there are other projects having problems with payback dates that are named in the article. Lennar Homes’ Library Tower is up against a due date of January 11, 2009 for a $43.5 million construction loan from LaSalle Bank. The tower is about 43% sold and the developer has lowered some prices as well as cut the cost of a parking space in half. The building will wrap construction by the end of this month, but closing the book on sales is a different story.

Thomas Roszak, the developer of Vetro on 611 S Wells St, said he has negotiated over a year’s extension on the construction loan that was due to be paid to Corus Bank on April 30, 2009. With the units in the building hovering around 57% sold, there is still a long way to go before all of the 232 units are under contract. Jameson Development was also listed as having refinanced the 34 condo Gold Coast luxury project 50 E Chestnut.

Until the housing market and economy in general recovers, more Condo Developers in Chicago are probably going to need more time to pay off construction loans, better sales numbers or smaller projects to work with.

[tags]Condo Developers, Chicago Condos, Chicago Real Estate[/tags]

December 15, 2008 – A large rental project proposed for the North Loop has managed to gain financing from a union pension fund despite the high number of apartment towers already in the pipeline. Developer Jay Javors, president of Midwest Property Group, intends to construct a 330 unit, 44 story high-rise on 210 North Wells Street that would also include a parking garage with spaces for 550 cars. The entire project is estimated to come at a cost of $123 million, and the National Electrical Benefit Fund based in Washington, D.C. is providing an equity stake plus $98.92 million for construction, according to Crain’s.

Work already began on the building foundation back in October of this year and the high-rise and garage are expected to be completed by 2010. The parking garage will occupy the first twelve floors of the tower and provide income other than the rental units. There had been a 300 car garage on site that was razzed to make way for new construction, so demand for spaces is already there.

There has been some speculation that rents for Chicago Apartments will come down as supply increases, but most experts agree that it will remain steady for some time yet. As long as demand for Chicago condos remains lower, more Chicago real estate developers may lean towards rental projects.

On the Trump Tower spire installation front, most of you probably already know that Sunday’s weather didn’t cooperate any more than Saturday’s did. With 40+mph winds there was no better chance of workers being able to align the sections lifted by the helicopter. In fact, the helicopter didn’t even take flight Sunday to make an attempt. Trump construction manager Tim Snyder told the Tribune that as soon as the aircraft takes off the meter starts running at $5,000 per hour, so they didn’t even consider an attempt to be worth the money.

The installation may have to wait until next year, according to the Tribune. The city issued the permit for only two days, and even if another one could be obtained, the potential hazard it would present to weekday traffic, weekend football games plus holiday shoppers would be too great. The helicopter will be available through next Sunday, so there still could be a chance the spire will go up next weekend.

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

December 14, 2008 – Sales of new and resale condominiums and lofts plummeted in the Loop in November.  According to data from the Chicago MLS, a total of just 35 units were sold in November in the Loop, a 69 percent drop in sales from just a year ago.  Sales citywide were down by just over 55 percent in November.

November 2007 was one of the best months in recent memory for the real estate market in the Loop.  Strong sales of condos and lofts priced at more than $1 million led to a sharp increase in the average sales price in November of last year.  The average sales price more than doubled to $713,677, up from $347,747 in November 2006.  However, the average sales price plunged this year as the market for units priced at more than $1 million came to a standstill during the month.  Just 1 unit was sold for more than $1 million in November, down from 28 units sold in that price range a year ago.  This led to a drop of 41 percent in the average sales price.

Demand for units priced under $250,000 also fell sharply in November.  A total of just 6 units were sold in that price range during the month, down from 12 units sold in November 2007 for under $250,000.  November 2006 was a busy month, with 50 units sold for less than $250,000.

Dismal economic news continues to hurt real estate sales around Chicago.  However, buyers are starting to see lower prices for Chicago Condos For Sale downtown as well as in many popular neighborhoods around the city.

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

December 13, 2008 – After taking weeks to finally obtain a permit from the city to install the 227 foot spite on top of the Trump Tower, the procedure had to be cancelled because of high winds this morning. With the Wabash Avenue bridge closed and a fair amount of onlookers gathered, the helicopter hired to lift the spire into place made an attempt just after 9am today, according to the Tribune. The helicopter lowered the spire down to construction workers who tried to align it with the existing base on top of the building. But winds of up to 50mph made alignment impossible and workers had to call a halt to the attempt.

The installation permit the city finally issued to Trump is good for two days, so the crew intends to try again tomorrow morning at around 7:45am. The work was expected to take as much as two days to complete, but Andrew Weiss of the Trump Organization told the Tribune that, “If it all goes well, it can be done in one day.”

To get the city to issue the permit, the Trump team had to get the okay from both the fire department and the police, let an FAA official inspect the helicopter they hired and speak with the pilot, plus arrange for the helicopter to refuel away from the work site. The spire is in multiple sections that must be air lifted above the base and then aligned and bolted into place by the construction crew.

Once complete, the spire will elevate the Trump Tower into second place in terms of tallest building in Chicago and the U.S., which is a title probably no other Chicago real estate development with Chicago New Construction Condos will be taking away any time soon. If tomorrow morning’s installation is stymied again by weather, then the whole procedure has to start all over again. Chartering the helicopter isn’t cheap, and when asked about the cost, Weiss told the Tribune it was quote, “a lot of money.”

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

December 12, 2008 – With so many Chicago real estate developers scrapping projects, facing liens, past due loans and in some cases turning to auctions to liquidate inventory, it’s only to be expected that some companies would try to diversify a bit. Even developers who have had successful Chicago condo projects are finding it necessary to branch out, and the well-known and respected Belgravia Group is planning some operational changes.

Alan Lev, former president of the company, is now taking over as CEO and plans to move the firm into investing in foreclosed or “distressed” properties in Chicago, according to an article in Crain’s. Lev will launch the venture by attempting to raise some $50 million from investors to purchase property and developments, and intends to buy residential and retail, not just in Chicago but the suburbs as well. This moves comes in the heels of Belgravia stating that their 2008 yearly sales are about half of the $103 million they sold in 2007. Lev said in the article that the company expects sales for 2009 to be similar to this year’s numbers.

Belgravia, like many other Condo Developers in Chicago, has shelved future project until the market stabilizes. Some of their recent developments include 565 Quincy along with Union Row and 600 N Lake Shore Drive which is currently around 75% sold Lev said.

Belgravia Group will probably have some stiff competition from several other companies, including Magellan Development, who are also interested in scooping up any bargains that are out there. But Belgravia also intends to offer other services such as consulting and even home repair to offset the construction side of the company.

[tags]Belgravia Group, Chicago Condos, Chicago Real Estate[/tags]

December 11, 2008 – No news yet about a tenant for the hotel portion of Aqua that Strategic backed out of, but Magellan Development has signed on a well-known if not glamorous tenant to anchor their retail space. CVS/pharmacy will occupy 12,000 square feet of the 37,000 square foot ground level retail space, according to the Illinois Real Estate Journal, and be ready for business by mid 2009. CVS/pharmacy stocks a wide variety of items, not just pharmaceutical products, and the chain has over 60 stores in Chicago alone and about 6,800 across the U.S.

Aqua is rippling towards the completion of its 87 stories and is nearly sold out. There are a few Chicago condos left though, and prices for these units range from about the mid $600,000s to around $3 million. The high-rise breaks down into 474 rental units from the 19th through 52nd floors. After that, 264 residential condos begin on floor 53 and move up in levels. The hotel portion was expected to hold about 200 units, but Magellan is considering turning that space into more apartments if no takers for the hotel step forward.

Building amenities at this luxury Chicago real estate project include a 27,500 square foot resident’s floor that will house a fitness center complete with pool, spa, sauna, hot tubs, basketball court and massage services. For entertaining, there will be a coffee bar, media room, game room with pool tables, theater room, lounge, business center for work and fully equipped kitchens. The 80,000 square foot upper deck will showcase professionally landscaped gardens with paths, reflecting pools, gazebos plus grills and a fire pit for cooking out and relaxing.

Aqua has been one of the more successful Chicago Luxury Condos in terms of both design and sales.

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