December 10, 2008 – For those of you following the progress, or lack thereof, of the Waterview Tower on 111 West Wacker, you already know that this particular Chicago real estate development has been at a stand still for months. Waiting on a $400 million construction loan from the Export-Import Bank of China that never materialized didn’t help matters any, and last month the bank put the pending loan on hold indefinitely. Now the Tribune is reporting that the tower’s developer, Teng and Associates, is increasing the amount they claim they are owed on the project for architectural and other work.

Teng has filed an amended claim for $42.8 million, up from the $36.8 million they had claimed a few weeks ago. This isn’t exactly a vote of confidence from the developer. The 26 story concrete shell has been the focal point of plenty of speculation as to what will become of the project should Teng face bankruptcy. Teng has been attempting to either find a partner for the project or sell the existing structure outright to an investor along with the future rights to build Chicago condos on top when the housing market improves. But so far there have been no takers on the offer, and time may be running out.

Besides the $20 million loan from Lasalle Bank at the start of the project, Waterview Tower is also under the weight of a $24 million lien from the contractor who did the concrete work on the existing building base and another $4.8 million lien from Shenyang Yuanda Aluminum Industry Engineering who claim they have performed $22 million in work on the tower. Add in the amount of equity, which some estimate to be almost $190 million, that Teng has poured into the project himself and Waterview may not be able to bail out of rising debt.

The list of ongoing Pre Construction Condos in Chicago may continue to get shorter as financing for developers becomes increasingly difficult to secure.

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

December 9, 2008 – Metropolitan Tower is a recently completed renovation in the South Loop. The 30-story building is located at 310 S Michigan, and offers a total of 245 units. Buyers can choose from floor plans ranging from one to three bedrooms. With 24 developer-owned and resale units currently on the market, 90 percent of the units have already been sold. Buyers aren’t seeing many deals on resale units at Metropolitan Tower.

If you’re on the market for a one-bedroom unit, there are several resale and developer-owned units available. Prices range from $285,000 to $396,467. The lowest priced unit is also one of the only resale condos offering a significant discount on the original purchase price.

Unit                      1206
Listing Price             $285,000
Original Listing Price  $299,000
Days on Market        103
Assessments           $305
Listing Agent           Nick Libert at Exit All Pro Realty
Comparable             This resale unit originally sold for $349,000 in April 2008.

There are no deals on two-bedroom resale units currently on the market. Unit 1109 originally sold in 2007 for $522,562, and is now listed on the market for $579,000. The developer has several two-bedroom units currently for sale, and seems to be in no hurry to attract new buyers with price reductions. Here’s the lowest priced two-bedroom unit-

Unit                      907
Listing Price             $539,201
Original Listing Price  $500,900
Days on Market        769
Assessments           $308
Listing Agent           Michael Holtorf at Equity Brokerage Services
Comparable             Other two-bedroom and two-bath units are currently priced up to $579,000.

Three-bedroom condos at Metropolitan Tower offer more than 1,500 square feet of living space. There aren’t many great deals for three-bedroom floor plans right now. Here’s an example of one resale unit that that just came on the market today-

Unit                      1803
Listing Price             $1,020,000
Original Listing Price  $1,020,000
Days on Market        1
Assessments           $721
Listing Agent           Michael Holtorf at Equity Brokerage Services
Comparable             This condo sold for $979,000 in March 2007.

Rental Market
There are 16 condos for rent at Metropolitan Tower. Here’s a rundown of current pricing-

Floor Plan             Rent
1BR/1BA              $1,600 – $1,800
2BR/2BA              $2,300 – $2,700
3BR/2.5BA           $3,750 – $6,000

Development Amenities

Metropolitan Tower offers granite kitchens, marble baths, and hardwood floors throughout the entire unit. Residents enjoy incredible Lake, city and park views from the large private terrace. Other features include a fitness center, party room, attached heated parking, and a sundeck.

[tags] Chicago Condos, Chicago Real Estate, Metropolitan Tower, South Loop Condos [/tags]

December 9, 2008 – If you’re in the market for a new Chicago condo but wishing for a sure thing in terms of value or satisfaction, probably one of the closest deals you’re going to get is still at the Lofts at 1800. A few months ago we told you about the project developer, Kopley Group, advertising a no questions asked buy-back guarantee that was good for two years after the purchase of one of the units at their conversion project. That guarantee is still in effect, so you may want to see what this Chicago real estate development has to offer.

Work has been progressing on the former factory building on 1800 West Grace Street and if all goes according to schedule, first deliveries on the 91 condo lofts will start about mid year 2009. Around 22% of the units are under contract, so there are still plenty of lofts left to pick from at 1800. This buy-back guarantee is probably very attractive to many buyers who are uncertain about making a purchase with so much economic and housing instability right now. At other developments, if you walk away from a contract you generally forfeit your deposit. At the Lofts at 1800 you don’t have that worry if something comes up that would prevent you from closing on a unit or even if you just decide you don’t want to for some reason.

Prices on the lofts run from the mid $200,000s for a one bedroom unit to the mid $300,000s for a two bedroom. The larger three bedroom condo lofts start in the low $700,000s. Kopley states in their offer that the buy-back guarantee applies to certain units in the development, but could possibility be negotiated for other units there.

There are several other quality Chicago Loft projects in the city and with most developers eager to thin out inventory, you may find some good deals before the end of the year.

[tags]Lofts at 1800, Chicago Condos, Chicago Real Estate[/tags]

December 8, 2008 – At least one Chicago real estate project received some good news recently. Parc Huron developers Anthony Rossi and Thomas Moran secured a $54.2 million loan from a group of lenders consisting of Charter One Bank, PrivateBank and J. P. Morgan Asset Management. Construction on the 469 West Huron Street high-rise in River North is expected to start before the end of the year, with a planned completion date of fall 2010 according to Crain’s.

The 21 story Parc Huron will contain 221 units, but rather than Chicago condos they are slated to be luxury rental apartments. The article in Crain’s stated that almost every other apartment development planned for downtown is stalled right now, so gaining financing for this project was a major coup. Appraisal Research Counselors states that lenders are now requiring nearly 40% equity in new projects and even then it’s difficult to finance the remaining 60% cost.

For the Parc Huron, Moran and Rossi put up $30 million in equity themselves and the banks are providing 65% of the project cost. In previous years is was normal for banks to fund as much as 80% of construction costs, but now hardly any will foot more than $50 million for a large scale project.

The two developers purchased the parcel in November from Lennar, who had canceled the high-rise. Moran and Rossi decided to keep the Parc Huron name and luxury condo style of units, just make them rentals instead. Plans are for the apartments to run about 969 square feet, have 9.5 foot high ceilings, hardwood flooring and other custom finishes. ARC also states that an estimated 3,200 apartments are due to hit the market by 2011, so this project will have plenty of competition from new units as well as existing Chicago Apartments.

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

December 6, 2008 – The Chicago condo market suffered the worst year-over-year decline in sales to date in November.  According to data from the Chicago MLS, sales of new and resale condos and lofts fell by 55.8 percent from a year ago.  Prices also plummeted during the month, with the average sales price falling by 15.8 percent from a year ago.

A total of just 598 condos and lofts were sold in the city of Chicago in November, a steep drop from the 1,353 units sold during the same month a year ago.  Sales were off more than 62 percent from November 2006, when 1,574 condos were sold in the city.

Sales on both the high and low ends of the market were down sharply.  Sales of units priced at more than $1 million fell by 69 percent, with just 18 units sold in that price range during the month.  This led to a sharp drop in the average sales price to its lowest point in more than two years, falling to $333,206.  Buyers in neighborhoods south and west of downtown Chicago are seeing some dramatic drops in prices.  The average sales price for units sold in areas south and west of downtown in November plummeted to $117,371, down from $170,269 just a year ago.

Condo owners and developers are facing one of the slowest markets in recent memory.  If you’re selling your condo in Chicago, it will now take you an average of 154 days to find a buyer, up from 97 days a year ago.  Buyers should keep an eye on significant discounts in current listing prices for Chicago Condos For Sale in neighborhoods around the city.

[tags] Chicago Condos For Sale, Chicago Real Estate, Chicago Condo Market November Sales [/tags]

December 6, 2008 – One bright spot has shone through the overcast effect of the housing market and that is the Riverview Condo Association and Chicago Spire developer Shelbourne Development agreeing to drop the lawsuits over a disputed land easement. According to the Tribune, Riverview decided to drop the suit around the end of last month.

The problems began about a year ago after Shelbourne had negotiated for rights to dig along a narrow strip of land adjacent to both the Spire construction site and the Riverview Tower. Riverview claimed that Shelbourne misrepresented their intended use for the parcel and the condo association thought they were granting rights to dig for utility lines only, not a 7 story underground parking garage. The excavation was expected to cause the Riverview townhomes to settle at least 2 inches and cause structural damage to some extent. Shelbourne contended that they informed the condo association of the land use and would pay for repairs on the townhomes and condo towers should any occur.

But now with construction halted for who knows how long on the Spire, persuing a lawsuit of this type is pointless for Riverview. If and when construction gears back up the two opposing sides may take up the easement fight again, but for now a truce is in effect.

Condo Developers in Chicago face plenty of challenges in terms of getting a project off the ground, and obtaining all of the necessary permits and easements can be a time consuming part of Chicago real estate, on top of actually finding enough buyers for those Chicago condos.

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

December 5, 2008 – Despite months of maneuvering and attempts at restructuring under Chapter 11 bankruptcy, Kimball Hill Homes has decided to liquidate its assets. CEO Ken Love repeated the same reasons for their financial distress that many other Chicago real estate developers have of late. “Given the current housing and financial market conditions, we are simply unable to conduct normal operations while the company continues its sales efforts,” Love was quoted as saying in Crain’s.

Kimball Hill filed for Chapter 11 in late April 2008 and was optimistic about being able to renegotiate loans and keep on marketing homes. They have partnered with several other area developers on projects in Chicago and the surrounding suburbs and area and state that they have cash to complete the buildings and homes already in the works. Probably one of the most well-know is Parkside of Old Town, which Kimball was developing with Cabrini-Green Community Development Corporation and Holsten Real Estate Development.

Parkside of Old Town is an 18 acre planned development that will be home to 32 individual buildings and as many as 790 residences. The project is a mix of affordable and market rate housing, with 50% of the residences being earmarked as affordable. Units will consist of condos and townhomes, with prices starting from the low $200,000s. Finishes include the standard list of hardwood flooring, custom cabinets and granite counter tops and stainless steel appliances. The condo portion will have a fitness and business center while the townhomes will have attached garages. All of this will be focused around a professionally landscaped park, hence the name.

You can find other Townhouses in Chicago for sale right now if Parkside isn’t the place for you.

[tags]Parkside of Old Town, Chicago Condos, Chicago Real Estate[/tags]

December 4, 2008 – The lackluster economy and housing market have influenced another Chicago real estate developer to change plans on an upcoming project. Centrum Properties had already decided this past spring to cut the Chicago condo portion from their $100 million Lofts at Lakeview Collection project on West Hubbard and replace them with luxury rental apartments. Now the Chicago Journal is reporting that Centrum may decide to ax the apartments as well.

The Lofts had been part of the mixed-use development that was designed by Hirsh Associates for Centrum. The condo units were going to be marketed in the $300,000 to $750,000 range and the lower level of the building would contain retail space. Now with both the condos and apartments out of the picture, that only leaves the retail portion if the development even ends up breaking ground. Original plans had called for construction to being in October of this year with a completion date of late 2010.

Currently the empty LaSalle Bank is still standing on the building site and Centrum has yet to submit official revised plans to the city commission for approval. John McLinden of Centrum wasn’t able to confirm anything yet. “We’re looking at our development plan and trying to see what makes sense,” he told the Journal.

The Commerce Department reported that construction spending was down 1.2% in October, which is considerably more than the expected .9%. Overall housing construction was down 3.5% nationally in October, much more than the .5% in September. National Association of Home Builders economist David Seiders predicts that home construction will keep falling until at least mid 2009, which is a sentiment that many experts echo. If so, the current list of Chicago Condo Lofts may not see any competition for some time.

[tags]Lofts at Lakeview Collection, Chicago Condos, Chicago Real Estate[/tags]

December 3, 2008 – Buyers can find several floor plans currently for sale at 474 North Lake Shore Drive.  This 62-story building in Streeterville offers a total of 502 units, with studio, one, two, and three-bedroom condominiums available.  A total of 35 condominiums are available for sale. Renters can also choose from 25 units currently on the market.  Buyers aren’t seeing significant reductions in the asking price for most condos on the market in this luxury development.

Studio units at 474 N Lake Shore Drive offer a total of 642 square feet of living space.  The lowest priced studio condominium is unit 2307, which has just come on the market.

Unit                          2307
Listing Price              $229,000
Original Listing Price $229,000
Days on Market         39
Assessments             $302
Listing Agent             Ingrid Panico at Joseph Real Estate
Comparables             Other studio units are currently priced from $239,000 to $329,900

Several one-bedroom and one-bath units are also available at 474 N Lake Shore Drive. One recent arrival on the market is also the lowest priced unit currently available in the building. This condo offers a total of 650 square feet of living space.

Unit                           2207
Listing Price               $249,900
Original Listing Price  $249,900
Days on Market          8
Assessments              $308
Listing Agent              Ryan D’Aprile at D’Aprile Realty
Comparable               Other one-bedroom units with 650 square feet of living space are priced from $291,000 to $319,900.

There are some price reductions for two-bedroom and two-bath condos at 474 N Lake Shore Drive. The lowest priced unit offers a total of 1,257 square feet of living space, and has already seen a 10 percent drop in the asking price.

Unit                          1902
Listing Price               $469,000
Original Listing Price  $519,000
Days on Market          184
Assessments              $596
Listing Agent              Kimberley Jones at Baird and Warner
Comparables              Other two-bedroom and two-bath units with a similar floor plan are priced from $505,000 to $650,000.
The largest units at 474 N Lake Shore Drive have three bedrooms and 2.5 baths, and come with more than 2,000 square feet of living space.

Unit                           5803
Listing Price               $1.1 million
Original Listing Price  $1.1 million
Days on Market          134
Assessments              $1,200
Listing Agent              Donna Urbikas at Prudential Preferred Properties
Comparables              Other two-bedroom and two-bath units with a similar floor plan are priced from $505,000 to $650,000.

Rental Market
There are 25 condos for rent at 474 N Lake Shore Drive. Here’s a rundown of current prices for each floor plan.

Floor Plan              Rent
Studio                     $1,250 – $1,800
1BR/1BA                 $1,625 – $2,000
2BR/2BA                 $2,475 – $3,150
3BR/2.5BA              $3,250 – $3,300

Development Amenities
Residents of 474 N Lake Shore Drive enjoy a long list of luxury amenities. Hardwood floors, carpeted bedrooms, a washer and dryer, and granite kitchens and baths come standard in each unit. Residents also enjoy common amenities such as a pool, modern fitness center, 24-hour doorman, and attached heated parking. Most units offer sweeping lake and city views.

December 3, 2008 – It looks as though Donald Trump can claim the first victory in the legal battle he is engaged in with Deutsche Bank over a construction loan owed. Despite Trump’s law suit filed to force an extension on the payback and a counter suit by the bank to call in a $40 million personal guarantee from the developer, Deutsche advanced another $13.2 million late Monday for continued construction on Trump Tower, according to Crain’s.

Trump’s lawyer, Steven Schlesinger, had predicted that the bank would continue to allow them to make draw downs on the loan because it was in everyone’s best interests to complete the 92 story luxury high-rise. Marketing the remaining Chicago condos would prove even tougher if construction stalled on the tower. The developer had been drawing down around $20 million per month for building costs, and Duetche Bank puts the available amount left at $115 million from the original loan amount of $640 million. But the high-rise is due to be completed in around 5 months and the estimated cost to finish the Chicago real estate project is about $90 million, so the development will come in under budget if all goes according to plan.

As for the installation of the over 200 foot spire, don’t ink in the 13th and 14th just yet on your calendar. The Tribune reports that the city hasn’t issued a permit yet for the feat and that the helicopter necessary to lift the spire is proving hard to secure as well. And even if a helicopter is booked and the necessary permit secured, the ever unpredictable Chicago weather will have the last say in the matter. With developers scaling back on Chicago Condos projects, Trump Tower may be able to hold onto its tallest title for some time.

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