January 21, 2009 – Donald Trump may not like the hand he’s been dealt by the New York state Supreme Court in regards to the suit he filed against the Deutsche Bank, lender for his Trump Tower. On January 15th the court ruled against Trump. The suit was filed in an attempt to force the bank to give an extension on the remainder of the construction loan that came due in November 2008. The original amount of the loan was $640 million, and Trump had personally guaranteed about $40 million himself. He had sought an extension on the $334 million that came due, citing the “force majeure” clause in the contract, saying that the “unprecedented financial crisis in the credit markets” met the criteria for an extension, according to a Bloomberg News article.

Trump had also contended that the bank’s refusal to allow him to lower the prices on the remaining inventory at this luxury Chicago real estate project was making it difficult to compete with investors who are selling units for as much as 30% below developer prices. The 92 story tower is somewhere between 50 to 60 percent sold. The hotel portion of the project has been open for months now and the entire high-rise should be complete sometime late this spring. The installation of the 227 foot spire finally occurred a few days after the New Year, lifting the tower to rank as the second tallest building in the U.S.

The Deutsche Bank has continued to allow Trump to make draw downs on the remainder of the loan despite the law suits. No matter what happens legally, it is in their best interests for the building to be completed and not stall construction. According to the article, neither the bank nor Trump wanted to comment on the ruling at this time. We’ll have to see what action the bank now takes to collect the loan and what becomes of the unsold Chicago condos in the tower. No doubt other Condo Developers in Chicago who are facing loan due dates are also keeping an eye on the outcome of this dispute.

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

January 20, 2009 – Winthrop Properties is writing a new chapter at Printers Corner to bolster sales of the final few Chicago condo units at this development. Taking a page from some other developers who have offered “live for free” deals to potential buyers, Winthrop is advertising 6 months of free taxes, association fees, interest and principal to anyone who purchases one of the remaining condos. At last check there were about a dozen and a half units still available.

That isn’t the only incentive being dangled in front of buyers though. The tried-and-true free parking space is another perk being advertised at Printers Corner. If you’re one of the fist ten buyers you’ll get to pull into the space, valued at about $35,000 to $40,000 at no extra cost. This free parking space offer has been on the table before

Or behind option door number three is a 1.25% rate buy down offer. The developer website crunches the numbers to equate that to a savings as much as $425 each month on a 30 year fixed-rate loan. Of course to get that much in savings I assume you’d have to purchase one of the more costly residences in this 88 unit Chicago condo development.

The units in Printers Corner range in size from 740 to 1,900 square feet and are priced from about $310,000 to $480,000s. Of the condos left for sale, there are some one bedroom and bath units with about 740 to 770 square feet as well as some two bedroom, two bath units measuring about 1,145 to 1,168 square feet. All of the remaining units are move-in ready, and you can find many other Chicago New Construction Condos ready for delivery as well.

[tags]Printers Corner, Chicago Condos, Chicago Real Estate[/tags]

January 19, 2009 – The first of the 342 one and two bedroom condos at Roosevelt Collection will be ready for move-in by this summer, and as the date for first deliveries edges closer, more press about this large-scale Chicago real estate development is being released. The Tribune recently gave some details on the mega mixed-use project that totals about 1.3 million square feet and is located on Roosevelt Road, sandwiched between Clark and Wells Streets.

The Roosevelt Collection will include a mix of a minimum of 40 stores and shops, the condo lofts situated above those levels and in the final phases, a 43 story rental high-rise. The parking garage is underground below the plaza and will have access points from Wells and Roosevelt Streets to help with extra traffic from residents and shoppers, according to the article. The underground parking levels will also help to reduce the heat island effect that lower level above ground parking generates. That, along with green roofs on the shops and theater are some cool eco-friendly features.

Interior design details are courtesy of Cecconi Simone Inc. and include baths with porcelain tile, soaking tubs and rain showers. The kitchens sport Italian wood cabinets and stainless steel Kitchen Aid appliances. Even the often times pointless hallway space has been utilized to contain a closet washer and dryer laundry station. Other features include large balconies, a door man, business center, fitness center and bike storage. These Chicago condos run in price from the $300,000s to mid $600,000s, have from 759 to 1,497 square feet and are quickly becoming some of the most popular Chicago Condo Lofts for sale right now.

[tags]The Roosevelt Collection, Chicago Condos, Chicago Real Estate[/tags]

January 18, 2009 – While sales of condos in the city of Chicago fell 42 percent in the fourth quarter, sales of new and resale units around the suburbs posted just a 29 percent decline from the same period a year ago.

According to data from the Chicago Association of Realtors, a total of 2,691 new and resale condos and lofts were sold in the greater Chicagoland region during the fourth quarter, down from 3,800 units sold a year ago.  However, sales have plummeted from the peak of the market seen in 2005.  A total of 7,306 units were sold during the fourth quarter in 2005, representing a 63 percent decline in sales from the high point of the real estate boom in Chicago.

Buyers who are on the market are focusing on lower-priced units around the Chicago suburbs.  The average sales price plunged by 20 percent from a year ago, reaching a five-year low of $151,775.  Buyers could continue to see even lower prices for Chicago Condos in many communities around the region.  Sellers are facing one of the slowest markets in recent memory.  It took an average of 149 days to find a buyer during the fourth quarter, up from 114 days in 2007.  It is the longest average turnover time seen during the fourth quarter in more than 18 years.

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

January 17, 2009 – If it doesn’t sell, rent it. That may be the new plan of action for some Chicago real estate developers who are stuck with excess inventory on their books and can’t close out sales on condos in certain projects. One case in point is 200 N Dearborn. The developer, American Invsco, is now offering to lease unsold condos in the high-rise.

The building’s website has a banner ad stating, “”Now you can lease the 200 North Dearborn Lifestyle! Rent a spectacular condo today! Great move-in specials available through January 18, 2009.” Many developers don’t want to become landlords, preferring to sell the Chicago condos they build and move on to the next project. But unsold inventory doesn’t pay back construction loans and more developers are deciding that some income from the empty condos is better than none.

The ad states that the offer is in effect until the 18th, which is tomorrow. But if you can’t make it there by then there may be a good chance that you could still take them up on the offer if they are serious about leasing those condos. The last sales figures released about this project were that between 130-140 of the 309 units in this 47 story conversion project had sold. That doesn’t include the ones that are currently being leased right now. Of the one to two bedroom units that are for sale, the prices on them run anywhere from the low $200,000s to mid $500,000s.

You can find other Downtown Chicago Condos for sale if the 200 N Dearborn lifestyle isn’t for you.

[tags]200 N Dearborn, Chicago Condos, Chicago Real Estate[/tags]

January 16, 2009 – A few posts ago we told you about AvalonBay Communities’ decision to shelve plans for a large scale apartment development in the South Loop. Now the company has announced that they are pulling out completely from another venture, this time a partnership with Clark Street Development on an Oak Park project according to a press release in Crain’s.

With more developers switching to rental towers amid the soft Chicago condo market, it was probably only a matter of time before some of them scaled back on those projects as well. The Oak Park project was a $79 million mixed-use proposal that had been approved just this past July. Plans called for two towers, one at a height of 14 stories, that would hold a combined 196 apartments. The complex would have also contained 35,000 square feet of retail and a 496 space parking garage on the ‘Colt superblock’ site situated between North Boulevard and Lake Street.

According to the article, Chicago real estate developer Clark Street wants to move forward with the project if they can find another partner or else modify the plans made by AvalonBay. Over two years were spent planning the 2.5 acre project, but in a Tribune quote AvalonBay said that their decision was based on, “national changes in its investment strategies.”

Many experts are predicting that mounting job losses will cool the demand for rental units in coming months. If that holds true, then we may see fewer developers as eager to build new Chicago Apartments.

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

January 15, 2009 – As we mentioned a few posts ago, only three major developments are set to deliver in 2010 and one of those is Ten East Delaware. The tower is going up on the corner of Delaware and State Streets and will stand 35 stories tall when completed, and according to a recent press release in the Tribune the high-rise is over 75% sold.

Ten East Delaware will contain a total of 121 Chicago condos in all. The Prime Group, developer of Ten, is giving buyers have the option of consulting with a design specialist to customize their new condo exactly the way they want. Optimum options is the company handling the design consultations and in the article company founder Nonna Knapp had high praise for the development. “Ten East Delaware offers one of the most extensive array of selections and finishes of any high-end project in the city.”

The luxury condos have from one to three bedrooms and 1.5 to 3.5 baths. Living space runs from about 845 to 3,095 square feet depending on the unit. Ceiling heights range from 9 to 10 feet and the condos come with large balconies as well. An assortment of hotel-style services and amenities is offered on a pre-request basis from the neighboring Talbott Hotel and the Bice Restorante is on tap for room service or catering. Residents will also have The Ten Club, which is an upper level private club that includes a fitness center, pool, sun deck, garden and dining room.

Prices on these condos run from the mid $500,000s on up to more than $2.5 million. You can compare them to other Chicago Luxury Condos and see if the amenities stack up.

[tags]Ten East Delaware, Chicago Condos, Chicago Real Estate[/tags]

January 14, 2009 – If any of you have been to East Pilson lately you may have noticed that Union Row is pretty much complete, at least on the outside. Chicago real estate developer Belgravia Group has been marketing the 35 town homes for a while, and there are still about twelve or thirteen of the homes left for sale. There is also a furnished model located on site if you want to take a tour.

Of the dozen or so town homes that are available, there are selections in most of the floor plans offered. The three and four bedroom layouts range in size from around 2,300 to 2,900 square feet. There are a few that are available for immediate delivery, and the others are still being finished so a buyer would still have time to pick out options on those units. Prices on the remaining Union Row town homes run from the high $600,000s to the low $700,000s.

Belgravia hosted a Halloween-themed event last October to welcome prospective buyers and those who had already signed a contract into the Pilson neighborhood. Local retailers and eateries donated goodie bags for those in attendance as a way to familiarize everyone with what the area had to offer. According to the developer, similar events are on tap to be held this spring. With so much competition for buyers, Chicago condo developers are always coming up with new ways to make their project stand out and attract attention. Being able to visualize how your life would be in one of these Townhouses in Chicago and how you would spend your time in the neighborhood might be enough to make a person feel at home and convince some buyers to make a purchase.

[tags]Union Row, Chicago Condos, Chicago Real Estate[/tags]

January 13, 2009 – With credit still tight and what buyers there are looking for the best deals on Chicago condos, we thought we’d take a look at another development that is part of the Find Your Place In Chicago program from The Partnership For New Communities. 235 W Van Buren, the 47 story high-rise from Chicago real estate developer CMK Companies, is eligible for a few incentives from the program. The tower is currently under construction in the Near West side, and at least for the moment is expected to start making first deliveries by mid-year.

The units that qualify for the grants are the one bedroom condos at 235 W Van Buren. The prices listed on the partnership website are $146,385 to $148,980. Harris Bank is offering the incentives detailed below.

A grant of $1,500 is available to assist in paying closing costs. If buyer’s credit score falls between 600 and 699 he or she is eligible for a 30 year fixed-rate mortgage and a 35 down payment. For a better credit score of at least 700 or above the buyer can get a 30 year fixed-rate mortgage and have no down payment. And if a buyer has a credit score of less than 600, then that makes them eligible for credit counseling and help with credit repair.

Some of the features and amenities at 235 W Van Buren include 10 foot ceilings, wall-to-wall carpeting in the bedrooms, wiring for high speed Internet and phones, ceramic tile flooring and marble vanity tops in the baths, ceramic tile tub/shower surround and frameless mirror, European-style kitchen with granite counter tops, stainless steel appliance package plus double bowl stainless steel sink. Hardwood flooring and designer lighting is installed in the living/dining rooms and the windows have Thermalpane glass. The building has a 24 hour doorman, dog run, bicycle storage rooms and garage parking plus state of the art security systems.

If you think you might need some professional help with your credit rating, be sure to read the information available about Chicago credit repair.

[tags]235 W Van Buren, Chicago Condos, Chicago Real Estate[/tags]

January 12, 2009 – Chicago real estate developers may have a limited time left to offer buyers incentives if their preferred mortgage lender is used. A new law that was set to go into effect on January 16th of this year would prohibit home builders from dangling discounts, upgrades or other incentives to buyers if they use the developer’s affiliated mortgage company. The effective date of the law, part of the Real Estate Settlement Procedures Act, has since been pushed back to April 16th, in part do to a suit filed by the National Association of Home Builders(NAHB) against the Department of Housing and Urban Development(HUD).

Basically HUD contends that developers were recouping the money they spent on offering buyers monetary incentives, free parking, free upgrades or other incentives by increasing closing costs, raising the interest rate on the loan or even raising the base cost of the condo or home. HUD has no problem with developers offering what they term “true” incentives that are available to anyone regardless of whether or not they use the preferred lender.

William Killmer, VP of NAHB’s advocacy group was quoted in an Inman News article as saying that the new rule change, “could not have come at a worse time,” and that it will “greatly obstruct NAHB’s members from stimulating consumer demand and moving excess supply.”

With the slumping housing market, many developers have been using a combination of incentives to try to entice buyers into purchasing Chicago condos. One example that comes to mind is R+D659 where you can get a 1.5% below market rate lock on a loan if you use the preferred lender.

It will be interesting to see if when the new ruling goes into effect it will decrease the number of incentives for buyers or make them more readily accessible no matter where you get your financing. Until then, if you’re interested in one of the Downtown Chicago Condos offering incentives that fit into that category, you may want to make a move before April.

[tags]R+D659, Chicago Condos, Chicago Real Estate[/tags]