July 31, 2009 – With condo closings on schedule for this fall and construction here is always something to report from Aqua. Already the framing is up to floor 78 and workers are in the process of installing cabinets in the lower floor “Designer Collection Series” units, according to the project update. Residents have been able to enjoy The Shore Club and to accommodate the need for more seating, they are adding more nesting chairs and have more lounges and chaises ordered that should be delivered in time to be used yet this summer. Apartment residents have been moving in for several weeks, but even Chicago condo owners who haven’t been able to move in are eligible for an all-access pass to the Shore Club so they can also enjoy the amenities.

Magellan Development, the company behind this luxury Chicago real estate project, has also made arrangements for complimentary concierge service for everyone who has bought a condo in the high-rise. This service will begin on August 1st and last for one year. Abigail Michaels Concierge can help buyers with making arrangements for moving along with anything else a concierge service usually offers. Their hours of operation are weekdays from 8AM to 8PM and Saturdays from 9AM to 5PM.

The movie and party rooms are also open, and you can book one for $75 per day. Magellan is also hosting free Tuesday night movies at 8PM from now until September 29th in the movie room, with seating on a first-come basis.

On the retail front, Casteel Coffee will be opening up shop in Aqua in a few weeks. Besides serving up coffees, dessert/pastry items and lunch, they are also going to offer poolside delivery and service to residents.

With so many building amenities and the Shore Club, it’s pretty easy to see why the condos at Aqua have sold so well and been some of the most popular Chicago Luxury Condos.

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

July 30, 2009 – The most difficult aspect of being a Chicago real estate developer in today’s market may not be making sales, but actually closing them. The rate of buyers walking away from purchase contracts for some new construction Chicago condos has risen to about 40% according to a recent Sun Times report. Cancellations stood at around 25% earlier this year.

Appraisal Research Counselors noted that because most developers aren’t willing to disclose negative information such as contract cancellation rates at their projects, it’s hard to get an exact count. Some developers are also offering to push back closing dates in the hopes that the buyer will be able to close later on rather than never.

The article went on to say that insiders named 235 W Van Buren and R+D659 as two of the more prominent projects hurt by walkaways. This could explain the frequent price cuts and incentives at those buildings.

But many luxury developments aren’t yet experiencing the same problem with cancellations. The Lakeshore East and Central Station areas seem to be perennially popular with buyers. Central Station developer Gerald Fogelson of Fogelson Company told the Sun that in his buildings the cancellation rate is only around 15% and that, “The weekly traffic in our sales center is very close to what it was in pre-recession days.” Some 600 units ($300 million in revenue) in his Central Station towers closed and were delivered in late 2008.

Fogelson also said in the article that he believes developers who slash prices only hurt both their sales and sales at other similar developments because it lowers the appraisal value and buyers can’t get financing to close on units.

With more closings imminent at both the Legacy and Trump Tower it will be interesting to see if more buyers decide to walk away from contracts on these Pre Construction Condos in Chicago.

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

July 29, 2009 – The foreclosure wave has swamped another Chicago real estate conversion project, namely Pearson On The Park in Streeterville. Private Bank and Trust has filed suit against the 28 story, 219 condo high-rise located on 222 East Pearson Street. Developer Ganesan Visvabharathy allegedly failed to make both the February and March installments to repay the remaining $6.8 million still owed on the loan, according to a Crain’s report.

Public records indicate that Mr. Visvabharathy arranged for Private Bank to refinance previous loans used to purchase the building and cover conversion costs. He also personally guaranteed the refinance loan plus put up 55 acres in Mount Vernon as collateral. One extension was granted when the loan came due last November, but attempts to get another extension to March 2010 have so far failed.

According to the article, 176 of the 219 Chicago condos at Pearson On The Park are sold, which is 80%, but only three units have gone under contract so far this year despite reducing prices by around 13%. That isn’t unique to this development though, because Appraisal Research Counselors states that only 17 downtown converted Chicago condos were sold in the first quarter of this year while 62 were sold during the sale period last year.

Developers trying to sell their remaining Downtown Chicago Condos before the end of the year may have to resort to even lower prices to stand out from all the competition.

[tags]Pearson On The Park, Chicago Condos, Chicago Real Estate[/tags]

July 28, 2009 – With so many Chicago condo developers offering rent-to-own programs at their buildings, it’s no surprise that some apartment towers are putting their own twist on the incentive idea. Renters at the Chicago AMALI 900 tower are eligible for the Nest Egg program. According to the details outlined in a recent Tribune article about the program, if you live in an AMALI apartment for six months in a row and then immediately purchase a single-family home from Rylans Homes, Pulte Homes or a Chicago condo from developer Belgravia Group you’ll get 20% of the rent you paid (up to a max of 2% of the base price) put towards the purchase. Belgravia’s developments include 565 Quincy, Hartland Park and Union Row

“Nobody is going to stay in an apartment forever. The American dream is to purchase a home, and we want to help,” Sarah Cycotte of AMALI sales said in the article. The rental tower has 440 units, of which 64% are currently rented and leases in progress that will boost that number up to 82% soon. The Nest Egg program may push that number even higher.

According to Appraisal Research Counselors, around 2,000 new apartments became ready for occupancy this year in Chicago and 1,000 more will join the crowd before 2008 is over. Any edge a Chicago real estate development can have is a definite plus in the current housing market, rental or otherwise.

If you’re not quite ready to take the plunge and buy a condo right now, you may want to check into the AMALI 900 program and see if it could work for you. Or you can also look into some of the many Rent to own condos in Chicago.

[tags]AMALI 900, Chicago Condos, Chicago Real Estate[/tags]

July 27, 2009 – The crop of new rental Chicago real estate developments includes the eco-friendly 215 West Washington. This 50 story, 389 unit tower is scheduled to be complete sometime in spring of 2010, and according to an article in Chicago Now, it’s the first Loop rental residential high-rise to be built in 15 years as well as be LEED certified. Jupiter Realty and Cornerstone Real Estate are the developers of this project.

215 West will have studio to three bedroom luxury rental units. The studios have a couple of different floor plans and 525 square feet. Convertibles have 661 to 662 square feet. The one bedroom, one bath units have 615 or 766 square feet while the one bedroom, one bath plus den apartments size up at 908 or 915 square feet. The two bedroom, two bath units have 1,106 square feet while the three bedroom, two bath apartments have 1,610 square feet and the three bedroom, 2.5 baths measure 1,662 square feet. The largest units at 215 West are the three bedroom, 2.5 bath plus balcony. Those residences have 1,775 or 1,784 square feet.

The apartments come with floor-to-ceiling windows, Frigidaire appliances, granite counter tops, cherry and maple wood cabinets, marble baths and individual heating and cooling controls per unit. Green features include low-flow water fixtures, a roof top garden and sustainable construction materials.

Building amenities at 215 West include the 14th floor fitness club, massage and steam rooms, roof top pool, and BBQ area. There is also a lounge with Wi-Fi service, movie room, business center, library, party room and game room with billiards. A 24 hour doorman, indoor parking, bike storage, dog run (the building is pet-friendly) and community website are also part of the package.

Leasing rates haven’t been announced yet, but even though this is a luxury building they will have to be competitive because of the growing inventory of Chicago Apartments.

[tags]215 West Washington, Chicago Apartments, Chicago Real Estate[/tags]

July 25, 2009 – One Chicago real estate development that doesn’t seem to get much press is Astoria Tower. Prices in the 30 story high-rise, located on 8 East 9th Street, really haven’t changed much since deliveries began this past spring. Sales numbers at the building have bounced between 70 and 75 percent for quite a while, and you can still find a decent selection of units there. The bulk of what’s for sale still appears to be two bedroom, two bath condos, which has been the trend at this building.

According to the developer, prices for the remaining one bedroom, one bath, 565 to 823 square foot units at Astoria Tower range from the $230,000s to $410,000s. The assessments on these condos run from the $230s. For the 852 square foot one bedroom, two bath plus den condos you can expect to pay from the $330,000s to $360,000s with assessments from the $340s. The one bedroom, 1.5 bath plus den condos with 993 square feet of space are priced from the $380,000s to $400,000s with assessments from the $380s.

The 1,063 to 1,406 square foot two bedroom, two bath units are listed between the $390,000s to $710,000s with assessments from the $460s. The two bedroom, three bath condos with 1,803 square feet are priced just under $1.5 million with assessments in the $730s. Parking is another $40,000 to $42,000 with monthly assessments on the spaces running about $66.

Finishes include 9′ ceilings, hardwood flooring in the common areas, stainless steel appliances, 42″ cabinets, granite counter and vanity tops, washer and dryer, soaker tubs with separate shower plus wiring for high-speed Internet and cable television. Building amenities at Astoria include a party room, movie room, game room, business center, fitness center and spa, golf simulation center, 24 hour door man and extra resident storage space.

Since Astoria Tower is one of the Chicago New Construction Condos that has sales well over 50%, they may not lower prices immediately but we’ll keep you posted on any changes if they happen.

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

July 24, 2009 – “Our prices are like getting an extra bedroom for free,” is the latest sales slogan that 400 North LaSalle is using. Right now developer DK Equity is running ads that state buyers can get a two bedroom condo for the price of a one bedroom in this River North tower. They also claim that their reduced prices “give you more space for the dollar than anywhere else downtown.” Whether or not that’s entirely true remains to be seen with some number crunching, but in any case prices on some of the units in this Chicago real estate development have been lowered by as much as $170,000 in some cases.

Prices had been running anywhere from the $150,000s to low $200,000s for a studio, the low $200,000s to mid $300,000s for a one bedroom and the $290,000s to $490,000s for a two bedroom.

All of the studio to two bedroom condos at the 45 story 400 N LaSalle come with balconies, washer and dryer, GE appliances, stainless steel sink with pull out Kohler faucet, granite counter tops, extra closet space, wood cabinets and wall-to-wall carpeting. Pets are welcome as well.

Building amenities include valet service and 24 hour doorman, private parking, fitness center, sundeck with heated pool and spa, bike room and storage lockers, party room with catering kitchen plus dry cleaner and cafe on the lower floor.

You can compare the two bedroom prices at 400 N LaSalle with other River North Chicago Condos and see if the prices really do pan out to more space per dollar.

[tags]400 N LaSalle, Chicago Condos, Chicago Real Estate[/tags]

July 23, 2009 – Belgravia Group, the Chicago real estate developer behind such projects as 565 Quincy, Hartland Park and Union Row, is a company that tries to go the extra mile for its home buyers. The company has diversified and has several new divisions to help not only buyers who purchase a Chicago condo or townhome from them, but for owners of other homes as well. They have programs such as their BG Mortgage program that can help first-time buyers through the loan process or work with a consultant to refinance an existing adjustable-rate mortgage. And Belgravia has a service that will assist home owners who want to sell their existing unit and move up to a larger one.

The Belgravia Plus specializes in home analysis, maintenance, commercial build-out, interior design and remodeling and renovations. The home analysis will cover everything from inspection of your heating and cooling, pipes, foundation, electrical, insulation, doors and windows, kitchen appliances, bathrooms and fireplace. The maintenance division can handle any repairs or upkeep that needs to be done in any of the areas as mentioned. The interior design department offers clients space planning, furnishing and art selection, help with color and materials choices and custom design. Finally, the remodeling and renovating division is equipped for bathroom and kitchen remodeling, adding on a room, theater, terrace or installing new flooring or cabinets.

And if you’re already an owner of a Belgravia condo or townhome, you can cash in $1,000 in upgrades if you refer a friend who closes a contract at one of the developments. You can double that amount if the unit is at 600 N Lake Shore Drive. Repeat buyers can expect to receive 1% off their second home purchase as well.

Units still available at 565 Quincy range from 1 to 2 bedroom lofts with prices from about $333,900 to $448,900. Hartland Park has some 4 to 5 bedroom units that run from the upper $800,000s to around $1.3 million. At Union Row there are 3 bedroom condos priced from around $535,000 to $600,000. And you can find more Townhouses in Chicago in the development profile pages.

[tags]565 Quincy, Chicago Condos, Chicago Real Estate[/tags]

July 22, 2009 – Ricker-Murphy, the developer of Lincoln Park 2520 have announced that in an effort to secure a construction loan and hopefully make more sales, the three tower Chicago real estate project will be both shortened and the number of units reduced. Crain’s reports that the tallest of the planned high-rises in the complex to be built on 2520 North Lakeview Avenue will go down from 41 stories to 33 stories and the number of Chicago condos will be lowered from 292 to 198.

The overall design of Lincoln Park 2520 will stay the same and the 19 townhomes at the base will still be built, according to the article. Sales have been stuck at about 50% for some time, and by lowering the number of condos in the project it would jump to 74% sold. But wiping out the top 8 floors of the tallest tower also causes 29 condos to disappear. Those condos are already sold, and Crain’s points out that if those buyers decide not to opt for another unit, the gains will be lost.

John Murphy of Ricker-Murphy said in the article that, “Our opportunity to reduce the scale we believe will actually make us more attractive for not only construction financing, but also more attractive for the buyers.” But he also admitted that lowering the number of condos also lowers the profit of the development. “There is profit, and we feel it is consistent with our underlying projections from the outset,” he commented.

With the backing of the GE Pension Fund, Ricker-Murphy is moving forward with foundation work for the complex, even without a construction loan in place. This is probably to shore up faith in the project and also because buyer contracts in place right now state that first deliveries must be made no later than the end of 2011. Foundation work must be started now for that to become a reality.

Ricker-Murphy bought the site for $44 million, of which $28.75 million will come due to Bank of America on August 15th. The developer needs to either extend that loan, lock in a construction loan or make some sales to raise cash. Prices at Lincoln Park 2520 are about $885 per square foot, so that puts them close to the Chicago Luxury Condos range and finding buyers may be a hard sell right now.

[tags]Lincoln Park 2520, Chicago Condos, Chicago Real Estate[/tags]

July 21, 2009 – News that the assets of the troubled Corus Bank are being bid on by Starwood Capital Group could possibly mean trouble for some prominent Chicago real estate projects. Corus, who in the past was one of the biggest construction loan lenders in Chicago and several other cities, had been ordered by the Feds to either get their books in order financially or line up a buyer for its assets by sometime in June. The Wall Street Journal quoted Barry Sternlicht of Starwood as saying that, “We’re bidding on a bank.” If the assets are sold at a discounted rate, that could trickle down to some discounted Chicago condos.

One of the developments that has a Corus loan ($84 million) is Lexington Park. Sales have been slow at this project for some time and at last count the 333 units were only around 50% contracted. The two tower project is the first here for Ireland-based Chieftain Group and some of the lofts have been priced from about $200,000 with parking at half price.

Walton on the Park is another Corus loan asset ($129.5 million). There have been confirmed rumors recently that the second tower of the two tower development won’t get built and the site is up for sale. Less than 50% of the 31 story first tower’s 198 units have been sold so far, although there haven’t really been any price reductions as of yet. Prices on the remaining units for sale start in the low $500,000s.

The other two better know Chicago condo developments that Corus holds loans on are 50 East Chestnut at $67.4 million and The Columbian at $92 million.

We’ll have to keep an eye on Corus and see who eventually ends up with these loans. It may take some time, but there could be future price reductions on the unsold units in these towers if the assets are liquidated. Until then we’ll keep you updated on any other price cuts on Chicago New Construction Condos.

[tags]Walton On The Park, Chicago Condos, Chicago Real Estate[/tags]