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.

Technorati Tags: Aqua, Chicago Condos, Chicago Real Estate

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.

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

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.

Technorati Tags: Pearson On The Park, Chicago Condos, Chicago Real Estate