November 30, 2009 – Chicago Spire developer Garrett Kelleher is set to meet with the AFL-CIO today to discuss what it will take to get the Chicago real estate project out of the hole so to speak and off the ground. According to an article in the Tribune, these are “advanced” talks and will involve possibly funding a loan to pay off the $170 million Shelbourne Development owes to the Anglo Irish Bank and cover the liens placed against the project.

Back in the spring of this year news surfaced that the AFL-CIO pension trusts were interested in helping to get the Spire jump started again, which would create plenty of work for contractors and other construction affiliates of the organization. But then the prospect of Chicago hosting the Olympics stirred interest in the possible construction of the Olympic Village. But evidentially since Chicago wasn’t named host city, the AFL-CIO is once again focused on the Spire.

With the 2016 Games out of the picture, president Tom Villanova of the Chicago & Cook County Building & Construction Trades Council was quoted in the article as saying that, “We’re way past the look-see stage. We’re in the commitment stage now.”

A Shelbourne Development spokeswoman was also quoted as saying that, “This is a huge stride in moving the broader picture forward. It’s a negotiating chip for a much larger conversation.” This meaning that Mr. Kelleher would be in a much better position to secure more construction financing because of the backing of the unions.

If a deal is reached, work on the Spire would be done only by union workers. That could create as much as 7.5 million hours of labor, which would be a very welcome change from the 30% unemployment that many union workers are currently experiencing because of the slow housing market.

It has been incredibly difficult for developers to get financing for new projects. When these Pre Construction Condos in Chicago broke ground, credit wasn’t nearly as tight and buyers were scooping up Chicago condos at a much faster pace.

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

November 29, 2009 – If you’ve ever been interested in purchasing a Chicago condo in Edgewater, there is currently a closeout sale going on at Catalpa Gardens. This Chicago real estate development is located on 1122 West Catalpa Avenue in Edgewater. According to a recent profile in the Tribune, of the 126 units there about fourteen still remain to be sold. Besides being FHA approved, developer Catalpa Partners is advertising price cuts of between $50,000 and $150,000 on the unsold condos.

Catalpa Gardens is a group of three mid-rise structures, eleven stories tall, that contain 42 condos per building. Floor plans range from one to two bedrooms and baths. A unique design feature is that there are glass panels connecting the floors of each of the three buildings along with a central corridor, according to the article. The buildings also have green rooftops, party room, sun deck, storage units, a doorman and are pet-friendly with a dog walk.

Other features and amenities include a balcony or terrace, hardwood flooring, stainless teel appliances, granite counter tops, fireplace per plan, maple cabinets, washer and dryer hook-up and pre-wiring for cable and high-speed Internet.

Pricing on the remaining two bedroom condos with from 1,054 to 1,408 square feet at Catalpa Gardens runs between the $210,000s to $290,000s. Parking in the heated garage will cost you another $15,000.

And if Edgewater isn’t the neighborhood you’d prefer, there are many Downtown Chicago Condos for sale from developers who are offering incentives and price cuts.

[tags]Catalpa Gardens, Chicago Condos, Chicago Real Estate[/tags]

November 27, 2009 – Sheldon Good and Company isn’t taking much of a break from the recent Motor Row Lofts auction or the upcoming one day sale at the same Chicago real estate development. On Wednesday, December 16th there will be a “phase II auction – developer closeout” sale of 18 luxury condos located at the Seven Bridges Condominiums in Woodridge. Another auction too place back in July of this year when some 40 units went up for bid at this development.

The auction itself will be held at the Lisle Hyatt on 1400 Corporetum Drive in Lisle, Illinois. You need to be there by 6PM to register and the actual bidding starts at 7PM. All of the condos are to be sold, with minimum bids from $125,000. As what the auctioneer is calling a quick closing incentive, there will be a 2% discount on the high bid price to anyone who wins one of the auctions and can close on the unit within ten days of the signing contract to buy. Also, a 5% buyer’s premium is going to be tacked onto the winning high bid on each of these condos.

These condos have from one to three bedrooms and have from 1,200 to 1,760 square feet of living space. Some of the condos up for bid are already finished out and some aren’t, so buyers will be able to still pick out what finishes they want. The condos are located near the Seven Bridges Golf Club. Residents also have close, easy access to all of the restaurants, shops and entertainment on Main Street at Seven Bridges.

The open house dates for viewing these condos are on November 29th from noon to 3PM. You can look again on December 5th, 6th, 12th and 13th from noon to 3PM. And two last open houses will be held on December 9th and 15th from 3PM to 6PM.

And if you are in the market for Chicago Condos that are in the downtown section of the city, there are plenty of them available at reduced prices right now.

[tags]Seven Bridges Condominiums, Chicago Condos, Chicago Real Estate[/tags]

November 25, 2009 – It probably won’t come as a surprise to everyone, but by the end of the third quarter of this year, 21% of the Chicago metropolitan area homes were worth less than what was currently owed on them. That amounts to a total of 324,448 single-family homes and condos, according to data gathered by First American CoreLogic and printed in a Sun Times article. The national average for homes that are “under water” is 23%.

The report also states that one thing these under water mortgages had in common is that most of the home owners had taken out the loans between the years of 2005 and 2008. For just borrowers who took out loans in 2006, 40% are under water. For borrowers who took out loans in 2009 the percentage goes down a bit, with 11% of those being under water and 5% getting close to that point.

And even though Chicago condos and single-family homes were up considerably in October of this year, that doesn’t necessarily mean that the Chicago real estate market is completely on the mend. Most experts have agreed that while October was a good month and November may also follow suit, sales in December and the first part of 2010 may drop off again. In a recent Tribune article, Chicago condo sales in October of this year were 29% higher than in October of 2008. There were 1,193 units that were sold. The median price of Chicago condos for October of this year was $263,000 though, which is 16.8% less than it was the same month last year.

In any case, there are still bound to be some first time home buyers who take advantage of both the extension of the $8,000 tax credit and the reduced prices of Downtown Chicago Condos.

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

November 24, 2009 – There have been several Chicago real estate developers who have switched their Chicago condo projects to rental apartments this past year. And while there is still quite a bit of demand for downtown apartments, according to a recent Crain’s article both rental rates and occupancies at luxury apartment buildings dropped in the third quarter of this year. Rates and occupancies had risen for the first two quarters of 2009, according to Appraisal Research Counselors.

Ron DeVries of ARC was quoted in Crain’s as saying that, “It’s really not a signal that it’s a weak market. Demand is strong. We’ve just got a supply bubble right now.”

The article states that average rent in a Class A downtown apartment high-rise dropped to $2.10 per square foot for the third quarter of this year. That’s a 7.1 drop from the same quarter last year.

About 3,270 new downtown apartments were constructed in the past two years and 2,236 are expected to be added in 2010. Add in the 1,747 downtown Chicago condos that were up for rent in the third quarter of this year and that’s a lot of competition.

Many developers are offering one or two months of free rent to get renters into a lease. At Streeter Place, which is a 480 apartment high-rise on 355 East Ohio Street, Golub & Company is offering two months of free rent if you sign a 12 or 14 month lease. Tat building is around 55% leased. And chances are that when the Parc Huron in River North is completed next year those 221 apartments will also be offered with some sort of incentive on rents. So if you’re shopping for Chicago Apartments, you will have plenty of choices to pick from before you make a decision.

[tags]Streeter Place, Chicago Condos, Chicago Real Estate[/tags]

November 23, 2009 – As promised, here are as many of the details about the specific units at Motor Row Lofts that are being offered at this one day close out sale at this Chicago real estate development on December 5th from noon to 3PM. These are as they appeared in the email from Sheldon Good and Company, who is conducting the sale.

Unit #501 3BR/2Bath 2,049 Expansive corner duplex unit with 21′ ceilings, 2nd floor den, skybridge bedroom and office, balcony, rooftop deck.

Unit #502 2BR/2Bath 1,679 Duplex unit with 2nd floor den and office overlooking living/dining area, 21′ ceilings and private rooftop deck.

Unit #505 3BR/2Bath 1,661 Duplex unit with 21′ ceilings, additional third room ideal for den/office/media, and deck.

Unit #301 3BR/2Bath 1,649 Corner unit with balcony off living room and versatile third bedroom in skybridge.

Unit #216 2BR/2Bath 1,418 Spacious end unit with patio that opens to courtyard, large rear balcony.

Unit #402 2BR/2Bath 1,389 Oversized windows in living room and bedroom, spacious floor plan with den.

Unit #310 2BR/2Bath 1,198 Duplex unit with spiral stair leading to 2nd level Master Bedroom, rooftop deck.

Unit #314 2BR/2Bath 1,198 Sun-drenched duplex unit with large rooftop deck overlooking courtyard.

Unit #303 1BR/1Bath 1,057 Wall of oversized windows provides an abundance of natural light, office, walk-in closet in Master Bedroom.

And remember, there are other Chicago Condo Lofts for sale right now at reduced prices.

[tags]Motor Row Lofts, Chicago Condo Lofts, Chicago Real Estate[/tags]

November 21, 2009 – We told you that Michigan Avenue Tower II has already lowered the prices on some of their remaining Chicago condos to post-auction levels. Now Motor Row Lofts is taking another shot at cashing in on more auction inspired sales. Sheldon Good & Company is emailing invitations to a “one-day closeout sale” that they are holding on December 5th from noon to 3PM.

The email notice states that, “It’s not often in life that one gets a second chance. . .” It also claims that after last weekend’s auction that netted 19 sales for this Chicago real estate development, they were swamped with calls from people who missed the auction or were surprised that the condo lofts sold, “at such affordable prices.” Because of that, Sheldon Good is holding this one day only post auction closeout sale.

The announcement states that the developer fully intends to sell all of the remaining condos on this one day. Prospective buyers need to bring a certified or cashier’s check for $5,000 made out to River West National Title and Escrow LLC. You can get a bidder’s information packet at the development for a cost of $20 or you can call the sales center at Motor Row Lofts.

The email doesn’t state how much these condos are going to be offered for to buyers, but it does list a description of what units will be available on that day. So check back with us on Monday for a rundown of those lofts. And you can also check out what other Chicago Lofts are available right now.

[tags]Motor Row Lofts, Chicago Lofts, Chicago Real Estate[/tags]

November 20, 2009 – It didn’t take long for the developers of Michigan Avenue Tower II to adopt the same post-auction strategy and even nearly the same catch phrase as Vetro did. New lower prices based on levels set at last weekend’s auction bids were announced in an mass email from Accelerated Marketing Partners. The new prices are around 23% to nearly 28% off the old list prices. They are calling these, “auction pricing without the auction.”

There are around 40 Chicago condos left for sale from the developer now at Michigan Avenue Tower II, located on 1400 South Michigan Avenue. But less than half of those are listed, probably in hopes that the Chicago real estate market will improve and pricing will go up.

In any case, right now the one bedroom, one bath units in this building have been marked down to the $180,000s. Previously they had been marketed in the $250,000 range. The one bedroom, one bath plus den condos are now listed in the $190,000 range where they had been priced in the $260,000s. For the remaining two bedroom, two bath condos that are being advertised, prices are now in the $370,000s. They had been priced in the $490,000s. And you can of course still get a penthouse unit, but those are much higher, from $1.8 million and up.

Again, we’ll have to wait and see how this affects the pricing of other Chicago New Construction Condos.

[tags]Michigan Avenue Tower II, Chicago Condos, Chicago Real Estate[/tags]

November 19, 2009 – In case any prospective Chicago condo buyers haven’t already heard, the federal $8,000 First Time Homebuyer Tax Credit was officially extended until April 30, 2010. But this time around, even buyers who aren’t first timers can get in on the credit action. Any approved buyer who has lived in their current house or condo for a minimum of five years and wants to purchase another one can receive a $6,500 tax credit under the new provision to the program.

The $6,500 incentive for so-called move-up buyers is intended to hopefully fuel sales of more expensive homes. To get the entire Chicago real estate market rolling, buyers in all tiers are needed and so far there hasn’t been much moving up because homeowners can’t sell their existing homes and thus have little incentive to buy another one.

The other change to the tax credit is that the income limits were raised. Before, a single person had an income limit of $75,000 to qualify for the whole $8,000 credit. Now that limited has been increased to $125,000. Married couples can now earn a combined $225,000 as opposed to the old limit of $125,000. The income limits operate on a sliding scale, so you may qualify for a portion of the credit even if you go over the limit.

Even the FHA is getting in on the condo saving act and delaying or modifying some of the changes it had planned to implement. In a nutshell, the spot approval on individual condos will continue until February 1, 2009. And FHA is going to delay until December 31, 2010 raising the minimum pre-sales from 30% to 50% in a building before it can be approved. That also goes for how many condos in one building can have FHA loans. The current maximum of 30% is increased to 50%, but that is only in effect until December 31, 2010.

It will take a little time to see what kind of an impact these new programs and rules will have on sales of Chicago New Construction Condos.

[tags]First Time Homebuyer Tax Credit, Chicago Condos, Chicago Real Estate[/tags]

November 18, 2009 – Not even Trump Tower is immune to the foreclosure flu that has hit so many Chicago real estate developments this year. News that two of the hotel condo units have been filed on by lenders was reported by Crain’s today.

Of course this has fueled speculation that it could be the start of a landslide of lender lawsuits against investors who bought units at Trump. Andrew Glatz of Crown Heights Realty brokerage service was quoted in Crain’s as saying that, “No question about it. There will be a flood of them.”

The two hotel condos in question have been advertised for reduced prices and even as short sales with no luck. One of them is even being offered for more than 50% off of the price it fetched back in March of 2008.

Wells Fargo is foreclosing on a 20th floor condo at Trump that is currently being marketed by Mr. Glatz for $379,000 even though it carries a $493,589 loan. The investor who bought the hotel condo originally paid $664,000 for it back in February of 2008.

The other unit that Wells Fargo is foreclosing on is a 24th floor condo that still has a loan balance of $712,000. It was originally sold for $895,000 in March of 2008. This unit is currently being marketed for only $389,900.

Donald Trump disputes any claim that this is the start of a trend and states in the article that rump Tower is, “doing very nicely,” and that foreclosure suits these days are, “common all over the place.”

According to Appraisal Research Counselors, 365 of the 486 residential condos at Trump are sold while only 191 of the 339 hotel condo units are sold.

The hotel condo fad seems to be on the way out, and sales of Chicago Luxury Condos are still suffering from the market downturn as well. What this means in the long run for Trump Tower remains to be seen, although there will probably always be some who buy because of what the brand represents.

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