December 29, 2010 – Just last week we posted about how Chicago real estate developer Forest City Enterprises recorded a multi-million loss on the books for its investment in four Central Station towers. Crain’s reported the news and also stated in the article that partners Forest City, which ownes a 25% stake in the developments, along with Fogelson Properties Inc., and Enterprise Cos., plan to rent out some of the unsold Chicago condos in One Museum Park East.

The developers can rent the condos in that tower because the construction loan is paid, unlike the other three high-rises. Those towers are 1600 Museum park, One Museum Park West and Museum Park Place South. The developers own 41 unsold condos in the One Museum Park East tower, which is located on 1211 South Prairie Avenue and has a total of 298 units. They want to rent around half of those 41 empty condos.

But Crain’s is now reporting that the condo association at One Museum Park East doesn’t want those units to be rented and the developers are alleging that the board is trying to prevent it by charging a $1,000 move-in fee among other things. Forest City, Fogelson and Enterprise are now suing the condo association over those high move-in fees they are charging. The lawsuit also claims that the condo board told condo owners that the developers used $450,000 in reserve funds to pay other expenses not covered by that money.

The suit also claims that the condo board won’t issue assessment letters to potential buyers. Those letters are what normally verifies that the developer is current on all monthly fees associated with the building. Because the boad won’t verify that, the developers aren’t able to sell or rent the empty condos at One Museum Park East.

It will be interesting to see who backs down first or if the case goes to court. These developers have sued before, in the case of around 100 buyers who wanted to walk away from sales contracts at this tower.

With few buyers for New Chicago Condos and construction loans coming due, we may see more developers taking a hard stand with anyone who gets in the way of sales.

[tags]One Museum Park East, New Chicago Condos, Chicago Real Estate[/tags]

December 28, 2010 – Sales of Chicago homes and condos are still struggling in the last half of 2010. The Illinois Association of Realtors has released their latest Chicago real estate report and sales of Chicago area condos and single-family homes dropped by 34.3% this November as compared to sales in November of last year (2009). A recent Crain’s article about the IAR report pointed out that year-over-year sales for Chicago homes and condos were up the first six months of 2010, but have decreased every month from July onward.

The IAR collects sales data from nine Chicago area counties. Those are Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. The also collect sales data from strictly in Chicago itself.

In the Chicago area this November there were 4,518 single-family homes and condos sold. Last November (2009) there were 6,878 units sold. That resulted in the 34.3% year-over-year decline in sales for November.

For sales that took place in-town Chicago in November 2010 there was a 38.5% drop. There were 1,144 Chicago condos and single-family homes sold in town last month as compared to 1,859 units sold in Chicago during November of 2009.

The Chicago area median price for condos and single-family homes also fell by 6.9% in November. The median price for this November was $175,000 while the median price in November 2009 was $188,000.

Median prices also fell for home sales in-town Chicago during November. The median price for Chicago condos and single-family homes in Chicago last month was $206,000 which is down from the median price of $215,000 in November of last year (2009). That is a 4.2% drop.

The article went on to say that the higher sales numbers last November were parobably partly due to the original deadline of November 30, 2009 for the federal homebuyer tax credit. With no such incentive on this line right now, we may not see another large increase in sales of new Chicago Condos anytime soon.

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

December 27, 2010 – The Lofts at Roosevelt Collection made the big switch to a rental Chicago real estate development in late summer 2009 and seemed to have quite a bit of success in leasing out the units. But no Crain’s is reporting that Centrum Properties has decided to sell the development, which cost $350 million to build, and will likely take a large loss on the project.

The article states that the loss could ad up to “tens of millions of dollars in losses for its lenders.” The housing market crash probably cut the value of the lofts to about half of the $350 million cost of the project and it’s doubtful that any buyer will pay enough to cover the $285 million still owed on the development. ONe estimate puts the current value of the apartments at about $90 million.

There are 342 rental Chicago condo lofts at Roosevelt and 398,000 square feet of retail space. The article reports that just 23% of the retail space is leased and that is to the Kerasotes movie theater. John McLinden of Centrum was quoted as saying that, “Retail is still soft but there are some beginning signs of life. We thought it would be a good time to sell.”

The Lofts at Roosevelt also has the development rights for two more high-rise buildings with a total of 658 more Chicago condos as well an already built 1,482 space parking garage. The development is being offered for sale as a whole or in parcels.

For those of you already renting one of the units at the Lofts at Roosevelt Collection, the sale probably won’t affect leasing rates in the near future. There are also quite a few other Chicago lofts for rent if you are looking for a new home.

[tags]Lofts At Roosevelt Collection, Chicago Lofts, Chicago Real Estate[/tags]

December 23, 2010 – Quite a few Chicago real estate developments have been watching the clock on construction loans that are coming due in the near future. One of those developments is Superior 110 in River North. According to a recent Crain’s report, developer Jonathan Zitzman of JFJ Development Co. has just 10 Chicago condos left for sale in the 27 story high-rise, although only 5 sales have closed in the last 6 months. There are 57 total units in the tower, and 47 (82%) of those have sold since deliveries began in early 2009, according to the article. Buyers opted to walk away from 18 contracts or the tower would have been a sell-out by now.

The construction loan was originally $39.9 million, although the article states that information on the balance still owed isn’t being released. The amount still to be paid to Pittsburgh-based PNC Bank comes due in June 2011.

Mr. Zitzman stated in the article that he won’t make any more price cuts on the remaining units.
Prices were lowered this past June and before that they were reduced in August of 2009. Right now prices range from $457,900 to just less than $1.3 million. There is a 2,820 square foot upper floor penthouse priced at about $2.3 million though which hasn’t had a reduction.

There are plenty of other River North Chicago condos for sale besides Superior 110, so be sure to check back here for updates on price cuts for those condos.

[tags]Superior 110, River North Chicago Condos, Chicago Real Estate[/tags]

December 22, 2010 – Another Chicago real estate development company that seems to offer special promotions every other month or two is American Invsco. Back in September they were offering a free parking space for a year, zip car for one year, free laundry or housekeeping, among other perks for buyers who purchased a unit at 200 North Dearborn. Now they are advertising a “Let’s Make A Deal” sale that originally ended December 14th but has been extended through January 31st.

According to a recent Sun Times article, this particular promotion is an effort to make 36 more sales. That is the number of Chicago condos Invsco needs to sell at 200 North Dearborn to meet Fannie Mae pre-sale requirements. The tower has 309 units and only abut half of those are currently sold. The building site claimes, “Name your price, bring your checkbook. We must accept 36 sales. Give us your best or worst offer. Better than foreclosures and short sales.”

The article says that Nicholas Gouletas, Chairman of Invsco, claims he has sold seven condos since the sale started and all of them were cash deals. That still leaves 29 more units that need to sell, so don’t hesitate to make an offer if you’re interested in a unit in this building. Prices have been starting in the $170,000s and they most likely would accept a lower offer.

There are quite a few more downtown Chicago condos with price cuts for sale, so be sure to shop around before making a decision.

[tags]200 North Dearborn, Downtown Chicago Condos, Chicago Real Estate[/tags]

December 21, 2010 – Right now Jameson Realty is marketing the unsold Chicago condos at the Terrazio, which is located on 1935 South Wabash. Since we haven’t done a price check in quite a while, we thought it was time to see what was currently being listed at this Chicago real estate development.

There are 180 units at the Terrazio and there is still a good selection available. The building is FHA approved, so that’s another plus for buyers looking to lock in a low down payment.

Some of the units that are being advertised right now are below.
Unit #417 / $192,900 / 1BR / 1Bath
Unit #225 / $279,900 / 2BR / 2Bath
Unit #229 / $319,900 / 2BR / 2Bath
Unit #230 / $329,900 / 2BR / 2Bath
Unit #220 / $339,900 / 2BR / 2Bath
Unit #327 / $369,900 / 2BR / 2Bath
Unit #224 / $409,900 / 3BR / 2Bath

The Terrazio features a rooftop lounge and sun deck with a tranquility pool, fountain and pergolas. There is also a solavista courtyard, dog run, bench seating and outdoor kitchen with BBQ area. Residents have a fitness center, owner’s club and business center with Internet and a wet bar.

You can also use the quick and easy Chicago MLS search to find other Chicago condos for sale at the Terrazio

[tags]Terrazio, Chicago MLS Search, Chicago Real Estate[/tags]

December 20, 2010 – It’s been a while since we checked in with Silver Tower so we thought we’d see what Chicago condos are on the market right now at this development.

The finishes at Silver Tower are what you’d expect at any quality high-rise. The units come with floor-to-ceiling windows, a balcony or terrace, oak hardwood flooring, carpeted bedrooms, KitchenAid stainless steel appliances, granite counter tops, stinless steel double bowl sink, Grohe fixtures and cherry or maple cabinets. Baths come with 12 inch marble tile, marble counter tops, Toto sinks and framed glass shower doors

The building has a fitness center, resident storage lockers, a 24 doorman and a sky lobby with common area and community room.

Open House hours are Thursday from 3pm to 6pm and on Saturday and Sunday from 12pm to 4pm. Silver Tower condos currently being marketed by Jamesom Realty are listed below.
Unit #2009 / $244,729 / 1BR / 1Bath
Unit #2908 / $244,834 / 1BR / 1Bath
Unit #3308 / $248,750 / 1BR / 1Bath
Unit #2409 / $250,708 / 1BR / 1Bath
Unit #2401 / $255,708 / 1BR / 1Bath
Unit #3509 / $259,518 / 1BR / 1Bath
Unit #3701 / $279,202 / 1BR / 1Bath
Unit #2405 / $288,886 / 1BR / 2Bath
Unit #3105 / $295,738 / 1BR / 2Bath
Unit #1706 / $357,621 / 1BR / 2Bath
Unit #2506 / $359,578 / 2BR / 2Bath
Unit #2007 / $401,566 / 2BR / 2Bath
Unit #2507 / $413,313 / 2BR / 2Bath
Unit #3101 / $599,900 / 3BR / 2.1Bath

There are also some resale units available, so be sure to check the Chicago real estate listings regularly.

[tags]Silver Tower, Chicago Condos, Chicago Real Estate Listings[/tags]

December 18, 2010 – Around a month ago we told you about the price reductoins at Walton on the Park, which is located on 2 West Delaware. This Gold Coast Chicago real estate development finally bowed to the brutal Chicago condo sales market and cut prices on the nearly 100 unsold condos in the 201 unit tower. Deliveries just began this past June, and the developer recently got the $130 million construction loan payback date extended until September 2012. The lower prices are still in effect, although it’s the more expensive units that seem to be the focus of the marketing effort.

According to the developer site, prices on the remaining one bedroom condos at Walton on the Park run from the $450,000s. The two bedroom units are now priced from the $540,000s. The three bedroom condos start in the $1.3 million range.

Coldwell Banker is handling sales on most of the larger units at this Gold Coast tower. Some of the three bedroom units they are marketing are listed below.
Unit #1101 / 3BR / 2Bath / 1,920 sq ft / $1,155,000
Unit #1001 / 3BR / 2Bath / 1,920 sq ft / $1,150,000 (Open House Dec. 18th & 19th 12-5pm)
Unit #1201 / 3BR / 2Bath / 1,920 sq ft / $1,160,000
Unit #901 / 3BR / 2Bath / 1,920 sq ft / $1,145,000

Condo finishes include hardwood floors, Woodmode cabinets, Viking kitchen appliances, marble baths with separate shower and tub, walk-in closet in the master bedroom, balconies and floor-to-ceiling windows.

Building amenities available to residents include an exercise room, sauna, whirlpool, sun deck with pool and grilling area plus a clubroom.

You can also compare prices at Walton on the Park with other Gold Coast Chicago condos to find the best deal.

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

December 17, 2010 – It’s getting close to the end of the year so Chicago real estate developer Lennar Homes is due for a new promotion. This time it’s called the ‘YES Event.’ Translated that stands for ‘Year End Savings.’ The developer is once again promoting a sale for eight of their projects that have move-in ready Chicago condos and townhomes.

Library Tower, located on 520 South State Street, is one of those Lennar developments included in the YES promotion. The tower is FHA approved, and right now Lennar is advertising five condos for sale.

One is a three bedroom, two bath condo with 1,805 square feet of living space. This unit is priced from $442,990.

There is a three bedroom, 2.5 bath condo with 1,780 square feet of living space that is listed from $519,990.

There is also another three bedroom, 2.5 bath condo with 2,130 square feet of living space that is priced from $699,990.

If you don’t need quite that much room, there is a two bedroom, two bath condo with 1,530 square feet that is priced from $449,990.

And there is one more two bedroom, two bath condo with 1,680 square feet that is listed from $489,990.

Standard finishes include hardwood floors, oversized windows, stainless steel appliances, granite counter tops, 42 inch cabinest and stone baths. Building amenities include a 24 hour doorman, fitness center, roof top sun deck, bike storage, business center, party room and movie room.

The sales center and models are open Monday through Saturday from 10am to 6pm and on Sunday from noon to 6pm. While you’re at it, you may want to visit a couple more South Loop Chicago condos to compare prices.

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

December 16, 2010 – Nearly everyone realizes that the resale value of Chicago condos isn’t what it was a few years ago. But it’s rare for a Chicago real estate developer to admit that their development has declined in investment value. That’s exactly what Forest City Enterprises Inc. stated about their Central Station towers in a recent Crain’s report.

According to the article, Forest Ciity Enterprises has had an $18.3 million investment loss on the four high-rise condo buildings at Central Station in the South Loop. Those towers are 1600 Museum park, the One Museum Park East and West towers and Museum Park Place South.

Chief Financial Officer Robert O’Brien of Forest City was quoted as saying that, “There’s an oversupply of condos in Chicago and prices have deteriorated. The impairment recognizes this deterioration.”

Of the 1,149 total condos in the four high-rise buildings, only 564 have actually closed, according to data gathered by Appraisal Research Counselors. That’s just a 49% completed sales rate. Forest City has a 25% stake in the four towers, and they, along with development partner Fogelson Properties, are now renting around 20 condos in the 289 unit One Museum Park East on 12111 South Prairie Avenue. This move was possible because the construction loan is paid off on that tower. That’s not the case with the other three towers, so renting isn’t something they can do with those unsold units, according to the article.

The developers aren’t planning on cutting prices on the condos yet though. Right now the unsold units in all four towers vary in price from just under $250,000 to about $2.7 million.

Mr. O’Brien of Forest City is still very optimistic about Chicago in general and Central Station in particular. He told Crain’s that, “Despite the current challenges we like the long-term prospects for Chicago.”

You can find more information about the Central Station condos by following the links above, or you can find some other great South Loop Chicago Condos that are for sale.

[tags]1600 Museum Park, Chicago Condos, Chicago Real Estate[/tags]