January 30, 2009 – It looks as though the condo loft conversion project on 123 N Sangamon is the latest victim of overdue loans and contractor liens. This former seven story brick warehouse was being converted into100 units, the first 45 of which were nearly completed, by Chicago real estate developer David Wallach. The developer claims that 30 of the initial 45 condos had been under contract at one point, but buyers began to back out when the housing market began to falter. Now, according to Crain’s, the developer is courting a deal with NYLO Hotels from Atlanta to switch the project to a two building 179 room hotel.

Wallach’s West Loop condo project is under the weight of an overdue loan of more than $11 million from Midwest Bank and Trust in 2006, and they later extended the payback date to January 2008. The project also has more than six contractor liens filed against it. Wallach stated in the article that he thought the bank might be willing to finance the hotel project.

The hotel complex would have 41 suites in the 123 N Sangamon location plus the additional new structure that would be situated south of the warehouse conversion at Sangamon and Washington. Features would include a restaurant located on the roof and an upscale bar.

Wallach is also perusing another hotel deal on 333 South Halsted Street in Greektown where he had planned on building Chicago condos on top of the Hellenic Museum. The hotel chain being sought for that development is Dolce International.

Although there is one less project on the horizon, you can still find some nice Chicago Lofts for sale if you check out the development pages.

[tags]123 N Sangamon, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Friday, January 30th, 2009 at 3:46 pm and is filed under Mortgage Information.