March 3, 2008 – Canyon Ranch is the latest proposed condo in Chicago to fall victim to the market crunch. Developer Related Midwest has decided to stop marketing the project, according to a Crain’s article today. Sales of the “wellness condos”, which had a starting price tag of $1 million, had been sluggish for months. Although Canyon Ranch Living has been very successful in other large cities, the timing may have just been off for a luxury development of this scale with such an emphasis on the spa-like and health facilities and services.
Cancellation rumors keep nagging The Peshtigo, which is another of Related Midwest’s proposed towers. Sales have lingered at around 15% for the 358 condos, but the sales center insists it is still actively marketing the project.
Additional big news concerning Related Midwest is their possible move to merge with Magellan Development Group. The two companies have collaborated before on 340 On The Park, which was a very successful development in Lake Shore East. The news article went on to say that Related would probably keep their company name on any future projects but allow Magellan to take over the management aspect. Related has been searching for a company president since the post became vacant some time ago and they are continuing that search even while in talks with Magellan. Nothing is set in stone yet, but the merger of Related, the fourth biggest developer in the area, and Magellan, who holds the number one spot, could create a mega team that would be beneficial to both companies.
[tags]Canyon Ranch Living, Chicago Condos, Chicago Real Estate[/tags]