February 9, 2010 – Phase two of Mod may never materialize and the single five story low-rise with 56 rental units could stand alone because of a $19 million foreclosure suit. The Chicago real estate development located on 1222-1224 West Madison was planned to be a two tower, 96 unit Chicago condo project. But after initial sales only reached about 50%, developers Steven Golovan and Joel and Jeff Pickus decided to cancel purchase contracts and convert the units to apartments last year.

But with MB Financial filing the foreclosure suit alleging the developers defaulted on the construction loan last October, the second phase may never be built, according to a Crain’s report. The second building would have housed another 36 units. All of the 56 units in the first building are rented, and the developers are trying to renegotiate the loan terms. Jeff Pickus was quoted in Crain’s as saying that, “I feel confident we will amicably work things out with MB.”

The Mod units have one to two bedrooms plus some two bedroom units with a den. The apartments range from 860 to 1,470 square feet and the old list prices ran from the $200,000s to $400,000s. Once the sales contracts were voided, the apartments were leased for between $1,575 to $2,600 per month. Finishes included stainless steel appliances, washer and dryer, 10′ ceilings, floor-to-ceiling windows, quartz counter tops and teak cabinets. Each unit also had either a balcony or terrace. The building was pet-friendly and had a fitness center and bike storage room.

Until buyer confidence returns and the housing market recovers, we may see more Chicago Condos forced into becoming rental units or facing foreclosure this year.

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

This entry was posted on Wednesday, February 10th, 2010 at 2:07 pm and is filed under Mortgage Information.