March 25, 2008 – After several days of speculation and rumors, Centrum Properties has confirmed that they are switching the Lofts at Lakeview condo project to a luxury rental apartment project. The new plans outline what will be a mixed-use Chicago real estate development still located at the corners of Ashland, Belmont and Lincoln Avenues at an estimated cost of $100 million.

John McLinden of Centrum was quoted in Crain’s as saying that market conditions were the deciding factor for the project change. With more new construction units coming on the market this year and overall sales figures down, the competition for pre-sales is tough. The rental market has been very healthy, and even with a slight recent moderation in demand it is often less risky for developers. The article also pointed out that in this particular North Side neighborhood, the trend over the past few years has been to convert apartments to condos, so there should be demand for new rental units.

The 131 Lofts at Lakeview had been marketed for around $300,000 to $700,000 for the one and two bedroom units. Centrum confirmed that around 30 percent of the condos had been under contract, but they have since refunded deposits. The new project will contain 130 luxury apartments plus 90,000 square feet of retail. Hirsch and Associates are the architects of the six story building. Bank of America has signed on as a tenant and the David Barton Gym that was a holdover from the loft project is still committed.

Financing hasn’t been secured yet, but current plans call for ground to be broken this fall. Completion of the project probably won’t take place until sometime in 2009, but the market for Chicago Apartments may still be strong then.

[tags]Lofts at Lakeview, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Wednesday, March 26th, 2008 at 7:34 pm and is filed under Mortgage Information.