December 8, 2008 - At least one Chicago real estate project received some good news recently. Parc Huron developers Anthony Rossi and Thomas Moran secured a $54.2 million loan from a group of lenders consisting of Charter One Bank, PrivateBank and J. P. Morgan Asset Management. Construction on the 469 West Huron Street high-rise in River North is expected to start before the end of the year, with a planned completion date of fall 2010 according to Crain’s.

The 21 story Parc Huron will contain 221 units, but rather than Chicago condos they are slated to be luxury rental apartments. The article in Crain’s stated that almost every other apartment development planned for downtown is stalled right now, so gaining financing for this project was a major coup. Appraisal Research Counselors states that lenders are now requiring nearly 40% equity in new projects and even then it’s difficult to finance the remaining 60% cost.

For the Parc Huron, Moran and Rossi put up $30 million in equity themselves and the banks are providing 65% of the project cost. In previous years is was normal for banks to fund as much as 80% of construction costs, but now hardly any will foot more than $50 million for a large scale project.

The two developers purchased the parcel in November from Lennar, who had canceled the high-rise. Moran and Rossi decided to keep the Parc Huron name and luxury condo style of units, just make them rentals instead. Plans are for the apartments to run about 969 square feet, have 9.5 foot high ceilings, hardwood flooring and other custom finishes. ARC also states that an estimated 3,200 apartments are due to hit the market by 2011, so this project will have plenty of competition from new units as well as existing Chicago Apartments.

Technorati Tags: Parc Huron, Chicago Condos, Chicago Real Estate

This entry was posted on Monday, December 8th, 2008 at 3:52 pm and is filed under Luxury Condos(t) . You can leave a response.