March 4, 2008 - Renaissant Development Group’s proposed Park Michigan tower may be in jeopardy after one of the project’s lenders, Hermes Capital, filed a $4.25 million foreclosure suit. The financier stated Renaissant has defaulted on the loan due to the developer missing a December 31st deadline to secure a minimum of $2.13 million additional funds to cover costs. Broadway Bank is the primary lender with a mortgage of $12.75 million.

Crain’s reported that Warren Barr, head of Renaissant, said that “this project will continue to move forward.” The condos haven’t even started marketing, nor has ground been broken. The original plan had been to begin marketing last year, but the Chicago City Council has yet to sign off on it. Barr also said his intentions are to have everything resolved within the next month or two and get on with the development. The 80 story Park Michigan, which is to be located on 830 S Michigan Avenue, would be the highest tower in the South Loop area if built.

Park 1000 is another of Renaissant Development’s projects. It appears to be in better shape than the troubled Park Michigan and is actively marketing. This 40 story tower will house 350 condos with prices for a one bedroom unit starting at $299,000 and penthouses from $1.6 million and up.

Many developers are finding that the Chicago real estate market is much more difficult to predict and lenders for new Chicago Condos are becoming more strict.

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This entry was posted on Tuesday, March 4th, 2008 at 11:56 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.