February 15, 2010 – Parkside of Old Town will be starting its next phase of construction soon despite needing an early distribution of a $3.4 million subsidy from the city to avoid a loan default. The Skyline Newspaper is reporting that The Community Development Commission approved phase two of this large Chicago real estate project even though about 50% of the first phase is still unsold.

Phase two of Parkside will include a seven story mid-rise to be built on 544 West Oak. The second phase will have a total of 112 Chicago condos, 53 which would be affordable, 39 units public housing and 20 at market rate according to the article. There will be six townhomes in the mix of units and 1,300 square feet of retail space.

Holsten Real Estate Development is cutting prices by 25%. They are also seeking FHA approval for the project. The cost of the development is about $41.7 million, with almost 50% of that being covered by sales of federal and state low income housing tax credits. Another 20% of the cost is being paid by an $8.2 million tax increment financing fund that Holsten is seeking from the city. Even more funding is coming from the Department of Housing and Urban Development plus $2 million from mortgage equity, according to the newspaper.

You may want to check out the new lower pricing at Parkside of Old Town. And remember that there are quite a few more developers slashing prices on Chicago homes right now.

[tags]Parkside of Old Town, Chicago Homes, Chicago Real Estate[/tags]

This entry was posted on Monday, February 15th, 2010 at 11:53 am and is filed under Mortgage Information.