January 5, 2008 – The Plymouth Building, a historic eleven story mid-rise that stands at 417 South Dearborn Street, is one of the latest smaller conversion projects to be threatened by foreclosure. The building, which dates back to 1899, had most recently been used as office space but was in the process of being converted to 30 condos by a group of developers consisting of Donald Kindwald, Charles Everhardt and Lawrence Nesis. Broadway Bank had provided the loan to fund the project, but after a missed repayment date the bank filed a foreclosure suit.

The original loan totaled just over $5 million and court records show that almost $3 million is still owed. The developers were quoted in a recent Crain’s article as saying that half of the units in the building have been sold but deliveries were pushed back because of construction delays. The developers also stated that they believe they can renegotiate the loan with Broadway Bank and complete the project. The converted Plymouth Building condos are one bedroom units and priced in the mid to upper $200,000 range.

Developers of any size project sometimes find themselves doing an elaborate juggling act when units stay on the market longer than usual. Anything from delays in construction, sluggish buyer response or unexpected additional construction expenses can wreck havoc on a financial plan and make it much more difficult to Sell your Chicago Condo.

[tags]Plymouth Building, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Sunday, January 6th, 2008 at 11:55 pm and is filed under Mortgage Information.