Starwood Capital Bids On Corus Loans For Area Condo Towers

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July 21, 2009 - News that the assets of the troubled Corus Bank are being bid on by Starwood Capital Group could possibly mean trouble for some prominent Chicago real estate projects. Corus, who in the past was one of the biggest construction loan lenders in Chicago and several other cities, had been ordered by the Feds to either get their books in order financially or line up a buyer for its assets by sometime in June. The Wall Street Journal quoted Barry Sternlicht of Starwood as saying that, “We’re bidding on a bank.” If the assets are sold at a discounted rate, that could trickle down to some discounted Chicago condos.

One of the developments that has a Corus loan ($84 million) is Lexington Park. Sales have been slow at this project for some time and at last count the 333 units were only around 50% contracted. The two tower project is the first here for Ireland-based Chieftain Group and some of the lofts have been priced from about $200,000 with parking at half price.

Walton on the Park is another Corus loan asset ($129.5 million). There have been confirmed rumors recently that the second tower of the two tower development won’t get built and the site is up for sale. Less than 50% of the 31 story first tower’s 198 units have been sold so far, although there haven’t really been any price reductions as of yet. Prices on the remaining units for sale start in the low $500,000s.

The other two better know Chicago condo developments that Corus holds loans on are 50 East Chestnut at $67.4 million and The Columbian at $92 million.

We’ll have to keep an eye on Corus and see who eventually ends up with these loans. It may take some time, but there could be future price reductions on the unsold units in these towers if the assets are liquidated. Until then we’ll keep you updated on any other price cuts on Chicago New Construction Condos.

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