April 17, 2008 – Yesterday we told you about Waterview Tower and Shangri-La Hotel landing a construction loan from the Export Bank of China through Beijing Construction Engineering Group. Today Crain’s ran an article with a few more details about the transaction, which should be finalized sometime in June.

The total amount of the loan is about $340 million, which is higher than first reported. Teng and Associates, Waterview’s developer, is putting up all of the equity for this unfinished Chicago real estate project. That sum comes to around $130 million. The article also stated that construction on the high-rise has reached the 26th floor, and all 90 stories of the tower are expected to be up by the middle of 2010.

Sean McMahon, who is the project manager for Teng, confirmed that around 40 percent of the building’s 200 hotel units and 66 percent of the 233 residential condos have been sold at this point. When asked if the developer would consider dropping the Chicago condo element of the project and switching to a traditional hotel, McMahon replied, “At this point, it’s still a condo hotel, but we haven’t ruled anything out.” So evidentially the final plan for the development depends on how it fares against All Condos for Sale in Chicago during the next few months.

Another development that may be in more serious trouble is Burnham Pointe. The Sun Times reports that the $106 million deal Terrapin Properties had been working on with Equity Residential to sell the development has fallen through. Without a buyer for the uncompleted project, it could potentially be seized due to the fact that Terrapin’s two principals are being sued over another loan they personally guaranteed and may have to declare bankruptcy.

[tags]Burnham Pointe, Chicago Condo, Chicago Real Estate[/tags]

This entry was posted on Thursday, April 17th, 2008 at 11:51 pm and is filed under Mortgage Information.