Chicago Condo Directory

January 21, 2009 - It looks as though there are more problems for Chicago real estate developer Thrush Companies. Cole Taylor Bank is now suing to recover some $6.8 million it is still owed from a $38.5 million construction loan the developer took out to build 740 West Fulton. The loan balance came due on November 1, 2008 and Thrush was unable to pay, according to a recent article in Crain’s.

There are 132 condos in the 14 story 740 W Fulton high-rise and about 20 of those are still unsold. Thrush recently auctioned off unsold units in another of their projects, Jazz on the Boulevard. In that instance, 10 of 12 condos were sold at auction for between $150,000 to $200,000 each. That amount was down from the original list price of as much as $363,000. Another 10 town homes were auctioned for between $250,000 and $300,000 each, down from the original list price of up to $625,000. Why Thrush didn’t attempt to auction the 20 condos at 740 W Fulton is a question that comes to mind.

The 740 W Fulton tower began delivering in 2007. The bulk of the condos are one and two bedroom layouts with a few three bedroom penthouses thrown in on the upper levels. The building has the standard luxury amenities such as a concierge, fitness center, business center, dog run and Internet cafe. The condos have a lot of loft style details like 11 to 18 foot high ceilings, exposed ducts and floor-to-ceiling windows. Parking spaces were even included in the list price.

Sales on the last units in this development could have been a victim of the market slump and bad timing, but in any case we’ll have to wait and see what happens with the bank’s lawsuit. Competition from so many other Condos In Chicago makes marketing a challenge for any developer right now.

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January 20, 2009 - It seems that this Aprils Fool’s Day (April 1st for those of you who might not be familiar) will hold a new surprise for anyone purchasing new condos in Chicago or even trying to refinance a current loan with Fannie Mae. According to an article in the Tribune, there will be a new fee added to certain loans effective April 1, 2009.

Because of the higher than usual rate of defaults on loans for condos, Fannie Mae is planning on adding a fee of .75 percent of the total loan amount on a fixed 30 year agreement. This applies to buyers who can only swing a down payment of 25 percent or less of the purchase price of the condo. It doesn’t add a huge amount, but every little bit can be a burden if you are a first time home buyer and having a harder time getting financing.

To give you an example, if you bought a unit in a Chicago real estate development that cost $200,000 and could only manage a 20% down payment, the fee on the remaining $160,000 loan would be $1,200. The logic behind this is to help with what FM considers higher risk loans. And if you’ve recently applied for a mortgage you will probably see the fee listed now, as the article stated many lenders are tacking it on early because of the delay paperwork usually experiences.

With more new fees and hard to obtain credit, Chicago Condo Rentals may become even more popular.

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January 19, 2009 - For those of you who aren’t in the market to buy a luxury condo but are interested in renting, now may be one of the better times to make a move. According to a recent article in the Tribune, some condos that had been priced in the $800,000 range are renting in the neighborhood of $3,000 per month. High profile luxury high-rises such as Trump Tower, 600 N Fairbanks and 600 N Lake Shore Drive all have investor-owned units up for rent now, and the prices are becoming more affordable to more people.

The combination of excess inventory from Chicago real estate developments that are struggling to sell out, investors who are also struggling to find a buyer for their units and even more rental apartments coming online in the next couple of years is driving rents down in many cases. The Tribune stated that some of the best deals are on lower level units. It’s possible to find a studio for $1,300 per month, while you may have to pay as much as $5,000 per month for a three bedroom with furniture.

According to Appraisal Research Counselors, nearly 2,000 apartments were completed in 2008. As of October 2008, some 894 new apartment units were rented. This year Streeter Place and Aqua will between them add another 1,000 rental units to the market. In 2009, an estimated 2,500 more apartment units will be completed and available for rent.

As for condos, ARC estimated that from 3rd quarter 2007 and 3rd quarter 2008, there were about 4,000 condos rented. Many investors are willing to rent at low rates to generate some income, even if it isn’t enough to pay the taxes and assessments. To counter this, apartment towers aren’t necessarily lowering rents but offering a few months free rent to get a lease signed. All in all, right now you can probably have your pick of Chicago Condo Rentals in almost any price range.

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