Chicago Condo Directory

February 19, 2009 - Following the news that downtown Chicago real estate developers posted a net loss of 253 units in the last quarter of 2008 comes news that the Mandarin Oriental Tower now has a foreclosure suit filed against it. The $43 million suit was filed by iStar Financial and covered the $27.2 million purchase price for the building site plus incidental developments costs incurred, according to Crain’s.

The 74 story high-rise was marketed as luxury condo units and hotel condos, with prices ranging from almost $700,000 to nearly $18 million. Roughly 52% of the Chicago condo units and 44% of the hotel units were under contract, but there had been no new sales for some time. Mandarin’s developer, Palladin Development, is still said to be searching for new financing, but at this point it doesn’t look hopeful.

Two other well-known projects have been added to the on hold or suspended list by Appraisal Research Counselors in their most recent report. Both the Peshtigo and X/O Condominiums seem to be at a standstill in terms of sales and construction. In all, a total of 22 planned condo projects were dropped in 2008, according to ARC. Those towers, had they been built, would have added 3,799 units to an already saturated market. Even without those additions, there are still several projects with Pre-Construction Condos In Chicago still trying to sell units.

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