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April 16, 2009 - The sales center has been shut down and the last song may be playing for X/O Condominiums, the so-called “dancing towers” designed by Lucien Lagrange. The latest news from Crain’s is that Kargil Development principal Keith Giles is in default on a $19.1 million construction loan that came due back in June of 2007. Why the Chicago real estate project appears to only now be in jeopardy could be because there were provisions in the loan contract for two extensions of as much as six months per extension, and perhaps those have been exhausted.

The original loan in December of ‘05 was for $13.4 million to pay the $13 million price tag for the building site. Giles then borrowed more money in ‘07 to purchase adjoining property, making the loan total $19.1 million. Another $8 million was raised from investors, including a Dr. Khorsand who invested $1 million. Khorsand stated in the article that it was, “everything from my savings,” and that Giles warned him that, “`We’ve got bad news: X/O has basically failed.’” And on top of the loan default, architect Lagrange has placed a $505,368 lien against the development for unpaid design services.

X/O never quite recovered its sales momentum after being tied up over a threatened zoning change that could have drastically reduced the height of the planned 46 story north tower and a 34 story south tower. Sales have stood at about 44% or 210 of the 479 condos, according to numbers from Appraisal Research Counselors. Plans called for 10 townhomes along with a Spa X/O, a botanic park and a lifestyle center in the complex. Prices for the one to three bedroom condos ranged anywhere from the high $200,000s to over $2 million.

If X/O goes the way of the scrapped Canyon Ranch, it is a definite signal that condo buyers aren’t in the market for a wellness lifestyle, but more so well priced Condos In Chicago.

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