chicago-condos & Chicago Real Estate pcherry on 27 Jul 2009 08:44 am

Lincoln Park 2520 Scaled Down

July 27, 2009 - Another Chicago real estate development has announced that it will be scaling back in size. Lincoln Park 2520, the three tower, 292 Chicago condo development from Ricker-Murphy plans to shorten both its height and number of units, according to a recent article in Crain’s. The design will remain the same, but the tallest building will be reduced in height from the original planned 41 stories to the new 33 stories. The number of units will also be lowered to 198.

Reasons cited for these changes include the need to obtain financing for construction and also a looming payback date of August 15th to Bank of America for $28.75 million. That is the amount owed on a $44 million loan that was used to purchase the site.

Ricker-Murphy also stated in the article that by making the complex a bit smaller, they hope to attract more buyers. Right now the development is about 50% sold. The new plans would push that sales percent up to about 74, but that is only if all of the current buyers who purchased one of the top floor condos will be content to sign a contract for a different unit. The shortening of the tallest high-rise will subtract 29 condos from the development, all of which are already under contract.

Ricker-Murphy and the GE Pension Fund, their partner in the project, are going to go forward with the foundation construction with their own money. Reasons behind that move are probably to convince both potential buyers and lenders that the project will get built and to be able to deliver first condos as contracted by late 2011.

So although Lincoln Park 2520 has shrank a little bit, it may be one of the few Pre-Construction Chicago Condos to break ground this year.

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