Monthly ArchiveNovember 2009

chicago-condos & Chicago Real Estate pcherry on 21 Nov 2009

Michigan Avenue Tower II Lowers Prices

November 21, 2009 - If you didn’t make it to the Michigan Avenue Tower II auction, you can still possibly get one of the remaining condos at auction prices without battling bidders. It is becoming the typical sales strategy for Chicago real estate developers to lower prices on the remaining inventory to auction levels.

At Michigan Avenue Tower II, the new prices are being listed at about 23% to 28% less than the condos had previously been marketed for before the auction. Even with every unit that was put up for bid selling, there are still around 40 condos left unsold in the tower. However, the developer is choosing to offer only around 15 of those at these new lower prices right now.

For a one bedroom, one bath condo at Michigan Avenue Tower II you can now expect to pay in the $180,000 range whereas they were priced in the $250,000s. A one bedroom, one bath plus den will cost you somewhere in the $190,000s. Those had been priced in the $260,000s. And the two bedroom, two bath units that were priced in the $490,000s are now being offered for the $370,000s. If you’re willing to shell out $1.8 million or more you can have a penthouse unit.

So if you want to check out these auction prices at Michigan Avenue Tower II you may want to plan a visit to the sales center. Or you can compare these prices to other Condos In Chicago and see which ones are the better deal.

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chicago-condos & Chicago Real Estate pcherry on 20 Nov 2009

Fannie Mae Troubles For Aqua

November 20, 2009 - Apparently even some of the most well-known and successful Chicago real estate developments aren’t safe from unexpected road blocks. Even though Aqua has been delivering condos for a while now, it’s reported that lending giant Fannie Mae hasn’t given approval to the project yet. This is supposedly due to the fact that the commercial portion of Aqua, namely the rental apartments and hotel, compared to the number of condos, tip the acceptable residential limits for Fannie Mae approval.

With credit still being tight and it comes time to close, not having Fannie Mae approval could potentially become a problem for some buyers who signed a purchase agreement for an Aqua condo. The 264 condos in Aqua are nearly sold out with fewer than a dozen left. Of the 474 apartments, 313 are under lease.

This certainly isn’t as serious as some of the problems that many other developments have and are facing. But it could delay, and even in some cases, derail closings on the Aqua condos for a while until other lenders are secured.

So if you are still interested in a condo at Aqua, keep the Fannie Mae issue in mind and also remember that there are plenty of other New Chicago Condos that are Fannie Mae approved as well as lots of FHA approved condo towers.

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chicago-condos & Chicago Real Estate pcherry on 19 Nov 2009

Two Trump Tower Hotel Condos Under Foreclosure

November 19, 2009 - It was bound to happen sooner or later; the first foreclosures have been filed on units at the Trump Tower. According to an article in Crain’s, Wells Fargo is the lender who has filed the lawsuit on two of the hard-to-sell and apparently even harder-to-resell hotel condo units. With sales of the 339 hotel condo units stuck at 191 according to Appraisal Research Counselors, this kind of publicity probably isn’t going to make those numbers any better.

“Owning a hotel suite absolutely doesn’t make sense in today’s market,” Andrew Glatz of Crown Heights Realty was quoted as saying in the article. “Right now, people have to feed them on a monthly basis and they’re losing money.”

The two hotel condos under foreclosure have been listed for well below the original purchase price and even listed as short sales, but with no success. One is located on floor 20 and although it was purchased for $664,000 in February 2008 and $493,589 is still owed, it is on the market for $379,000. The other condo in distress is on floor 24. It was first bought in March 2008 for $895,000 and is now being listed for $389,900 even though it still carries a $712,000 loan.

Donald Trump states in the article that business is good at the hotel, but doesn’t give any specific details. Mr. Glatz claims that the hotel has business because the room rates have been lowered significantly.

The two foreclosures won’t likely affect the price of other condos at Trump any more than the market already has. But if more follow suit, then that might become a factor. With so many New Chicago Condos up for lease or rent-to-own, there isn’t a lot of demand for hotel condos anymore.

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