chicago-condos & Chicago Real Estate pcherry on 28 Jan 2010 06:37 am

Lake Park Crescent Gets TIF Extension

January 28, 2010 - Lake Park Crescent (LPC) has been struggling a bit, just like so many other Chicago real estate developments. But the major difference with this project is that the City of Chicago has stepped up to help financially, mainly due to the fact that LPC is part of the Chicago Housing Authority projects, according to a recent Crain’s article.

The original deal for LPC was that developer Draper&Kramer would pay the city back about $4.9 million it received in TIF funds for the $9 million project once they sold 75% of 35 market rate units. But reaching that sales mark has been difficult due to the downturn in the housing market and only 11 units are sold so far. Because of that, the city has agreed to restructure the deal and allow Draper&Kramer to pay back the lower amount of $3.3 million once 50% of the 35 market rate units are sold. The remainingTIF balance of $1.3 million would then be repaid once all 35 units were sold.

Marketing condos in the mixed-income Cabrini-Green project can be tricky. According to Garry Benson of Garrison Partners, buyers seem to want a discount in exchange for purchasing a condo in one of these types of developments. He stated in the Crain’s article that it’s nearly impossible to cut prices by the 25% that most buyers want when you’ve already been listing the units for less than market value, especially when the housing market bottoms out and prices drop.

There are so many new Chicago condos for sale that aren’t in mixed-income developments that Lake Park Crescent may have a hard time reaching their sales goals.

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