Monthly ArchiveFebruary 2010
February 28, 2010 - Things still aren’t looking up for the planned 150 story Chicago Spire. Now Shelbourne Development has yet another lawsuit pending against them. This time it’s credit card trouble and Bank of America is suing over $110,076 they state is in default by Shelbourne, according to a Crain’s report. Bank of America issued Shelbourne Development two Visa cards to be used for early expenses related to the mega Chicago real estate project and that both have been cancelled and are in default.
The two credit cards in question were issued to Shelbourne Development in 2006 and 2007. Because of the alleged defaulted payments, Bank of America sent a notice of cancellation for both cards in August of last year and then stated that they wanted the full amount owed on both cards to be paid back by September 30, 2009. Since that didn’t happen, this current lawsuit has been filed.
Crain’s also reports that Bank of America, who is also one of the few early lenders to the Spire, said that Shelbourne stated on their credit application that the cards would be used for around $1.2 million a year in various purchases related to the Spire and about $750,000 per year for entertainment and travel expenses. As it stands, the lawsuit is being tacked onto a previous one pending for $4.9 million that Bank of America claims is already owed by Shelbourne.
For those of you who may have had your heart set on a unit at the Spire, you may have a long wait. But there are plenty of other Chicago condos for sale right now.
February 24, 2010 - The foreclosure suits just seem to keep coming. The latest one filed is against Chicago real estate developer Centrum Properties and their Lofts At Lakeview Collection project. According to a recent article in Crain’s, Wachovia Bank N.A. filed the foreclosure suit after Centrum defaulted last April and then missed a payback date for the $18.2 million loan last month (January).
According to the article, about two years ago Centrum originally intended for the Lofts At Lakeview Collection, which was to be located where Ashland and Lincoln Avenues and Belmont meet, to be a $100 million project with 130 condos. The demand for new condos evaporated as well as financing for new developments, so Centrum did what so many other developers did; switch to a rental plan.
But after exhausting more than one loan extension, Centrum received a foreclosure notice from Wachovia. The original loan made in 2005 to purchase the site was divided up between lenders Wachovia and LaSalle Bank N.A., but Wachovia bought out the other lender’s interest in the loan in 2007.
Centrum stated in the article that they are trying to either restructure or refinance the building site and are talking with with Wachovia, which is now a Wells Fargo affiliate.
Sol Barket of Centrum was quoted as saying that, “We’re working very closely with them towards a resolution, and we hope to have one very soon.”
He also stated that if the loan can be refinanced, the project will go forward without the residential portion and be a retail development only.
So for those of you who may have signed a purchase agreement for a unit at The Lofts At Lakeview Collection, you may want to check out some other Chicago lofts for sale.
February 19, 2010 - Selling out a 714 unit Chicago real estate development is no easy task even in a good market. So CMK Companies certainly has its work cut out at 47 story 235 Van Buren. But a recent press release and update from Scott Hoskins of CMK states that they have managed to sign more than 450 sales contracts and close on about 275 of those so far.
The Chicago condos at 235 Van Buren come in a staggering 130 different floor plans, so there should be a layout to fit just about anyone. There are also 14 finished models to tour. According to the press release, most of the buyers have been single young professionals and younger couples starting out with a first purchase. The condos range in style from studios to two bedrooms and try to make use of all available space.
CMK president Colin Kihnke was quoted in a recent Tribune article as saying that, “The finishes in each residence embodies a clean European style.”
Standard finishes include oak flooring, a stainless steel kitchen appliance package, granite counter tops, Grohe fixtures, 10′ high ceilings. Usually a balcony or terrace comes with each condo as well. Building amenities include a 24 hour doorman, dog run, 25′ high lobby ceiling and 12,000 square feet of ground floor retail.
Prices for the studios run from $179,000 and the one bedroom condos are priced from $211,900. The two bedroom, two bath condos start at $289,900. Penthouse units start at $349,900. Parking will cost you another $31,900 to $36,900 per single space.
Besides developer units, you can find some good deals on investor units in many towers if you check the Chicago real estate listings regularly.