Chicago Condo Directory

February 13, 2010 - Even switching to rental units may not save the second phase of Mod. Originally Chicago real estate developers Joel and Jeff Pickus along with Steve Golovan had intended Mod to have to buildings. The first five story building that is completed and is located on West Madison has 56 Chicago condos, all of which were converted to rentals. But the second low-rise tower which would have housed another 36 units may never be constructed. Lender MB Financial filed a foreclosure suit against the project late last fall, according to Crain’s.

The loan was issued in 2007 and sales of the first 56 units got up to about 50%. But according to the article, by the end of 2008 none of Mod’s condos were being purchased so the trio of developers converted them to rental units. Jeff Pickus was quoted in the article as saying that, “We did all this with the knowledge and approval of the bank.” He also stated that all 56 condos were leased in 45 days.

When they were marketed for sale, the condos at Mod were priced anywhere from the $200,000s to $400,000s. The units sized up between 860 to 1,470 square feet. Once the contracts were voided, the one bedroom condo rents were set between $1,575 and $1,775 per month. For the two bedroom units the monthly rates ran from $1,890 to $2,600.

This isn’t the first time that developers who have decided to switch to rental have still been hit with foreclosure. With so many Condos In Chicago for rent right now and the excess amount of new apartments, competition for renters is going to get even more stiff.

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