Monthly ArchiveFebruary 2010

chicago-condos & Chicago Real Estate pcherry on 15 Feb 2010

Developer Of The Columbian Fighting For Control Of Tower

February 15, 2010 - We told you about Mod’s foreclosure suit. Now we have news that The Columbian has reverted back to the bank that issued the mezzanine loan for the Chicago real estate project. According to a recent Crain’s report, developer Allison Davis lost control of the 46 story high-rise, located on 1160 South Michigan Street, as of February third.

Fidelity Investments Bank had been in an agreement to let Allison Davis and his investors pay back only the principal on the loan, which was about $18.5 million. Mr. Davis had already paid back a main construction loan of $92 million to Corus Bank. However, for whatever reasons
Fidelity decided to revert back to the original loan agreement which included the interest and amounts to around $29 million.

A counter suit against Fidelity has been filed by the investors of the Columbian since the bank won’t stick with their offer of letting Mr. Davis pay back only the principal and not the interest. If Mr. Davis is found liable, he may be personally responsible for paying back the entire amount that Fidelity wants.

The article went on to say that Appraisal Research Counselors puts the number of Chicago condos sold at the Columbian at 71%. So out of the 220 units in the high-rise, 156 are under contract. Prices are currently running between $279,900 and $2.3 million for the units.

We may see some significant price cuts at the Columbian if the bank retains ownership of the tower, which is what typically happens when Condos In Chicago are hit with foreclosure.

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chicago-condos & Chicago Real Estate pcherry on 13 Feb 2010

Mod May Stand Alone

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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chicago-condos & Chicago Real Estate pcherry on 12 Feb 2010

$60,000 Off At Millbrook Pointe Townhomes

February 12, 2010 - Taking a look a bit farther out than our usual Chicago real estate development profile brings us to Millbrook Pointe Townhomes in Wheeling. Right now through the end of February you can save up to $60,000 on their townhomes and rowhomes. If you’re wanting a closer look, there are four models you can tour and see if anything interestes you.

The townhomes have from three to four bedrooms and are priced from $269,900 and have up to 2,700 square feet of living space. Kitchens come with an island. The two townhome models have either four bedrooms and 3.5 baths or three bedrooms and 2.5 baths. The three story rowhomes come with two to three bedrooms and 2.5 baths. There are both ready-to-move-in townhomes and rowhomes or you can customize one yet to be built.

The Harmony townhome model has four bedrooms (lower level master bedroom), 3.5 baths and has been lowered from $459,900 to $399,900, according to a press release. The Heritage townhome model comes with three bedrooms, 2.5 baths and a full basement. Previously priced at $349,900 you can now purchase it for $309,900.

The Concord rowhome has three bedrooms, 2.5 baths and a finished basement. It was listed for $309,900 but is now being sold for $279,900. The Legacy rowhome model also comes with three bedrooms, 2.5 baths and a finished basement. This model was listed for $299,900 but is now priced at $269,900.

And if Wheeling isn’t the place for you, there are plenty of downtown Chicago Townhomes for sale at reduced prices as well.

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