Monthly ArchiveMay 2010
May 18, 2010 – Earlier this year we told you about the $6.88 million that a buyer paid for a 7,400 square foot unit on the 37th floor of the Elysian Hotel & Residences. At that point it was the most expensive of the Chicago condos that had been sold at the high-rise. Well that is no longer the case at this luxury Gold Coast Chicago real estate development.
According to a report by Crain’s, Igor Chernomzav of Hard Eight Futures LLC purchased a 12,000 square foot condo on floors 56 and 57 for more than $7.25 million. Mr. Chernomzav intends to remodel the condo, for which he paid in cash, and then re-list it for over $10 million. This two-level condo has five bedrooms, a lofy 25′ high living room ceiling and sports complete 360 degree views from its windows.
Still, this luxury condo sale isn’t the most expensive at the Elysian, although the same buyer is responsible for making the top two purchases in dollar amounts. Mr. Chernomzav also bought a condo on floor 52 back in March for $8.18 million. That sale is so far the most expensive in the 60 story high-rise on 11 East Walton Street.
The article went on to say that there are 31 out of 51 total condos that have closed at the Elysian and also 15 units that are under contract. Sales had been sluggish though, but developer David Pisor of Elysian Worldwide told Crain’s that interest in the project has increased in the past 45 days.
The fact that buyers are starting to purchase high dollar luxury Chicago condos again is a positive sign for the Chicago real estate market.
May 17, 2010 - There has been little to no confirmed news about the Chieftain Group’s Chicago real estate project Lexington Park on 2138 South Indiana. All we know for sure is that there are a lot of questions and speculation about the development and that no buyers have yet closed on any of the 297 Chicago condos in the 35 story tower under construction. The seven story condo loft building has 36 units and the residences range in size from about 656 to 1,346 square feet and had been marketed for between $223,900 to $521,900.
Construction was financed by by Corus Bank, which was taken over by Starwood Capital with the FDIC’s approval. Since Lexington Park, like so many other Chicago real estate developments, had struggled a bit with sales it may be that Starwood will eventually take control of the development and offer the unsold units at a discount or turn the project into a rental development.
Whether the powers that be at Lexington Park do go ahead and honor the sales contracts and start closing or announce refunds and convert to rental, we should be hearing something soon. Buyers who signed contracts and put money down will be the first to know, but we’ll update you as soon as we have any information.
Anyone who was interested in Lexington Park’s lofts may want to check out the other Chicago lofts for sale in the meantime.
May 15, 2010 - Aqua is going blue, which is fitting. But the 82 story tower is going Blu as in Radisson Blu, which is the name of the new boutique hotel that will occupy 18 floors in the high-rise. According to a recent Crain’s article, Carlson Hotels Worldwide paid Chicago real estate developer Magellan $60 million for the raw hotel space and will spend about $125 million building it out into a 334 room hotel.
This will be the first Radisson Blu in the U.S., although the company has opened around 155 world-wide since its inception in 2009. Magellan and Carlson will each have a 50% ownership in the hotel, which is expected to open in late 2011.
A construction loan is being sought for around $63 million, which is about half of the $125 million estimated cost of finishing the hotel space. But Magellan President David Carlins told Crain’s that, “We actually don’t think it’s going to be a problem. Things are thawing a bit.” He also stated that several lenders have shown an interest in funding the project.
Now that Aqua has signed a hotel, it won’t be long until there is no empty space in the tower. All of the 474 rental units are leased and aside from three model units, about 82% of the total 262 Chicago condos in the high-rise are under contract and 40% of those have closed.
Every so often we have a little good news like this about Chicago real estate, and as always we will post it here to keep you updated.