Chicago Real Estate pcherry on 29 Jul 2010 06:30 pm

Park 1000 Site Brings Low Bids At Auction

July 29, 2010 - More than a few planned Chicago real estate developments have been scrapped the past couple of years due to the beating that the housing market took. Some projects are left partially built while others never made it past the paper stage. The Park 1000 is one of those that probably would have been a success if the timing had been right. But the parcel of land where the planned high-rise was to be built was recently auctioned and the price it brought is a reminder that the market hasn’t recovered yet.

The Park 1000 site was located close to Grant Park on 1000 South Michigan Avenue. It is a prime piece of property and about $25.3 million was still owed on the site by developer Warren Barr. Rick Levin conducted the auction recently and acording to a Crain’s report, the building site only brought $11.3 million as the winning bid, with the winning bidder an affiliat of teh First American Bank that is owed the money in the first place. That is less than 50% of the amount still owed to the bank, and a sobering look at currently land values. The bank will take title to the land, according to the article.

Park 1000 was to be a 40 story tower with 346 Chicago condos. The one to three bedroom condos were marketed for anywhere from the $280,000s to over $1.4 million. Because of the slowdown of the housing market back in 2008 when Mr. Barr was trying to sell units, he didn’t get enough purchase agreements signed to satisfy a lender and obtain a construction loan. First American then was granted a foreclosure in 2009 for the money loaned to buy the site.

Buyers still have plenty of choices when it comes to Chicago condos for sale even without the developments that never made it above ground.

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