March 31, 2011 - There could be a new rental option available soon in the Gold Coast, at least temporarily. Walton on the Park, the 31story, 189 unit high-rise located on 2 West Delaware Street, has been sold and the empty condos may be leased. According to a recent Crain’s article, Ron Shipka of Enterprise Cos. and Richard Stein of Mesirow Financial had started the paperwork for a deed-in-lieu of foreclosure to lender ST Residential but were spared that fate by the Dart Container Corp. family paying off the $82 million still owed on the Chicago real estate development.
The article states that Mr. Shipka and Mr. Stein took out a $130 million construciton loan from the failed Corus Bank in 2008 and ST Residential took over the loan balance in 2009. The due date was this March, but could have been extended to September of 2012. But with just 33 closings in the 189 unit tower, paying back the loan on time wasn’t looking promising.
A Dart family spokesperson was quoted in the article as saying of the purchase that, “It looked like a good investment and the time is right, so we decided to move forward.”
The Darts are considering leasing the unsold Chicago condos at Walton on the Park, which is what many investors are doing until the market recovers and prices improve. Monthly rental rates may be a bit higher though, because as the article points out, the average size of a condo at Walton on the Park is 1,464 square feet and that is larger than many Downtown Chicago condos for rent.