What’s Going on at Burnham Pointe?
A reader, K, posted on Apr 19:
“Looks like terrapin has told all of its owners that they are converting to rental…so they are giving everyone’s money back. I feel bad for the true long term owners who were going to keep their units for a long time and not flip. I guess it’s nice to use everyone’s money to construct their building. Can you say class action?”
The Sun-Times also reported last week that the difficulties were continuing for Terrapin:
TERRAPIN TROUBLE: Sources say the creditors’ noose is getting tighter around Chicago-based condo builder Terrapin Properties LLC. I’m told a plan to sell its biggest downtown-area project, the unfinished Burnham Pointe building at 710 S. Clark, to Equity Residential for $106 million has blown up. Terrapin principals that include James “Jake” Geleerd and Michael Ezgur could be forced into bankruptcy. They personally guaranteed a loan on another project that’s in foreclosure.
The Burnham Pointe website doesn’t say anything out of the ordinary. It’s still trumpeting being “50% sold”.
But the website is usually the last thing to change.
Anyone else with any update on the building?
On a side note, some flippers are probably pretty darn glad that they’re simply getting their deposit back.
If this building does go rental, it would literally be right next door to the two massive rental towers that Avalon is looking to build in Printers Row.
From the Chicago Journal:
At a final meeting about Avalon Bay’s proposal to build two 42-story rental towers and a 938-car garage on the southwest corner of Clark and Polk, the developer offered the community various sweeteners in the hopes of placating South Loop residents dreading another round of construction.
Residents and business owners living and working around ongoing construction projects on Clark-Burnham Pointe, at the northeast corner of Clark and Polk, AMLI, at 900 S. Roosevelt-have complained about construction techniques they said damaged their buildings.
The Residences at Burnham Pointe [website]
On a side note, some flippers are probably pretty darn glad that they’re simply getting their deposit back.
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Heck ya. I have three friends that are negative $500 / month bec of they can only rent a portion of their failed flips. Tell me what stock you would hold on to if it cost you $500 a month.
They are still marketing this as apartments through HFF.
With these things going rental as opposed to for sale, is that a positive, negative, or not a damn thing for people in the Neighborhood. I live in the Transportation Building, right in Printer’s Row. We don’t have the classiest pads in the area, but I’ve felt that there’s a kind of gap between units like mine, which are going for 230K, and these newer towers that are starting at upper 200’s, low 300’s. Is that void good or bad for me?
Well if they complete the unit as planned and the rents are competitive with what the Vetro flippers are wanting then I will definitely be looking to move here.
In all honesty I don’t mind the flippers subsidizing my rent by $500/mo.
I live in Folio Square next door. We’re moving and at our open house over the weekend someone came in who had a contract to buy at Burnham Pointe. It seemed as though the person had actually wanted to live there, which is a shame because now they’re stuck finding a new place in a hurry.
I can’t say I’m surprised, this project has been doomed from the start. The developer did everything they could to be rude to the community and now they only have a small crew working on finishing construction.
All you Burnham refugees are welcome to look at our place! We have way more square footage anyway!
Interesting… I have a contract on a unit and have heard nothing.
Thanks to those of you who have contacted me,saying that, yes, the tower is going rental.
Buyers with contracts are apparently being offered their deposits back, with interest.
Stay tuned.