Crib Chatter

The day after the Chicago Spire made its big splash, Chicago developer Michael Reschke was interviewed in the Wall Street Journal about the mega-high rise he has on the drawing board, the Chicago Waldorf.  According to the article, it will be a 100 story Waldorf-Astoria hotel and condominiums with 325 rooms in the hotel and 300 luxury condos.

100 stories! 

The Chicago Waldorf will be built in partnership with Fordham Co., who has developed other luxury condo buildings such as the Fordham at 25 E Superior and the nearby Pinnacle.

The picture above is from the Wall Street Journal (provided by De Stefano and Partners).  The building looks very similar to the Chicago Spire- which will literally be less than half a mile up the street.  There is no address provided for the building but I believe it will be built on one of the lots across from the River East AMC movie theater which is on Illinois and Columbus.

They are expecting to price the condominium unts at $800 per sq/ft.

This project is added to the growing list of luxury projects announced or underway in Chicago right now.  In the last two days alone, with the grand opening of the Spire, 1500 more condo units all in the luxury price range have been announced.  How many rich people are there?

The article even concedes that the market for luxury condos is slowing.  Reschke is also developing 10 E. Delaware, a 121 unit luxury building in the Gold Coast.  This project is much smaller and is what I would consider a boutique building.  It’s in a great location and the units are very well appointed with Poggenpohl kitchens and subzero appliances.

I originally thought that people buying in this building would be older buyers in the neighborhood who are tired of their older buildings but love the neighborhood and want “new” and so would trade in their condo for a new one.  The price points aren’t crazy in 10 E. Delaware.  They have 3 bedroom, 3 bath units still available for as low as $1.299 million.

But the article says that only 65% of 10 E. Delaware is sold even though they’ve been marketing it for well over a year.  The building is due to be completed in 2009.

If they can’t sell that building at those decent price points in a great location, why do they think they’ll be able to sell an even more expensive tower in an already crowded area in Streeterville?

Reschke seems unfazed by any slowdown.  The Wall Street Journal asked him if he didn’t think he was getting in over his head (in addition to the Waldorf and 10 E. Delaware developments, he has several other hotels in the planning stages around the city).  They interviewed him at his office and conference room which was filled with plans of all the developments he’s working on. He replied:

“It’s not that many,” he said. “How can I be overextended? I still have room on the walls for more drawings.”

Yes indeed. How could he be overextended?