Market Conditions: A Tale of 2 Markets as Aqua Nearly Sells Out and Vetro Auctions
Chicago Public Radio recently did a piece on the cooling off of the Chicago condo market.
However, Lakeshore East apparently continues to be popular whereas we already know the problems going on in the South Loop.
The piece also addresses those in the West Loop who are attempting to get mortgages for new construction condo units.
Eighty-two stories above ground, Magellan executives cheer as they pour concrete for the final floor of the Aqua building. It’s a slim tower with balconies that ripple like waves. And it’s hit a sweet spot – already 98-percent of the condos have sold. The fact that the building exists at all is kind of a miracle. Magellan co-CEO Jim Loewenberg says they got the construction loans in 2007, right before banks stopped lending.
LOEWENBERG: The whole issues were starting to come to a head, the banks were starting to not trust each other, and so I just don’t know if it would have been done if it had been 60 days later.
That credit collapse sent downtown real estate into freefall.
AUCTION: 480, 490, 490 left side, now 500,000, five from the back, now 510….
Downtown just witnessed its first-ever auction of luxury condos. And there may be more.
AUCTION: 557, once twice, I have 556, 557 third and final call, 557? Sold, congratulations, 556,000. Buyer number is 467.
That penthouse in the South Loop went for almost 40 percent off. The South Loop exploded with growth during the boom. But it now has the most unsold condos of any neighborhood downtown. Until recently, downtown prices hadn’t dropped much, but sales were pretty much frozen. Developer Thomas Roszak says he put dozens of his condos on the block as a way to thaw the market.
ROSZAK: No one’s selling anything right now. Today we’re going to prove there are 40 buyers out there and they’re all willing to buy at a certain price, so from today on, everybody out there who’s a seller will have to react to the price we just determined today.
The Big Chill: Chicago’s Condo Market is Now on Ice [Chicago Public Radio, Ashley Gross, Mar 17, 2009] – listen and/or read the transcript.
It will be interesting to watch Aqua once it comes closer to closing time. How many of the 400+ condos will actually close and I’m sure the amount of resales will be outstanding.
BTW, pricing is up on the 470+ rentals. 1 BR’s start at just under $2000.
http://nnpresidential.com/aqua/one-bedroom.html
“400+ condos” “470+ rentals”
How did they squeeze 870 units into ~60 floors? Remember that the bottom ~20 floors are currently vacant, raw hotel space.
Okay, looked it up. 263 condos on 27 floors. 476 rentals on 34 floors. And 17 floors of (empty, unsold) hotel. So, 739 units on 61 floors.
have a friend who put money down at aqua on a 2 bedroom. he’s feeling nervous right now, doesnt know if he can get financing and if he can, isn’t sure if he should got through with it.
This is an interesting story. I’ve heard that the woman interviewed at the end of the Chicago Public Radio article is an owner at RD659. She sounded very concerned about all the empty units in the building and what the hold-up is. Imagine living in a mid-rise condo development with only 25 other people. I wouldn’t blame her.
There are still 80-100 buyers at RD659 who haven’t been able to close on their loans — and some of them have been held out now for about 3 months. What is the developer doing about this?