Market Conditions: Crain’s Has The Scoop On The Hold Up In The Ritz Carlton Closings: 118 E. Erie In River North
Crain’s has the scoop on why there haven’t yet been any closings in the new luxury high rise on Michigan Avenue, the Ritz Carlton Residences.
The building’s actual address is now 118 E. Erie and I’m calling it River North because it’s on the west side of Michigan Avenue.
Apparently there is a lawsuit preventing any closings from taking place.
The developer of the 89-unit condominium tower, Chicago-based Prism Development Co., is feuding with the Terra Foundation for American Art, which owns the land under the building at 664 N. Michigan Ave. and will own retail and office space in the project when it is finished. The dispute came to a head Friday, when Prism prevented construction workers from entering the project to build out the stores for Tommy Bahama and Loft.
The Terra Foundation struck back Monday by seeking a temporary restraining order forcing Prism to let the workers in. In a hearing Monday afternoon, Cook County Circuit Court Judge Mary Mikva granted Terra’s request, issuing an order that will allow construction workers, the retail tenants and Terra to enter the building through the end of the week.
Under a 2005 deal, Terra, the owner of a vintage building on the property, agreed to let Prism construct a luxury condo tower there, tearing down the old building while keeping the facade. As part of the agreement, Terra would own about 18,000 square feet of street-level and second-floor retail space and 14,000 square feet of office space that the foundation would occupy.
But Terra says it won’t close on the deal because Prism hasn’t completed the space to the foundation’s satisfaction. Its main complaints: that the windows of its future offices were installed improperly and work on elevators between the first and the second floors of the retail space is incomplete.
If closings start in 2012, it will be the second luxury high rise to start delivery of new units this year.
2550 N. Lakeview in Lincoln Park has already started closings.
Crain’s is reporting that nearly 50% of the units in the Ritz are under contract, or 42 out of 89 units.
Some of those contracts were signed years ago. It will be interesting to see how many actually close.
Along with 2550 N. Lakeview and a Trump Tower that has not yet sold out, the Ritz adds a tremendous amount of multi-million dollar condo inventory onto the market in the River North, Gold Coast, Near North Side and Lincoln Park neighborhoods.
Any guesses on how long it will take for the market to absorb all of these $3 million+ condos?
Or will prices eventually have to be cut?
(By the way- as soon as a listing comes on the market in 2550 N. Lakeview or the Ritz that actually shows the “real” interior pictures- I’ll do a post on these buildings.)
Ritz Carlton Residences hung up in legal battle [Crain’s Chicago Business, Micah Maidenberg, September 11, 2012]
I would be really embarrassed to spend $3m to live in this building.
1. They should have the entrance on Michigan.
2. It is inches away from the hotel next door.
3. The lane to the garage is narrow and cramped.
4. The lobby is embarrassingly small. I get the feeling the doorman strands outside the building because there is no space for him inside.
“Any guesses on how long it will take for the market to absorb all of these $3 million+ condos?”
any guesses on how little I give a Flying F over this? I’m sure those 42 one-percenters will be moved in in time for the holidays.
This building is a joke, I have no idea who would pay this much for such a cramped mcshitbox, but whatever, if Buffy wants it so she can be close to Michigan Ave to shop, Mr. Rockefeller will provide it to shut her up
I looked at this a while ago through luxuryhomes. Not a fan of the architectural style or even the location (too busy). As Steven said, the lobby is like a CTA ticket collector booth, which is surprising for a high end building. I think they should never allow residential building off Michigan Ave.
The retail has the storefronts facing Michigan. As a resident, do you want to be coming and going to your house off of that street? Heck no. Making the door on Erie makes sense.
But it IS a busy location, no doubt.
yeah last thing i want is some bum pissin on my doorway on Michigan Ave
I also noticed some tagging on the Rolex store the other day on Michigan ave… punk ass kids, get back in school!
I have not been in the Ritz but I toured a 3BR/3BA unit in LP2550 a few weeks ago. I really liked the finishes, the views and the amenities… and I live in the neighborhood so I might be a bit biased. Assessments were very reasonable, all things considered, but the $/SF just seemed a bit unrealistic for the current market.
Seems to me a lot of the luxury bldgs in the area have their residential entrances off Michigan Ave., including the Bloomingdales building, the original Ritz Carlton and the Hancock. Makes sense to have them in a less crowded location.
Yeah I suspect that having the entrance on the side street like the Peninsula, Four Seasons, and Park Hyatt do makes some sense. You can pull up the Bentley and have someone there to help you unload all of those pesky big packages from Oak St. boutiques.
The downside is that you do not get to drop the Michigan Ave address to impress people. To many out of towers living in NYC, SFO, or other cities that would be the equivalent to saying that I live on Rodeo Drive in Chicago. 118 E. Erie means nothing to an out of towner. I guess that the riches will just tell their friends that they live at “the Ritz on Michigan Ave.”
Or they will taught a Michigan Avenue address anyway. When I lived at the Pinnacle they chose to use 21 E Huron because it sounded like a more pleasant neighborhood than the actual address of 670 N Wabash. Countless times, friends would end up at the mail room entrance next to the dock instead of the actual address on Wabash.
The downside is that you do not get to drop the Michigan Ave address to impress people. To many out of towers living in NYC, SFO, or other cities that would be the equivalent to saying that I live on Rodeo Drive in Chicago. 118 E. Erie means nothing to an out of towner. I guess that the riches will just tell their friends that they live at “the Ritz on Michigan Ave.”
amazing how warped some peoples’ ideas are when it comes to what rich people talk about.
Address issues aren’t limited to Michigan Ave. The loft develpment at Clark and Harrison has the address of 547 S. Clark which is where the entrance is, but is named the Harrison Street Lofts. Go figure.
The people on the architectural blogs hate the Ritz building for more reasons that one can list, but most of them boil down to a building that’s trying to pass as high-end architecture and materialas, when if fact what is it is 100% fake and trickery. It is a pastiche, and a bad on at that. Also really sad that the beautiful facade on the corner got pasted onto a parking garage. Really? That’s the best they could do?
“amazing how warped some peoples’ ideas are when it comes to what rich people talk about.”
They all just talk about sticking it to the little man, all the time, amiright?
The little man is the last thought on my mind.
They all just talk about sticking it to the little man, all the time, amiright?
PDubbs said “Assessments were very reasonable, all things considered…”
Proposed assessments while the building is being sold mean nothing. I guarantee you they will rise dramatically after the owners association takes over and sees there is nothing allocated to reserves, etc.
The rich people talk about how much money they plan to give the Romney campaign.
“Proposed assessments while the building is being sold mean nothing. I guarantee you they will rise dramatically after the owners association takes over and sees there is nothing allocated to reserves, etc.”
Thank you for your comment Artlover. I can’t believe this STILL has to be explained to people (after all the new construction of the last 10 years.)
The developers keep the assessments artifically low. So when you go look at it and run the monthly payment number, it looks “affordable” because the assessment isn’t “too bad.”
Only, as Artlover pointed out, it always goes up when the Board takes over (which is 3 years from the date of the first closing OR 75% of the units close, whichever comes first.) Suddenly the Board decides they want fresh flowers in the lobby or a certain expensive piece of art in the workout room (yes- this has happened in other buildings.) Or that it costs more than expected to heat the parking garage because natural gas prices spiked. Assessments then go up.
2550 N. Lakeview has many amenities including valet parking and a pool. These all add up.
“if Buffy wants it so she can be close to Michigan Ave to shop, Mr. Rockefeller will provide it to shut her up”
Buffy?? Huh? I bet the RitzC room service will be sending more late night smoked salmon and bagels than it will anything else. Ever been to the EBC, where if you order a Cobb salad they ask you if you want the bacon?
Yes I have been to the EBC, never had food there though… what kind of douche orders a salad with bacon but then 86’s it?