New Condo Tower Next to Trump Tower Chicago?

It takes some guts to talk about building yet another new condo tower in downtown Chicago in this market.

According to Crain’s, some developers think the market will rebound quickly. 

The new tower would be done by Belgravia Group (same developer at 600 N. Lake Shore Drive) and would be 50 condos in a 15 to 17 story building.

Can anyone say “exclusive luxury residences”?

According to the article, Belgravia doesn’t have to purchase the property until next fall so they’ll have time to assess whether or not the housing bust is worsening.  From Crain’s:

Key aspects of the firm’s plan, such as pricing, could not be determined. But the long lead time would give Belgravia plenty of time to assess the market.

And despite the widespread slowdown in the downtown market, a very few projects have achieved strong sales, according to the Downtown Chicago Residential Benchmark Report for the third quarter, issued by Appraisal Research Counselors.

“New projects will need to find a niche in this crowded market, and will require a special location or view,” the report says.

Outside of the condo market being in the dumps, does anyone think this is a “prime” area in which to build yet another condo tower? When they announced that Trump was going in at that location I remember some of the city’s top real estate agents saying things like (paraphrasing), “it’s a top name with a B location” – meaning that those with money didn’t want to be down by the river. They want a lake view or Gold Coast.

Is that still true today?

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