What if you had put down a deposit for a unit in Waterview Tower several years ago? How long would you be willing to wait for your dream unit?
Construction has halted on the building on Wacker Drive in the Loop.
Crain’s updates construction developments at several of the new highrises in this week’s issue. According to Crain’s, Waterview Tower is 67% sold.
Owners in many buildings are in limbo land, waiting for construction to be completed. Crain’s highlights these five:
- Chicago Spire
- Lincoln Park 2520
- Waterview Tower
- X/O Condominiums
- Solstice on the Park
From Crain’s:
Manish Shah is all too familiar with this bind. He agreed in December 2006 to buy a two-bedroom unit at the GlasHaus development, 1327 S. Wabash Ave., and plunked down $24,000 in earnest money.
At the time, developer Piedmont Group Inc. told Mr. Shah that the sale of his $440,000 unit would close in the second half of 2008. But in an Oct. 20 letter to buyers, Chicago-based Piedmont pushed the date back.
Construction is delayed, and units won’t be ready for delivery until at least autumn 2010.
Until then, Mr. Shah, 35, figures he’s stuck.
“The money that’s locked up is opportunity lost,” he says. “I’ve been trying to get out of (the contract), but I can’t.”
A buyer who bought on the 50th floor in the Spire is patiently waiting out the delays, the article says. But buyers in other buildings aren’t so accomodating.
A “drop-dead” clause — which gives buyers a way out without forfeiting earnest money if a condo isn’t delivered by a certain date — can be a useful shield. But most sales contracts don’t contain such provisions unless the buyer’s attorney insists on them.
Mr. Shah and two other buyers say their GlasHaus sales contracts have no such out.
It’s definitely frustrating,” says Amit Pathak, 25, who put down about $18,000 on a $361,900, 852-square-foot unit in July 2007.
Marilyn Engwall shares that frustration. She agreed in January 2006 to pay $330,990 for a 900-square-foot, 17th-floor unit.
Now, she’d like Piedmont to return her $16,545 in earnest money. She says she needs it to pay for repairs to her Albany Park bungalow, where she’ll live for at least another two years until her condo is ready.
“I guarantee I’m not the only one in this situation,” says Ms. Engwall, 43. “I would love to move there, but it’s not going to happen anytime soon. And I need that money now.”
Stuck in condo limbo [Crain’s Chicago Business, Jan 26, 2009]
Chicago Spire Update [Crain’s Chicago Business, Jan 26, 2009]
Lincoln Park 2520 Update [Crain’s Chicago Business, Jan 26, 2009]
Waterview Tower Update [Crain’s Chicago Business, Jan 26, 2009]
X/O Condominiums Update [Crain’s Chicago Business, Jan 26, 2009]
Solstice on the Park Update [Crain’s Chicago Business, Jan 26, 2009]
