December 31, 2011 – For quite a while we were hearing about Chicago real estate developments that were either hit with foreclosure or had to file bankruptcy, but the trend seemed to have slowed down a bit. But now Crain’s is reporting that 1555 Wabash is the latest to experience financial trouble. The high-rise was developed by a group headed by former Alderman Ted Mazola, according to the article.

With only 35 condos (20%) of the total 176 units in the 14 story tower closed, the development group has filed for Chapter 11 bankruptcy. The condos that weren’t sold have been rented, according to the report. But that move must not have generated enough revenue to keep the venture afloat financially.

The article also states that a construction loan of $46.2 million was taken out in 2007, although the bank hasn’t filed a foreclosure suit on the development.

Appraisal Reasearch Counselors commented in the article that there have been quite a few South Loop condo towers that have either been converted to rentals or sold to investors. As of the end of the third quarter this year (2011), 41% (844 units) of the unsold 2,066 new Downtown Chicago condos were located in the South Loop. And that’s probably why buyers can still find some serious price cuts on those Chicago condos.

Technorati Tags: 1555 Wabash, Chicago Condos, Chicago Real Estate

This entry was posted on Saturday, December 31st, 2011 at 10:37 am and is filed under Deerfield(t) .