February 25, 2008

Near West Side condo project faces financial difficulty

Category: Downtown Condos. Posted by Mike at 6:35 pm.

One of the largest developers of luxury condos on Chicago’s Near West Side is facing difficulty in securing financing for a new project in the neighborhood.

Terrapin Group LLC is planning a mixed-use tower at the corner of Monroe and Halsted. However, the group has defaulted on the loan and now owes nearly $600,000 to the lender, Orleans Properties LLC. Orleans Properties issued a notice that it will auction off Terrapin’s ownership in the project, which is a joint venture with Seymour Taxman, a Skokie-based developer.

The announcement is one of the most recent high-profile projects that is facing financial difficulty around the downtown Chicago region, highlighting the pressure that the decline in sales in the area is putting on local developers.

Banks and lenders are tightening requirements for new projects across the country as a result of a large increase in foreclosures. Losses from foreclosures have led to billions of dollars in writeoffs for major banks.

Keep up with the latest Chicago Real Estate news and stay on top of market conditions in neighborhoods around the city. Browse through the best new condo developments around downtown Chicago today.

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