May 14, 2008

Foreclosure suit hits Near South development

Category: Downtown Condos. Posted by Mike at 1:33 pm.

Yet another condominium development in Chicago is facing foreclosure proceedings. The lenders of a project located at 1000 South Michigan Avenue have filed for foreclosure on the property to recover unpaid loans.

The property is being developed by Renaissant Development Group, LLC, an Oak Brook-based company. The suit was filed by First American Bank for a past due loan totaling nearly $18.7 million.

Plans called for the construction of a 40-story tower at the site. However, declining sales around the Near South Side and an increase in units on the market around the city has hurt many developers’ bottom line. According to the developer, nearly 50 percent of the 346 units planned for the project have already been sold.

The development is one of several that are facing financial difficulties around the South Loop. Plans for an ultra-luxurious development known as Canyon Ranch fell through as the developers decided to wait out the difficult market conditions currently seen in the city.

Buyers, however, are starting to see great deals on Preconstruction Chicago Condos For Sale as developers roll out deals such as free parking and paid assessments to attract more interest from buyers.

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