Eight Fewer Floors at 2520 Lakeview in Chicago’s Lincoln Park
In as much time as it takes to send an email the folks at Lincoln Park 2520 have boosted their sales from 50% to 74% of the massive new construction luxury project located in Chicago’s toney Lincoln Park neighborhood.
How, in a market as constricted as what we are experiencing in Chicago this summer, were they able to achieve this prodigious feat?
By a mathematical sleight of hand whereby they are reducing the number of units from 292 to 198. As reported yesterday by Crain’s Chicago Business the Lincoln Park luxury condominium and townhome project at 2520 N Lakeview has been reduced in size. And with the reduction in size comes an increase in the percent of units sold.
Unfortunately, though, the reduction impacts 29 units already under contract which makes pending sales nearly 60% of the overall units (though developers say the bulk of these folks intend to purchase another condo in this Lincoln Park location).
At the outset the shift in numbers would appear to be an attempt to garner additional funding to move forward with the project. Some $200 Million in construction loans are perceived as needed to complete work. But the current state of the financial markets creates a timeline of maybe a year before construction loans might be available for this Chicago luxury project or larger scale residential real estate work across the United States.
Which brings us to a more immediate concern – the August 15th maturity date of a $28.75 Million loan with Bank of America that financed the $44 Million purchase price of the former site of Columbus Hospital. Crain’s quotes the head of the development as saying talks are underway with the bank to extend this deadline.
Meanwhile the jury is out as to the overall look of this Lucien Lagrange designed site that intermingles townhomes with a 33-story tower that is 8 floors fewer than originally planned. With a price tag that trends toward an average of $900 square foot many observers have opined that its size simply doesn’t integrate well with the neighborhood where Chicago’s gracious Lincoln Park is its front yard.
The builder’s website is currently being redesigned, so it doesn’t offer any additional information. There are presently 8 new listings at 2520 listed on the Chicago mls ranging from below $500,000 for a 960 square foot one bedroom (parking extra) to a nearly 7,000 square foot four bedroom penthouse with almost 3,000 feet of terrace that is listed at $11,544,000 (parking extra).
Among the questions that come to mind with respect to this project relate to timeline (when is it realistically anticipated to be done (and will it truly be built)), assessments (the sleight of hand reducing overall units will push up monthly fees by how much), and value (what is the true worth of a home at this address)?
By the way, the assessments for the one bedroom are $201 while the four bedroom are indicated on the Chicago mls as $4681.
If you have any interest in this or any other property in Chicago (including the Lincoln Park neighborhood and the Gold Coast, Streeterville, Bucktown, Wicker Park, Roscoe Village, Edgewater, Lincoln Square and the north side Chicago real estate, don’t hesitate to reach out to me either at tom.mccarey@gmail.com or by calling or texting 773.848.9241.
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