Residents of Palermo Palm Springs have been wondering for the Enterprise Cos. has really cut its ties to Palermo. The Chicago-based developer had delayed for months the foreclosure on its unsold Palermo condos and the undeveloped Phase 2 land for more settlement talks that eventual weren't successful. Now there's interesting news from Chicago about an Enterprise project there. The Chicago Home For Sale blog reports: "Developer Ron Shipka of Enterprise Cos. "managed to pull out a last minute save in the form of a buyer and avoid a deed-in-lieu of foreclosure at Walton on the Park. The developers were poised to sign over the high-rise to lender ST Residential, according to a recent Crain’s report. With only 33 closings in the 189 unit tower, they were a long way from being able to pay back the $82 million construction loan that was coming due. The Dart family of the Dart Container Corporation stepped in and paid off the loan on the 31 story Gold Coast tower and plans to lease the unsold luxury Chicago condos there. The condos at Walton on the Park, which is located on 2 West Delaware Street, average about 1,464 square feet. Coldwell Baker is marketing the one to three bedroom units and just recently began advertising monthly rates." Crain's Chicago Business reports: "Developers Ronald Shipka and Richard Stein have achieved an extraordinary feat in today's real estate market: They have found a wealthy investor to pay off an $82-million construction loan on a slow-selling Gold Coast condominium project. The Dart family, owners of cupmaker Dart Container Corp., emerged earlier this month as a last-minute savior for the developers, who were getting ready to surrender Walton on the Park to its lender, ST Residential LLC. Without enough condo sales to pay off the maturing construction loan on the 189-unit luxury project, the developers needed a minor miracle, and the Darts delivered it.'It looked like a good investment and the time is right, so we decided to move forward,'says Francis Liesman, assistant general counsel for Mason, Mich.-based Dart, the world's largest maker of foam cups and containers. He confirms that a venture controlled by the Dart family paid off the Walton on the Park loan balance in full, declining to identify the individual investors or make them available for interviews. Amid the depressed condo market, many construction lenders have taken over struggling projects through foreclosure or consensual handovers. But the eventual payoff usually is either a fraction of the amount owed or pushed so far into the future that it's hard to calculate. Getting paid in full is the exception these days." Miss Penny Lane says: Maybe some of that good fortune will blow over from the Windy City.
Friday, April 15, 2011
Enterprise finds a white knight for Chicago condo development
Residents of Palermo Palm Springs have been wondering for the Enterprise Cos. has really cut its ties to Palermo. The Chicago-based developer had delayed for months the foreclosure on its unsold Palermo condos and the undeveloped Phase 2 land for more settlement talks that eventual weren't successful. Now there's interesting news from Chicago about an Enterprise project there. The Chicago Home For Sale blog reports: "Developer Ron Shipka of Enterprise Cos. "managed to pull out a last minute save in the form of a buyer and avoid a deed-in-lieu of foreclosure at Walton on the Park. The developers were poised to sign over the high-rise to lender ST Residential, according to a recent Crain’s report. With only 33 closings in the 189 unit tower, they were a long way from being able to pay back the $82 million construction loan that was coming due. The Dart family of the Dart Container Corporation stepped in and paid off the loan on the 31 story Gold Coast tower and plans to lease the unsold luxury Chicago condos there. The condos at Walton on the Park, which is located on 2 West Delaware Street, average about 1,464 square feet. Coldwell Baker is marketing the one to three bedroom units and just recently began advertising monthly rates." Crain's Chicago Business reports: "Developers Ronald Shipka and Richard Stein have achieved an extraordinary feat in today's real estate market: They have found a wealthy investor to pay off an $82-million construction loan on a slow-selling Gold Coast condominium project. The Dart family, owners of cupmaker Dart Container Corp., emerged earlier this month as a last-minute savior for the developers, who were getting ready to surrender Walton on the Park to its lender, ST Residential LLC. Without enough condo sales to pay off the maturing construction loan on the 189-unit luxury project, the developers needed a minor miracle, and the Darts delivered it.'It looked like a good investment and the time is right, so we decided to move forward,'says Francis Liesman, assistant general counsel for Mason, Mich.-based Dart, the world's largest maker of foam cups and containers. He confirms that a venture controlled by the Dart family paid off the Walton on the Park loan balance in full, declining to identify the individual investors or make them available for interviews. Amid the depressed condo market, many construction lenders have taken over struggling projects through foreclosure or consensual handovers. But the eventual payoff usually is either a fraction of the amount owed or pushed so far into the future that it's hard to calculate. Getting paid in full is the exception these days." Miss Penny Lane says: Maybe some of that good fortune will blow over from the Windy City.
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My bet is that Enterprise will be back in some form. This all is working because now they don't have to make regular loan payments! and later can get it back at a reduced price.
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