Chicago real estate, living and neighborhood perspective

Waterview Tower

The development group will be focusing on resuming construction at the 27 story Waterview Tower, which has remained unfinished since work was stopped on the project in 2008.

The development group, led by Related Cos., will close on a $115 million dollar construction loan from Bank of American and US Bank*

Originally planned to be a hotel and condominium building to include the Shangri-La hotel, the building will be redesigned as an apartment tower to compete in the growing rental market.

Waterview Tower, which is located at 111 W Wacker Dr, sits at a significant location in the Loop; centrally located with City Hall just to the south, Merchandise Mart across the river and attracting many others who work in the Loop, Financial District and even River North area.

As reported by Wall Street Journal, the deal took a lot of effort as creditors, Ivan Dvorak who led the original development group and Related worked out terms for the future of the site.

Within about 12 months, an unusually short period of time for a distressed project, Mr. Dvorak’s group had worked out an agreement with creditors. They agreed to write down debts in exchange for a stake in a limited-liability corporation that owned the property along with the developers. The move was designed to attract interest from investors who might otherwise be scared off by potentially messy foreclosure litigation. –Wall Street Journal 

Rates haven’t been published yet, but the building will compete as additional apartment buildings come to market, all hoping to take advantage of the growing apartment sector.  The rental market demand seems to continue to grow.  As individuals wait on purchasing, and previous homeowners involved in short sales or have lost their home add to current demand, many expect to see rental rates continue to increase and even possibly meet the demand as hundreds of new apartments are added into the supply.

In any case, many are eager for any type of project that will complete what many have called the “eye sore” on Wacker Drive.

*As reported by Crains, the construction loan closed Wednesday, according to U.S. Bank, the lead lender. Bank of America served as the syndication agent on the loan.

Sherwin L. Sucaldito, REALTOR®, GREEN, ABR, CRPM
@properties
The Institute of Luxury Home Marketing
Green REsource Council, GREEN
Accredited Buyer’s Representative , ABR
Certified Residential Property Manager, CRPM
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