From Crain’s:
Bank of America has filed a $40-million foreclosure lawsuit on a 225-unit River North condominium project in what could be a preview for other slow-selling downtown high-rises.
The developer of the 38-story Silver Tower didn’t pay back B of A’s loan by its Dec. 29 due date, according to the suit, filed in January in Cook County Circuit Court. The developer, an affiliate of Oak Brook-based Metropolitan Real Estate Co., has closed on sales of just 76, or 33%, of the condos in the project at 303 W. Ohio St., property records show. Buyers began moving in last August.
Once again this is another new construction in the downtown Chicago condo market that is failing. What about the people who have already moved in ? Does this make their units less value? You bet it does. There will be a very big concern from the mortgage companies to lend to a bankrupt building. So the story continues, more inventory, no buyers and the banks still confused.
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