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Its Web site is down, its listings have disappeared, and not a single tower unit has closed. Not the best way for Chieftain Group’s Lexington Park Condominiums to enter the new year.
It’s easy to lose track of Lexington Park, all alone down there at the corner of Indiana and Cermak. It’s practically an afterthought, one of those projects you remember only when catching it out of the corner of your eye while driving down Lake Shore Drive or the Stevenson. But there it is, all but finished, with nary a soul inside. It’s a ghost town in the sky!
According to Cook County records, three soft lofts in an adjoining mid-rise closed this year. Another three lofts are under contract, as are at least 69 of the 300-plus units in the high-rise, or almost $25 million worth of inventory. (It’s not necessarily the bottom line for contracts, however — Crain’s, using Appraisal Research Counselors’ data, reported in June that Lexington Park was 53 percent pre-sold.)
So what’s the hold-up? It’s hard to tell, but I hear from reliable sources that it could be a three-fold situation. One, the tower is still waiting for certificates of occupancy from the city. We’ve heard that most of this year. Two, Chieftain may be trying to negotiate a loan modification in order to convert the tower’s condos to rentals, until which time the company isn’t any hurry to obtain said certificates. Three, the project’s lender, Corus Bank, was seized by the FDIC in September, thereby bogging down that loan modification process.
We’ll keep sniffing around to see what else we can find out. Call me curious…
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{ 32 comments… read them below or add one }
I hope they do not go rental. We need more ‘owners’ in the area.
Will they go the auction route?
Tim,
An auction would be extremely unusual under these circumstances – too many units, too early in the closing cycle. Maybe later, but unlikely now.
My wife & I looked at these 2 years ago and were very impressed by the plans. We balked at the time because it seemed sales were slow. I’d still like to see this project be successful. We are from out of town, and would like to purchase a place similar to this.
We looked at Lexington Park in June of 08 and passed up to buy a place in Motor Row Lofts; as it would it have been nice
to have better amenties, but we chose to go with more space, historic tax freeze + excellent layout. We liked Lexington as a whole, but it depends on what is important to you.
I put a deposit on a unit in March of 2007 and have been waiting to move in since then. I did the walk-through of my completed apartment this past September and then not a peep, not a word, not a call from the developer’s sales agent. I heard from my mortgage broker that there were not enough owners planning to occupy their units, so no banks would make fixed rate loans on them. I needed a home, so bought a place elsewhere in the city in late December. Meanwhile, I have an attorney seeking the return of my $20K + deposit. I would love to hear from other people who are seeking or have sought to recover their deposits.
LexParkBuyer,
Did you have a clause in your contract where you can get your deposit back? I am in the same boat with you.
LexPaekBuyer,
who was your mortgage lender and were u planning to get a tower or loft unit?
I also put a deposit for a unit in May 2009 and I was too optimistic that they were able to close before 2010. The closing date was kept postponed from Sep/Oct 2009, to Dec. 2009, and now further to Feb/Mar 2010. But even if things do go forward, I was told the earliest estimated closing time is Jun 2010.
If it does convert all its tower units to rental (just like the Roosevelt Collection), it would save us lots of time and we shall just get the earnest money back. But if it only does a partial conversion and the building becomes a rent/own hybrid, I wonder what a mess will it be…
For LexParkBuyer, I am wondering if you have a clause in the contract which gives you the right to cancel after 2 years from the signing date of the contract.
On Sat, Jan 30th I saw an OPEN HOUSE (Model Open) sidewalk billboard on the Michigan Side for the 1st time in a couple of months. Not sure what that means, but thought to mention it. I really feel bad for you guys who put money down and are not getting anywhere. I hope you still move in as the building is great and the area is only getting better. Their website still seems down and the last time they updated their TWITTER account was Oct 09.
Thanks, Solo. One of the Chieftain execs sent me the name and contact info of Lexington Park’s new sales manager a couple weeks ago — I haven’t heard back from her yet, but I’ll try again this week.
I was informed their web site will be up in about a month. Lexingtonparksales.com
I wonder if we can renegotiate price with competition dropping prices. Hopefully some of us can finally close before the 1st time home buyers tax credit expires.
I am, sadly, also in the boat with those who put money down on a unit in Lexington Park, and have given up waiting for them to close. It’s obvious they won’t reach the 60% FHA guidelines to back the loans, so no one will be closing on units in this building. I am working with an attorney presently to try to recover my earnest money, but it would probably be more effective if others in the same boat would group together and file a class action lawsuit against the developer. If interested, please contact me at neildimarco@hotmail.com.
This project is too far South, I wouldn’t recommend any of my buyers to buy here. In the South Loop – probably want to stay at 17th street or further north. I think that was one of the problems with this project was the location. While there have been other projects not as far South as well that have had issues in the South Loop, I think this project should sell at a discount to projects further north. Also, hindsight is 20 / 20, but even before the crash, I’d recommend to all of my clients to have a date in the contract for any new construction projects which allow them to cancel the contract if they can’t close by a specfic date and get their earnest money back.
Neil,
I agree with your comment. I assume there are quite of few buyers in our boat with numerous properties. Maybe Joe can start a movement which we can start settling these issues. I do not know we can make a change but maybe can be heard.
Sorry Trailmix, but although I agree RIGHT NOW, it may
be better to live south of 17th/18th on Michigan, you forget that there will be more retail, restaurants, transportation near Cermak/Michigan where Lexington is located. Also, I feel that the buildings + units are better in Lexington, Motor Row Lofts & Lofts on the Row.
I def do not want to get into a back/forth here, but long-term this area (South of 18th) is a great investment IF you can get a good deal. I agree that Lexington’s prices were a bit too high given the square foot, but the amenities and soon-to-be high-end restaurants/bars on S. Michigan Ave (22nd – 24th) this is still a great buy ( if you were able to get 10% off).
Pete, Neil,
We’ve had a number of instances of buyers in your situation getting together through one of our comment threads.
I’d suggest forming a group over at our NewHomeNotebook site. You can make the group public or private and control membership if you want. You can have a public group with private discussion threads for members only. It’s a way to keep from putting your e-mail address out in public also.
Post periodic updates here, with a link to the group, as a way of reaching more buyers.
I love Lexington Park’s floor plan a lot. Since I first time saw its floor plan and visited the sales center in Mar 2009, I immediately put down a deposit. I never expected the closing could be delayed that long, so I didn’t have a closing-date limit cluase in my contract. I checked out other new condos in the downtown/loop area. None of them looks as nice as Lextington Park. I can’t give up lexPark’s best floor plan and convenient location. I hope the tower units will start to close this Summer or Fall. Good luck to all of the LexPark buyers!
First Time Buyer — are you still planning on moving in ?
Hi Solo,
Yes, I’m still planning on moving in. I’m hopeful that it can close this Fall at the latest. I really like the unit and I haven’t found a better condo than LexPark in downtown.
Hi First-time buyer for LP,
are u planning to get a loft or tower unit?
Hi Tim,
I’ve gotten a lower unit and I can’t wait to move in. Is yours in the loft or tower?
Although I’m eager to move in, I understand the problem they currently have. I’m willing to give them some time to resolve whatever issues they’re dealing with. But it would be helpful if they could provide the existing buyers with transparency on the progress.
First-time buyer for LP,
I’m planning on getting a loft unit although I really like the floor plans on the tower’s 6th floor(terrace level). I would like to close soon and take advantage of the first-time buyers tax credit and low interest rates but i feel like i’ve waited long enough. Do you think they will go the rental route?
Hi Tim,
I can totally relate to your situation. I like the tower unit a lot and I’m willing to wait longer. In terms of the potential partial rental conversion, I wouldn’t worry too much, because it won’t have any material impact on the property value. The developer may want to sell the remaining units at a higher market price when the real estate market recovers.
For me, I’d like to stick with what I believe is the best option in the long run, which is the superior floor plan and convenient location with upside potential.
First-time buyer
Pardon my suspicions, but you couldn’t sound more like you were in the developer’s employ if you tried.
To say the least, i am concerned. No contact from Chieftain in over 4 months. What options are open to us? Is there any way to get our deposits back?
Joe,
I don’t mind what you think. I just like the unit. I put down a deposit back in April 2009. If there were a better condo in downtown, I would have worked a way out of the contract.
Since I don’t have a clause in my contract and I like the place very much, I’ll just have to have faith that they can deliver this fall.
What’s the latest update with Lexington Park?
This sounds like the Roosevelt Collection all over again. A long period of total silence, with nobody knowing what is going on, and then it goes rental.
Actually it would be great if it takes the rental route. The developer can get some cash flowing instead a complete deadlock. Also they can wait for the market to recover instead of slashing prices to move the remaining units (which is almost 50%). The buyers who wait long enough can get the earnest money back and go look for numerous available condo units elsewhere. And for those who like it so much and decide to stick around, they can simply rent the unit and move in instantly instead of just staring at the finished but empty building. It would be a win-win-win situation!
crud. i’m starting to lose hope.
Connie,
add me to the boat.