Given the number of new residential high-rises that have been built in Chicago during the last decade, it’s surprising that more of these projects haven’t gone belly up, even in a prolonged bull market. There was 1000 Michigan Avenue, which marketed units for more than a year before quietly disappearing (developer Warren Barr, whose South Loop projects have done well, has taken over the site for his planned Park 1000 condo tower).
And there was Hudson Tower, a 24-story high-rise announced for 228 condos at 800 N Hudson Ave four years ago. Last week, the development company that Rezmar Development Group’s Antoin Rezko and Dan Mahru formed for the project filed for bankruptcy protection.
According to a story in Crain’s Chicago Business, the former partners had agreed to sell the property to Centrum Properties for $9 million after suffering slow condo sales. But since the development company owes Broadway Bank, $12.5 million, another offer for $12.3 million from Royal Apartments USA is looking much more attractive. The bankruptcy proceedings might open the door to the higher price from Royal and minimize the lender’s loss.