CHICAGO | Waterview Tower | 1,047' Official / 1,035' Roof | 89 FLOORS |NEVER BUILT

[VivaLFuego]

That would be rather surprising... I mean given that a hotel operator is on board and 70% of the condos are sold, it seems like some other developer who could line up a decent equity source would have no problem landing financing on a slam dunk project with many of the fixed costs (land, architectural drawings) already taken care of. Obviously TENG and their equity partners (if any) would take a bath on it, but I'd be shocked if there aren't people out there who could make a killer return on completing this project for the right purchase price.

[honte]

^ I agree that tearing it down would be insane.

Even a parking garage with the world's heaviest allowable loads would make more sense than that. I have a lot of friends with tractor trailers full of lead shot who never know where to park when they want to go downtown.

[Rilestone75]

Originally Posted by Mehow

Last Wednesday, WBBM news radio 780 (Chicago) mentioned on the air that Teng was going to forfiet the property and Waterview Tower may be torn down. Who would come up with millions to do this?

I'm not sure how they can "forfiet" the property, they are on the hook for $190M for what they have already borrowed against their own equity.

[Mojava]

Originally Posted by Rilestone75

I'm not sure how they can "forfiet" the property, they are on the hook for $190M for what they have already borrowed against their own equity.

Perhaps they have a mortgage on the property and they could have been counting on the construction loan to pay this off. If they go into foreclosure the the bank would take the property. I'm just speculating.

[aaron38]

But what bank would take an already built structure and tear it down? Right now it's an asset looking for a buyer. There's plenty of money out there. Plenty of investors who want something better than burying their money in the backyard.

They need to simply mothball the structure and wait. Someone will come along and buy it and finish it. Counting the excavation and foundation work, I'd imagine well over 50% of the energy needed to construct this building has already been expended. You don't simply throw that away.

[budman]

The sales manager has been laid off and the other sales person is keeping only very limited office hours...their jobs now are to only respond to buyers' inquiries. All questions are now directed to the project manager.

[TWRWatcher]

People, It won't get torn down, not by the city, not by the existing owner, not by anyone. Not sure why you waste you time speculating. The reality is, it will stay as is until either the exising owner gets the necassary funding in place, or a new buyer is found who can do something with the project. Even if the bank foreclosed on the property, a bank isn't going to finish the building. Be Patient and wait.

[ChicagoChicago]

Originally Posted by TWRWatcher

People, It won't get torn down, not by the city, not by the existing owner, not by anyone. Not sure why you waste you time speculating. The reality is, it will stay as is until either the exising owner gets the necassary funding in place, or a new buyer is found who can do something with the project. Even if the bank foreclosed on the property, a bank isn't going to finish the building. Be Patient and wait.

I’ve got to wonder why anyone would even speculate that it would be torn down. There is an absolute fortune in the building as is, and whether the property is foreclosed or sold, the structure will remain. There is a shortage of parking in the area as it is, losing another parking garage at Wells/Lake just a few months ago, so at the very least it will be the most expensive parking garage in Chicago history.

My personal opinion is that it will be a less spectacular development, likely a hotel in the 30 story range.

[JC-Chicago]

Originally Posted by Tom In Chicago

It sure does. . . it says they should stick to doing what they does best. . . engineering. . . not real estate development. . .

. . .

Teng is a multi-discipline Architecture/Engineering/Tech Integration/Development/GC firm.

Several great projects, have been developed, marketed, designed, and built by Teng.

Like any development of this size, risk is always in play, and economic downturns can severely impact the ability to successfully complete the project. In some cases, economics cause delays or scaling back.

The previous statements by another poster that the construction loan should have been attained in full is somewhat idealistic. Banks won't issue loans if units aren't sold, and people won't buy units until they see a building under construction.

We took a chance and are proud of our accomplishments. We are a private company. All of the speculation on this forum is based on the fact that we don't have to speak... we have no shareholders to impress.

The future of WT is unclear... but at least we gave it a shot.

[Alliance]

My question is, with sales as high as they are reporting, why weren't (past tense) they able to land a loan? Those figures were just as high before the credit freeze.

[Taft]

Originally Posted by JC-Chicago

Teng is a multi-discipline Architecture/Engineering/Tech Integration/Development/GC firm.

Several great projects, have been developed, marketed, designed, and built by Teng.

Like any development of this size, risk is always in play, and economic downturns can severely impact the ability to successfully complete the project. In some cases, economics cause delays or scaling back.

The previous statements by another poster that the construction loan should have been attained in full is somewhat idealistic. Banks won't issue loans if units aren't sold, and people won't buy units until they see a building under construction.

We took a chance and are proud of our accomplishments. We are a private company. All of the speculation on this forum is based on the fact that we don't have to speak... we have no shareholders to impress.

The future of WT is unclear... but at least we gave it a shot.

Thanks for contributing. Voices from the inside--no matter how different in attitude from the mood on the forum--are always appreciated.

When there is a substantial, future-changing development with this project, I hope Teng does make a public announcement. Or maybe you can just tell us here.

Taft

[ChicagoChicago]

Originally Posted by Alliance

My question is, with sales as high as they are reporting, why weren't (past tense) they able to land a loan? Those figures were just as high before the credit freeze.

I’m curious about that also. I hate to add more speculation to the mix, but I have to wonder if there is an issue with the hotel commitment, and how the hotel-condo sales play into that.

As for prices on Waterview’s residential condos, they are some of the most affordable high-end units in the area. They won’t have any problem selling them if the thing gets back on track. My wife and I are included in that assessment.

[VivaLFuego]

What are the terms governing when people who put deposits on units are eligible to get their money back? Or in other words, what sort of legal deadlines are there before the residential component would basically die for good from pre-sales being nullified?

[BVictor1]

Originally Posted by JC-Chicago

Teng is a multi-discipline Architecture/Engineering/Tech Integration/Development/GC firm.

Several great projects, have been developed, marketed, designed, and built by Teng.

Like any development of this size, risk is always in play, and economic downturns can severely impact the ability to successfully complete the project. In some cases, economics cause delays or scaling back.

The previous statements by another poster that the construction loan should have been attained in full is somewhat idealistic. Banks won't issue loans if units aren't sold, and people won't buy units until they see a building under construction.

We took a chance and are proud of our accomplishments. We are a private company. All of the speculation on this forum is based on the fact that we don't have to speak... we have no shareholders to impress.

The future of WT is unclear... but at least we gave it a shot.

Welcome to the forum.

While I respect the fact that Teng designed a beautiful building, the "fact that we don't have to speak... we have no shareholders to impress" isn't a good enough explaination. Yes, you may have taken a chance, but that chance has bombed and we now have a 25-story shell on our riverfront that has been inactive for 6 months.

Please don't try to pull that crap here. I have been one of the staunchest supporters of this project as have others on this forum for Waterview. And as you might know, we have several unit buyers on this forum also.

Honest and forthcoming information is what we're looking for. I'd rather talk about a completed building on my tours rather than what's currently there.

[Tom In Chicago]

Originally Posted by JC-Chicago

Teng is a multi-discipline Architecture/Engineering/Tech Integration/Development/GC firm.

Several great projects, have been developed, marketed, designed, and built by Teng.

Like any development of this size, risk is always in play, and economic downturns can severely impact the ability to successfully complete the project. In some cases, economics cause delays or scaling back.

The previous statements by another poster that the construction loan should have been attained in full is somewhat idealistic. Banks won't issue loans if units aren't sold, and people won't buy units until they see a building under construction.

We took a chance and are proud of our accomplishments. We are a private company. All of the speculation on this forum is based on the fact that we don't have to speak... we have no shareholders to impress.

The future of WT is unclear... but at least we gave it a shot.

I think you took the last thing I wrote and blew it a little out of context. . . I have been an ardent supporter of this project before most of these people who post here even knew about this forum. . . secondly I'm very aware of what your firm does and stand by my statement that your firms strongest qualities are in engineering. . .

. . . oh yeah. . . welcome to the forum

. . .

[dagobert]

Originally Posted by JC-Chicago

...We took a chance and are proud of our accomplishments. We are a private company. All of the speculation on this forum is based on the fact that we don't have to speak... we have no shareholders to impress...

I'm a huge fan of WVT like most on this forum, but we can't forget about being a good corporate citizen and the responsibility it carries. Right now all that Teng has delivered is an empty concrete shell that is a blight to the city. It might look good on a day like Halloween, but otherwise is a detriment to visual aesthetics of the river corridor. I also wonder how WVT debacle will impact Teng’s imagine as far as competency is concerned.

[budman]

I think the point JC is trying to make is that even the developer doesnt know what's going to happen right now. And, as much of an interest most of the posters here take in this building, the developer's interest is much more real and meaningful, as is the interest of those of us who have purchased at Waterview. Teng is entitled to keep proprietary information confidential, and some public disclosures could jeapordize parts or all of the project. The "we dont have shareholders" comment only means that Teng is under no legal obligation to to disclose anything, unlike publicly traded companies, who are. If you think you are unhappy with what's going on, imagine how we feel. I encourage anyone from the inside to keep posting.

[BVictor1]

Originally Posted by budman

I think the point JC is trying to make is that even the developer doesnt know what's going to happen right now. And, as much of an interest most of the posters here take in this building, the developer's interest is much more real and meaningful, as is the interest of those of us who have purchased at Waterview. Teng is entitled to keep proprietary information confidential, and some public disclosures could jeapordize parts or all of the project. The "we dont have shareholders" comment only means that Teng is under no legal obligation to to disclose anything, unlike publicly traded companies, who are. If you think you are unhappy with what's going on, imagine how we feel. I encourage anyone from the inside to keep posting.

Well, I don't know about you, but i consider people who have bought into Teng's product a shareholder.

I'd love for insiders to keep posting as well.

[chi-arch]

^^I second(third) that motion.

[Alliance]

Pro-insiders for Chicago!