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

[the urban politician]

What a dissappointment.

A stubby little parking garage on Wacker. Eventually I hope the tower is built, or it would be a colossal waste of space and an embarrassment for Chicago

[CenIL_LA]

I'm sort of amazed that the original financer was able to back out on this project after already having commited. What kind of crap is that? Onto the situation now, I realize how much of the tower is sold but the credit times are tough, and will likely still get tougher. I dont know what it will take to get this tower going but even with a slightly higher number of sold units than had with the first true construction loan, it wasnt able obtain the financing it needed in some of the easiest financing times in recent memory. This isnt too good. Someone will have to go out on a limb to fund this project or else even the usefulness of what has been built will become an issue to further developments. The trick will be, how long does Teng wait before it considers it dead? What does it take beyond 67% of the condo units, 25-35% of a completed building to aquire a loan? Banks are being cautious but this building is not likely to be one hit by as many defaulters as some other buildings. By the time people will be moving in we would likely be on the way up economically.

[WonderlandPark]

I hope they clad this, Chicago does not need a hulking quarter-finished stack of concrete sitting in a prime spot along the river.

[aaron38]

Personally, this is where the City of Chicago and the State of Illinois need to step in, and soon.

Nobody wants to throw good money after bad, but the fundamentals of this project are sound. With the capital investment made and 67% already sold, this project is not going to lose money. It may not have the returns that skitish investment banks want, but it's sound. And the remaining units will sell out when the building is built. It's an amazing location, it will sell.

If private investors won't step in, then the City and State can either lend the money to get the project finished, or watch an empty shell sit on Wacker for years. And what are we, North Korea?
I agree with Alliance, this will be a black eye on Chicago if it's not fixed.

[Jaroslaw]

My disappointment at this is only a little bit tempered by the satisfaction that the relentless campaign here to keep down all negative rumors about this project has been for naught.

There's still a good chance this guy will get built. After the existing contractors get wound up, whoever takes over should be able to get lower bids for the remaining work, with prices of steel and concrete declining in the next year or two. Other things like the curtain wall will come down in price, too. It's a unique product, the vendor would take a very big hit there if it's not used at the WT.

In short, a bankruptcy workout, new numbers, some contrarian investors, and voila. Although at some point they might have to start refunding deposits, too.

[BVictor1]

I think that we all must remember who wrote the article and the history/reputation that he has with other projects and reporting the negatives.

Originally Posted by Alliance

I think this is something absolutely disastrous for Chicago and puts a whole unprecedented level of doubt on every project proposed and U/C. Not that this project had a squeaky clean resume, but Chicago has lost a supertall here.

I hope to god it will at least be cladded and construction resumed in the very near future.

Who said that Chicago has lost another supertall? Roeder?

Chill people. Learn a bit of faith and quit jumping on the Roeder bandwagon.

[WonderlandPark]

Originally Posted by BVictor1

I think that we all must remember who wrote the article and the history/reputation that he has with other projects and reporting the negatives.

OK, then delete another 3 pages of posts because you don't like the reporter....jeez

[Spiral Architect]

The past six months have been tense for this project, but much of what is/has been going on behind the scenes is not in Roeder's very outdated article. Be patient.

[F1 Tommy]

Good point!!

But after watching how long it took to get above ground level I already had
doubts about Teng's credit. I really think this will get built. It just may be with another developer. Teng does have close ties with the hotel. That may
be a problem.

[CenIL_LA]

Originally Posted by BVictor1

I think that we all must remember who wrote the article and the history/reputation that he has with other projects and reporting the negatives.

Yeah that is the other thing too, obviously they talked to one developer that turned investment into the project down. The article hints at this German bank and working to aquire financing but it doesnt say at what stage in the game that is in. It could be on the cusp of happening for all we know. German banks also have not had the losses through the last few years that others have. Since they are stronger right now they are more likely to become the victor.

[the urban politician]

Originally Posted by BVictor1

I think that we all must remember who wrote the article and the history/reputation that he has with other projects and reporting the negatives.



Who said that Chicago has lost another supertall? Roeder?

Chill people. Learn a bit of faith and quit jumping on the Roeder bandwagon.

^ I agree about Roeder's negativity. And it's also good news to hear that Shangri-La is committed to this site "long term".

But you have to admit, BV, for some of us not on the inside like you, what else is a rational guy supposed to assume? Slow construction, no financing, and a national credit meltdown. It's reasonable to have lots of doubts.

I'm not the "have faith" type, I guess

[Jaroslaw]

Originally Posted by CenIL_LA

German banks also have not had the losses through the last few years that others have. Since they are stronger right now they are more likely to become the victor.

This is factually incorrect. Just type "German banks" into google news. "German banks are holding an estimated €200 billion ($315 billion) in nonperforming loans, the highest level in Europe, after a slowdown in their ability to sell the loans to investors last year, according to research from accountancy firm Ernst & Young." Wall Street Journal - Apr 3, 2008, and so on...

I'd expect somebody from HK/China to show up, actually. The city probably can't invest in this directly, but what if Daley said, "Union-free labor contracts for the investor," something creative like that? Nah...

Shangri-La had a good 2007, profits up 69%.

http://www.forbes.com/markets/2008/04/01...-markets-equity-cx_vk_0401markets05.html

Doesn't seem like they usually put much skin in the game, though: "Shangri-La Asia also signed five new hotel management agreements in 2007 for properties owned by third parties, such as the 212-room Shangri-La Hotel in Toronto and the 257-room Traders Hotel in Doha, Qatar."

[CenIL_LA]

hmm well I was incorrect then, i had heard that German banks of course were having some issues but I thought I heard them being worse elsewhere. I was aware that Deutsche Bank was posting losses. I am not familiar with the bank they are trying to work with. Regardless on that note though, its still better than any bank here. It is encouraging to hear what you know Jaroslaw, there is still room for the fat singing lady to get fatter before she sings if Teng plays cards correctly.

[Mojava]

regarding sales figures: they are 67% sold on residential units and about 40% sold on hotel condos. doing the math, they are 55% sold on the entire project.

[wrab]

This project has some of the nicest layouts & views of any residential tower downtown. For me, the situation is a real headscratcher, even with the economy tanking.

[The Pimp]

Originally Posted by cbotnyse

Is the 67% sold figure accurate? (posted earlier) If so, thats seems like more than enough to keep going, plus I would think the hotel portion can have a soft open like Trump did to generate revenue.

If this thing just stops, that would really suck.

Yes. That 67% figure was given to me by Dorie Frieman at the Waterview offices. I personally do not believe this project is dead... BVictor is correct with his assessment of Roeder. He has consistently been a doomsayer douchebag. Just relax everybody. Do you really think the Mayor would allow a vacant shell of a building to sit on Wacker Drive without getting finished? Come on...

[chi-arch]

I have faith

[cbotnyse]

Originally Posted by The Pimp

Yes. That 67% figure was given to me by Dorie Frieman at the Waterview offices. I personally do not believe this project is dead... BVictor is correct with his assessment of Roeder. He has consistently been a doomsayer douchebag. Just relax everybody. Do you really think the Mayor would allow a vacant shell of a building to sit on Wacker Drive without getting finished? Come on...

what can Daley really do? I dont think he can get away with using taxpayer money to keep this going.

[rgolch]

I fear that too many forumers have been in denial about this potentially happening. Sometimes rumors turn out to be true. And it has always been concerning that financing was not secured.

It's true that this tower is in a good location. But there is a lot of legitimate competition out there for potential buyers, and frankly, there are so many other parts of the city I would rather choose.

I understand why so many posts get deleted when this comes up; this topic could spiral out of control. But the deleting of posts also contributes to the lack of acknowledgement that this project could, indeed be in trouble.

[Mojava]

Originally Posted by The Pimp

Yes. That 67% figure was given to me by Dorie Frieman at the Waterview offices. I personally do not believe this project is dead... BVictor is correct with his assessment of Roeder. He has consistently been a doomsayer douchebag. Just relax everybody. Do you really think the Mayor would allow a vacant shell of a building to sit on Wacker Drive without getting finished? Come on...

Interesting how she only gave you the decent sales figures for the residential and not the poor sales figures for the hotel.