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

[CenIL_LA]

^The good thing is now we have, something we havent had before, something more evidenciary that it is happening. We couldnt go for the last 8 months filling this thread only with what we know. We knew what was happening but without a formal announcement or evidence, we can only do so much. The easiest thing is to let those blips hit the forum so people are aware but it shouldnt be logged into our permanent consience without proof. It didnt prevent denial, many of us will still deny a full outright blowup until another developer places something else on top of the existing shell. We knew there were concerns. We just had no way of knowing what exactly the skinny was.

[BVictor1]

Originally Posted by Mojava

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

I've reported the sales figures for the hotel here multiple times. It's been between 42% and 45% for the past 6 - 9 months.

Originally Posted by chi-arch

I have faith

You and me both.

Originally Posted by 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have been tense for this project, but much of what is/has been going on behind the scenes is not in Roeder's very outdated article.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.

I've heard this same response from a few people this morning.

[honte]

I'm not sweating this... it's far too solid of a project.

I made a post a long while back that got deleted in the speculation bin. In that post, I presented Teng's annual revenue from last year, which was really very impressive. I don't have those numbers any longer.

In another post that got deleted, I mentioned that the hotel is the weakest part of the proposal. Ironically, that is the part that is nearly built now. It seems reasonable that this part of the plan could be transferred to another party, or an agreement struck with Shangri-La to take on the hotel units themselves. This could be structured as a cash-out plan for TENG that reduces their profits in the hotel but gives them more equity to crank into the residential part, which looks much stronger, I believe. This is all coming from an admitted novice in financial matters, but nothing here seems far-fetched.

Last, I agree completely with BVictor concerning Roeder. TENG is a corporation with many millions in profit each year. Roeder is a little chump sitting in a cubicle in the Sun-Times building who likes to lob shots at anyone with any vision who is willing to think outside the box. Meanwhile, he cheers for the developers who do the same old thing, many of them responsible for the nasty part of the Boom.

I'll wait until Friday's announcement, if it's still coming.

[dagobert]

From an accounting/financial point of view completing this building is a no-brainer. All the money spent in the last year on foundation work, the parking, and hotel portion are a sunk cost. I would venture to estimate that what had been spent already amounts to perhaps about 1/4 to 1/3 (I personally lean toward the 1/3 figure, but I might be underestimating the cost of interior finishing) of the total construction costs for this building. Since we do not live in a text book world, we have to keep in mind that litigation from current creditors and debtors would halt any construction for about 2 years while things are sorted out. If Teng goes into bankruptcy it will be interesting for how much they will be able to sell their portion of this building. Still, anyone who does buy out this tower will do so at a nice discount.

[Tom In Chicago]

Although this news shouldn't come as a surprise, Teng still owns the land and have had it for years before this building even started construction. . . Shangri-La isn't planning on leaving the project. . . even if they stop construction on the building due to litigation, it will still likely be finished or at worst sold off to a more competent developer to complete the project. . . but the idea that the city and/or state should "step in" and do something about is absolutely absurd. . .

[Kngkyle]

I won't begin to worry until I see construction halted on the site for a long period of time. I have faith that this will get done as planned. We have known about the fishy financing details for awhile now, so I don't see this as such a shocking revelation.

[Rocket1]

Perhaps they plan to do something like the Blue Cross/Blue Shield building, where the lower part is completed -- leaving us with a parking garage and hotel.

But everything's in place to commence working on the residential portion several years from now.

[The Pimp]

Please... let me rephrase. When I stated that the Mayor wouldn't stand for a shell of a building to be on Wacker Drive, I meant that he could use his influence to find another developer to finish off the current project. No one thinks for a second that any government agency could or would step in to assist this or any project. Maybe if Teng was Bear Stearns or Chrysler......

[The Pimp]

Teng is about to put out a press release stating that the building will continue to be built. This situation is very stressful... because my wife and I are selling our town house next to the CS and were thinking of buying in this building.

[chi-arch]

Come on in Pimp! The water is fine. Like I said, I have faith and am not worried that things will progress on Waterview Tower. Any slow down will be very short lived.

This will NEVER be a parking garage and hotel with a tower some time down the road.

[aaron38]

Originally Posted by Tom In Chicago

. . .but the idea that the city and/or state should "step in" and do something about is absolutely absurd. . .

What's absurd about the state providing financing? Governments finance projects all the time. What we know is that Teng is desperately trying to get someone to give them a loan, that they will repay. But the credit market has all the private lenders hiding under the bed.
That's why our economic system isn't pure capitalism. Sometimes the government has to step in and keep the wheels moving when private institutions go risk adverse and shut down.

I'm not suggesting that the state take ownership of the project. I'm suggesting that they rectify the problem, that Teng can't get a construction loan. As Honte said, Teng is a big company, they're good for it.
And it's in the state's best interest to get the building built and occupied and the tax revenue flowing.

If the construction loan is the only issue, and Teng cannot get the money, the state should step in.
If there are other problems, that changes matters.

[CenIL_LA]

^Even smaller cities like Moline provide loans for private condo/office towers. They are funding a pending project in thier downtown as we speak as long as the units can get sold. Moline gets little support from outside sources and isnt a high income community. There is nothing to say Chicago couldnt do it so long it got paid back.

[budman]

Hey Pimp, I left you a private message.

[BVictor1]

I sent an email this morning:

Mr. ------,

My name is Butler Adams (BVictor1) and I met you several months ago at
the Union League club when there was a presentation on the structural
engineering for Waterview Tower. I'm sure you've read the article in
todays Sun-Times about financing. I've heard these rumors over the past
few weeks and hope that they are resolved soon. I've also heard that
the article is out of date and a lot is happening behind the scenes.

Please tell me that we won't have a 25-story concrete shell sitting at
the corner of Clark and Wacker. I love this project and have been
following it for the past 3 almost 4 years now. I'd be quite
disappointed along with many other people if this project isn't
completed.

Is there any good news to report? Was the article full of it?

I hope that you all will continue to trek along, and I expect to see a
beautiful skyscraper to talk about on my tour in the near future.

Butler V. Adams
www.emporis.com


The response I received this afternoon:

Hi Butler,

Thank again for your continued support and admiration for the Waterview
Tower project.

Waterview, LLC, the Teng Companies, Shangri-La Hotel & Resorts, and the
project's exemplary team of contractors remain committed to the success
of Waterview Tower & the Shangri-La Hotel, Chicago. Several large
international funds are in the process of their loan review. In the
meantime, all those involved with the project continue to work together
to protect the integrity and quality of the project while the remaining
funding is being secured. To dispel the rumors, Waterview has no
intention to build anything other than its current 90 story "iconic"
design.

Please keep the faith...

**** *******


I think that we should

[i_am_hydrogen]

Originally Posted by BVictor1

To dispel the rumors, Waterview has no
intention to build anything other than its current 90 story "iconic"
design.

Please keep the faith...

Thanks for sharing. Of course, intending to do something and having the ability to do it are often two different things... But I'm still keeping the faith. I'm not worried.

[Alliance]

I'm worried, but have faith.

Thanks V for your efforts.

[cbotnyse]

Originally Posted by Alliance

I'm worried, but have faith.

Thanks V for your efforts.

second that. I think 67% sold is a strong number, this site has a lot of value.

[F1 Tommy]

I have faith in this project. It will get done by someone.
I hope Teng can pull it off as they have put alot of effort
into what may be the second best supertall in Chicago.(ok third best)

[chi-arch]

Faith....and conviction will rule the day. Nice job Bvic

[killaviews]

If you want to take a closer look at Waterview's troubles go to Cook County Recorder of Deeds: http://www.ccrd.info/CCRD/il031/index.jsp

The Property ID (PIN)# is 17-09-419-004-0000

It has 4 liens from:
Thatcher: $207,719
Hill Mech.: No amount listed
Aquaris Fluid: $96,586
Hatchell & Assoc.: $90,020

So they owe at least $394,325

Hopefully it will get financing soon.