Silver Tower, a 38-story River North condominium project, has been saved from foreclosure due to an investment firm picking up the outstanding $30 million tab for the development’s overdue construction loan, according to Crain’s.
Jonathan G. Davis, CEO of Davis Cos., the company who owns the loan, expects to take over control of the condo this fall. Davis does not plan to turn the condo into a rental unit, as many struggling developers have been doing with condo buildings. As a matter of fact, Davis is considering raising prices since the inventory is attracting so many buyers.
“The sales velocity there is very encouraging,” Davis told Crain’s. “We thought this was a very good value,” Davis added. “We like the project. We like the location.”
The location is likely an important aspect for buyers as well, as it is virtually blocks away from the El, and less than a mile from the Metra station. With rising gas prices, many homebuyers are now seeking properties with close proximity to public transportation, according to a study from Coldwell Banker.
Despite being in foreclosure, many interested buyers have appeared due to price reductions within the 229-unit project, leaving only about 60 unsold units available, with 20 of those estimated to close within the next month.
Steven Baer, the property’s court-appointed receiver, says he dropped prices from $400 per square foot, to $325 in March 2010, followed by a decision in September to make parking free for buyers.
Local condos have been receiving generous news coverage, with condo prices outperforming home prices, condos enforcing rental caps, and the latest of multiple condo lawsuits plaguing the condo market.