On the western edge of Lincoln Park, a good mile removed from the desirable commercial strips on Fullerton, Armitage, and Clybourn, lies a testament to overbuilding. Breaking ground in early 2009 as a 27-unit condo building, the project stalled under the weight of a bad market and hefty construction loan. It's not the first such calamity and won't be the last. But as Crain's reports, the project has a new savior. Local investment firm Cedar Street Capital has just acquired the $7M construction loan for a paltry $1.85M (or about 25% of the loan's outstanding balance). Cedar plans on spending another $2-$2.5M to complete the development, and then intends to rent out the units. So, all told, their total investment should hover around $4M.
The pattern repeats itself at the nearby intersection of Clybourn, Fullerton, and Ashland, where two other foreclosed condo developments have been rescued by opportunistic investors— one with 12 units, the other with 41. Conscious of the challenges in persuading large numbers of people to move to a fringe location, Cedar is wasting no time in pouring on the optimism: "This may not be the most prime location," says Cedar CFO Alex Samoylovich. "But instead of having the best location we can have the best product in Lincoln Park." There you have it. Check please!
·Buyer gets loan at discount on stalled Clybourn project [Crain's]
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