Many have questioned the status of Lexington Park, located in the south loop, at 2138 S. Indiana.  It has been a challenge getting information on what the future holds, but there are a few things that are for certain.   It has been confirmed that the tower closings have not yet occurred.  Buyers with contracts on the units are in limbo, and have aggressively tried to get answers to no avail.  Many were first-time buyers, hoping to take advantage of the tax credit, but missed out on the opportunity.  They are still waiting to see if they will move forward with closings in the tower, and are disappointed they have not yet been contacted to discuss their purchase. 

Rumors have suggested the loft building will continue to be marketed as condominiums and the tower may convert to rentals.  This information has not been confirmed, but one thing is for certain, there has not been any activity on-site in many months.  Due to the incomplete construction of the building, it is likely additional time will be required to move forward, whether they decide to convert to rental or proceed with sales.

In the summer of 2009, the Irish developers, Chieftain Group, were surprised to find out their construction lender Corus Bank, was a victim of the crumbling housing market.  With most of their assets being tied up in new construction high-rises, they were unable to stay afloat and the ship sank quickly.  Corus Banks assets were purchased by Starwood Capital with backing from the FDIC.  During the initial phase of the takeover, the developer believed it would be a seamless process, but recently found themselves fighting for their investment.  In recent months, it appears they will likely lose the development and a full takeover is inevitable.  In the event this happens, there is uncertainty amongst industry experts as to what will happen to the current buyers purchase contracts.  It will likely depend on if they move forward with condominiums or covert to rentals.

It is an unfortunate situation and is not typically seen in the marketplace, but it was a sign of the times.  If you have purchased a condominium at Lexington Park, there may be a light at the end of the tunnel. If Starwood Capital decides to convert to rentals, it is likely you will receive a full refund of earnest money.  There is speculation that buyers will be contacted by the new owners of the asset shortly.