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South Loop Scoop
January 5, 2011
 LEXINGTON PARK STILL DARK? It has now been over a year ago, that Lexington Park, located in Chicago’s South Loop, completely fell apart. After the bank failed and the units were purchased by Starwood, in conjunction with the FDIC, there is still no news as to what will happen to the 35-story new construction building. It was originally thought that Starwood would convert them to rentals, after the significant flood which caused close to $20 million in damages. But as I drive past the vacant building each day, it appears they are no closer to a decision than they were over a year ago.
It is truly a shame, as the building was attractive and stood to be the bookend to the south loop. The finished product was absolutely beautiful, with stunning views of the lake and city. In the end the buyers were unable to close on their dream homes, and were offered a reduced earnest money refund.
I’m not sure why it has taken so long for them to decide what direction to take Lexington Park, but can only assume the delay is due to the incredible breaks they received in the transaction. Purchasing it for a fraction of the cost, with a no interest loan and a huge cash infusion, probably offers them little reason to move quickly. Only time will tell what will happen at Lexington Park, but I sure hope they move soon, as the vacant building with no lights, is an eyesore to the south loop.
READ MORE BLOGS HERE…http://brittaj17.wordpress.com/2011/01/04/so-you-want-to-be-an-agent/
August 27, 2010
So the rumors about Lexington Park have come to fruition. Many real estate experts were convinced Starwood Capital would not move forward with the current buyers’ closings, and it now has been confirmed. Recent articles state buyers have now been notified, they will receive partial release of earnest money. Most buyers have said, they are not thrilled, but are at least relieved they can now put it behind them.
Buyers with email addresses on file have received emails notifying them of this news along with attachment outlining the details. In summary, 95% of their earnest money will be returned with interest, (less 5% processing fee). This applies only if they act within 30-days and keep the details confidential.
While this is not the best news to some, seeing they will not receive their dream home, and are being penalized for something out of their control. This is still good news for many, because quite a number of them paid premium dollars for a condominium, which has now lost a minimum of 20% in value, during this long wait. While some buyers have allegedly contemplated lawsuits, others are happy to receive a better return in the end. A few have said “losing 5% is better than 20%”, but it is unclear what percentage is feeling that sentiment.
This is truly a tragic end to a market that has brought so much heartache, to so many hardworking buyers, who just wanted to purchase their dream home.
If you were one of the unfortunate buyers who not yet been notified, it is best to contact the title company for information.
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South Loop Scoop
