Crains’ ran a story yesterday about the continued problems with the Museum Park developments in the South Loop. As our own analysis reveals, there was a 20 months supply of 2 and 3 bedroom condos on the Near South Side (which includes the South Loop) at the end of August and condos have been on the market an average of 1000 days (Nope. That’s not a typo.) This market dynamic is taking it’s toll on 3 buildings in particular that are having trouble selling their units – one of which is about to be foreclosed upon.
|Development||Address||Total Units||Unsold Units||% Unsold|
|One Museum Park West||1201 S Prairie||298||233||78%|
|1600 Museum Park||1629 S Prairie||275||114||41%|
|Museum Park Place South||1901 S Calumet||288||142||49%|
It’s the One Museum Park West building that is about to be foreclosed upon by Bank of America. According to Crain’s the bank is owed $125 MM, which would make this the biggest condo building foreclosure since the bubble popped. With 78% of the units unsold is it any surprise?
The hapless developers are Gerald Fogelson and Ronald Shipka Sr., who were doing well in the South Loop until they weren’t. Speculation is that another investor will come along and take over the projects and actually turn a nice profit.