Wednesday, August 23, 2017

Terrazio (1935 S. Wabash) Development Sells to San Francisco Investment Firm for $48 Million

A South Loop poster child for the real estate bubble has a new owner (via Crains):
A San Francisco investment firm paid $48 million for most of a failed South Loop condominium project, and it's not stopping there.

A venture led by FPA Multifamily acquired 165 rented condos in Terrazio, a 180-unit development at 1935 S. Wabash Ave. that ran into financial trouble after the condo crash. FPA acquired the units from New York-based Amalgamated Bank, which took them over in 2013 after filing a foreclosure suit on the property.

Now, FPA aims to buy the 15 condos it doesn't own, units the building's developer, Chicago-based Sedgwick Properties, sold before it lost control of the property.

After the condo bust, many downtown condo developers found themselves in a similar predicament, stuck with dozens of unsold condos and unable to pay off maturing construction loans. So they—or their lenders—just decided to rent out the unsold units and ride out the market.

FPA wants to run Terrazio as a pure apartment building, which is why it plans to court the owners of the 15 remaining condos.
We've had our eye on this property and it always just seemed off for some reason.  It's still surprising that no retail has opened in here.

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