Height: 930 ft
Floor count: 75
Location: East Lake and North Stetson
Construction end: 2010
Architect: Solomon, Cordwell, Buenz and Associates
Developer: Mandarin Oriental Hotel Group Ltd. (MOHG)

Website (http://www.mandarinorientaltower.com/)

http://area.autodesk.com/themes/site_themes/area/profiles/neoscape/images/MandarinOrientalChicago.jpg
http://img135.imageshack.us/img135/5796/mandarin1mq.jpg
http://img516.imageshack.us/img516/6021/chicagotowersm9md.jpg


Mandarin Oriental hotel will check in
Site near Millennium; Ritz-Carlton for sale

By Thomas A. Corfman
Tribune staff reporter
Published June 8, 2005

A venture that includes construction executive Gerard Kenny said Tuesday that it has a deal for a posh Mandarin Oriental hotel on a site near Millennium Park, part of a proposed 90-story tower that also will include luxury condominiums.

Meanwhile, the owner of the Ritz-Carlton at Water Tower Place said it would put up for sale the 435-room property, one of Chicago's best-known, high-end hotels.

The two deals reflect the renewed attention that investors are giving to a property sector that some experts say can offer higher returns than other real estate investments, such as office buildings or apartment complexes.

"Hotels are the place to be right now," said Arthur Buser, managing director of Jones Lang LaSalle Hotels, a unit of the Chicago-based real estate firm with the same name. "Your initial yield ends up to be double digits out of the box, and there is no other real estate you can do that with," he said.

The $550 million Mandarin Oriental project will be located at Lake and Stetson Streets, but it will have an address of 215 N. Michigan Ave. because the site is part of the Illinois Center office complex.

At 887 feet, the skyscraper is expected to be the city's seventh-tallest tower when it is completed in 2008.

Hong Kong-based Mandarin Oriental International Ltd. has been looking for a Chicago property for at least eight years.

The project gives Mandarin an opportunity to "further strengthen our brand," said Edouard Ettedgui, chief executive of Mandarin, which has 21 hotels worldwide--six of them in the U.S.--and plans to open a Boston property in 2007.

A partnership controlled by Kenny acquired the vacant site in 1998, paying what seems now like a bargain price of $4.4 million, according to property records.

But what looked at the time like a quick development deal dragged on, the result of several factors, including the downturn in hotel development after Sept. 11, 2001.

"The opening of Millennium Park made this thing go," said Kenny, a director with Kenny Construction Co., who spends most of his time on real estate development.

Generally low profile, Kenny was thrown into the spotlight in 1992, when his Wheeling-based firm managed the repair project for the Loop flood. His brother James, a former executive with the firm and a Republican fundraiser, was named ambassador to Ireland in 2003 by President Bush.

The partnership is contributing the 44,000-square-foot site to a joint venture that includes Frank Leo, an investor, developer and former New York printing company owner, said Kenny, whose firm will manage the construction.

The 1.2 million-square-foot project will include 300 condos and 250 hotel-condo units. An additional 50 condos, to be called Mandarin Oriental residences, will have the full benefit of the amenities of the hotel. The chain is known for its high level of service.

A marketing firm has not yet been named, and Kenny acknowledges that sales will be key to arranging financing.

"The Mandarin name brings such a special presence to Chicago," he said.

Under the hotel-condo concept, rooms are sold as condominiums to private buyers, who allow the hotel to rent them out when the owners are not using them.

Kenny may hope the Mandarin project fares better than another hotel deal his firm was involved in, the Renaissance Hotel near O'Hare International Airport.

The 362-room hotel was completed during the downturn in hotel business and was hurt by partnership disputes.

The property was sold last year at a substantial discount to its announced $57 million cost.

"There's no comparison whatsoever," Kenny said.

As one of the city's newest luxury hotels moves forward, one of its most prominent hotels is going on the market.

Eastdil Realty Co. has been hired to market the Ritz-Carlton, said Patrick Meara, a senior vice president with Chicago-based JMB Realty Corp., which co-owns the hotel with Toronto-based Four Seasons Hotels Inc.

I don't like the design that much and I think it looks bland from some angles.
I heard somewhere this will be the first Mandarin Hotel in the USA.Is it true?

I don't like the design that much and I think it looks bland from some angles.
I heard somewhere this will be the first Mandarin Hotel in the USA.Is it true?

The tower is tall, sleek and very Chicago; I love it! I don't know if it is the first in the US; I think the Chicago tower opens the same time as the Mandarin in Dallas.

Mandarin Dallas - 2009
http://www.farscapefantasy.com/DFW/Dallas/dallas.man.jpg

The height and floor count changes too much, so both might be wrong.

http://img522.imageshack.us/img522/3264/hero01om3.jpg
http://img161.imageshack.us/img161/5637/mandarinouq4.jpg
http://static.flickr.com/68/187700334_8635ac9897_o.jpg

spyguy, I thought it was just the floor count that has been changing. Was there a different height after it was changed from 887' to 930'?

Anyway, I really like this development. The downside is the location. Not for guess and tenants but for us scraper geeks. It'll be all but blocked out from most angles because damn near everything in that area is or will be as tall as this tower. Nonetheless, it will do very well. It is Mandarin after all.

great tower for chicago, when will be construction start? Next Year?

To answer the question, no. There's already a Mandarin Oriental in Miami.

uh oh chicago doin its thang again ;) like da design, and i think thatd be more than 65 floors

I don't like the design that much and I think it looks bland from some angles.
I heard somewhere this will be the first Mandarin Hotel in the USA.Is it true?


there is already a mandarin oriental im miami, new york, san francisco and washington dc. there will also be one in boston from 2008.

Got news from SSP that the parking lot thats where the tower will be was closed and a construction fence was put up. Looks like this might begin sooner than expected.

Awsome great to see chicago getting another building anyway it is where the skyscraper was born YYAAAYY.Anyway it look really similar to the Dallas Mandarine oreintal only if dallas got theres a little taller :righton:

Palladian Plans $500M Hotel/Residential Condo
By Marita Thomas Email this story | Printer-friendly | Reprints

Mandarin Oriental TowerCHICAGO-Locally based Palladian Development has finalized plans for Mandarin Oriental Tower, Chicago, a 74-story building in the East Lakeshore neighborhood that will combine 250 condo hotel units with 250 residences. Hong Kong-based Mandarin Oriental Hotel Group will manage the property. This follows plans for US Mandarin brand luxury hotels and residences scheduled to open in Boston, Las Vegas and Dallas between 2008 and 2009. Other under development include Mexico and Barcelona in 2007, Grand Cayman in 2008 and Macau in 2009.

The Chicago property will be located at an existing parking lot in the East Lakeshore neighborhood adjacent to Millennium Park. There will be separate entrances at 210 N. Stetson and 230 N. Stetson for the hotel and residential components, respectively. A Palladian spokeswoman tells GlobeSt.com the estimated development cost of the project ranges between $400 million and $500 million.
Unit pricing is equally stellar. The 150 Tower Condos, which occupy floors 55 through 74, range from one-bedroom units to four-bedroom layouts. Prices begin at $600,000 and reach to $21 million. Prices for the 100 other residential condo unit on floors 41 through 54 begin at $1.2 million.
The 250 hotel condo suites occupy floors 28 through 40 and range from about 572 sf to 793 sf. Prices for these begin in the $600,000s and reach to $7 million. Hotel unit buyers can enroll in Mandarin’s rental program, which provides management, maintenance and leasing of units when owners are away. Hotel and residential owners share all of the hotel’s amenities, and it is designed as a five-star property.

The lower floors, one through 28, will contain two restaurants, a spa, fitness center and additional service retail along with parking space. Martin Wolf of locally based Solomon Cordwell Buenz is the lead architect.

http://www.globest.com/news/712_712/chicago/148933-1.html


I changed the topic title to 74 floors, and Bvictor is on the case of getting the actual height.

Looks fantastic. Chicago always has great projects and towers. Classy buildings.

I like it

hawt

Wow i thought mandarin was an American bASED HOTEL GROP

I dig it. I think it makes for a very nice mélange of American architecture (particularly the boxy style) with newer Asian style. It will fit in very well in Chicago.

:eek2:

It looks great, it will fit into Chicago just fine.

Too boxy for my liking but then it would fit quite well. The design is nice though. I love the use of glass. Just hope a final height can be produced.

I like the building. Yeap, it is a box, but it's a nice one.

I love the hotel. I stayed at Mandarin Oriental New York once. It was amazing.

It's not a regular box...I love this tower!! Chicago's becoming even more amazing!
So it will be just behind Tow Prudential plaza, right?

yep

Magnificent..

The tower is tall, sleek and very Chicago; I love it! I don't know if it is the first in the US; I think the Chicago tower opens the same time as the Mandarin in Dallas.

Mandarin Dallas - 2009
http://www.farscapefantasy.com/DFW/Dallas/dallas.man.jpg

Wow, that will be really cool, welcome abroad bro!:)

so glassy and tall.

Man I can't wait for this one to start. This really is one of the best looking towers going on out there. Love the color.

I love this design, Chicago did it again...

The Mandarin website still lists the project as a "90 storey" tower. Let's hope it stays that tall.
http://www.mandarinoriental.com/hotel/520000016.asp#chi

wow, i love that tower

THe building looks like the Ritz-Carlton under construction right now in Toronto.

The building is a nice glass box, wow Chicago (at this very moment) is the skyscraper construction of the Americas.

The Mandarin website still lists the project as a "90 storey" tower. Let's hope it stays that tall.
http://www.mandarinoriental.com/hotel/520000016.asp#chi

That's old info though.

was it taller before the reducing to 65 floors?

When did it get reduced or are you looking at the Dallas one?

Looking very nice, perfect for Chicago.

When did it get reduced or are you looking at the Dallas one?

why dallas??

Mandarin Oriental, Chicago (Opening 2009)

Mandarin Oriental, Chicago will occupy 15 floors of a new 90-storey tower which will be an exclusive mixed-use development in Chicago’s growing Millennium Park neighbourhood. In addition to the 250 spacious guestrooms and suites, a 20,000 square foot Spa will create an unprecedented relaxation experience within a vibrant urban setting. The property will also feature 50 luxurious branded Residences and a further 300 deluxe condominiums, as well as upscale retail shops.

The Dallas one i think is 65 stories so i thought you got them mixed up.

yeh you're right :)

was it taller before the reducing to 65 floors?

Maybe, the height figures always changed.

Right now it is being reported at 858'/ 75 floors

wow it looks so cool!

Great looking tower, and it fits perfectly into its surroundings. :okay:

http://static.flickr.com/68/187700334_8635ac9897_o.jpg^^ Loving this big-ass podium. Very 'big business'.
...

Beautiful building! What was in its place before?

Beautiful building! What was in its place before?

^ A whole lotta nuttin'

That new rendering looks badass, Spyguy.

I pray to the Skyscraper Gods, please let this building happen!

Looks nice. This will fit very well in Chicago.

Me too, Urban Politician!

Look for some activity on the site in March.

It's difficult to imagine that god-awful, gaping hole in the ground being filled by such an amazing building.

Look for some activity on the site in March.

Any reason why?

http://img392.imageshack.us/img392/378/81931493mv7.jpghttp://img392.imageshack.us/img392/8937/62170096xs9.jpg
http://img392.imageshack.us/img392/7018/30441818vs5.jpg

Look for some activity on the site in March.

Yeah, well back in December, the people in the sales center told me to look for activity on the site and January, and was all know how that went.

Seeing is believing. The developers haven't been very forthcoming on this project.

Wow, this building is sureme.

:drool:This is my first time seeing this building. I want to see buidings like this in Baltimore.:soon:

wow great design

Some minor utility work needs to happen before any major construction work can begin. Currently in for permit.

I hope Toronto gets a Mandarin Oriental, and one that's tall because right now we have a new four season's soon to begin construction, Ritz-Carleton already in construction, Shangri-la soon to begin construction and Trump Toronto soon to begin construction. Chicago seems to be going through a big building boom like Toronto!

I hope Toronto gets a Mandarin Oriental, and one that's tall because right now we have a new four season's soon to begin construction, Ritz-Carleton already in construction, Shangri-la soon to begin construction and Trump Toronto soon to begin construction. Chicago seems to be going through a big building boom like Toronto!

Uh, that's an understatement, but yes it is.

cool design

This tower's design seems tough to me. It seems like a prominent and strong building.

BVictor1,
Check it out next week.

3 massive building for Chicago.....Waterview, Trump and Oriental....all three over 950ft...with two passing 1000ft mark...i see Chi-Town gaining on HK, and NYC in overall skyline status and competitions.^^ :)

65 Floors !! Look great height and excellent designed.

61 floors, 850' +/-.

3 massive building for Chicago.....Waterview, Trump and Oriental....all three over 950ft...with two passing 1000ft mark...i see Chi-Town gaining on HK, and NYC in overall skyline status and competitions.^^ :)

Many more are coming. Chicago Spire at 2000' and a rumored 1,000+ footer to be announced in the coming months. Not to mention the 11 other 700+ footers u/c,proposed, or under site prep. Also a rumored 80 floor tower next to OMP and OMPW. And Aqua 2 whenever they announce what will be built there. It is supposed to be tall too.

The height of this building might not end up being 930' though. And the floors could be wrong too. There have been a lot of numbers thrown out there so we really won't know until Bvic gets to see the plans.

I LIKE THIS CITY！！！！！！！！

IT’S A GREAT CITY。。。

its looks a lot like the ritz in TO, but still a great buidling. love teh design and height! perfect for chicago

I LIKE THIS CITY！！！！！！！！

IT’S A GREAT CITY。。。

yes it's a great city ^^

Looks like the Four Seasons in Miami.

Appears to be under site prep now.
http://img370.imageshack.us/img370/830/mandarindd3.jpg
http://img171.imageshack.us/img171/1464/mandarin3bb1.jpg
Pictures by I_Am_Hydrogen on SSP.

Kngkyle,
Thanks for posting the pictures. It's nice to see some progress on the site. There have been some 30" iron pipes delivered since these pictures were taken.
Dave

am I the only one who thinks modern high rise design, if not overdone like petronas and 2IFC, leaves a lot to be desired? 930 feet tall and THAT is what they wanna build?

i guess seeing it in person is necessary in order to judge.

Good update

Rizzato,
You are right on the money: most buildings have a much different "feel" from the street, than from the architects' renderings and models. Usually the renderings and models depict an overall view that only God can see in reality. Everything above 30' high is generally obscured from the sidewalk, and the only way to take in the whole effect of a tall building is from very far away. From there, the subtle details are lost, and only the prominent characteristics are noticed. Take Petronas Towers, for example. Up close, the curtainwall is very intricate and ornate. Nobody ever gets to see it from up close. Our impression of these towers is the fact that they are a pair joined with a bridge, with a distinctive shape that culminates in a decorative spire.
When Mandarin Oriental Tower - Chicago is built, it will be impressive from the sidewalk. It will also be impressive from far away, but you'll never see it from the perspectives of the renderings or the models.
So, if you've got any suggested revisions, I'd be curious to know what they would be...
Dave

April 5, 2007

http://img179.imageshack.us/img179/7958/dsc0138copyra9.jpg

http://img370.imageshack.us/img370/5895/dsc0134copyte0.jpg



http://img411.imageshack.us/img411/4761/chicagopicsapril5200700sv6.jpg

http://img411.imageshack.us/img411/2589/chicagopicsapril5200700ph9.jpg


From SSP.

:okay: :banana:

for me the tower is as good as UC :)

very small site.

^ small indeed. I hope construction doesn't move at the same pace as waterview with that small area to work in.

From Mario & www.newcityskyline.com

Here is the information we got from the developer with the floor count and height of the building. They also sent us a rendering...below is the link.

http://www.newcityskyline.com/MandarinOrientalChicago.html (http://www.newcityskyline.com/MandarinOrientalChicago.html)


Mandarin Oriental takes Chicago by storm

Tuesday, April 10, 2007
By Kelly Matlock

Chicago, IL, US (NCS) - Chicago will soon say hello to the Midwest’s first Mandarin Oriental residential property, which is breaking ground within the next few weeks at North Stetson Avenue just north of Millennium Park in the city’s new Eastside zone in the loop with expected delivery in 2009.

Gerard M. Kenny, president, COO and partner of Palladian Development, LLC, the tower’s developer, said he had this kind of lavish, innovative tower in mind when he first established Palladian; Kenny’s past local credits with self-founded Kenny Construction Company include the El’s Green and Blue lines, the city’s Tunnel and Reservoir project, Midway Airport redevelopment and the rehabilitation of Soldier Field.

“Let's face it,” Kenny said. “I'm a Chicago guy, and Chicago is the City of Architecture. My partners and I share an emotional commitment, as well as an economic interest, in building the kind of grand and gracious condominium hotel this town deserves. We created Palladian for the sole purpose of building an architectural icon worthy of its location next to Millennium Park.”

An iconic building next to the park is exactly what the 74-story, 930-foot Mandarin Oriental Tower will be, offering up a 250-room Mandarin Oriental hotel with hotel guestrooms ranging from 552 to 3,600 square feet and priced from $570,000 to $7 million USD. Buyers have the option of having Mandarin Oriental rent their unit when not in use. Additionally, 250 residential condos will offer one to four bedrooms, one to four baths, from 770 to 13,000 square feet and priced from $550,000 to $21 million USD. 150 of these, called Tower Condominiums, are intended for those seeking traditional condo ownership with access to specific hotel amenities. The remaining 100 condos, The Residences at Mandarin Oriental, are best for permanent hotel guests who seek complete residential floor plans with access to full Mandarin Oriental services and amenities.

The tower will offer residents and guests dining and entertainment options including the signature Mandarin Oriental restaurant as well as a slated five-star restaurant that will offer one of the finest culinary experiences in Chicago. The building’s SkyLobby will be home to a MObar Lounge along with a tea room that will serve dim sum and a selection of the finest teas from around the world, as well as Mandarin Oriental’s award-winning Cake Shop. Additional amenities include a 24-hour concierge, valet service and IT concierge, as well as The Spa at Mandarin Oriental, Chicago, featuring 14 treatment rooms, experience showers, ice caves, vitality pools, amethyst steam rooms and saunas. Adjacent to the Spa, a state-of-the-art fitness center will offer training equipment, fitness classes, a yoga and Pilates studio, swimming pool, grotto and hot tub.

Housed within a contemporary glass shell, the building was designed by Solomon Cordwell Buenz principal Martin Wolf, known for his appreciation and respect for the old design methodology of hand drawing. Despite the advent of computer technology, Wolf still prefers to draw many of his designs by hand, enabling him to produce a sequence of drawings which he can compare and contrast in order to arrive at a satisfying design. Wolf is known for his recent work on projects such as the 61-story 340 on the Park condo tower, expected to become Chicago’s first green residential high-rise, and the brand new River North campus for the Erikson Institute, which broke ground in January.

Wolf’s design of the Mandarin Oriental, which according to SCB, “combines Mandarin Oriental’s Asian heritage with a strong sense of place and presence,” was inspired by the vitality of the hotel activities at its base and the desire to invigorate the street and surroundings. The exterior consists of transparent and semi-transparent glass panels that change color at night and offer views of the ever-changing lifecycle of activity and lighting within the building. The sleek glass form is split into two volumes, with one volume articulated as a thin shard of glass facing the lake, and another volume facing west and deferring to the taller element as it peels back in a graceful arc to reveal a luminous lantern.

With interior design by Washington, D.C.-based Avery Brooks & Associates, the Mandarin tower is changing the hotel trends. According to Todd Avery-Lenahan, the firm’s president, “Guest rooms are not in the paradigm of the typical hotel room. Their overall floor plan, configuration and the way they are fitted out is more aligned to a finely planned urban environment.” Lenahan explains that the integration of high technology for business travelers, distinctively custom features for all guest rooms, multi-use expectation for both travelers and residents, and a setting that will act as “the new social stage for Chicago’s social events,” culminates in one revolutionary and innovative hotel design.

The Mandarin Oriental brand, with its trademark 11-bladed gold fan logo, received top honors in North America among luxury hotel chains in Condé Nast Traveler’s 2005 Business Travel Awards and was named the World’s Leading Luxury Spa Operator by the Robb Report in 2006. With 9,500 rooms in 20 countries now operating or under development, Mandarin Oriental has 15 hotels in Asia, 12 in the Americas and seven in Europe and North Africa. M.O. hotels will be going up in Riviera Maya, Mexico, and Hainan Island, China in 2007; Barcelona and Boston in 2008; Dallas, Las Vegas, Macau, Marrakech, Turks, Calcos and Grand Cayman in 2009; and Guangzhou, Taipei and Paris in 2010.

The first hotel of the Group, “The Mandarin” opened in Hong Kong in September, 1963, and the group began its expansion in Asia in 1974 as the “Mandarin International Hotels Limited,” and acquired a 49% interest in “The Oriental” Hotel in Bangkok, also a legendary property. The Mandarin Oriental, Hyde Park in London is known for its amazing restaurant foliage, which is regarded as one of the best in London and is often frequented by celebrities including Madonna.

To find out more information about the Mandarin Oriental Tower, Chicago, visit the sales center at 160 N. Stetson, call 312-540-1515 or visit www.mandarintowerchicago.com (http://www.mandarintowerchicago.com).

Wow... it seems like the Asian-based luxury hotels are expanding rapidly into the North American market. This is good news... i'm tired of the regulars such as Fairmont, Ritz-Carlton, InterContinental, Four Seasons, etc.

^^ you're right! there's another mandarin Oriental in atlanta i just heard about today. see?

EDIT: don't want people to get confused with MO in chicago with MO in atlanta :)

3 massive building for Chicago.....Waterview, Trump and Oriental....all three over 950ft...with two passing 1000ft mark...i see Chi-Town gaining on HK, and NYC in overall skyline status and competitions.^^ :)

Not to mention 2 800+ footers and 4 700+ footers either under construction or in site prep. We're adding some serious height to the skyline during this phase of the boom--and some beautiful architecture as well.

FInally, this is the first time that i see the rendering of this tower.

FInally, this is the first time that i see the rendering of this tower.

That's a different building. This is the Mandarin in Chicago:

http://img135.imageshack.us/img135/5796/mandarin1mq.jpg

Not to mention 2 800+ footers and 4 700+ footers either under construction or in site prep. We're adding some serious height to the skyline during this phase of the boom--and some beautiful architecture as well.

Not to mention the 2000' ChiSpire that seems to be moving along quite well.

UR right HYDORGEN....the possible Fordham Spire....Mandarin....Trump....Waterview....Met3 i beleive...could b wrong...but i see that Chicago is making out like bandits....even more so than dare i say NYC....but thats a race amoung u guys

UR right HYDORGEN....the possible Fordham Spire....Mandarin....Trump....Waterview....Met3 i beleive...could b wrong...but i see that Chicago is making out like bandits....even more so than dare i say NYC....but thats a race amoung u guys

Met 3 is in Miami.

Damn, again a great building!

nothing new to tell, but here are a few pics of the site from museumparktom at ssp
http://i97.photobucket.com/albums/l221/Mansmith_2006/DSCN2824.jpg

http://i97.photobucket.com/albums/l221/Mansmith_2006/DSCN2826.jpg

looks like a pretty awesome building... chicago is KILLIN" it with all these awesome new buildings!

MDguy, thanks for posting the pictures. That's a great vantage point, and I hope museumparktom keeps taking more from there. It will be good for monitoring progress of caissons and foundations.
Dave

This tower will be a very nice addition to Chicago skyline, It's very sleek and has a very good height.

all over 800ft is great i think

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article1851681.ece

From The Times May 29, 2007

Investors asked to check out Chicago hotel

James Rossiter, Property Correspondent

British retail investors are to be offered the chance to buy a stake in a new 74-storey tower in Chicago, The Times has learnt.

The Mandarin Oriental Tower, part-opulent hotel, part-luxury residential block, will cost $600 million (£302 million) to build.

When complete, it will be the ninth-tallest building in a city famed for its skyscrapers.

BridgePoint, the private equity group, and movewithus, the estate agent, will sell off-plan hotel rooms and apartments in the tower, with the hotel investor receiving an income based on the occupancy of the room.

Related Links
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The cheapest room is on sale for $600,000, with top-of the-range presale units priced at up to $4 million each. Penthouses in the 784ft tower will cost up to $21 million. In all, 252 hotel condominiums and 250 private residences – all of which come with the full benefits of hotel living, such as twice-daily maid services and a luxury spa and gym – are planned.

Similar investment schemes have been launched before, but this is the first to guarantee a minimum resale price of each unit once the building is completed. BridgePoint guarantees a 15.6 per cent return above the open market resale price.

Nor is that the only potential attraction to investors. The block, due to be completed in 2009, is located in the heart of the city, a short walk from the Magnificent Mile, the Chicago River and the financial and business district. It is close to some of the world’s biggest conference centres – a ready source of hotel-room-seeking visitors – and Mandarin Oriental is known worldwide as much for its high occupancy rates, well above 70 per cent, as its luxurious service.

Furthermore, the developer – Palladian Development, whose controlling Kenny family is close to President Bush – is backing the scheme by making unusually confident undertakings.

It must presell at least half the units in the skyscraper for $300 million before it can draw down any of the $400 million of development loans needed to get construction work off the ground.

It will also pick up the tab for ensuring the resale of each unit for early-stage investors who want out at the completion of the block. Should the market go down between investors buying in and first being able to sell on, the developer is obliged to make up the difference to the investors.

Should Palladian go bust before completion, executives at BridgePoint and movewithus said, investors would get all their money back with interest as it would be held in an escrow account, out of reach of any creditors to the constuction company.

“The collar comes from the developer,” Robin King, of movewithus, said. “In the past, developers said: ‘I will sell off-plan and discount.’ Never before have developers taken market risk.” BridgePoint and movewithus insist that even in a “flat market the minimum profit potential is 40 per cent”.

The Mandarin Hotel has already presold $84 million of units.

Fernando Migliassi, senior vice-president at BridgePoint, whose partners have already bought flats in the scheme, said: “This way of forward-selling is a way of compressing time. It creates a buying group, which allows us to comply with the lending structure by getting preconstruction sales. The investors get preferential terms.

“We are investing at BridgePoint at the same time as the investors on the same terms. We are partners. We will get our cut on exit at the same time as investors. We are introducing something new to them.”

How it works

— A condominium hotel operates as a hotel, with rooms owned individually by investors, who can sell the deeds to their investment whenever they choose

— When the unit owner stays at the hotel, they have access to all of the hotel’s amenities. When the owner wants to stay, they ring the hotel and book their own room

— When the owner is not using the room, it can be made available to guests through the hotel

— Each room owner receives a bill, usually monthly, to cover their share of the costs of everything from services, repairs, marketing, insurance and all other costs of running the hotel

from the 23 from SolarWind at ssp

http://img520.imageshack.us/img520/5774/dsc0332copywn3.jpg

Chi649, that's a very interesting article. Two quotes in particular are of concern, especially when taken away from the rest of the article:
"Furthermore, the developer – Palladian Development... – is backing the scheme by making unusually confident undertakings." and "Should Palladian go bust before completion, executives at BridgePoint and movewithus said, investors would get all their money back with interest as it would be held in an escrow account, out of reach of any creditors to the constuction company."

Are you worried about the financing?

I just said "concern" - as long as the developer is confident, there is no need for worry, right? Although, BridgePoint and movewithus are the ones that seem to be worried about the developer going bust...

June 8, 2007

http://img148.imageshack.us/img148/484/dsc0153copyps1.jpg
^ the initial underground work appears to be complete

still nothing! here's a shot from SolarWind at ssp, no changes!

http://img266.imageshack.us/img266/8083/dsc0151qd8.jpg

i like this. suits chicago very well. i like the best most of all :)

Aldridge Electric moved their yellow truck. That's some progress.

Chicago is built on top of parking garages?

Chicago is built on top of parking garages?

Not parking garages, multiple street levels in some parts.

hopefully we'll get some good news in the near future. would be another perfect tower for Chicago :)

The giant fork is out...and ready to stick in this project!

From www.enr.com last week:
CREDIT Luxury Building Boom Slows Under Tightening Credit Woes 05/28/2008 By Pamela Dittmer McKuen
A nervous real estate market is jeopardizing some of Chicago’s ritziest new high-rises, which have been popping up lately like champagne corks. With the stream of buyers slowing to a trickle, lenders are increasingly tight-fisted, developers are scrambling for financing, and contractors are looking for other ways to keep busy.
“The greatest effect is on anyone who is not yet financed,” says Gail Lissner, vice president of local consulting firm Appraisal Research Counselors. “But everyone is having a very hard time raising mezzanine debt, the layer between the construction loan and the equity in a project. That’s very expensive money.”
First-quarter 2008 sales of downtown Chicago new-construction condominiums dropped 83% from the previous year, according to ARC figures. “It’s been really horrible,” says Lissner. “Pricing has held its own, but the velocity is not there, which is making it much harder for projects to meet their presale requirements.”
Some developers, taking advantage of the weak dollar, have gone overseas for capital and customers. Others have slowed projects or put them on indefinite hold.
Work on the 1,047-ft-tall Waterview Tower and Shangri-La Hotel on Wacker Drive slowed to a snail’s pace until the developer, Chicago-based Teng & Associates, recently landed overseas funding, sources say. Teng, which did not return phone calls, is the job’s developer, architect, engineer and general contractor.
Sales figures for the 2,000-ft-tall, Santiago Calatrava-designed Spire, still undergoing foundation construction and being marketed largely overseas, have not been released, leading industry watchers to wonder if there are any. Dublin-based Spire owner Shelbourne Development Ltd., which was not available for comment, has been financing the project through Executive Chairman Garrett Kelleher’s pocketbook.
But the condo boom of recent years is not exactly a bust. At an April 28 ribbon-cutting ceremony of the 92-story Trump International Hotel & Tower Chicago, real estate mogul Donald Trump Sr. was upbeat. With 16 floors left to go, “We’re doing very well, about $600 million in sales,” he says. That number translates to roughly 75% of the project’s 486 residential condos and 339 hotel condos. Prices range from $580,000 to $9 million.
Trump partly attributes the numbers to the building’s location on the Chicago River. He also expresses doubts as to whether every luxury tower that has been announced will see completion. “You don’t build until your financials are in order,” he says. “We built on old money.” Trump says he is planning another Chicago project, a smaller one, although he declined to give details.
Mandarin Oriental Tower—today an empty lot at Lake Street and Stetson Avenue—seems to be back on track after the owner took a break to shore up finances. The 74-story building will have 250 hotel condos and 250 residential condos, priced from $600,000 to $21 million.
The developer allows that economic problems put the project in a tight spot. “We had to slow down because of the credit crunch, but we’re moving back into action this summer,” says local developer Gerry Kenny, president of Palladian Development LLC and former president of Kenny Construction Co.
By early May, 55% of the units had been sold. “The activity we’re seeing is on the larger units,” says Kenny, who has not offered buyer incentives. He expects completion in late 2009 or early 2010. The only work currently under way is shifting underground utilities. Bovis Lend-Lease is signed on to build the tower, designed by local architecture firm Solomon Cordwell Buenz.
Some contractors are still optimistic, too. “Good projects that are either in great locations or very aggressively priced are still happening,” said Michael Meagher, senior vice president for Chicago-based James McHugh Construction Co. Apartment complexes, Meagher adds, are “burgeoning” in comparison.
The slowing work has builders sniffing around in other sectors. “We continue to look at other avenues,” says Meagher. “We have the unique ability to compete on road-and-bridge and on school projects, which gives us a diverse palette that some other contractors might not have.”
Lenders, too, are still in the game. “We’re selectively continuing to look at new projects, especially if they are very well capitalized, if the people have a lot of experience, if they have a structure with presales that appear to be very viable,” says Larry Johnson, executive vice president of commercial real estate for New Century Bank. “It’s a great time for people to start buying,” adds Trump.

wonderful news :banana:

great. I love this building, simply elegant, and a nice 283 meters tall. Couldn't ask for more (ok, maybe a supertall, but it is fine like that too :) )

$600,000 to $21 million ... wow.

YES!!! :D I thought the project was dead!

good news indeed :cheers:

wonderful. Congratulations!!!

amazing how many tall towers are going up at the moment in chicago.

Woooo! Awesome. :dance:

Cue "Staying Alive" by the Beegees...

From SSP:

I received some information from a personal friend involved in this project that permits are in the process of being pulled at this time with the city and that construction of the caissons will begin within the next few weeks.

I was also told (some arcane reason) that the final financing of the building construction would not be in place until the caisson work is completed.

I'm hearing the same thing. They are hoping to receive caison permits in August some time with construction to start soon after. Tate, what I heard was, financing would not be complete until caison permits are finalized and not caison work. I dont think they will pull a Waterview. They've waited this long, there's no reason to start construction w/o a full loan.

Fantastic news! I know that the height of this project has been in question...any news???

Fantastic news! I know that the height of this project has been in question...any news???

Maybe tate64 and Mojava can check with their sources and see what was submitted with the caisson permit application, as far as the height and number of floors. Sounds like they've got some good inside information.

leah.jones from flikcr:
March 14, 2007

http://www.flickr.com/photos/accidentallyjewish/427044294/

http://www.condohotelcenter.com/images/mandarin-bedroom.jpg

http://realestate.halogenguides.com/ul/images/v1/mandarin-chicago-view.png

link: http://www.condohotelcenter.com/condo-hotels/featured-properties/mandarin.htm

WOW! Some actual action at the site

is it moving forward?

WOW! Some actual action at the site
The action in those pictures happened 15 months ago. Scroll back a couple of pages on this thread.

good looks.

:ohno:

Canceled

http://www.skyscrapercity.com/showthread.php?t=222003&page=18

To the archive : DN Archives (http://www.skyscrapercity.com/forumdisplay.php?f=908)

Well... Shame but no biggie. Something will rise there eventually ;)

O I thought it was back on I guess I got my hopes up for nothing.