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Old July 15th, 2008, 10:47 PM   #1321
Chicagophotoshop
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The distance between Chicago and Beijing, where the Export-Import Bank is based, and the language barrier have slowed the loan approval process, says Sean McMahon, development project manager for Teng & Associates Inc., the tower’s Chicago-based developer. Working through the Chinese government, which owns the bank, is a long and complicated process, too.

“Everything is moving. The pace is a little slower than expected,” he says. “There’s an extraordinary amount of paperwork involved.”


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thanks for posting. good info
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Old July 16th, 2008, 02:34 AM   #1322
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Waterview/Shangri-La developer says loan on track
Email Print Reprints Digg del.icio.us By Alby Gallun, July 15, 2008

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(Crain’s) — The crane atop the unfinished Waterview Tower and Shangri-La Hotel hasn’t moved in weeks, and construction workers have become a rare site at Wacker Drive project, now just a 26-story concrete shell.

Yet the developer of the 90-story high-rise and a representative of its prospective lender both deny rumors that a roughly $340-million construction loan for the project has fallen through. The loan from the Export-Import Bank of China was supposed to close in June, but loan negotiations simply have taken longer than expected, they say.

“It’s definitely happening,” says Zac Henson, CEO of the U.S. subsidiary of Beijing Construction Engineering Group Ltd., which is arranging the financing.

Yet construction of the condominium-and-hotel tower has largely ground to halt and isn’t likely to start again until the loan goes through. Most subcontractors have walked off the job; at least nine have filed liens on the project totaling nearly $790,000, property records show.

The distance between Chicago and Beijing, where the Export-Import Bank is based, and the language barrier have slowed the loan approval process, says Sean McMahon, development project manager for Teng & Associates Inc., the tower’s Chicago-based developer. Working through the Chinese government, which owns the bank, is a long and complicated process, too.

“Everything is moving. The pace is a little slower than expected,” he says. “There’s an extraordinary amount of paperwork involved.”

Teng took the risk of launching the project in 2006 without a construction loan, anticipating that it could line one up later. But financing the tower became increasingly difficult as the credit markets seized up last year, and U.S. lenders cut way back on construction loans.

Teng found a willing partner in Beijing Construction, which put out a press release in April saying it had arranged the Export-Import Bank loan and expected it to close by June.

Related story: Waterview close to $340-million loan

Mr. McMahon estimates that Teng has already spent as much as $190 million on the project, financing most of the construction with its own equity and a $20-million bridge loan from LaSalle Bank N.A. that matured Jan. 31. LaSalle agreed to extend the loan in April; Mr. McMahon won’t disclose the new maturity date.

Under the terms of the Export-Import Bank loan, Beijing Construction will replace Teng as the general contractor on the project, Mr. McMahon says. Amid rising construction costs, Teng, which would remain the developer, is reworking its budget for the project, estimated at $470 million in April.

Teng might need a larger loan as result, but the Export-Import Bank remains committed to the development regardless of cost, Mr. Henson says.

“The bank is prepared to adjust accordingly,” he says.


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chicago - waterview tower - developer gets loan - lands financing - import bank - retail space - square feet - arthur aveBuyers have signed contracts for 68% of the development’s 233 condos and 40% of its 200 hotel units, representing about $290 million in sales, Mr. McMahon says.

He hopes to have the loan close in mid-August, but Mr. Henson is bracing for more delays due to the Olympic Games in Beijing. Many government workers will be encouraged to take vacation during the games, which run from Aug. 8 to 24, he says.

Meanwhile, Mr. McMahon doesn’t rule out the possibility that Teng could sell an equity stake in the project to an outside investor, something it has considered in the past.

“We always talk to people that have money, but with (Beijing Construction and the Export-Import Bank) an equity partner isn’t required,” he says.
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Old July 16th, 2008, 01:10 PM   #1323
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it's a shame it takes so long to get the loan, but at least it is in progress.
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Old July 16th, 2008, 06:50 PM   #1324
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One important thing (in my opinion) that we have going for us is the low Dollar. Now it may sound weird but think about all the foreign investment in the U.S. recently. Overseas companies are seeing the potential rewards in U.S. investment because of the exchange rates. (InBev?) Most of it seems to be coming from investors holding the Euro, but in the case of the Spire, quite a lot has been Asian (condo purchasers). What I'm not sure about is how the Chinese currency holds up against the Dollar, but it may play a factor in either the desire or the reluctance of Chinese-based investment in U.S. construction, namely Waterview Tower in this case. Just a thought.
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Old July 19th, 2008, 06:23 AM   #1325
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I will be so happy when construction activity resumes on this ...
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Old July 22nd, 2008, 04:49 AM   #1326
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I really can't consider this an update because nothing has changed but here's some pictures anyway! Taken on 7/20/08.















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Old July 22nd, 2008, 06:22 AM   #1327
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Waterview Tower looks like an abandoned "ghost skyscraper" in the middle of Chicago.
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Old July 22nd, 2008, 09:41 PM   #1328
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isn't it off on-hold now? though construction started again...
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Old July 23rd, 2008, 02:02 PM   #1329
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July 22

3 French Cranes
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Old July 23rd, 2008, 02:10 PM   #1330
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That's good news!!
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Old July 23rd, 2008, 02:15 PM   #1331
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Quote:
Originally Posted by fish View Post
That's good news!!
Sorry it is a joke, the additional cranes are on 300 N LaSalle, which is topping out across the river.

The site remains very quit.
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Old July 23rd, 2008, 02:16 PM   #1332
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Quote:
Originally Posted by harryc View Post
Sorry it is a joke, the additional cranes are on 300 N LaSalle, which is topping out across the river.

The site remains very quit.
How much longer will we have to wait
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Old July 23rd, 2008, 05:54 PM   #1333
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I spoke to my contact at Teng yesterday and they stated that they have recently sold several units over the past 3 weeks. She also stated that the Chinese are taking much longer than expected with the due diligence process. Ownership issues are at stake! IMO this project will be completed with Teng owning less than expected.
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Old July 23rd, 2008, 08:38 PM   #1334
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Old July 24th, 2008, 06:03 AM   #1335
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Quote:
Originally Posted by CMack View Post
One important thing (in my opinion) that we have going for us is the low Dollar.
I guess high gas prices are not of concern to you.
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Old July 24th, 2008, 06:05 AM   #1336
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Quote:
Originally Posted by harryc View Post
Sorry it is a joke, the additional cranes are on 300 N LaSalle, which is topping out across the river.

The site remains very quit.
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Old July 24th, 2008, 06:35 AM   #1337
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Quote:
Originally Posted by Second City View Post
I'm hoping that the site remains very 'quit' is a Freudian slip myself.
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Old July 24th, 2008, 01:22 PM   #1338
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Quote:
Originally Posted by Dale View Post
I'm hoping that the site remains very 'quit' is a Freudian slip myself.
No just somebody who never bothered with spelling, I meant quite.
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Old July 24th, 2008, 03:53 PM   #1339
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July 23 - pm

Looking up


Light at the end of the alley.
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Old July 29th, 2008, 08:18 PM   #1340
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Quote:
Originally Posted by Densetsu View Post
Waterview Tower looks like an abandoned "ghost skyscraper" in the middle of Chicago.
We'll just have it airbrushed out of all the pictures - Ryugyong Hotel style!
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