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Old December 9th, 2009, 07:51 AM   #9261
Onn
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Sounds good, I'm pretty confident they will reach a deal. There's much for the unions to gain in this project, and Shelbourne seems to have things under control on their side. I think they're going to build it, even if it's a stop and go for awhile. The credit market will loosen eventually, as long as they can keep things moving until then. Sales of units will continue, this is a Calatrava tower. It's priceless, people want to own a part of it.
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Old December 9th, 2009, 07:58 AM   #9262
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...so this would leave about 110 million to resume construction after other loans are paid off, right? Might be good for another years worth of work, after which they will need to find another billion or so. A hundred million here, a hundred million there...and it will eventually get finished!
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Old December 9th, 2009, 08:08 AM   #9263
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Originally Posted by micrip View Post
...so this would leave about 110 million to resume construction after other loans are paid off, right? Might be good for another years worth of work, after which they will need to find another billion or so. A hundred million here, a hundred million there...and it will eventually get finished!
I believe Keheller is throwing 200 million behind the project as well, plus any sales they've already made (which is at least 40 million, because they sold the penthouse suite sometime after construction was stopped last year). So we're at least looking at probably over 500 million in funds right now. They also said union support funds usually start conservatively and grow overtime. The 170 million is the starting figure, the unions probably won’t give anymore until more money for the project is needed. There is still things on the site that need to be done before they can start building up. The union investments will likely grow assuming the first amount goes through.
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Old December 9th, 2009, 10:38 AM   #9264
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Originally Posted by Onn View Post
I believe Keheller is throwing 200 million behind the project as well, plus any sales they've already made (which is at least 40 million, because they sold the penthouse suite sometime after construction was stopped last year). So we're at least looking at probably over 500 million in funds right now. They also said union support funds usually start conservatively and grow overtime. The 170 million is the starting figure, the unions probably won’t give anymore until more money for the project is needed. There is still things on the site that need to be done before they can start building up. The union investments will likely grow assuming the first amount goes through.
Because banks are requiring developers to stump up as much as 50% in equity to secure financing, Shelbourne will have enough for at least a billion in loans assuming that they can mount a strong sales drive. The unions will help out and when construction resumes, I think they can easily reach 30% in presales. If anyone in Chicago gets hurt, it will be the owners of other properties that will see their business slow. The interest in this creature is global so it it will only grow as the tower rises. At the very least, I imagine there are 600 homeowners in Chicagoland that would jump at the chance of living in the Spire.
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Old December 9th, 2009, 03:20 PM   #9265
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Quote:
http://www.suntimes.com/business/roe...eder09.article
Spire inches closer to reality
Developer secures backup financing for 150-story project, but he needs more

December 9, 2009

DAVID ROEDER [email protected]
Garrett Kelleher, developer of the planned 150-story Chicago Spire, has acquired some financing, said his publicist. It's a start, but don't look for cranes right away at his property, 400 N. Lake Shore Drive.

Kim Metcalfe, spokeswoman for Kelleher, said the developer has gotten backup financing in the form of bridge loans and a mezzanine loan, which is similar to a second mortgage. She said the financing would kick in if Kelleher can secure about $170 million to restart the project, potentially the tallest building in North America. Metcalfe declined to provide any details of the financing.

Kelleher has been busy soliciting union pension funds as primary investors with the promise of putting their members to work. The investment, secured by title to the property, could come from the Union Labor Life Insurance Co. and two trusts of the AFL-CIO. I've heard these groups are skeptical, but Metcalfe and sources close to Kelleher insist they are in the final stages of a long review of the deal.

Working in Kelleher's favor, Metcalfe said, is the $194 million he has personally put into the project. Kelleher's Shelbourne Development Ltd. has reported about 30 percent of the building's 1,200 units have been sold, although it's getting little action lately. Metcalfe said the sales center is open by appointment only.


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Old December 9th, 2009, 03:21 PM   #9266
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Quote:
http://www.suntimes.com/business/roe...eder09.article
Spire inches closer to reality
Developer secures backup financing for 150-story project, but he needs more

December 9, 2009

DAVID ROEDER [email protected]
Garrett Kelleher, developer of the planned 150-story Chicago Spire, has acquired some financing, said his publicist. It's a start, but don't look for cranes right away at his property, 400 N. Lake Shore Drive.

Kim Metcalfe, spokeswoman for Kelleher, said the developer has gotten backup financing in the form of bridge loans and a mezzanine loan, which is similar to a second mortgage. She said the financing would kick in if Kelleher can secure about $170 million to restart the project, potentially the tallest building in North America. Metcalfe declined to provide any details of the financing.

Kelleher has been busy soliciting union pension funds as primary investors with the promise of putting their members to work. The investment, secured by title to the property, could come from the Union Labor Life Insurance Co. and two trusts of the AFL-CIO. I've heard these groups are skeptical, but Metcalfe and sources close to Kelleher insist they are in the final stages of a long review of the deal.

Working in Kelleher's favor, Metcalfe said, is the $194 million he has personally put into the project. Kelleher's Shelbourne Development Ltd. has reported about 30 percent of the building's 1,200 units have been sold, although it's getting little action lately. Metcalfe said the sales center is open by appointment only.


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Old December 9th, 2009, 09:32 PM   #9267
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Fantastic news, thanks.
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Old December 9th, 2009, 09:58 PM   #9268
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Nice, we got a kick start! The fact that Keheller is so set on getting this built gives me a lot of confidence, you can tell he wants the Spire built at all costs. Once the credit market loosens some more he should certainly be able to get the money he needs.

Last edited by Onn; December 9th, 2009 at 11:45 PM.
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Old December 9th, 2009, 10:10 PM   #9269
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Interesting. Surely it is outstanding tower, if I would have a money, I would jump in and buy one apartment there, just for a view!
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Old December 9th, 2009, 10:26 PM   #9270
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I'm starting to get cautiously optimistic about this project again...

Quote:
Working in Kelleher's favor, Metcalfe said, is the $194 million he has personally put into the project.
that's a lot of your own money (whether his or his business's) to put into a project!
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Old December 9th, 2009, 11:21 PM   #9271
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That is great news! I hope he will start construction sooner than expected when he gets whole financing thing worked out.
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Old December 10th, 2009, 12:48 AM   #9272
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Finally some signs of life from this thing! That is really good to hear.
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Old December 10th, 2009, 01:42 AM   #9273
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30% sold isn't terribly encouraging. I bet that scares away all sorts of potential financing money, while halted construction does nothing to encourage possible buyers to sign up. Chicken and egg...chicken and egg...which will crack first...
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Old December 10th, 2009, 08:02 AM   #9274
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I am still very skeptical that any bank will loan Kelleher $1 billion to further glut the Chicago condo market.

That being said, if I am wrong, I will probably never be happier to be so wrong in my life if this thing actually gets built. It's a fantastic design (although it would fit the skyline better at 1700 ft).
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Old December 10th, 2009, 05:24 PM   #9275
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this building will be completed! the unions are going to help... I am going to buy a unit under the $40-mil penthouse!
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Old December 10th, 2009, 08:01 PM   #9276
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30% isnt bad for a building that most consider dead. I bet that would jump to 50 if financing is announced.
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Old December 10th, 2009, 09:32 PM   #9277
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Old December 10th, 2009, 09:49 PM   #9278
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Wow finally good news, i thought the Spire was dead, that's good to know
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Old December 10th, 2009, 11:36 PM   #9279
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Quote:
Originally Posted by DFDalton View Post
I am still very skeptical that any bank will loan Kelleher $1 billion to further glut the Chicago condo market.

That being said, if I am wrong, I will probably never be happier to be so wrong in my life if this thing actually gets built. It's a fantastic design (although it would fit the skyline better at 1700 ft).
No one bank would write that paper but a consortium of banks might approve mezzanine and completion financing. It can get very complicated but in the simplest terms, the more equity that Kelleher can come up with up front, the easier it gets to finance the project and he has said that he's willing to put up as much as $196 million of his own money, which is enormous when there are developers that have gotten multibillion dollar credit facilities in the past with less than $50 million of their own capital. Also remember that the Chicago condo market isn't terribly overbuilt now and the Spire would come on line in 4 years, after many of the vacant units have been filled and with little else in the pipeline.
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Old December 11th, 2009, 01:07 AM   #9280
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Reposted from SSP, Ryan 81:

Quote:
TWO years ago Today By HarryC:



ONE year ago Today By HarryC



Today, By HarryC:

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