Posted by: union03g | October 28, 2009

When Condo Projects Go Rental

When condo’s are forced to go rental, profits for the developers/lenders and all parties involved get dramatically slashed. A lot of people think developers still make a killing or break even by switching to rental but it’s rarely the case. Buildings forced to scrap their best use and go rental are everywhere in Chicago – think of New City in the Cly Corridor, K Station and The Mondial in River West.

Check out this article about the same thing happening in Manhattan, it breaks down the economics nicely.

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