Inability To Unload Excess Inventory Forces Condo Developers To Rent Units To Avoid Foreclosure

In Des Plaines, Illinois, the Daily Herald reports:

• Real estate sales in the suburbs are so bad that developers of condominium buildings - as well as owners of existing units - are renting apartments to avoid foreclosure. In Des Plaines, a developer whose for-sale building is almost finished is negotiating to restructure his construction loan and switch the units to rentals.

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• The 60-unit building [...] in Des Plaines owned by Sphinx Chicago Properties is 90 percent finished, said Kymn Harp of the Chicago law firm Robbins, Salomon & Patt Ltd., which represents the developer. Fifth Third Bank has filed a foreclosure suit in Cook County Circuit Court, and the developer is negotiating to extend the loan so the building can be finished as rental apartments.

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• Another example is marketing announcements from Residential Homes of America. Fifteen new townhouses are available for rental at Alleghany Trail at Village Station in Grayslake, the builder said. Rent-to-purchase options are also available there as well as at the Residences of Fountain Square condominiums in Lombard.

For more, see Condos going rental amid housing downturn.

In a related story, see Des Plaines mayor wants answers from condo developer.