December 7, 2006 – “It’s financial suicide,” says Donald Trump of the
updated design for Santiago Calatrava’s 2,500-unit Spire in Lakeshore East on this date. Responding
to the criticism, James Loewenberg of Magellan Development LLC says, “It’s a
great project if they can pull off the numbers.” [Chicago Tribune, Decmber 8, 2006] One of Magellan’s own buildings near
Millennium Park has units selling for $350 to $650 a square foot. The Spire at this point has sold 1,300 units
for at least $1,000 a square foot. The
new design for the Spire will maintain the 2,000-foot height, but it will take
the building to 160 stories rather than the 115 originally projected with seven
levels of underground parking. Gail
Lissner, vice-president of Appraisal Research Counselors, loks at the project’s
future by saying, “This could be a very long sellout unless they find other
buyers nationally and internationally.
Clearly, the Chicago market would have a great deal of difficulty
absorbing them.” With a half-dozen
high-end condominium projects currently under construction, the road will be a
difficult one for the tall tower at the river’s mouth. Loewenberg says, “It will be a struggle, and
only those with the best location and product will survive.” The Spire had a great location and an
exceptional product, but really bad timing.
As the real estate market collapsed in 2007, the project died as the
economy cratered.
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