CHICAGO | Riverline | 8 Towers | 600FT - 500FT(X2) - 380FT(X2) - 242FT(X2) - 300FT~ - Page 21

nomarandlee · #**401** Posted **Feb 28, 2018, 9:40 PM**

wrong thread

ithakas · #**402** Posted **Mar 14, 2018, 2:08 PM**

Quote:

$2 billion Riverline mega-development divides into separate residential projects

Riverline’s developers said the eight-tower South Loop mega-development is now two separately controlled projects, with Australia’s Lendlease taking over work on the 7-acre portion north of River City Condominiums and Chicago-based CMK Cos. keeping the 8-acre parcel south of the Bertrand Goldberg-designed complex.

The developments will continue to use the master plan designed by Perkins+Will, but each developer now will separately make decisions on financing, construction schedules and how to balance the mix of apartments, condos and other potential uses.

http://www.chicagotribune.com/busine...313-story.html

SteelMonkey · #**403** Posted **Mar 14, 2018, 2:08 PM**

Now 2 projects ....will timeline speed up or slow

http://www.chicagotribune.com/busine...313-story.html

the urban politician · #**404** Posted **Mar 14, 2018, 2:10 PM**

^ Probably a good idea

LouisVanDerWright · #**405** Posted **Mar 14, 2018, 2:18 PM**

^^^ They are probably refinancing the tower they are finishing up and using the proceeds/profits to cover the costs of the land. That means both parties will essentially own their parcels cash after completion and can basically just finance each additional project off their track record and equity in the dirt.

KWillChicago · #**406** Posted **Mar 14, 2018, 3:17 PM**

Quote:

Originally Posted by SteelMonkey

Now 2 projects ....will timeline speed up or slow

http://www.chicagotribune.com/busine...313-story.html

They said it's not common for this to happen. Is that a good thing or bad thing? This better not put tower two on hold for a year.

ardecila · #**407** Posted **Mar 14, 2018, 4:08 PM**

Quote:

Originally Posted by LouisVanDerWright

^^^ They are probably refinancing the tower they are finishing up and using the proceeds/profits to cover the costs of the land. That means both parties will essentially own their parcels cash after completion and can basically just finance each additional project off their track record and equity in the dirt.

How do you refinance a tower when it’s not even done yet? No proven cash flow. A lender would have to A) take for granted that construction will be completed and B) take for granted that the building will command ever-increasing rents.

It’s not impossible, but that’s a lot of uncertainty. Have we ever seen a developer do a refi before construction is even complete, with no tenants whatsoever?

It does seem like the split was amicable, but this may tank the possibility for a riverwalk connection through River City. On the other hand, that building is going rental again, so the new owner may see the upside to putting in a Riverwalk connection through the property, and it doesn’t have to be okayed by a stingy and NIMBYish condo association.

LouisVanDerWright · #**408** Posted **Mar 14, 2018, 4:15 PM**

^^^ They may have a loan which converts into term debt upon completion and leasing. If they are talking about splitting the project now, the odds are that the split won't actually occur for several months because these types of deals take time even if you aren't negotiating any of the terms. My bet is that they already have financing in place (this is Lend Lease after all, they are basically as close to a zero risk borrower as you can get) and are announcing this split now when it really won't be official until the financing is complete on the project they are wrapping up now. It's likely they will do a big refi closing and back all the equity out at the same time as they refi the tower and split the ownership of the project. It makes very little sense to have multiple closings on any project, let alone one this large, so a smart developer is going to try to do all the ownership, financing, and equity changes all at once. That means you need to get the gears turning on your split a few months before financing will be ready which is now.

spyguy · #**409** Posted **Mar 19, 2018, 12:34 AM**

Riverline construction by Steven Vance, on Flickr

BVictor1 · #**410** Posted **Apr 12, 2018, 3:13 AM**

How do we want to do this guys?

Should the thread be spit into two, or just double named?

We have a name for the northern half...

SOUTHBANK

https://southbankchicago.com

harryc · #**411** Posted **Apr 12, 2018, 3:16 AM**

Quote:

Originally Posted by BVictor1

How do we want to do this guys?

Should the thread be spit into two, or just double named?

We have a name for the northern half...

SOUTHBANK

https://southbankchicago.com

Keep the same thread.

What an incredibly stupid name - even for the real-estate sales world - Yeah I know East Bank is already taken, but that does not in any way make this the south bank.

left of center · #**412** Posted **Apr 12, 2018, 3:25 AM**

Quote:

Originally Posted by BVictor1

SOUTHBANK

Kumdogmillionaire · #**413** Posted **Apr 12, 2018, 4:26 AM**

So... what do we call the other one? Souther Bank?

What a bad name

Randomguy34 · #**414** Posted **Apr 12, 2018, 4:28 AM**

Quote:

Originally Posted by Kumdogmillionaire

So... what do we call the other one? Souther Bank?

What a bad name

The southern one now has the "Riverline" name, while the northern portion is now called "Southbank". Why was the name change necessary? Who knows

sentinel · #**415** Posted **Apr 12, 2018, 1:54 PM**

Quote:

Originally Posted by Randomguy34

The southern one now has the "Riverline" name, while the northern portion is now called "Southbank". Why was the name change necessary? Who knows

Because now it's two separate developments from two separate companies, since Lendlease and CMK parted ways:

http://www.chicagotribune.com/busine...313-story.html