The move comes months after Heartland Partners enjoyed financial success from the 163-unit first phase in the 300 block of N. Jefferson St. Almost all of the units have been sold, but pre-sales for the 34-story second phase next door have been sluggish.

"It appears to us there are a significant number of 'for sale' high-rise condominium units coming on stream in the downtown Chicago market in the near future," says Heartland Partners President and CEO Edwin Jacobson. "We are also concerned about a weakening of demand for for-sale housing given current economic and political uncertainties."

Marcus & Millichap's Kiser Group is marketing the property in hopes of achieving a "forward sale" transaction. An investor will buy the building for a fixed price when construction is completed in spring of 2002.