The project, which is set to rehabilitate public housing in the area, defaulted on a $32-million construction loan issued by JP Morgan Chase & Co. The loan was due December 15. Peter Holsten is developing the $105-million project. JP Morgan Chase has also agreed to extend the loan, although exact terms are unclear.
When construction began in 2006, Parkside at Old Town Square was originally meant to be a 280-unit condominium development. Initial plans called for 194 units to be sold at market rate, 14 sold at affordable rates and the remaining 72 to be used for Chicago Housing Authority residents.
Now the project, which was supposed to be delivered by last September, has been downsized. Only 263 units will be built, due, in large part, to slow sales.
To read the Crain's Chicago Business report click here.
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