Bloomingdale condo-turned-rental project goes condo again

February 4, 2014
House 1

Medinah on the Lake

A local developer who took over a failed Bloomingdale condominium project is restarting sales there, hoping to capitalize on the dearth of new condos on the market in the suburbs.

A venture led by Peter Brennan of Foxford LLC this week plans to start marketing 72 unsold units at Medinah on the Lake, a 118-unit development about a mile from Medinah Country Club in the western suburb, Mr. Brennan said.

The new sales effort marks an about-face for Mr. Brennan, who held the Medinah units as rentals after updating them and buying them out of foreclosure in 2012. Mr. Brennan even told existing Medinah owners that year he couldn’t sell the condos because of the market.
Now, with rising home prices and less competition, Mr. Brennan is thinking differently. There were just 98 active suburban town home or condominium projects at the end of 2013, down from 128 at the end of 2012 and 269 at the end of 2010, according to Schaumburg-based housing consultant Tracy Cross & Associates Inc.

“It’s a good opportunity to take advantage of a market that I think is improving and short on product,” Mr. Brennan said. Based out of Hinsdale, Foxford also is marketing luxury homes in Lake Bluff and a multi-phase, 108-unit condo project in Countryside this year.

“Anytime a builder comes along and is finishing a project, we’re thrilled,” said Tim Binning, broker/owner of Bloomingdale-based RE/MAX All Pro, which has done deals at Medinah.

The Medinah condos will start at $158,900 for one-bedroom units, $167,000 for two-bedroom units and $289,900 for three-bedroom condos, Mr. Brennan said. A two-bedroom-plus-den option is available at $224,900, and the developer is offering two “penthouse” three-bedroom, 2,300-square-foot condos for $499,900. The units include balconies that look over Lake Medinah and forest preserve lands, and the complex includes a pool, clubhouse and private beach with fire pit, he said.

The 72 condos would sell out for about $17 million at current asking prices, Mr. Brennan said. He declined to disclose renovation costs.

County records show a Foxford venture paid $4.5 million for the 72 Medinah units, many of which were unfinished, and $900,000 for a separate development site that Mr. Brennan said he is holding for a “future phase,” declining to elaborate. The project’s original developer was a venture led by La Grange-based Gammonley Group, which got hit with a $27.8 million foreclosure judgment over the project and sued to block a Medinah sale after losing the property. Gammonley principal Dick Gammonley did not return messages.
One person happy to see Medinah move forward is Josephine Kasniak, who has been renting at the building for four years as it was winding through foreclosure. Ms. Kasniak couldn’t count many neighbors over that time but enjoyed her two-bedroom condo’s room sizes, layout and a “picturesque” view from her balcony. She now plans to buy her condo from Foxford in the fall, declining to disclose her pending purchase price.

“I was ecstatic,” she said. “The fact it’s now for sale I’ve been wanting for awhile.”
http://www.chicagobusiness.com/realestate/20140204/CRED0701/140209954/bloomingdale-condo-turned-rental-project-goes-condo-again?r=8887H9272367H8C#

By: David Lee Matthews