Crain's reported this morning that 241 downtown units that were slated to be condos will now be converted into apartments. The Mondial at 900 W. Huron and the Trio at 650-670 W. Wayman expect to announce the decisions for sure in the coming months, but have canceled some contracts with buyers.
The article brings up some good points- potential buyers who thought they were in good shape two years ago may not really want to close today. And not as many buyers can afford loans today.
But other issues may be at hand here: We can't keep dumping hundreds and hundreds of rental units into the downtown market, either. There's not many new jobs becoming available and those that are may not be the type that afford River West or West Loop condos-to-apartment conversions. At least a buyer at this point would be able to gain some value out of the investment, a renter would be paying a lot, probably more than in other near-dowtown neighborhoods.
Aside from that, condos are usually designed to house individuals or families, not roommates. New transplants to the downtown area, people in their low to mid twenties, might not be able to swing a one-bedroom plus den or a loft if they want to live with a friend to reduce rent.
Understandably, something has to be done with the buildings and apartments may be a good solution for now, to get some of the inventory off the books. But I think residential development needs to slow down in general until we have enough jobs to keep pace.
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