A troubled project site north of Chicago has found a buyer who is scrapping luxury condo plans in favor of a more pragmatic project.
The One Winnetka condo development, which fell apart last summer, will instead be a commercial development led by a developer who owns many properties in the vicinity, Crain’s reported.
Gregg Hoffmann’s Wilmette-based firm, Hoffmann Commercial Real Estate, which owns much of the neighboring block, signed a letter of intent to purchase the parcel for an undisclosed price.
The development will match the style of the surrounding area, he said.
“We want it to keep the charm of the village’s downtown,” Hoffman said. “This is our back yard. We like the way it looks.”
Most of the site is pre-leased, and while Hoffman would not name the future tenants, he said a boutique hotel and a spa are likely to be included.
The previous development, which is now in receivership, was proposed in 2012. The project had been envisioned as a seven-story building with 120 Gold Coast–style apartments within walking distance of transit and retail. The planned buildings were later reduced to five stories, changed to condos, and further reduced in size.
Finally, last August, the final blow was dealt when the village board canceled its approval after the development sponsor missed deadlines. Its financing source, non-bank Canadian lender Romspen Mortgage, then filed a foreclosure suit for $23.5 million. [Crain’s] — Georgia Kromrei