Big Payout for Related's First Chicago Rental Project
April 16, 2014
Related Midwest has pocketed over 75 million less than a year after opening 500LSD - and they didn't even have to sell! By simply refinancing their mortgage they were able to pay off their massive construction loan and pocket the hefty difference.
Profits like this are often made when these buildings are sold outright. However, when property values are on the rise a simple refinance might just do the trick. With 111 Wacker slated to open this summer there could be another big payout for Related in the coming year.
My concern is whether the values will continue to rise if the building boom continues and the market is glutted. Only time will tell but so far the early birds (first properties to open) are getting the worm.