Waterview Tower expects to resume construction in October

31-Aug-08 – Despite another setback, the company that is building Marina City neighbor Waterview Tower expects construction to resume in October.

Beijing Construction Engineering Group says its loan commitment from China Exim Bank has increased from $320 million to $400 million. However, the Chicago-based developer, Teng Real Estate Services, has been unable to get the trade credit insurance that the government-owned bank requires. (Left) Imagined from Smith & Wollensky at Marina City, a rendering of Waterview Tower & Shangri-La Hotel (taller building in center).

Trade credit insurance protects a business in the event a customer is unable to make payment due to a serious credit issue such as insolvency.

With the tower unfinished just short of the 27th floor, Crain’s Chicago Business is reporting that subcontractors have walked off the job and two liens have been filed against the property by a concrete contractor that claims it is owed $24.4 million.

Teng was unable to get a commitment from China Export & Credit Insurance Corporation, which usually insures China Exim Bank’s loans. The bank is giving Teng more time to seek insurance elsewhere.

Zac Henson, CEO of Beijing Construction’s U.S. subsidiary, told Crain’s they are talking with other insurers and expect to have the loan wrapped up by early October. He says workers would then return to the project.

“The loan is approved and it’s awaiting funding subject to this last piece of insurance we need to secure,” said Henson (pictured at left).

James Lindquist, president of Adjustable Forms Inc., which filed the liens, told Crain’s, “We’re still optimistic that things are progressing,” and that the liens were files merely “to preserve our rights.”

According to Appraisal Research Counselors, 158 of Waterview Tower’s 233 residential condominium units have been sold, and it has signed contracts for 80 of the 200 combination condo/hotel units.

Construction started in 2006. When completed, Waterview Tower would have 89 floors above ground, topping out at 1,047 feet.