Thursday, September 6, 2007

Gee, what a surprise, the alderman wins

And, preservation guy that I am, I think that is a good thing in this case. As you may know, Fifield Cos. was about to close on the acquisition of the Lakeshore Athletic Club when new Alderman Brendan Reilly stepped in and said, "Not so fast, my friend!"

The latest rather unsurprising news is that, based on the aldermanic opposition, Northwestern University is going to talk to developers interested in preserving the building. Of course with debt costs higher now than before they may or may not be able to come close to Fifield's $40+ million purchase price. And because of debt market changes, will Fifield eventually ask NU for a haircut (translation: purchase price reduction) if they do proceed to closing? Fifield appears to be saying no.