Via Chicago Real Estate Daily:
The venture that developed the 48-unit Vis Vitae condominium project at 4640-54 N. Clark St. filed for protection from creditors Monday, about a month after a construction lender filed a foreclosure suit seeking to collect $11.8 million. Clark & Leland Condominium LLC lists assets of less than $50,000, compared to debts of more than $10 million, according to the petition filed in U.S. Bankruptcy Court in Chicago. The venture is owned by developer Heung K. Baek of Metro Asset Management, a North Side condo developer. The lawyer handling the bankruptcy case did not return a call requesting comment. The four-story building was completed in 2008. How many units have been sold could not be determined. Northside Community Bank filed a foreclosure suit Oct. 26 in Cook County Circuit Court.
What typically happens in this type of situation? What is the impact to the owners of the units that were actually purchased by individuals?
ReplyDeleteAs a legal matter, almost nothing. What will likely happen is that a buyer of distressed debt/real estate will purchase the remaining assets at a significant discount. But practically, the current unitowners will continue to suffer insofar that their property value continues to decline due to the unsold units and likely lax maintenance practices.
ReplyDeleteBe thankful that at least the place in built!
ReplyDeleteI have a friend that is renting a unit in this building. His place is nice for space but the craftsmanship is pretty shoddy from what I could tell. The kitchen cabinets look really cheep and the trim on the top doesn't even line up properly; however, his view of the surrounding area and the downtown skyline is absolutely stunning.
ReplyDeleteI think this does have a big impact on the owners. Rainbo Village up the street has been in bancruptcy for several years, and those units owners can't sell and have no condo association. It is a big mess for them. And they can not attract any retail on their first floor (Obviously Vis Vitae already has retail, but if any go out, they might have problems attracting new retail tenants.)
ReplyDelete