O’Hare District Condos Face Foreclosure | Crane’s Chicago Operations

The Chicago property is one of the few condominium projects in the area that has not yet recovered from the collapse of the condominium market that began around 2007. During the preceding boom, developers devoured apartment buildings in the city and suburbs and sold apartments. Condominiums are profitable with a large gap between rental and sale prices.

After demand for condos plummeted, many developers were stuck with units they couldn’t sell. That’s what happened at Katherine Coates, his four-building complex on Cumberland Avenue in North He, just south of the Kennedy Expressway, which opened around 1970. We have started the conversion of the condominium.

But after the market crash, sales stalled. Catherine In his coat he failed to sell 185 units, so Neri Venture rented them out instead. Many of the developers who failed to convert to condos did the same.

By the middle of the last decade, the rental market was so strong that investors were “demolishing” many failed condos by rebuilding them as apartments. Large residential properties like Catherine Court are hard to find today, with a mix of apartments and condos.

The complex appeared poised for conversion after the apartment-owning venture filed for bankruptcy protection in 2019. In a series of conflicts, Chapter 11 sought refuge.

The venture also owed more than $14 million to its lender, Harwood Heights-based Parkway Bank. To pay off debt, the venture has received judge approval to sell his 185 condos in September 2020. However, the sale never materialized and a judge dismissed his bankruptcy suit in January 2021.

Then, in June of this year, Parkway filed a foreclosure on 185 condominiums, alleging Neri Ventures defaulted on its loans. Parkway still has multiple legal hurdles to clear, but the bank may eventually seize the unit through a foreclosure and eventually sell it to another investor.

An attorney representing Parkway in the foreclosure case did not respond to a request for comment.

Cook County Circuit Court Judge Marian Perkins recently approved Parkway’s request to appoint local real estate executive Daniel Hyman as the recipient of condominiums owned by Neri Ventures. Managing his Broker and President of Chicago-based Millennium Properties R/E, Mr. Hyman will be responsible for managing the property and its accounts until the foreclosure case is resolved. A strong apartment market should make his job easier.

“Demand is substantial” for Katherine Coates’ apartment, he said.

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