Marc Venture Buys Failed Condo Project

Marc Venture Buys Failed Condo ProjectA Chicago investor, specializing in failed condominium developments, is paying $12.7 million for a project of 94 units that was left unfinished when the builder fled the country. Marc Realty Residential LLC led the venture purchasing the project, and the apartments were priced at $135,000 per unit, according to a story on www.chicagorealestatedaily.com.

The venture acquired the building from a Connecticut-based group which foreclosed on the property in may after taking a $25.6 million loan on the project.

The project’s developer, Andrius Augunas, was unable to complete construction or pay off the loan when the condo market plummeted and buyers disappeared. Augunas left the United States and filed for Chapter 7 bankruptcy protection, leaving the creditors with only $47,018 recovered from a diamond.

Marc Realty Residential, a joint effort of Marc Realty and Chicago Apartment Finders, has been actively pursuing failed condo projects and renting them out. The venture has acquired more than 600 units since 2009. The deal in question is larger than the venture, which focuses on $1 to $5 million deals, usually makes. What the company has planned for the property remains unknown. The vacant building has been marketed as rental property with rents from $1,400 to $2,100.

Acquiring commercial real estate and business deals altogether are not only financial decisions, but they also come with a number of legal intricacies attached to them. It is important that you know what you are agreeing to financially and legally. Get a knowledgeable Illinois business attorney to help you with your business law issues. Contact our offices as soon as possible.