chicago-condos & Chicago Real Estate pcherry on 29 Nov 2010 05:04 pm

Pure Condos Still In Limbo

November 29, 2010 - Most of you familiar with Chicago real estate will remember the problems that plagued Pure, the 64 unit mid-rise that developer Sunrise Equities left in a financial mess. Salman Ibrahim and Mohammad Akbar Zahid of Sunrise are thought to have returned to Pakistan, but federal fraud charges have finally been filed against them, according to Crain’s.

Most of the buyers who lost their investment money and earnest money with these developers aren’t likely to get any compensation. The article states that the federal case claims that about $44 million was raised by Pure pre-sales and other sales. That money didn’t go back into Pure though, and wasn’t used to pay off construction loans for the tower. The men used it to invest in other ventures and pay off other bills.

Sunrise Equities was declared bankrupt in 2008. Pure was almost finished by then and the lender, Mutual Bank, assumed control of the project with the intent of completing it and selling the units. But the FDIC was forced to shut down that bank and its assets were sold. A Texas based bank, United Central, aquired Pure and as of right now they aren’t certain if they will sell the condos or rent them until the market improves. There are 67 Chicago condos in Pure, but just four actually closed.

We will keep an eye on the Chicago real estate listings to see if the bank starts marketing any of the condos again and let you know if they do.

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