chicago-condos & Chicago Real Estate & condos for sale in chicago pcherry on 28 Jan 2011 11:32 am

Bucktown Station Condos In Financial Trouble

January 28, 2010 - By now, hearing about another Chicago real estate development that is facing foreclosure is nothing new. But what is new is the steps that developers are taking to avoid having a lender take control of a building and buy some time to possibly get their finances in order. By filing Chapter 11 bankruptcy, the foreclosure process is halted for a short time, and that may be enough to keep a bank at bay and convince them to restructure a payment plan with a developer.

According to Crain’s, that may just be what Paramount Homes president Bruce Fogelson is doing. The report states that he filed Chcapter 11 on his Bucktown Station project last week and hopes to somehow recover the four story, 15 unit development which is located on 1845 North Western Avenue.

Mark Pearlstein of Levenfeld Pearlstein, a lawyer not associated with the filings, told Crain’s that, “Some developers use bankruptcy as leverage. It provides some relief for them to get a new deal.”

It may be working. The article states that the court appointed receiver of Bucktown Station since November 2010 has given up control of the property because of the bankruptcy filing and a motion was filed by Mr. Fogelson’s laywer for him to take control again.

The balance of the construction loan is a little less than $5.6 million. It matured in September of 2008 and although Mr. Fogelson couldn’t pay if off in full, he did keep making monthly payments. PNC Bank finally stopped accepting the checks about midway last year though.

Only three of the fifteen Chicago condos at Bucktoan Station have sold since the project was finished in 2008. Of the 12 that are left, 10 are being leased. The condo finishes were high-end, with oak hardwood flooring, ventless gas fireplaces, granite kitchen counter tops, stainless steel appliances, marble baths and separate tuns and shower.

If you’re looking for a condo in Bucktown, you may want to see how this development debate plays out. Or you might want to find a good deal on Chicago foreclosures yourself.

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