With more unsold units than any other development in the city, and only about half of the buyers closing on their condos, buyers of 27 units are being sued by CMK Development Corp. due to their inability to close, according to Crains.
The monstrous 714-unit, 46-story high-rise development at 235 W. Van Buren was erected in 2007, a harsh time for downtown real estate, and with a worsening market during the completion in 2009, several buyers failed to close on the units.
Availability of loans and decreased faith in the downtown real estate market led buyers such as Ingrida Kern away from the unit she had agreed to in March 2007. Now, being sued for $47, 530, Kern told Crains, “Even if I could right now, I don’t know that I would go for that.”
Crains reports that the average amount owed, among 18 cases, is $36,000.
“The note payments represent the balance of the earnest money which was due and payable when the respective purchasers opted not to close in spite of their contractual commitments,” CMK says in an emailed statement. “Many of the units have now closed with new purchasers.
Unfortunately, other similar cases are being reviewed at Cook County Circuit Court as Chicago struggles to reestablish its downtown real estate market.