February 27, 2008 - Chicago developer Terrapin Properties LLC received some free press from the Sun Times today, but not the kind any developer wants. The article disclosed that due to an unusual foreclosure suit filed by Indymac Bank over a project in Kenosha, Wisconsin, Terrapin could possibly lose control over their other developments in Chicago and other states. The loan in dispute is for over $13 million, but because Terrapin’s executives personally guaranteed the loan, resolution in Indymac’s favor may mean the bank can lay claim to some of the debtor’s other projects and force the dissolution of the company.

Terrapin is still marketing apartment units in their 545 N Dearborn tower conversion as well as condos left in Madison 901. But the biggest backlash may come over the fate of Burnham Pointe, their newest project on 710 S Clark Street. The development is under construction and will contain 298 condos, which according to the article are more than 50 percent sold. First occupancies had been expected to occur sometime in the spring of this year.

The article also went on to claim an unnamed source told them Terrapin’s executives were attempting to convince their lenders to give them more time and that they had a prospective buyer who was willing to take over the Burnham Pointe project. Apparently that claim was not substantiated either, and other sources expressed some doubt as to the validity.

Until any more information becomes available, the best course of action for anyone who bought into one of these projects is to try and contact the developer. News like this may make some buyers of Pre Construction Condos in Chicago check out the financial stability of the developer before purchasing a unit.

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This entry was posted on Wednesday, February 27th, 2008 at 11:59 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.