March 25, 2009 - For Rainbo Village, there doesn’t seem to be a pot of gold at the end of this Chicago real estate development but rather another foreclosure suit. The latest legal action against the partially constructed project that was to contain a mix of 127 condos and townhomes is now the focus of a $24.2 million foreclosure suit from AmTrust Bank, according to a Crain’s report. Additionally, the foreclosure suit also names as defendants about 10 contractors who have filed liens against the project, including architects Pappageorge Haymes.

The lawsuit claims that Rainbo developer Metropolitan Development Enterprises Inc. out of Skokie missed a July 2008 deadline to pay back the construction loan. This isn’t the first legal action taken against the project. In 2004 another suit was filed for a $4.9 loan taken out to purchase the building site on North Clark Street. That suit was settled and work on the first phase of two buildings on 4814 and 4846 North Clark began in 2005.

Those two buildings contained 88 Chicago condos and were sold as the Kinetic Condos. Crain’s states that about 12 of those units are still for sale, and the most recent purchases were made by buyers in December 2008. Original plans for Rainbo Village included a cluster of townhomes and duplexes as well as a retail portion, but the project never progressed that far. The one to two bedroom condos were being sold from the low $200,000s to $400,000s.

While the townhome portion of Rainbo Village doesn’t appear likely to be built at this point, you can still find plenty of other developments with Townhouses in Chicago that are ready for occupancy.

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This entry was posted on Wednesday, March 25th, 2009 at 4:03 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.