March 5, 2008 - The fate of Motor Row Condominiums on 2300 S Michigan and 2100 Condos on 2100 S Indiana seems to be as complicated and uncertain as their developer, Andrius Augunas of Rokas International. The Sun Times ran an article stating that the developer, who is facing multiple lawsuits and is deeply in debt, may have left the States and gone back to his home country of Lithuania.

The Motor Row Condominium development is unfinished and architect Patrick Fitzgerald who designed the project has put a lien on it. Sedgwick Properties is also suing for consulting fees, and the project’s lenders are said to be attempting to find another way to get the 91 unit project completed.

The planned 2100 development was much larger in scale with 205 units. It will most likely never get off the ground because First DuPage Bank has filed a 12.5 million foreclosure suit on the property.

Augunas’ problems began in 2007 when he became tied up in legal issues related to large real estate purchases, accusations of using finances earmarked for one development to prop up another and disputes with a fellow Lithuanian businessman over property. According to the Sun Times, Augunas had only been developing Chicago real estate since 2005.

The plight of Rokas International should probably serve as a cautionary tale to both condo developers and potential buyers. In the rush of the building boom, more than a few in both categories took on large amounts of debt they were unable to carry when the market slowed. That’s not to say everything is complete gloom and doom, but that buyers should perhaps be a little more selective and do their research before making a purchase.

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This entry was posted on Thursday, March 6th, 2008 at 12:00 am and is filed under Luxury Condos(t) , News(t) . You can leave a response.