O’Hare Apartment Developer Files Bankruptcy after Foreclosure Lawsuit

by San Antonio Attorney

A well-known developer of a 394-unit apartment near the O’Hare International Airport is now looking for another developer to carry on the proposed project after filing for bankruptcy.

An ongoing venture of JCF Real Estate recently hired a broker to auction off the 3.5 acre site located at the Bryn Mawn and Delphia Avenues of Chicago.  The firm will gather enough revenue to pay off approximately $15 million of overdue debts.

JCF Venture recently filed for Chapter 11 bankruptcy last February 12 through the United States Bankruptcy Court.  This occurred after almost four years of gaining city approval, converting the north part of the InterPark Corporate Center office into luxury apartments.

JCF intended to demolish the structures in half of the office park’s 12-single story buildings.  This was to make way for an apartment project and retain the other six buildings as a commercial complex.

The project was challenged by delays due to JCF’s increased efforts in financing and launching the project.  A botched partnership with a developer from Indianapolis also happened, which aggravated the whole situation.

Another venture was considered with a developer from Chicago, but negotiations took a longer time to secure a loan costing $35 million in order to finance the first phase of the project.

Three companies, namely West Des Moines, Athene Annuity & Life from Iowa, One unit from Athene Holdings, all filed a foreclosure suit costing more than $14.9 million on the property.

The funds were taken from JCF’s $15.25 million loan, which matured in February 2015; majority of the balance of the debt was not paid, according to court and property documents.

The bankruptcy filing made by JCF will block all foreclosure lawsuits and provide more time to sell the property to other developers.

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