Foreclosure suit filed on Chicago condo project
Creditors of a condominium project in suburban Hillside have filed a lawsuit against the developers to collect on past-due loans.
The developer, JSG Development LLC, has only sold a quarter of the 46 condominiums at the site, located at 1903-1907 S. Wolf Road. The company put several units from the development up for auction during the summer to spark sales, but it wasn’t enough to help the company get up to date on debt payments.
According to court documents, JSG failed to make payments on the loan due on September 27. Fifth Third Bank Chicago gave JSG a loan for $12.5 million in 2005, according to the lawsuit.
Construction on the site began during a time when comparable projects were selling out in the popular area of Hillside. The development is close to shopping, restaurants, and expressways.
However, when JSG opened sales on the project, the real estate market had already tanked. Now, JSG must face the courts to determine the future of the development. Many other developers of Chicago Condos are facing similar difficulties as demand for condos around the city drops to new lows.
Technorati Tags: Chicago Real Estate, Chicago Foreclosures, Chicago Condos for sale