• Lincolnwood’s Purple Hotel is Facing Foreclosure

    The owner of the infamous Purple Hotel in Lincolnwood is facing foreclosure, adding to already existing legal problems.  The lender, First Midwest Bank, has filed a $4.2 million foreclosure suit.

    Donald Bae, the owner of the hotel, has lost a legal dispute with the village of Lincolnwood. The village won a court order to demolish the building at 4500 W. Touhy Ave if Bae does not bring it into code compliance by August 1.

    Bae has been courting buyers for the hotel for years, but no one has expressed interest. There is no mention of a short sale . In the meantime, there has been no obvious attempt to remedy the violations. The village has created a TIF district on the site to encourage redevelopment of the property and surrounding parcels. ForeFront Properties, who is owned by Bae, sought $25.8 million from the TIF for his own redevelopment plans.

    Two adjoining properties owned by Bae’s corporate entity are not involved in the foreclosure. A buyer of the hotel is likely to purchase the adjacent properties to create one parcel for development.

    The hotel opened as a Hyatt in 1960, reaching the height of popularity in the 1970s. Performers Roberta Flack and Barry Manilow stayed there when coming through town for an engagement. Later the hotel played a part in the corruption trial of Antonin Rezko.

    If you are seeking foreclosure help , contact a Chicago foreclosure lawyer. There are ways to save your home with assistance from a foreclosure attorney.

     

    Lincolnwood’s Purple Hotel is Facing Foreclosure

  • Bankruptcy Restructuring of North Pier Moving Forward

    Developer Dan McLean has proposed paying a Texas vulture investor approximately 40 cents on the dollar to settle a $39 million mortgage on North Pier Terminal that is in arrears.  The North Pier Terminal is located west of Navy Pier at 401 East Illinois St.

    A chapter 11 bankruptcy petition for the North Pier Terminal was filed in February, days ahead of a scheduled foreclosure sale. Part of the restructuring plan is to keep Mr. McLean on as a consultant with the possibility of his earning fees through the McLean-Massey company, according to documents in the case. Geneva Capital Group, who holds a second mortgage of almost $5.2 millon on the property, backs the plan. Lawyers for Beal Bank, a mortgage holder, objected to the plan, arguing that any fees paid the McLean-Massey go to creditors instead. Judge Black rejected the argument, stating that the men can be paid for future work.

    Beal Bank, who holds the first mortgage on the property, has suffered setbacks in their goal of getting full payment on their loan. U.S. Bankruptcy Judge Bruce Black ruled that the McLean-Geneva plan has secured  a financing commitment for the restructuring.

    Florida real estate investor Shlomo Khoudari has agreed to provide $17.5 million in financing. He would own the building if it emerges from bankruptcy protection.

    If you have questions about bankruptcy court , contact a Chicago bankruptcy attorney. The bankruptcy process is complicated. A bankruptcy lawyer can answer any questions you may have.