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The $7. 5 million minimum offer was missed on the sale of historic Upper East properties
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Lenders are taking over a failed River North skyscraper project, adding another twist to a years-long saga that has culminated in foreclosures and litigation.
A joint venture between New York-based Madison Realty Capital and Arena Investors will take over the assets at 42 and 44-46 East Superior Street, following a sale through the sheriff’s office in which no bidders reached the $7. 5 million minimum, Crain said.
The legal war dates back more than three years, when lenders filed proceedings, alleging that prospective developers — New York attorney Jeffrey Laytin and Chicago investor Jason Wei Ding — had defaulted on a $22 million loan.
Laytin and Ding wanted to build a 60-story hotel and condominium tower, but the task may never get off the ground due to obstacles. Councilman Brendan Reilly opposed the task and monumental prestige was given to buildings that were approximately 150 years old. , saving them from demolition.
In addition, a federal securities fraud lawsuit filed through 90 Chinese investors under the EB-5 program added to the developers’ woes. While about 50 of those investors reached a $27. 5 million settlement in 2020, Laytin and Ding paid for it and deny any wrongdoing.
Two related to the assets filed for bankruptcy last May, extending foreclosure, the outlet reported.
Although the structures have a historic designation, conservators and tenants are still working to make sure they remain intact. Bryan Sord, owner of the Sunny Side Up restaurant at 42 East Superior, is thinking about buying the structure from lenders so that the dining place can continue to operate normally.
“It’s time to think about how we can get those buildings back involved,” Ward Miller, executive director of Preservation Chicago, told the outlet.
—Quinn Donoghue