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Prairie House
Chicago, IL
Fee managed for mezzanine lender after a UCC foreclosure
SITUATION:
Partially occupied, unfinished 193-unit property in a 16-story high rise with contiguous townhomes; $4m in earnest money missing; major construction flaws; $9m lawsuit and lien by the contractor; contractor filed personal libel lawsuit against RDS chairman.
THE PLAN:
RDS took over development company’s staff; uncovered fraud and duplicity between the contractor and developer; terminated construction contract and hired new firm; repositioned the lobby, hallways and common area; created new models; resolved all payables; re-established positive relationships with the trades; replaced third-party management.
RESULTS:
Project construction finished; building repositioned and successfully marketed resulting in a quick sell out; libel suit defeated; contractor forced into bankruptcy.
Client retained RDS for another condo takeover, this time for a 1,300-unit fractured conversion.
