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RIVERBEND
Chicago, IL
Fee managed for mezzanine lender after a UCC foreclosure
SITUATION:
37-story building comprised of 149 high-end units; 50% sold; a dozen lawsuits pending against the entity including a class-action suit for fraud; $5m in claimed, unpaid invoices; $600K in earnest money deposits vanished; unfinished construction; negative market reputation.
THE PLAN:
RDS strike team triaged property, prioritized and addressed issues to take “crisis” off the development; established punch and warranty teams to prioritize homeowner claims and communicate with owners to address concerns and manage expectations; enhanced relationships with residents; refinanced the building.
RESULTS:
Building was advantageously repositioned and successfully marketed; all lawsuits and claims resolved, sales re-started, prices increased and the building sold out; 2 RDS team members voted to the Board of Directors of the HOA after developer control period expired.
Client retained RADCO to handle its next UCC foreclosure in Chicago.
