Friday, July 6, 2012

Lincolnshire investor buys failed condo project

A venture of MK Asset Management bought 38 units in this Rogers Park building
A venture of Lincolnshire-based MK Asset Management LLC bought 38 lender-owned units last month in a failed 40-unit condominium development in Rogers Park. The MK venture acquired the units at 1700 W. Greenleaf Ave. for about $4.3 million from an affiliate of Oak Brook-based Republic Bank of Chicago, says MK President Jared Margolis. Developer George Samutin began converting the apartment building into condominiums, borrowing $7.3 million in 2006 to finance the project, county records show. But the property was hit with a foreclosure suit in 2009, and Mr. Samutin gave up the project last year to Republic, which took over Bank of Lincolnwood after it failed in 2009, according to county records. MK is renting its units in the building, with two-bedrooms costing up to $1,300 a month and three-bedrooms leasing for up to $1,600. “We've been able to attract quality tenants who rent on the high end of the range,” Mr. Margolis says. Republic President and CEO William Sperling says the sale to MK is part of the bank's strategy to remove problem loans off of its books. Mr. Samutin did not return an email, and several of his previous phone numbers were disconnected.

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