Gals' Guide to Buying a Condo: Research the Developer. It's a MUST

Hey ladies,

Check out this update I posted for NBC5 today. Follow my advice before you buy your first condo/townhome: research the HECK out of the developer and any LLCs he was a part of.

Blagica Stefanovski, NBC5 Street Team (Video)

The real estate world in Chicago plays like a Mexican novela, with a twist of the Sopranos, minus the murder.

First, the recent federal investigation of Bridgeport land dealings made me look at my Bridgeport-born fiance and say, 'what are yous doing down dare in Bridgeport with Hizzonor'. Then, the news about the condo association's issue with the Chicago Spire developer made me think, 'good Lord, did Kelleher not do his research about the land required?'.

Now, I just read an article about Chicago developer, William Warman and his recent purchase of a building at 300 N. Michigan Avenue. This is the same Warman that is being sued by the condo association at 1717 S. Prairie Avenue. The association is stuck with a special assessment between $3-$4 Million. The windows are leaking and they are suing Warman, from what I've been told, for construction issues. Also, I was told by friends that live IN the 1717 Prairie building that their turnover money seems to have gone 'lost'.

It's a free country and people can buy what they want to buy, but the fact that a developer can have a lawsuit pending and tell that association that he is bankrupt and then buy A NEW building (on Michigan Avenue no less) seems a bit odd to me?

Is it just me or does something smell like a rotten piece of Italian Beef that's been in the garbage for a while?

One thing I forgot to note:
Developers can have various LLCs, dissolve them then conduct business under new LLCs. I think Warman was operating the 1717 Prairie development under 18th & Prairie II LLC, thus not attached to him as an individually, which presents less liability for developers. Sad that a few bad apples make it rough for developers' reputations in the city.

Sorry, guys, but y'all should get some kind of pow-wow together to stop this sorta thing.

Comments

[Kelly S]

I've been an owner at 1717 S. Prairie for almost four years.

I can verify firsthand that from what our legal counsel shares with us, Warman has been ignoring the issues with the building (which he developed) for 3 1/2 years now. Not only was his LLC aware that our HOA budget was in disarray and continued to take distributions from it, 1717 homeowners now face $25,000 to $50,000 special assessment bills (a total of $6.5 million dollars in repair work on the building he developed).

Unfortunately I have to believe Warman is unethical as he has refused to take responsibility for any of his actions. There are currently three lawsuits pending in relation to the development. It will take years for some of us homeowners to recover any of the money we are about to pay to remedy the developer's errors.