CA Ventures Smacked With 2 New Lawsuits, Behind On $32M Debt On Another Property
A Chicago developer under fire from multiple corners is again taking incoming heat, facing up to three new foreclosure lawsuits on North Side multifamily properties.
Northbrook Bank & Trust filed two foreclosure lawsuits against CA Ventures affiliates that own a 25-unit apartment complex at 2247 W. Lawrence Ave. and a vacant former development site at 750 W. North Ave., The Real Deal reports.
Meanwhile, lender LoanCore Capital said CA Ventures is behind on paying off its $32M debt on a 59-unit apartment building at 1900 W. Lawrence Ave. but has stopped short of filing a lawsuit, according to the outlet.
A person with knowledge of the negotiations between CA Ventures and LoanCore told TRD that the company has several months to reach an agreement with the lender and possibly avoid losing control of the property. The loan was set to mature in 2023, but comes with options that could extend its due date to 2026, TRD reports.
Loan data the outlet acquired indicates CA Ventures has not paid its monthly debt service since November of last year.
Neither CA Ventures leadership nor LoanCore and Northbrook representatives could be reached for comment at the time of publication.
The new legal actions and missed payments are the latest additions to a laundry list of issues weighing down the embattled developer on multiple fronts.
Last month, former executives engaged in a legal dispute over whom the company needs to pay first following exit agreements, which delayed a planned spinoff of CA Venture's industrial arm, a deal that was supposed to close earlier this year.
The company's list of additional legal and financial troubles since March 1 include:
- California-based lender ACORE foreclosed on Anthology of Tanglewood, a 230-unit senior living facility in Houston, after CA Ventures defaulted on its $72.1M loan.
- An investor sued CA Ventures, alleging it is owed the more than $10.5M it put into a West Sacramento multifamily project because the company failed to come up with its agreed-upon portion of the funding for the development.
- A lawyer defending the firm in a $3M dispute with investors asked a judge to withdraw from the case because CA Ventures hadn't paid him for the work.
