Troubled Developer CA Ventures Lists Old Town Multifamily Property For Sale

A Chicago developer in a boatload of legal trouble is putting a 261-unit apartment building it developed in Old Town up for sale. 

CA Ventures recently hired CBRE to market North + Vine, a property the developer took out a $65M construction loan for in 2018, The Real Deal reports. CA Ventures CEO Tom Scott declined to disclose the asking price to TRD but said the listing offered a good opportunity to test the market. 

The residential portion of the building is 96% occupied, and the 30K SF of ground-floor retail is 58% leased, according to TRD. The building's high occupancy rate is similar to three large multifamily properties in the West Loop that have hit the market in the past year, the outlet reported. 

The developer is likely looking to find a buyer aiming to take advantage of a hot Midwestern rental market. 

Yardi Matrix projects Chicago at 2.2% rent growth in 2024, according to its summer 2024 multifamily outlook. That is a marked difference from several other once-hot metros across the country with projected rent declines, like Austin's anticipated 4.1% fall, Atlanta's 2.2% drop and Raleigh-Durham's 1.7% dip.

Over the past year, the Midwest and Northeast have led metro-level rent growth, according to Yardi Matrix. This is a result of moderate supply growth coupled with strong labor markets and economic growth, the company said. 

CA Ventures is also navigating a slew of legal challenges that could impact its listing.

The developer is facing up to three foreclosure lawsuits on North Side multifamily properties after falling behind on its debt. In April, 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. That deal 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.