Almost two years ago to the day, I added the following comment to a post on the Lofts at 1800, a development of the Kopley Group:
There’s something about the amount of hype emanating from this group that should, in my opinion, raise a flag for every potential buyer.
The marketing director for the Kopley Group, someone I’d known for years, contacted me and pleaded with me to meet with Nick Kopley, assuring me I’d form a different impression. I repeatedly declined the invitation, on the grounds that I’d long since exhausted my lifetime quota of time spent with shameless hypemeisters.
Several Kopley Group buyers have since reached out to us, and we’ve provided a forum for them to recount their experiences with this developer. Earlier today I met with another dissatisfied buyer, and you can see his experience in the above video.
When David Derk bought a condo at Renaissance Lofts in Rogers Park the developer’s buyback guarantee was an important part of the deal.
Derk had recently relocated from Arizona after years spent caring for his parents, and he wasn’t sure the location, at a busy intersection, would be suitable for him.
Traffic noise proved to be a problem for him, as did fumes from a nearby restaurant that aggravated his asthma. So, Derk exercised his contractual right to have the developer buy back his unit.
According to Derk, three scheduled closing dates passed with no explanation from Kopley Group, the developer – and no explanation for the failure to close. Derk reluctantly filed suit.
This would have been an interesting case to take to one of the news channels that fight on behalf of consumers when companies ignore them.
Also, I have a feeling there are going to be a lot of issues over at 1800 W Grace (Kopley’s other development). One thing of concern over there that no one talks about is that the majority of buyers over there are FHA buyers. While I don’t have an issue with FHA financing, when the majority of the people buying in the building are doing it with 3.5% down, then that is not a good thing for the building / resales.
Trailmix,
I agree and would have a hard time giving the thumbs up to my clients if they wanted to purchase in the massive 1800 W Grace warehouse/new construction development. My advice to one client was “if you have a ton of money to burn and MUST have big loft (on the higher end) and would like to create some of the features and finishes…then fine. But for those that need something affordable in the long run, don’t have a TON of cash and have to watch assessments and resale well…
As far as FHA loans go, there is a limit on the percentage of FHA loans that can be in the association (I can provide a lender contact to avise on this). Considering this is a large development, the fear will not be FHA leveraged borrowers, but the potential for high number of renters/unsold units if the train affected and lower end units don’t sell.
http://www.chicagorealestatedaily.com/article/20110324/CRED0701/110329927/bank-joins-buyers-in-suing-condo-converter
The wheels are coming off for Nick Kopley and his cronies, the banks are on to him!