Category
Uncategorized
Date Posted
5/26/10
54 Comments

Lexington Park Condominiums, 2138 S Indiana Ave, is now “the city’s biggest condo tower to be taken over by its lender in the current housing crisis,” Crain’s Chicago Real Estate Daily reports this morning.

Starwood Capital Group, which won the assets of the failed Corus Bank last fall, obtained the empty high-rise through a through a deed-in-lieu of foreclosure last week. No word yet on what decision the group’s development LLC, ST Residential, will make regarding the 180-plus Lexington Park units under contract.

Follow months of buyer speculation and frustration in this YoChicago thread.

Comments ( 54 )

  • I live right down the street and although it does not seem like it now, this building is situated perfectly for the development that is planned in the surrounding area. However, I think it is only fair that the new lender rip up the contracts and offer the units at a discounted price if the 55% ‘under contract’ still wish to buy the units.

  • I totally agree. I hope the new owner could make their decision soon. It’s very frustrating. I’ve been waiting for closing my unit for over a year. I learned that Starwood Capital bought this building’s commercial loan from FDIC a few months ago. They should have already made their decision on the tower units under contract.

  • Tim, Have you been in contact with any other Lexington Park Buyers ?

  • John, I have only been in contact with one L.P Buyer but he has no additional update. Would you like me to contact you via email?

  • That would be great. Hopefully we hear something soon. Thanks Tim

  • Dear fellow buyers-under-contract,

    Good News for everybody (except for me)!!!

    According to my reliable source, ST residential will notify buyers and let us take our deposit back. It looks like they have decided to convert the tower units to rental.

    Here goes my dream condo… here goes my tax credit!

  • The notice will be sent by email in one week or two. This will end our frustration for good.

  • I certainly hope your source is “reliable.” What is their connection to the project or to ST Residential? No one else, including me, has been able to get any information. This whole ordeal has been a nightmare for over 3 years for me. Thanks.

  • @First-time buyer. Why would the notice be sent by e-mail? That is very unofficial considering that there is a ton of money owed to buyers. Some people might not even have e-mail. What is your “reliable” source?

  • please keep me informed i have deposit money i need returned

  • I am also in the same boat waiting to get my money back could someone e-mail me with some good news when they agree to return ourdeposit money .Thank you

  • Just wondering if anybody else has heard anything ? Its strange that no one else has received information on this development. I really hope its true.

  • Everyone please write to John Markowicz. jmarkowicz@stresidential.com
    He is the Senior Vice president of ST Residential, which is the company that now owns the Lexington Park condo building. Demand an answer on the status of Lex Park.

  • I got a reply from John Markowicz a couple months ago after they first acquired Lex Park. All he said was that they were evaluating the situation.

  • I’m not making much progress on this one.

    ST Residential hasn’t responded to my inquiry. No success in reaching people at Marsh, etc.

    A source who was formerly close to the deal tells me that it’s now almost certain that the tower will go rental. Not much news in that.

    A second-hand story from an agent who has a buyer at Lexington Park: the Chinese buyer, who speaks little English, has been advised by ST that his deposit will be returned. Timetable unknown. Facts may have been garbled in language barrier.

  • Like I said a few months ago, I spoke to Kathy at ST Residential after their parent company (Starwood Capital, a real estate PE shop) bought LexPark from FDIC. She told me that they were evaluating their options and would notify buyers by email when their decision is made in 4-6 weeks. No response when I called 3 months later.

    Based on my connections, I later got a hold of the marketing agency of ST residential and they confirmed with ST that ST would email buyers to return their deposit in a week. However, 2 weeks passed, I’ve not received any notice yet. I left many messages to ST’s Kathy, a colleague of John Markowicz, both of whom are in charge of LexPark. No response.

  • From ST’s About page:

    “By leveraging its considerable talent and experience, ST is managing its portfolio with an unmatched level of detail while also enhancing the portfolio with amenities and services uniquely suited for the communities they serve.”

  • Please write to Cathy Kuratko ckuratko@stresidential.com at ST Residential and demand an answer. She works with John Markowicz on the project.
    @First time buyer. You may have been told that they will notify buyers via e-mail, but that is ridiculous and way too unofficial. I don’t even know if I ever gave them an e-mail address.

  • Meez,

    You might want to consider going to the top of the food chain, i.e. the CEO of Starwood Capital, with a strong message that ST’s unresponsiveness is tarnishing Starwood’s vaunted brands, incuding those of its hotels – many of which Lexington Park buyers have the option of not staying at over the course of long business careers.

    He’ll have staff that will likely press the underlings to be more responsive, if at all possible. And it is possible.

  • I have sent emails to John Markowicz and Cathy Kuratko with no response as of yet. If anybody gets a response could they post here please. Thanks

  • I got a response from John Markowicz, after sending an e-mail to the CEO of Starwood Capital. He said the Title company will be sending out a letter before the end of next week describing the next steps. We’ll see. Regardless, please continue to call or write ST Residential to keep the pressure on. Thanks.

  • Meez,

    Glad to hear you’ve had a response.

    If the title company is going to be doing the communicating, that means that earnest money deposits will be returned and that buyers will be instructed as to the paperwork necessary to accomplish that.

  • Missed a call from Chieftain today. Will call back first thing tomorrow and update on this thread. Hope its good news.

  • @John. Chieftain no longer owns the Lex Park project, so that is probably what they will tell you. Contact ST Residential or Starwood Capital.

  • Meez, I’m so glad that you’re actively working on this in the most effective direction. I’ve been saying that Starwood is the ultimate owner and decision maker for months, while most of buyers are still hanging on chieftain. I’m glad that I’m not alone in tackling ST and Starwood. I’ve been calling Kathy and John for months but I got no repsonse. I’ll leverage my network to demand info from Starwood if we don’t hear anything from the title company next week.

  • @First Time The last piece of the puzzle that I am not aware of is who is the title company? Is that ST Residential or Starwood? John M. from ST Res. said that they have been working with the title company gathering information about unit purchasers and he “estimated” the title company would be sending out letters “prior” to the end of next week.

  • Meez,

    The title company is an indepeendent third-party company, such as Chicago Title, which would be holding your earnest money in escrow.

    Look at your original purchase agreement and it may specify who the title company is.

  • I was suppose to close on a unit with Lexington Park a while back before the fiasco. My earnest money was written to Chicago Title Company.

  • Received an e-mail this morning from Near North National Title requesting completion of documentation within 30 days so that deposit funds and interest (less 5% admin fee) can be refunded. Hopefully all depositors should receive similar communication.

  • Sean, can please provide the email address for Near North National Title.

  • Sean

    Is there a contact person I can call or email to in Near North National. My earnest money is also written to them.
    Thanks.

  • Why 5% “admin fee retainage”? What’s everybody’s thought? Is this standard practice?

  • I haven’t received or heard anything from any title company. And a 5% admin fee is freaking outrageous. In my case that would be $725. For what? And why would they only contact you via e-mail? What if you no longer had that e-mail address and the 30 days expired? Are your claims even real or is this a fake post? Sounds phoney to me.

  • I don’t know if this statement is true but Near North have been in contact with Chieftain looking for updated contact lists. I think it will be registered mail if any contact is to be made regarding deposits though.

  • Yesterday we noticed this blog post from former Lexington Park sales manager Britta Rivera regarding the handling of this situation. (She doesn’t name names, but anyone who’s been following this story should be able to read between the lines.) Squares with Sean’s comment from yesterday.

  • I have received contact information for Near North Title Company from John Markowicz. at ST Residential. Collen Callahan. Her number is 312.621.8241. Her email is colleen.callahan@nnnt.com. If they try to charge us a 5% “admin fee” I will be livid. Same paperwork for them but a huge cost difference for someone who bought a low level floor 1 BR as compared to a high level penthouse.

  • I know a lot of people will accept this deal but frankly I think its disgusting considering a lot of us are really struggling at the moment.

  • I suggest to everyone that they call or write Colleen Callahan at Near North (see previous post) and protest the “admin fee” if they try to charge you with that. It is our earnest money that has been held hostage for years. They have no right to it in any form. They are trying to make a profit on our misery. That is truly evil, wrong and illegal. Threaten them with legal actions if they try to impose their “admin fee” upon your earnest money.

  • I am just glad to put this ordeal behind me and move on. I guess every investment has its owns risk. 95% is way better than nothing.

  • Just received an email from Near North offering 95% back. I am baffled that they are doing this by email because I dont even use this address anymore checked it by the off chance they would still have it on file.

  • I received the e-mail too with the “settlement agreement.” What is now called Lexington Marketing LLC will find any way they can to make money off of our misery. They screwed us in the first place, they failed to deliver, yet they are still making a profit off of us. In this case it is 5% of whatever earnest money amount you put down for a condo. Contact Colleen Callahan at NNNT (see posts above) and give them your updated contact information to get your “settlement agreement” aka taking it up the butt.

  • The “new” company (Lexington Residential LLC) that wants to steal 5% of our earnest money is in fact, ST Residential. Contact John Markowicz and complain. jmarkowicz@stresidential.com
    Also, post your contact info here so we can get a group together to take Lexington Residential to court. What they are trying to do with the 5% admin fee is illegal and goes against what is stated in our sales contract if they default, which they are.

  • It’s outrageous! Starwood Capital is the ultimate preator of powerless buyers. I would love to form a group to fight. However given my current situation, I may not be able to join the force. I need my earnest money back so badly that I can’t afford any delay.
    Meez, thank you for all the information. If you need any petition, please let me know and I’ll be happy to support LexPk buyer’s group to fight again this ridiculous practice.

  • I am just wondering if by the time we take action the 30 days will have elapsed and then we are locked into completing the deal. Also if you look at the settlement agreement all parties waive their right to legal action. At least we can put this behind us now.

    Best of luck to everyone in their in their future endeavors. Special thanks to Joe Z and Joseph A.

  • @John,
    It is in the best interest of Lexington Marketing LLC (i.e. ST Residential) to not be able to contact you. I don’t think I ever gave them an e-mail address 4 years ago when I signed my contract. If they can’t reach you, they don’t have to reurn your earnest money. And to restate, the 5% “admin fee” they are imposing on the return of our earnest money is pure theft, blackmail, holding our money hostage, they have no right to it as described in the original sales contract. It states that is the seller cannot deliver the property then the remedy to the buyer will be the full return of the earnest money. There is no 5% admin fee mentioned. ST Residential/Lexington Marketing LLC is just trying to make a profit off of all of us despite their default. Send me an e-mail at miesplz@yahoo.com to discuss. Thanks

  • @Meez
    Totally agree on the 5% “admin fee” is a pure theft and we deserved a full refund. For those who feel the same and especially those who waited long enough, there is no reason to be scared of missing out on their 30 days “offer”. Let’s group together and fight!

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