Crain’s Chicago Real Estate Daily reported late last week on late-September federal court judgments against developer David Dubin.
Dubin has been ordered to pay more than $15 million to PNC Bank in connection with failed developments in Bridgeport and Brighton Park.
We’ve reported on the Lofts at Bridgeport Place (pictured above) for more than six years ago, and were told by Dubin as recently as last July that that the project had strong city and state backing and would begin construction late last year or early this year.
We’ve also reported on the Brighton Park site, Dubin-dubbed as McKinley Park Village, since 2006, most recently in a video tour of failed developments in that neighborhood.
The Bridgeport site was purchased for $6.4 million and the Brighton Park site for $5.05 million, according to public records. An attorney for Mr Dubin is quoted by Crain’s as saying that “The properties will fetch maybe a million to a million-and-a-half if (PNC is) lucky.”
It’s possible, but doubtful, that buyers at Dubin’s Shoemaker Lofts in Avondale will take comfort in learning that Dubin has taken a bigger haircut on his purchases than they did on theirs.
Joe,
Here’s a link to the legal opinion
When I see the phrase “summary judgement” in a legal opinion I know it’s not going to be good for the losing party.
It seems Dubin had a junior partner in the development who cut a deal with the bank regarding his 20 percent liability. He likely had significantly less assets than Dubin for the bank to go after and wanted to avoid expensive litigation. I’m thinking of the ancient Chinese curse “may your life be filled with lawyers”.
Looks like the bank is playing hardball and wouldn’t cut a deal with Dubin. That likely means they feel they can recoup most or all of the judgement against him.
There is only one winner that I’m sure of in this case. That would be the attorneys for both sides. Oh and the sellers who sold the two properties to Dubin. They won big time.
The bank may end up a winner if they can get anything near the full judgement.
I don’t recall if I felt it at the time, but in hindsight the Bridgeport and McKinley park developments were at least a boom or two ahead of their time. Maybe in twenty years they could be developed successfully.
IrishPirate,
Thanks for the link to one of the opinions.
Banks sometimes also play hardball with defendants because they simply develop a distaste for them. Dubin is not a guy who is universally loved.
Bridgeport maybe in 20 years. Brighton Park – 36th and Western – I don’t see happening over that time frame. Too much would have to change in its environment.