Hard sell for high-end senior living projects - Chicago Sun-Times
The Clare at Water Tower, a high-rise that opened in 2008 at 55 E. Pearson, filed for bankruptcy Monday. Its owner, the nonprofit Franciscan Sisters of Chicago Service Corp., defaulted on about $216 million in debt because only about a third of its 248 independent living condos are occupied. A spokeswoman said the sisters hope to keep control of the project. The bankruptcy filing said the sisters have secured about $12 million in financing for interim operations. Judy Amiano, president of the corporation, said “resident and health care services will continue uninterrupted” during the bankruptcy.
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I am compiling a list of all the condo projects and HOAs in the US that have filed for bankruptcy. If any of you out there in cyberspace have the names and locations of any such associations, please send them to me at ecmlaw@gmail.com or send them in a comment.
2 comments:
Evan, when you prepare your list, please ask submitters to identify whether the bankrupt projects they are identifying are condos with separate interests sold to individual owners, or owned by a single entity like the example in this post. Also, it would be useful to know if they are true bankruptcy filings, or re-organizations under Chapter 11 of the bankruptcy code. As we've stated in the past, a true bankruptcy of a condo association which is owned by multiple individual owners would be difficult in light of the pass-through provisions of most governing documents.
Hey Evan,
Do you think CAI - noted for its numerical accuracy and HOA statistics - would supplement your list? Ha. Ha. That was a rhetorical question of course.
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