Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Another bankruptcy court auction will be held July 25 after the default by AprilFirst, LLC to close a deal to buy marchFirst’s West Loop partially-finished office campus on the West Side for $5.3 million plus assumption of debt that could run as high as $16 million. Although some AprilFirst partners teamed with an earlier bidder to form Fulton/Elizabeth LLC, the price went up to $7 million cash plus another $4 million to be paid over the next four years, as well as settling construction and other liens on the partially developed property.

“You almost have to get a negotiated sale on this,” says US Bankruptcy Court Judge John D. Schwartz, who is expected to sign an order for the new sale this morning.

Attorneys for Turner Construction Co., one of several debtors at a hearing Thursday morning, argued their claims for payment should remain in place even though the proposed sale to Fulton/Elizabeth LLC is structured as a “free and clear” deal, according to John Voorhees, attorney for bankruptcy court trustee Andrew J. Maxwell.

A bid of at least $11.3 million will be required to top Fulton/Elizabeth LLC’s offer, Voorhees explains. If none is received, Schwartz would like approve the sale to the new entity, which like the previous ownership structure is led by attorney Dan Lucas.

The AprilFirst partnership forfeited $100,000 earnest money earlier this month when it could not close the cash deal.

“In our view, this is a better deal,” Voorhees tells GlobeSt.com after the hearing. “There’s more cash up front for the estate.”

Voorhees indicated negotiations with creditors likely will result in a reduction of the $16 million in assumable liens on the office complex of the failed internet consulting firm, which includes buildings at 300 and 320 N. Elizabeth St. totaling 177,000 sf, as well as a partially completed 208,000-sf building. A nine-story parking garage also was part of the $115-million development plan for the site before marchFirst went bankrupt.

The $11-million officer from Fulton/Elizabeth LLC is the second deal Millenium Properties, Inc. president Dan Hyman has put together for the property. He also brought the AprilFirst contract to the table after his firm marketed the property.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.