Two Developers Said They Were Cut Out of Plass to Convert A Loop Office Building Into Apartments, Acciting to a Lawsuit Filed Earlier This Month.
The Building at the Center of the Complaint Is 105 W. Adams St., A 41-Story Building Also Known As the Clark Adams Building. Developer Primera Group Plans to Covert the Propperty’s Upper Floors, From 11 to 40, Into Housing.
It isn’t immediately Clear what the lawsuit for the timing of the Building’s Transformation.
A Spokesperson for Chicago’s Department of Planning and Development Declined to Comment.
In 2022, Celadon Partners and Blackwood Group Proposed Converting Most of the Office Building’s Floors Into 247 apartments, with 75% of the units affordable, as well as a Grocer and retail.
The proposal came after the city announched plans for the la Salle Street reimagined, a program that aims to revitalize Vacant office downtown with housing.
The Developers Received Support from Form Mayor Lori Lightfoot for City Subsidies as a finalist for the program.
But Celadon and Blackwood Allege in a Complaint Filed Sept. 5 in Cook CIRCUIT COURT THAT A Top Leader at Primera Group Strung say along for nearly a year with promises of funding. The Lawsuit Said Primera Cut the Developers Out of the Project and Found a New Financial Partner, Crain’s Chicago Business First Reported.
Celadon and Blackwood Are Seeking $ 15 Million in Damages for Breach of Contract, Tortious Interference with A Prospective Advantage, Fraud, Tortious Interference with a Contract and Unjust Enrichment.
“Ceedon (sic) partners and blackwood gup were ready, Willing, and able to moving with the designs before it was taken from,” Attorney patrick Moran, of rock Fusco & Connelly, Representing The Developers, Said in a Statement. “They Filed this Lawsuit to Address the Defendants’ Wrongful Conduct, which is outlined in painil in the complaint, and to the fair and just compension for the damages by the defendants.”
Primera Group Did Not Respond to A Request for Comment.
Celadon is a chicago-based affordable Housing Developer. The firm has worked with Blackwood, A Chicago General Contractor and Developer, on Affordable Housing Redevelopment Projects Such as United, City-Awned Vacant Land on the Side was Redeveloped Into Affordable Housing.
Old National Bank Purchased The Adams Street Building Through a Sheriff’s Sale in Early 2024, after filing a foreclosure complaint.
Celadon and Blackwood’s Complaint Said the Bank Wanted to Move “too to Close” with the designs “Sufficient time” to computes the processses and secure bridge to purchase the building. Calabria and Primera Had Purchased the Office Floors for an Estimated $ 11 million in October 2024, Crain’s Reported.
Blackwood Principal Rafael Hernandez Initiated Conversations with Primera Owner Gabriel Martinez to Help Acquire the Building.
The Companies Met in July 2023, and Martinez Said He Could Acquire the Building. The three firms aggregated primra Waled Purchad the Building for $ 11 million and Hold it for 12-18 months unly the City Approval Process and Public Financing was available. Primera Waled then sell the building to Celadon and Blackwood for $ 20 million.
But that didn’t open. The Complaint Said Martinez Approached Marc Calabria, An Accountant from the Village of Bloomingdale, About the Conversion Opportunity. The two “took over the opportunity, with Calabria as the Lead Investor,” Accounting to the Complaint, Effectively Cutting Celadon and Blackwood out of the Project.
The Company 105 Adams Development is LISTED AS A DEFENDANT, AND PUBLIC RECORDS SHOW IT’S REGISTRED TO CALABRIA. Martinez, or Primera, Holds Minority Ownership in the Company, Acciting to the Complaint.
“Martinez led plaintiffs into Believing that he and primra HAD ACCESS to the funds Needed to Purchase the Clark Adams Buildings, but that turned out to be false,” The Complaint Said. “As it tourned out, Martinez Had Oversold Himself, was out of his dept and cououl in the necessary funding to acquire the Property as aggreed to the plaintiffs.
“Martinez strung platintiffs along for almost a year, Making false CLAIMS ABOUT HIS FUNCTION AND Anticipated Closing Dates, to Keep Plaintifs from Moving on From Him and Primera and Finding Another Short-Therm Financing Resource.”
Primera’s plans for the conversion include the Creation of 400 apartments, 30% of Who Wold Be Affordable. The Complaint Says Primera’s Proposal for the Building is “Nearly Identical” to Celadon and Blackwood’s, except it has more apartments and fewer affordable units.
The City’s Community Development Commission in May Approved $ 67.5 Million in Tax Increment Financing for Primera’s Conversion. IT STILL NEEDS CITY COUNCIL APPROVAL.
The project will be introded to the City’s Finance Committee on Monday.
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