R2 Cos Alleges Suitmaker Misrepresented Building Sale
A lawsuit filed by R2 Cos alleges the seller of a West Loop building negotiated in bad faith in the disposition of the asset last year. The suit, filed in Cook County Circuit Court, seeks a return of R2's $150k earnest-money deposit and $50k in expenses.
R2 agreed to buy the 96k SF building from Oxxford Clothes last September. R2's lawsuit alleges Oxxford failed to disclose a city injunction prohibiting anyone but Oxxford from selling the building, Crain's reports. The city and Oxxford agreed to the injunction after a 2009 lawsuit filed by the city accusing Oxxford of violating city codes in the building.
Oxxford claims the injunction isn't in place anymore, but R2 principal Matt Garrison says the firm is no longer interested in the property. R2 has been busy in the West Loop and recently bought 800 W Washington in a long-term, adaptive reuse play. [Crain's]