Palatine Condos Could Become Chicago Market's Largest Condo Deconversion

The Woods at Countryside, Palatine, IL

Condo deconversions in Chicago have been met with varying degrees of success. But the largest potential condo deconversion in the Chicago market is in the suburbs and is the subject of a lawsuit, according to Crain's Chicago Business.

VM Holdings' Vincent Manglardi filed suit Feb. 21 in Cook County Circuit Court against Trilogy Investments principal Nick Marietti, Trilogy affiliate VR Palatine, Monetta International and IM Equity. Manglardi alleges the defendents acquired the debt on the Woods of Countryside, a 719-unit condo complex in Palatine, with the goal of facilitating a deconversion under the forced sale provisions of the Illinois Condominium Act. That law typically requires a three-fourths vote of a condo building's owners to approve a deconversion.

The Woods at Countryside, originally apartments, converted to condos in 2006, in a $69M deal. The 2008 real estate collapse sent condo values plummeting; 485 of the Woods' units are unsold, according to the suit.

The suit accuses the defendants of colluding to force a deconversion, which means that VM Holdings would lose its $8M stake in the development.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

Illinois Unveils 240 OZ 2.0 Tracts, Looks For Better Program Use

How Mamdani's Pied-à-Terre Tax Could Change NYC's High-End Rental Market

Revere Housing Authority Seeks Zoning Change For 1,700-Unit Redevelopment

Cushman & Wakefield's Global HQ Sells At 45% Discount

Brookfield Gives Up DTLA's Beaudry Apartment Tower

'It's Hand-To-Hand Combat': Prologis Exec On Chicago Industrial Strategy

Multifamily Design: Maintaining The 'Romance Of The Garden'

Hynes Vows To Bring Property Tax Stability As New Cook County Assessor

Developer Picks Up Industrial Site, Plots 1.3M SF Development: The Chicago Deal Sheet

Suburban D.C. County Weighs Microhousing As Affordability Salve

Fannie Mae, Freddie Mac Rewrite Underwriting Standards For NYC's Rent Freeze

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters