Dakoff quoted in Crain’s article, “South Loop condo developer sues to collect deposits”
May 24, 2011
LP partner Howard Dakoff was quoted in the Crain’s ChicagoRealEstateDaily.com article, "South Loop condo developer sues to collect deposits." The article discusses how the developer of a South Loop condominium tower, CMK Development Corp., is trying to collect deposits on the condos at 235 W. Van Buren St., a 714-unit high-rise the developer launched in 2007.
The article explains that, "Developers require that buyers put down earnest-money deposits when they sign a purchase contract before construction begins, a customary prerequisite for getting a construction loan. But CMK agreed to cover two-thirds of the earnest money, accepting a promissory note from buyers in return."
Dakoff noted that such loans allowed developers to sign up more buyers and get a construction loan more quickly than they would if buyers had to put up all the cash. Now, the CMK venture is suing to collect the unpaid loans, which, according to lawsuits filed over the past several months in Cook County Circuit Court, carried an 18% annual interest rate.
Click here to read the full article at ChicagoRealEstateDaily.com.
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