A moribund townhome development in Riverside is back in play now that a Northbrook-based real estate partnership has purchased the property and has put the units on the market.
Riverside Development 21 LLC on Jan. 12 purchased the Burlington Townhomes of Riverside at 21 N. Herbert Road for $805,000 from S.A. Challenger, a company formed by U.S. Bank to handle distressed properties it owns.
Just who comprises the real estate partnership is not clear, but Illinois Secretary of State records list the managers of the corporation as Alex Zdanov of Highland Park and Igor Blumin of Wilmette.
According to Blumin, the five units on the market are being listed for between $429,000 and $459,000. The only finished unit is the corner townhome, a 3,800-square-foot, four-story model unit with four bedrooms, two full baths and three half baths. It also includes an elevator and a below-grade, two-car garage accessed by a rear driveway.
Photos of the interior of the $459,000 model unit, which are available on the website for Burlington Realty in Riverside, which has the listing, show it to have hardwood floors on the main floor, a fireplace, a high-end kitchen with dark wood cabinets and stainless-steel appliances.
Blumin said the plan is to try to sell the five units built by the original developer before determining whether to move forward with construction of the other five units initially planned.
“We’ll finish these five and see how the market is going to react,” said Blumin.
The partnership has hired the developer’s architect, and the four unfinished units can be modified by their buyers to change floor plans and determine finishes.
“We’re hoping to finalize construction in the next three to four months,” Blumin said. “We’re working right now to reapply for permits with minor changes to the floor plans.”
Blumin said he hoped work could begin on the units within the next 30 to 45 days, adding he doesn’t expect any problems or delays from the village.
“We’re going to finish these no matter what,” Blumin said.
Delays are what, in part, doomed the townhome development in the first place.
Conceived in 2006, construction didn’t start until summer of 2007 by which time the local real estate market was already beginning to contract. The developers took out a $7.34 million construction loan to build the 10-unit, luxury townhome development.
Five of the 10 units were largely completed and placed on the market in October 2008, with asking prices starting at $750,000.
By December 2008, the development’s lender began foreclosure proceedings, and the developer put the property on the market for $3.1 million. But in May 2010, U.S. Bank seized the property and assigned it to S.A. Challenger, which listed the property at $2.3 million.
The sale of the property in January for $805,000 was at a fraction of its cost to develop. The sale price will allow the new owners to sell the units for prices far below the original prices.
“It’s very hard to find today brand new construction below the actual construction costs,” said Blumin. “We’re able to bring these units to market at a much more affordable price.”
