While the new Walmart Neighborhood Market on North Broadway is already hiring employees, a neighboring Lake View grocery store development could be facing foreclosure, Chicago Real Estate Daily reports.
The venture at the former Dominick’s grocery store at 3030 N. Broadway is led by Chicago investor Allison Davis. According to Chicago Real Estate Daily, Wanxiang America Real Estate LLC sued to collect $8.3 million from Davis’ fund DV Urban Realty Partners after she seized the property from its original owners in 2011.
The highly anticipated development has been on hold for months.
And while officials with Ald. Tom Tunney’s (44th) team are aware of the latest news surrounding the prime real estate on North Broadway, Chief of Staff Bennett Lawson said they’re still waiting on further details of the potential foreclosure.
“We’re waiting for more informational all around, really, but we’ll be working with the community to continue to try to get something moving there,” Lawson said.
This comes after the City of Chicago pulled its pension funds from the investment after not living up to expectations, according to Lawson. The site has been under development negotiations since the 20,000-square-foot grocery store burned down in 2005.
At one point plans at the site were approved, and developers even broke ground on the project in September of 2008, but the financing full through shortly after. It’s currently a parking lot.
Davis’ fund DV Urban gave a $7.9 million loan to a development group that planned to build a new grocery store and apartment complex on the site, but after a bankruptcy battle, Chicago Real Estate Daily reports Davis took over the property in March of 2011. Now Wanxiang, a firm with Chinese investors, wants the money it lent to DC Urban back.
The site has long been rumored to become home to a new Mariano’s Fresh Market, a welcomed addition by most neighbors compared to the Walmart grocery store currently under construction just blocks away.
“Overall, the neighbors were just concerned about the height of the proposed building,” Lawson said. “It was substantial (with the apartments on top of the grocery store), but not unprecedented for that part of town.”
And Maureen Martino, executive director with the Lakeview East Chamber of Commerce, said Lake View still needs a grocery store like Dominick’s or Mariano’s.
“It was supposed to be a Mariano’s, and this neighborhood needs a full service grocery store,” Martino said. “They’re not asking for another place were can get some groceries, but not get your meats or your fresh fish. We’ve got Trader Joe’s, but that still lacks a fresh meat counter.”
Chicago Real Estate Daily reports the foreclosure complaint is currently filed in Cook County Circuit Court.