Three senior housing developments affiliated with the Inland Group are running into financial problems due to the faltering economy according to a report from Crains.
Started before the downturn in the housing market in 2007, Inland formed a joint venture with HPD Cambridge Inc. and planned to spending roughly $55 million on four developments targeting baby boomers.
As the housing market started to fall apart, financial problems for the projects started to pile up. The first was Elmhurst Point, a 32 unit senior apartment that filed for Chapter 11 bankruptcy proaction earlier this month. This was following a $10 million foreclosure suit filed on the project earlier this year.
“It was the wrong timing,” said Anthony Casaccio, president of International Real Estate Development LLC, the Inland affiliate overseeing the projects during an interview with Crains. “The economy was the primary reason for those not succeeding. The economy simply didn’t cooperate.”
Foreclosure suits are also pending against two other unbuilt senior housing projects in Lombard and Clarendon Hills with ties to Inland.
Written by John Yedinak