The owner of the infamous Purple Hotel in Lincolnwood is facing foreclosure, adding to already existing legal problems. The lender, First Midwest Bank, has filed a $4.2 million foreclosure suit.
Donald Bae, the owner of the hotel, has lost a legal dispute with the village of Lincolnwood. The village won a court order to demolish the building at 4500 W. Touhy Ave if Bae does not bring it into code compliance by August 1.
Bae has been courting buyers for the hotel for years, but no one has expressed interest. There is no mention of a short sale . In the meantime, there has been no obvious attempt to remedy the violations. The village has created a TIF district on the site to encourage redevelopment of the property and surrounding parcels. ForeFront Properties, who is owned by Bae, sought $25.8 million from the TIF for his own redevelopment plans.
Two adjoining properties owned by Bae’s corporate entity are not involved in the foreclosure. A buyer of the hotel is likely to purchase the adjacent properties to create one parcel for development.
The hotel opened as a Hyatt in 1960, reaching the height of popularity in the 1970s. Performers Roberta Flack and Barry Manilow stayed there when coming through town for an engagement. Later the hotel played a part in the corruption trial of Antonin Rezko.
If you are seeking foreclosure help , contact a Chicago foreclosure lawyer. There are ways to save your home with assistance from a foreclosure attorney.
Lincolnwood’s Purple Hotel is Facing Foreclosure