There is a 20 unit apartment building in a small submarket in the Chicagoland area that I have had my eye on for the last few years. The building is held in an LLC that is owned by the son and the wife of the original owner. The son calls himself the manager but has never returned my calls. He replied to my email once, never to letters of intent. The building has needed work for years and is the victim of deferred maintenance as the owners treated it like a cash machine instead of an investment. Well, that has all caught up to them over the last few months. The Village where the building is has now sought a demolition order for the building due to; smoke alarms, improper boiler venting, leaking gas lines to stoves, and leaking roofs over the front and rear entrances. We are not even talking about major issues here. The Village forced the eviction of the remaining 4 tenants. It blows my mind.
Does anyone have experience getting a court injunction to stop a demolition order issued by a municipality?
Once it's been condemned and demolition scheduled it is extremely difficult to reverse the process. As a property manager I helped a new client with a portfolio he bought on default from a lender unfortunately 3 of properties were scheduled for demo already when he closed. The problem we ran into was the owner having the immediate resources available to begin work. Part of the court process to stop the demolition you had to provide proof of resources to bring the property in compliance and have a plan filed with the court including a hard end date on the work. It also helps if you are a seasoned investor or have one as a partner. The court looks more favorably on a company requesting halt of demolition that has proof of resources, plan, and experience under their belt.
@Corina Eufinger I was thinking that exact same thing myself. My banker knows the guys and knows that he has received numerous offers over the last few years to buy the building. Banker told me today that the owner doesn't believe anything will happen. Sad