advertisement

No buyer yet for Riverside Square in Algonquin

There were no formal bids at a court-ordered auction of Algonquin’s Riverside Square Thursday, but at least one potential buyer says that’s because the $1.25 million minimum asking price is well above market value.

John Breugelmans, principal for Lakeland Asset Management in Des Plaines, said his company did not submit a bid, but has been interested in buying the property since last March.

He declined to name his price for the partially built, mixed-use property at Routes 31 and 62, but said a February 2009 property appraisal commissioned by (previous owner) Amcore Bank set the “as is” value for the vacant property at $1 million.

“That was two years ago. With today’s values, we all know there has been a drop,” he said, adding some might consider $600,000 to $700,000 a more accurate value.

Lakeland would work with the village to complete construction and develop Riverside Square into a mix of retail and residential, Breugelmans said.

Another potential buyer, Plote Homes in East Dundee, submitted a bid that was lower than the minimum, and was therefore not considered a formal bidder during the proceedings at the McHenry County courthouse. Plote Vice President Dan Shepard said he would demolish the existing building if his company acquired it.

McHenry County Judge Michael Caldwell continued the case to March 3. This will give attorneys for Harris Bank and the multiple lien holders time to decide whether they are willing to lower the minimum bid or hold an open auction.

Attorney Scott Kenig said is court he is “not sure” his clients are willing to lower the minimum $1.25 million asking price. He later refused further comment.

“There was no progress, and that’s disappointing,” Algonquin Village Manager Bill Ganek said Thursday after the hearing.

Construction of Riverside Square, which was slated to have retail shops and 54 condominiums, began in 2007 but stalled in 2008 after Aspen Homebuilders, Inc., filed for bankruptcy.

Breugelmans said the 2009 appraisal points to several construction problems, including concrete floors that need to be redone and a faulty entrance ramp. “(Construction) was very badly done,” he said, adding that any buyer would have to invest about $13 million to complete the project.

However, he believes the property has great potential due to its location. “It would be a shame to let this go to waste,” Breugelmans said.

The village previously filed a lawsuit requesting the owners demolish the property, and asked to recover fines for maintenance and building violations. A hearing for the demolition suit is set for Jan. 28 before McHenry County Chief Judge Michael Sullivan.