Palatine condo owners say VennPoint’s $49M buyout offer is way too low

A group of owners at a suburban condominium complex is suing to block a plan to sell all 700 units to a developer for $49 million, saying the offer greatly undervalues the property.

David Rudolph, the attorney representing the 32 owners who filed the suit, said the Woods at Countryside complex in Palatine is worth at least $70 million, according to the Chicago Tribune.

The suit claims entities linked to VennPoint Real Estate (formerly known as Trilogy Investments) bought up units in the complex to gain a 75 percent stake and approve the sale and deconversion to apartments over the objections of the plaintiffs.

Rudolph told the Tribune that the three-person condo association board didn’t seek out other buyers, which would have generated better offers. Instead, the board accepted the $49 million offer.

The massive complex, which consists of 18 two-story buildings spread across 52.5 acres, started out at apartments in the 1970s but was sold in 2006 for $68.5 million and converted into condos.

Deconversions are common across the Chicago area as developers look to address the market of those who don’t want to commit to a purchase — or can’t afford to buy a home. One recent report, though, said the Chicago apartment market will peak this year. [Chicago Tribune] — John O’Brien