This billboard killed a Fulton Market hotel project, lawsuit says

AIC Hotel Group is suing MCZ Development for failing to disclose air rights deal

Chicago /
Apr.April 27, 2018 01:00 PM

This billboard near 600 West Randolph Street has led to a lawsuit

AIC Hotel Group is suing MCZ Development, saying the developer didn’t disclose an air-rights deal for a billboard when the two made a Fulton Market land transaction. The failure cost the chain an opportunity to build a hotel, according to the suit.

AIC in December bought a parking lot at 600 West Randolph Street from MCZ for $7 million, with plans to build a hotel on the land, the lawsuit contends.

But after the deal closed, AIC learned that Clear Channel had an air rights deal that guaranteed a billboard on the building next door would not be obstructed, the suit said. The billboard deal runs through 2042.

The suit claims MCZ didn’t tell AIC about the billboard agreement before the Randolph Street land deal closed, nor was the air rights agreement ever recorded with Cook County.

The breach-of-contract lawsuit seeks at least $1 million in damages from MCZ, plus costs and fees.

Miami-based AIC’s holdings include resorts in Mexico and the Dominican Republic, along with the Eden Roc Miami Beach and Nobu Hotel Miami Beach. A spokesperson for the company did not respond to a request for comment.

An attorney for MCZ also did not respond to a request for comment.


Related Articles

arrow_forward_ios
1000 W. Fulton Market and American Realty Advisors CEO Stanley Iezman (Google Maps)
Google HQ in Fulton Market is for sale
Google HQ in Fulton Market is for sale
Blackstone Hotel with Fundamental Advisors CEO Laurence Gottlieb and Sage Hospitality Group CEO Walter Isenberg (Google Maps)
Blackstone Hotel hits market as it sets to reopen
Blackstone Hotel hits market as it sets to reopen
Foxtrot Market CEO Michael LaVitola and 167 N. Green Street 
Convenience store chain eyes new Fulton Market HQ
Convenience store chain eyes new Fulton Market HQ
Harrison Street Real Estate Capital's Chris Merrill and Fulton St. Companies’ Alex Najem with a rendering of the complex at 1201-1215 West Fulton Street (Fulton St. Companies)
433-unit apartment tower would be among Fulton Market’s biggest
433-unit apartment tower would be among Fulton Market’s biggest
Port of Chicago (BartShore/Wikipedia, iStock)
Big development opportunity on tap at Port of Chicago
Big development opportunity on tap at Port of Chicago
Amita CEO Keith Parrott and the Amita Health’s Lisle headquarters at 2601 Navistar Drive in Lisle (Amita, Google Maps)
Amita Health adds to wave of suburban office subleases
Amita Health adds to wave of suburban office subleases
From left: DL3 Realty’s Leon Walker, Discover’s Roger Hochschild, Mayor Lori Lightfoot, and 8560 South Cottage Grove Avenue. (DL3, Discover, Getty, Google Maps)
DL3 Realty signs Discover to big South Side lease
DL3 Realty signs Discover to big South Side lease
Blackstone’s Jonathan Gray and CenterPoint CIO Jim Clewlow with one of the properties, 225 Spring Lake Drive, Itasca (Getty, Linkedin, Google Maps)
Blackstone expands industrial reach with $151M Chicago buy
Blackstone expands industrial reach with $151M Chicago buy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...