A prospective buyer of a pricey Gold Coast high-rise condo is suing the building’s developer, claiming the building at 10 East Delaware failed to live up to its billing as a “masterpiece” of modern, luxurious living, according to a recently filed lawsuit.
A South Florida buyer is seeking to recoup the down payment he put on a unit in the residential tower after learning the building would not have the finishings the developer had advertised, the suit filed in Cook County claims. The suit names as defendant Ten East Delaware LLC, a venture tied to the developer of the building, Chicago-based The Prime Group.
In 2008, James Goldberg entered into a purchase agreement for an under-construction unit in the 35-story building at 10 East Delaware Place for more than $677,000, according to the suit.
Before he agreed to buy, the developer and its building manager had told Goldberg the building would be a “masterpiece” worthy of the Gold Coast area and a “modern classic destined for landmark status,” the suit claims.
Once it came time to close on the unit, Goldberg and his wife learned that many of the features listed in promotional materials would not make it into the final product, the suit says.
One example: Developers said the building would be clad in sand-colored limestone. And while some of the building at ground level is indeed faced with the limestone, “most” of the building is clad with a stamped concrete or other, cheaper alternatives, the suit claims.
“The swapping of stamped concrete on the upper floors in lieu of the promised limestone cladding was only one of the examples of cost- and corner-cutting engaged in by Ten East, in its efforts to keep afloat a failing project, but only by delivering a building and condominium units of far lesser quality than that which was promoted and promised by its salespeople, and in its sales literature,” the suit says.
Other building “defects” listed in the suit include inoperable sliding glass doors, discolored and water-stained carpets, a refrigerator without a handle, misaligned cabinets, leaky shower walls and a rust-stained soaker bathtub.
Goldberg learned of the defects at a February 2010 walk-through. Two weeks later, lawyers for Goldberg told the developer it had breached its contract with the buyer. The developer responded by saying Goldberg was in breach for failing to close on the unit and, if he didn’t close, it would terminate the deal and keep the $101,422 down payment he put on the unit, the suit says.
In March 2010, Goldberg terminated the purchase contract, but the developer has not returned his money, the suit says. The lawsuit is seeking the return of the $101,422 down payment.
Prime Group did not immediately return a message seeking comment.
There are numerous current listings for 10 East Delaware online, with one asking $2.4 million for a three-bedroom, three-bathroom unit.
Prime Group has been an active developer around Chicago for more than three decades, and its current projects include a $93 million effort to convert the top five floors of a downtown hotel building from office space into a separate boutique canopy hotel.
It recently sold a retail condo in the historic Roanoke Tower at 11 South LaSalle Street to San Diego-based Paragon Real Estate Investments.