Horizon Realty Group and Rockwell Partners are embroiled in a legal battle over who gets to keep the deposit that was put up for an Elmhurst apartment complex deal that ultimately fell through.
Horizon in February agreed to sell Rockwell Partners the Elmhurst Terrace apartment buildings at 100 Fellows Court in Elmhurst, according to a lawsuit filed in Cook County court.
Rockwell had proposed a “complex” financing plan, including a commercial mortgage bridge loan from Global Investment Fund I and another loan from Life Assurance Company of Columbus, according to the lawsuit.
But then one of the lenders discovered that a separate arm of Horizon was involved in a bankruptcy proceeding and pulled out of the deal, the lawsuit claims.
The complication caused the parties to miss a May 31 closing date, and subsequent rescheduled closing dates were also missed, the lawsuit says. Horizon even offered to step up and help in financing the deal, but the proposal was not accepted, according to the suit.
In late June, Horizon revoked its financing offer, and the deal never closed.
Now the companies fighting over who gets the $400,000 deposit made by Rockwell.
Horizon alleged Rockwell defaulted on the deal and demanded it allow the title company to transfer the deposit to Horizon. Rockwell has refused to do so, according to the lawsuit.