Chicago investor sues after Evanston office building deal falls apart

The investor planned to buy the Fountain Square Building for $6.35 million, but the deal fell through

The Evanston building at 1601 Sherman Avenue (Credit: Google Maps)
The Evanston building at 1601 Sherman Avenue (Credit: Google Maps)

UPDATE, Aug. 23, 9:30 a.m.: A Chicago investor is suing the owners of a downtown Evanston building, claiming their neglect helped scuttle a deal for the office building.

In May, an LLC whose manager is Peter Weitz agreed to buy the Fountain Square Building at 1601 Sherman Avenue for $6.35 million. The purchase agreement required that the building’s owners, Ted and Carol Mavrakis, provide Weitz’s venture with the leases tenants had signed, according to a recently filed lawsuit.

The owners produced a list of leases signed for the building, but Weitz’s venture alleged the list was incomplete.

On June 10, the owners provided Weitz’s venture with at least two more leases that were not handed over during the due diligence period, according to the suit. A number of other leases were also extended or modified after the purchase agreement was signed, which the lawsuit said was in violation of the agreement.

Weitz’s venture notified the owners June 25 they were in breach of the purchase contract. Both sides spoke through their lawyers after that date, but an amicable solution could not be reached, the lawsuit said.

On Aug. 2, the buyers asked the building owners to return its $250,000 deposit on the deal, but they have refused to do so, according to the suit.

Weitz’s group then filed suit Thursday, asking the courts to return its investment.

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Its lawyer this week said the lawsuit has been resolved, but no court documents have been filed to reflect that. Ted Mavrakis could not be reached for comment.

Weitz is a co-founder of Chicago-based Greenstone Partners, but the Evanston deal was individual investment, not a company pursuit, Greenstone officials said.

Mavrakis is no stranger to lawsuits involving his real estate deals.

In 2015, the Evanston businessman was sued by a group of investors seeking to buy Mavrakis’ 15-19 South Wabash Avenue property, according to Crain’s. A deal had been reached to sell the building for $3.6 million, but it fell apart after Mavrakis demanded an additional $400,000 a day before the scheduled closing, according to the report.

The deal almost fell apartment before the additional funds were requested, as the investors also accused Mavrakis of withholding some information about the property during the due diligence period, according to Crain’s.

This article has been updated to clarify that Weitz was trying to buy the building separately from his work with Greenstone.