For South Side developer Jamie Nahon, a plan to capitalize on Bronzeville’s real estate hype may have been easier said than done.
In 2021, Nahon set out to build over 20 townhomes scattered throughout Bronzeville and Woodlawn in hopes of cashing in on the area’s growing caché. A website promoted the project as a chance for investors to reap the benefits of the Opportunity Zone program, a federal policy that provides tax breaks to real estate investments in underserved areas.
It pointed to the groundbreaking of the multi-billion dollar megadevelopment known as Bronzeville Lakefront and the ongoing construction of the Obama Presidential Library in nearby Woodlawn as evidence that the time was right to get in on the early stages of the neighborhood’s turnaround after decades of population loss.
But four years later, many of Nahon’s townhomes sit vacant, while the developer navigates legal fights with Green Day Construction, the general contractor for the project.
Nahon and Green Day, which is run by Scott Allbright, agreed to a two-phase construction contract totaling about $15 million. Phase one involved the construction and rehab of 11 townhomes for $7.3 million or about $671,000 per building. Phase two involved the construction and rehab of 11 townhomes for $8.2 million or about $754,000 per building.
Although most of the work was completed and paid for, Nahon, via an LP called Eagle OZB I, sued Green Day Construction accusing the company of low-balling its initial budget proposal, repeatedly requesting budget increases, diverting project funds for unrelated use, performing shoddy construction work and over-extending the completion timeline. The lawsuit also alleges that some buildings were left incomplete, including lacking appliances that were already paid for.
Nahon declined to comment. Allbright, his legal representatives and Nahon’s attorneys did not respond to requests for comment.
Green Day Construction isn’t willing to take all the blame, and is instead fighting back. It also filed mechanics liens against Eagle OZB’s ownership of the properties, alleging the contractor is owed about $1.2 million for unpaid work outlined in the updated budget. Green Day requested a judge to approve a foreclosure of the properties that could transfer their ownership to the contractor, if advanced.
However, Nahon also alleges Green Day Construction’s poor craftsmanship led to significant maintenance issues within the buildings such as widespread plumbing leaks and access points for rodent infestations. It’s unclear how many tenants moved into the properties but Nahon’s lawsuit said some moved out due to maintenance concerns that Nahon alleges Green Day Construction refused to remedy.
Many of the tri-flat buildings appear empty and are advertised for lease or for sale. Two sold for around $1 million and one sold for $875,000. Rents for individual units range from about $2,200 to $2,600.
Meanwhile, a subcontractor sued Green Day Construction as well, alleging it’s owed $235,000 for the entirety of a contract between the company and the general contractor for work on the townhomes.
Separately, Nahon is suing Green Day Construction for incomplete work on a $3.3 million renovation project for a 68-unit multifamily property at 7109 South Bennett Avenue in Bronzeville. The lawsuit alleges that Green Day Construction again low-balled its initial estimate and surpassed an agreed upon construction completion deadline.
As cost overruns added at least $2 million to the project, Nahon took out a separate loan from Renovo Financial backed by a personal guarantee to fund the additional costs.
But even with the additional funding, the projects continued to confront issues and stall. Nahon’s lawsuit alleges that Allbright blamed overruns on inflation but also admitted to intentionally low-balling his initial construction estimates to land the job. Nahon also suspects Allbright of intentionally diverting funds for the project to non-related business and personal use, his lawsuit alleges.
Nahon would not have taken out the second loan had he known about Allbright’s alleged fabrication of the initial estimate and misdealing of funds, his lawsuit alleges.
Construction came to a standstill in September and in December, Allbright filed mechanics liens against the property, alleging Green Day Construction is owed $236,000 for unpaid work on the project. The lawsuits remain pending in Cook County court.
Nahon in January listed for sale a former Catholic school building at 545 East Oakwood in Bronzeville, previously slated for demolition and redevelopment, for $1.1 million, after he bought it from the Archdiocese of Chicago for $725,000 in September.
In 2023, Nahon’s firm Eagle Infinite purchased a $29 million portfolio of multifamily buildings across the Bronzeville, Kenwood and Hyde Park neighborhoods.
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