More South Side Multifamily Distress Emerges for Brooklynites

Lenders are after two more investors from Brooklyn who bought up big chunks of Chicago multifamily real estate in 2022 and 2023.

Shaya Wurzberger, founder of Levav Properties, is facing foreclosure of a portfolio of 128 units tied to a $12 million loan that went into default just months after he borrowed. The suit threatens a portion of his portfolio of more than 1,000 South Side apartment units that he said he spent about $100 million to purchase in the last few years.

A separate investor, Yissocher “Izzy” Rotenberg, has already lost a couple properties to one lender, and is on track to surrender several others that are subject to foreclosure lawsuits making their way through court. Rotenberg spent about $48 million to buy around 500 South and West side units between 2022 and last year, but half his Chicago portfolio is now in jeopardy.

Another large development project backed by Sol Barket’s local firm Condor Partners is facing foreclosure. The 203-room hotel project that the developer has had in the works for over five years hit another setback when lender CIBC sued Barket for nonrepayment of an $11 million debt package this month.

Developer Craig Golden’s firm Blue Star Properties made a splash in the office market this week, when it was revealed he’s in talks to buy the historic 2 North Riverside Plaza in downtown Chicago from the estate of legendary real estate investor Sam Zell.

In the suburbs, well-known investor Stuart Handler dropped $60 million on Mount Prospect’s 192-unit Maple Street Lofts, the largest of three apartment buildings that developer Wingspan built in the town, with the smaller two also listed for sale.

And Evanston is weighing in on the controversial use of software platforms that use algorithms to influence or coordinate rental prices for housing. The city is considering banning the systems, such as RealPage and PriceLabs, and would join cities such as San Francisco and San Diego if it prohibits their use.