A
recent court ruling has shed light on the challenges of buying distressed properties in Chicago's post-pandemic market. Igor Gabal purchased 300 West Adams for $4 million last year, but investors Chris Hansen and John Thomas claimed he had secretly cut them out of the deal. The case was dismissed after Judge Caroline Kato Moreland ruled in favor of Gabal, yet tensions remain high.

    Thomas plans to amend the original complaint and petition the judge to reconsider the case, while Hansen's attorney did not respond to requests for comment. Outside of court, both sides have questioned each other's qualifications to manage the 12-story building. Gabal accused Thomas and Hansen of being unqualified, while Thomas claimed Gabal lacks experience in turning around distressed assets.

    The dispute centers on an agreement made before the auction, where Gabal was supposed to enter the bid on behalf of a joint entity controlled by himself, Thomas, and Hansen. However, Gabal secured separate financing to buy the building for $4 million without including his partners. The lawsuit claimed they should have been included in the second offer, but the judge dismissed it due to improper pleading.

    Despite the dismissal, Thomas expressed doubts about Gabal's business partner, Ruben Espinoza, who is facing financial issues related to a different property. Espinoza's involvement with 300 West Adams remains unclear. Gabal plans to focus on leasing up the building and potentially converting the first two floors into a data center, but turning a profit will be no easy task given the building's low occupancy rate and ground lease obligations.