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n a recent move, Drew Breneman's firm, Breneman Capital, purchased a 25-unit property in Chicago's Lincoln Square neighborhood for approximately $7 million. The property was developed by CA Ventures, which is currently facing several lawsuits and layoffs due to financial difficulties. The transaction was facilitated by Greenstone Partners' Jordan Multack, who represented both the buyer and seller.

    Breneman emphasized that the property checks all the boxes they typically look for: a well-located site with high-quality construction, and an immediate path to increase value and cash flow through leasing vacant retail space and adjusting apartment rents to market rates.

    This sale is part of CA Ventures' efforts to unload debt-ridden properties and reduce expenses amid interest rate hikes over the past two years that have negatively impacted property values. The firm's lenders, financial backers, former leaders, and a major architecture and design firm have filed lawsuits against CA Ventures-linked entities alleging missed payments and over-promising and under-delivering on development and financial obligations.

    CA Ventures has also reduced its staff in recent months by eliminating positions and laying off some employees. The firm's focus is now on shedding expenses to prepare for growth once its balance sheet is in order, allowing them to take advantage of depressed real estate prices.

    Northbrook Bank & Trust, the lender of the property, was repaid what it was owed through its sale to Breneman Capital. However, global architecture firm Goettsch Partners, based in Chicago, has become the latest to file a lawsuit against CA Ventures, alleging that the firm owes $1.7 million for its work planning a failed $620 million project in Austin, Texas. Goettsch alleges that CA Ventures hasn't paid them for years despite their work on the project that started in 2019.

    CA Ventures argued last month that Goettsch's complaint should be dismissed because no true contract was ever struck between the two firms. Instead, CA Ventures claims that Goettsch is suing based on vague promises made over emails and a shared beer between members of each firm.

    The developer, along with several others, put their pencils down in 2020 as the pandemic struck and shocked capital markets. CA Ventures stated that they didn't foresee this event and nullifies any fraud claims based on their stated ability to pay the architecture service made prior to the health crisis.

    CA Ventures is still working to resolve alleged defaults on two other North Side Chicago debts totaling more than $34 million, tied to the vacant development site at 750 West North Avenue and the former Sears store converted into a 59-unit housing complex at 1900 West Lawrence Avenue.