realestate

Chicago's Sausage King Buys South Side Housing Complex: What Happened?

Landlord received millions in federal rent aid while tenants complain of years of neglect and awful conditions.

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n the 1986 classic “Ferris Bueller’s Day Off,” the “Sausage King of Chicago” is a fictional figure, Abe Froman, whose name Ferris adopts to slip into an upscale restaurant with his friends. The nickname lives on in reality as the name of a company that now owns Indian Trails Apartments, a 180‑unit subsidized complex in West Pullman, Chicago’s far south side. Once a respected neighborhood, the building has fallen into disrepair and is poised for a new owner.

    The Sausage King of Chicago LLC was bought in 2017 by two California investors, Alan Smolinisky and Brian Chien‑Chih Chen, who have a history of acquiring HUD‑subsidized properties across the country. Their portfolio includes at least 24 buildings in 13 states that generated more than $37 million in federal rent subsidies last year. The companies they form often carry playful names from 1980s films—“We’ll Drive Home Backwards LLC” and “What Is A Plethora LLC”—echoing the movie reference that inspired the nickname.

    Smolinisky, a USC alumnus, met Chen while studying in the 1990s. Together they founded Conquest Student Housing, which grew to dominate private rentals around the USC campus. The university sued the firm under the Sherman Antitrust Act, alleging it used litigation to block competitors. The lawsuit was settled in 2008, and the pair sold Conquest for $205 million just before the housing market crash. Since then they have expanded nationwide, investing in properties that receive federal subsidies while often neglecting maintenance. Smolinisky has also held minority stakes in the Los Angeles Dodgers, attempted to buy the Portland Trail Blazers, and owns the Palisadian‑Post newspaper.

    Indian Trails’ residents have endured harsh living conditions. Jasmine Duckett, a 34‑year‑old mother of two, returned to the complex in 2021 after years away. She relies on two space heaters to keep her two‑bedroom unit from freezing, and sometimes uses her stove to warm the space, aggravating her children’s asthma. Her kids, aged 6 and 2, have been hospitalized for pneumonia, asthma attacks, and febrile seizures. Duckett’s children struggle academically because of the cold, mold, and unreliable heating. She has also worked as a home‑care aide, forklift driver, and UPS assistant while dealing with broken cabinets, leaking ceilings, roaches, and mold that have persisted for years. The building’s maintenance staff, once live‑in under former owner Kenneth Ringbloom, disappeared after the 2017 sale, and property managers have changed frequently, leaving tenants to fix problems themselves or rely on relatives for shelter.

    The complex has been in building‑court for over two years, cited for broken heating and hot‑water systems, plumbing and electrical faults, missing smoke and carbon‑monoxide detectors, and absent fire extinguishers. The Sausage King of Chicago LLC has repeatedly missed deadlines to address these violations. Despite the neglect, the property continues to collect more than $2 million in HUD Section 8 payments each year, with tenants paying only a third of their income while the federal government covers the rest.

    Renovation plans announced in late 2021 were abandoned when the owners failed to secure funding from the Illinois Housing Development Authority. A subsequent state financing application was denied due to concerns about financial feasibility. Housing advocates argue that profiting from subsidized buildings without investing in them is a common practice among investors like Smolinisky and Chen.

    In 2024, the Sausage King announced a sale to The Transcend Group, a California developer. The deal, expected to close by year’s end, could fetch a price well above the $16.6 million purchase price. Transcend has already requested a $31 million city loan for renovations and additional HUD subsidies. City Council approval of the loan and the developer’s plans to upgrade apartments, common areas, and security have been announced, but tenants remain skeptical. Jasmine Duckett and others voiced concerns at a council hearing, demanding contractual guarantees that the promised work will be completed and that residents will not be displaced.

    Noah Moskowitz, director of the Jane Addams Senior Caucus, warned that if the new owners fail to address the problems, they will become the next “Sausage King.” He urged the city to enforce accountability and ensure that the community’s needs are met. Smolinisky, in a podcast interview, spoke of his immigrant background and the “American dream,” claiming he intends to give away much of his wealth. Duckett suggested that any philanthropic efforts should directly benefit the residents of Indian Trails, rather than being diverted elsewhere.

Sausage King purchases South Side Chicago housing complex.