Some mothers can be just as harsh with their children as fathers.
That may have been the case for Michael Nathan Lerner, son of prominent Chicago multifamily developer Michael J. Lerner. to the company’s website.
Lerner Jr. now faces a lawsuit from his mother, Jamie Lerner, over the Chicago real estate deal, alleging that Lerner closed the deal without her permission when required by law and that she is entitled to half of the proceeds, but That was never done, her complaint states.
The lawsuit, filed by a trust controlled by Jamie, calls the son Nathan and marks the latest rift between him and his parents over real estate in prime Chicago. Nathan also previously struck multiple expensive and lucrative development-lot deals with two of the biggest names in Chicago real estate, Mike Golden and Thad Wong, leaders of the city Co-CEO of the largest residential brokerage @properties.
The new case comes just months after Nathan privately settled another lawsuit brought by his father seeking to usurp his son’s $35 million stake in the sale of the Fulton Market development to Crescent Heights. equity in equity. Miami-based Crescent Heights plans to build a 52-story, 587-unit apartment building on the site.
The latest dispute with Jamie involves 59 different corporate entities managed by her son that jointly own property with trusts controlled by her mother, and singles out seven property transactions she claims were improperly made without her consent. implement.
In addition, the mother claimed that she was haunted by her son’s ghost after she made repeated attempts to obtain financial information from dozens of companies that owned real estate owned by the Lerner family.
The suit alleges that Nathan, who received a 50 percent interest in the real estate company and was obligated to perform certain administrative tasks for the real estate company, repeatedly exceeded his authority by selling some properties and using others as collateral to obtain personal loans.
An attorney for Lerner Jr. did not respond to a request for comment, while a receptionist for Adam Roman, an attorney representing the Jamie Lerner Trust, said he could not comment. MCZ Development, which has listed the father and son as responsible in the past, did not respond to a request for comment.
In total, the suit alleges that Nathan sold a unit in the four-story condominium at 919 North Larrabee Street to someone else for $800,000 and sold more than four floors at 1936-1956 North Bosworth Avenue. The sale of the residential complex to a limited liability company controlled by the son did not check with the mother’s trust as required and did not distribute any cash from the transaction to the trust.
Nathan also obtained loans totaling nearly $4 million by mortgaging a portion of 919 North Larrabee Street and a multifamily residence at 2128 South May Street and 1338 West Carleton Street in the Pearson neighborhood, the lawsuit says . He allegedly acted without his mother’s permission and did not contribute proceeds to his mother’s trust fund.
Jamie Lerner also referred to Nathan’s control of 5137 North Broadway, which his LLC used to acquire a total of $1,750 in two separate transactions in 2017 and 2018, Cook County records show. million dollar loan. The mother also has pending lawsuits against a low-slung commercial property at 2718 West Chicago Avenue, where Nathan took out an $800,000 mortgage last year, records show.
Nathan is supposed to reimburse Jamie for trust proceeds and attorney fees, and is ordered to stop making unilateral decisions on jointly owned real estate in the lawsuit, which cites his son’s statement to tax authorities that income related to real estate companies Taxes are payable to the trust and not to him personally. In March, the IRS filed a federal lien with the Cook County Clerk’s Office alleging that Jamie and Michael Lerner owed $1.2 million since 2014 Unpaid taxes in dollars. (The lien does not specify which Michael Lerner owes the taxes.)
In August, a letter from the trust to Nathan was used as evidence in the indictment, urging the son to seek legal counsel, as well as business records from the family’s dozens of real estate companies and income tax returns from the past four years.
Back at Fulton Market, Father Michael J. Lerner bought this note to pay back what Nathan owes @properties co-heads Wong & Golden debts, they held a stake in 420 South May Street with Nathan Sr. Lerner filed a lawsuit seeking to cancel his son’s shareholding. The case was dismissed after an out-of-court settlement.
