Complaint Review: Magellan Development

For those looking to buy prebuild condominium units from Magellan Development in Chicago, specifically in the Lakeshore East development, caution is warranted. From the Lancaster to the Chandler, almost every (if not every) condo association has sued Magellan for failing to complete their building agreements to customers who bought their units pre-build. In the case of the Regatta and the Chandler (not sure about the Aqua, which has other issues that people noted on ripoffreports), Magellan even kept large areas of common space for their own commercial use, and now in the Chandler years after construction this space is still left empty with 'for lease' signs in it. Magellan seems to have done this for us and Regatta in order to have leverage to deal with lawsuits they know will come any time they finish a building in the LakeShore East development.

To anyone thinking of buying in the coming Wanda Vista or any other future Magellan buildings, we recommend the following:

1) Don't buy prebuild if you can avoid it. People who buy Magellan properties after construction seem much happier, as others have noted here. At least they have not been given false expectations during sales.

2) If you do buy pre-build, do not buy upgrades. As I read elsewhere and can confirm, Magellan does not do a good job with their upgrades, using lower quality workmanship and materials. Further, if you pay for the upgrades in advance, you lose that money if you cancel the contract when you realize you made a mistake upon seeing the problems that may well exist in the common areas (elevators, garages, gyms, etc); you can get out of the contract, but not out of the upgrades you buy from Magellan. You'll be better off bringing in your own people to do the upgrades and selecting things like your own flooring and counters and using people you know and trust. It will delay your using the unit after you close, but in the long run people tell us they're happier when it was done that way.

3) If it's not in writing with Magellan, they will almost always go the route that costs them less and is to your disadvantage. Do not trust verbal assurances by sales staff. If they refuse to change something in the boilerplate contract you don't like, don't buy.

4) Be aware you're paying taxes not merely on your property, but for many many years you'll be paying off the bonds for the park area next to your building. That will become obvious at closing, but might not be so obvious during the sales pitch.

5)Have an attorney ready. We've heard of cases where Magellan did not meet their agreements when completing units and trying to close them regardless.