Feds investigating firm that owns local buildings
06/09/2009 9:58 AM
On May 30, the Sun-Times reported the city's inspector general and federal authorities were investigating how DV Urban Realty won the right to invest $68 million on behalf of city pension funds. Subpeonas from a federal grand jury were dropped on pension fund officials on May 27. The company is guaranteed $8 million in management fees under the terms of the deal.
The firm is managed by longtime Daley Administration backer Allison Davis and Robert Vanecko, Mayor Daley's nephew (word is out that today, however, Vanecko will resign from the company).
On June 3, in a e-mail sent to Chicago Journal and other press outlets, the company stated the "media has mischaracterized and oversimplified the investments." The e-mail included a PDF listing all the firm's properties, which include two buildings in the South Loop and one in the West Loop.
According to the document, DV owns 1212 S. Michigan, a 344-unit building; 2400 S. Michigan, the old Chicago Defender headquarters; and 217 S. Jefferson, an office building in the West Loop. (The latter property's investors include Michael Ezgur and Jake Geleerd, whose Burnham Pointe development in Printers Row generated a big development fight in the neighborhood several years ago. Ezgur, as an aside, is on a major road trip right now.)
The inspector general's office and federal officials are also investigating Vanecko's and the mayor's son's hidden ownership stake in a company that won city sewer-cleaning work.
Download DV's property portfolio here.