Multiple banks move to foreclose on Block 37 in Chicago’s Loop!
Posted by ChicagoismynewBlog! on October 21, 2009
Uh oh, looks like Block 37 is headed towards a bit more trouble. According to this article from the Chicago Tribune, Bank of America and other lenders are looking to foreclose on the retail and transit portions of Block 37 because the developer, Joseph Freed and Associates LLC, has gone $34MM over budget and has now defaulted on its mortgage. Can we please just get this thing opened up?
Banks move to foreclose on Block 37
By Sandra M. Jones, Tribune reporter
3:05 p.m. CDT, October 20, 2009
Block 37, the Loop parcel that has defied development for decades, has run into financial trouble less than four weeks before its first retail shops were set to open, putting the project’s future in question once again.
Bank of America N.A. and a group of lenders have moved to foreclose on the retail and transit portion of the mixed-use development, claiming Chicago developer Joseph Freed and Associates LLC has exceeded the planned project costs by $34 million and is in default on its mortgage, according to a lawsuit filed in Cook County Circuit Court on Monday.
Freed disclosed the dispute on Tuesday, calling the banks’ steps a “misguided action that could halt the project” and warned that if the four-story shopping mall project shuts down now, it “will be near-impossible to restart,” according to a company press release. Freed took over the project, which has gone through many developers over the decades, in April 2007. It is located at 108 N. State Street….