Shelbourn Development scales back its Chicago Spire sales center.
Posted by ChicagoismynewBlog! on May 19, 2010
Not too exciting or surprising news coming from Chicago Breaking News but at least Shelbourne’s doing the smart thing by downsizing their sales center operation to the Shelbourne Development offices at 111 S. Wacker Drive. During the Spire’s peak in sales, their lease took up the entire 18th floor at NBC tower but for the past nine months, we have seen some legal drama going on when NBC Tower sued Shelbourne in order to evict them from the building. I’m really curious to find out if anyone is buying in the building still.
Chicago Spire developer scales back on sales office
Published on May 17, 2010 9:52 AM | Submit a comment
Shelbourne Development Group, which has been battling the owner of the NBC Tower for nine months, consolidated the sales function into its own office space at 111 S. Wacker. A spokeswoman for Spire developer Garrett Kelleher denied that the move signaled that the project was dead.
The sales office in the NBC building, which occupied the entire 18th floor, opened in early 2008 and included touches designed by Spire architect Santiago Calatrava and a built-out model of a Spire condominium.
The owner of the NBC Tower sued Shelbourne to evict the developer last August, charging that the company had not made a rent payment since April. In March, the case was dismissed by agreement, and a $55,082.06 judgment for NBC Tower was voided.
Instead of touring a model unit, potential buyers will see samples of materials and three-dimensional computer models, the spokeswoman said.
The sales office’s closing is likely to cast more doubt on whether the twisting, 2,000-foot-tall skyscraper will ever rise from the circular hole in the ground that now exists alongside 400 N. Lake Shore Drive. Shelbourne has been beset by financial problems since starting the skyline-defining project just as the financial and real estate markets were seizing up.
Shelbourne and Kelleher remain in litigation with Bank of America Corp., which filed suit last August, charging the developer with defaulting on a loan and said it was due $4.9 million. Bank of America said Kelleher personally guaranteed the loan. Kelleher and his company fired back in a countersuit, claiming the lender committed fraud and deception in arranging a loan used to start the building…