29 July 2009 ? PrivateBank & Trust Co. has filed to foreclose on Pearson on the Park (222 E. Pearson St.) a 219-unit condo conversion that as of late has been struggling to sell its remaining twenty percent of units. According to records found in MLS (Multiple Listing Service), three developer units have sold since the beginning of the year. In order to counter this significant slow-down in sales, the developer, Ganesan Visvabharathy, has reduced prices in the past few months by an average of 13%. According to records in the MLS, it looks like that has resulted in one unit going under contract.
According to today?s Crains Chicago Business: The developer paid $46.6 million for the apartment building in July 2005. He borrowed $52.5 million from Hypo Real Estate Capital Corp. and $7.5 million from American Mortgage Acceptance Corp. to finance the purchase and convert the apartments to condos.
The loans came due in August of 2007, and he refinanced the development with a new $17 million loan from PrivateBank. To secure the loan, the developer, pledged 55 acres of undeveloped land in downstate Mount Vernon and signed a personal guarantee. The loan originally matured last November but was extended to March. The developer asked for another extension, to March 2010, however, the bank just wants its money back.Email This Post To a Friend.