10 February 2010 ? Another developer is suffering the serious consequences of Chicago?s four-year condo market slump. The Columbian, a 46-story condo building at 1160 S. Michigan, has been taken over by the lender, Fidelity, who financed this development’s mezzanine loan. With 71% of the building sold, the developer, Allison David of David Group LLC, was able to pay the primary loan of $92 million to Corus Bank; but not the principal and accrued interest of the mezzanine loan. According to Crain?s today: Fidelity agreed to accept just the principal payment of $18.5 million without the interest. The developer, in-turn lined-up funds in November to pay-off that loan, but Fidelity backed out of the agreement demanding $29 million instead. Fidelity sent a default notice to the developer in January, and took over the Columbian on February 3rd. Davis is suing Fidelity for breach of contract and sabotaging their sales efforts.Email This Post To a Friend.
South Loop Condo Building Taken Over By Lender
February 10, 2010
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