South Loop Condo Building Taken Over By Lender

February 10, 2010

Daily Real Estate Updates

sudler-sothebys-logo10 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.

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About Catherine Brennan

Catherine Brennan is a seasoned real estate agent with over six years experience in closing hundreds of transactions and developing a network of satisfied clients. Because she values customer service above all else, she teamed-up with Nancy Gaspadarek to create the G and B Real Estate Team. Catherine has lived in the city of Chicago since 1990. She is a member of the Lakeview Chamber of Commerce, a volunteer for the Friends of Blaine and Umoja which both focus on enhancing child education. She enjoys investing in real estate and golfing when she can. You can visit Catherine's web site or reach her directly at 312.613.8022 or catherine@gandbteam.com

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