(Crain’s) — The developers converting the historic Plymouth Building in the Loop into condominiums are trying to restructure a past-due $5.1-million construction loan from Broadway Bank, which has filed to foreclose on the property.
The developers, a group that includes investors Charles Everhardt, Lawrence Nesis and Donald Kindwald, owe $2.9 million on the loan, which matured on Nov. 17, according to a foreclosure suit Broadway filed at the end of November in Cook County Circuit Court.
The developers are converting the 11-story building at 417 S. Dearborn St. into 30 condos, but construction delays prevented them from finishing the project on time, Mr. Everhardt says. Buyers have signed contracts for about 15 units in the former office building, he says.
Though he was “a little surprised” by the foreclosure suit, Mr. Everhardt is confident Broadway will agree to restructure the loan.
“Everything will be back on track in another 30 days,” he says.
A Broadway executive did not return a phone call.
Simeon Eisendrath, who once worked for the Adler & Sullivan architecture firm, designed the Plymouth Building, which was completed in 1899.The developers paid $2.5 million for the 46,600-square-foot building in February 2005.
The Broadway lawsuit is one of a growing number of foreclosure complaints that have been filed against local condo projects in recent months, as the condo slump makes it harder for developers to sell units and pay off loans.
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source: chicagorealestatedaily.com
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