Bank and other lender threaten developer of downtown Chicago block with foreclosure
By APWednesday, October 21, 2009
Developer of downtown block faces foreclosure
CHICAGO — A consortium of lenders have filed a foreclosure lawsuit against the developer of a downtown Chicago block.
The lawsuit claims Joseph Freed and Associates LLC, company President Laurence Freed and a related partnership owe $128.5 million on notes worth an original $205 million.
The developer said in a statement Tuesday the lawsuit filed late Monday by Bank of America and other lenders lacks merit and will be fought.
In the statement, Freed cited progress it has made in constructing retail space and in securing early tenants. Due to open later this fall, Freed warns if the four-story shopping mall project shuts down now, it “will be near-impossible to restart.”
Bank of America is the biggest lender with $65 million of the $205 million loan. The other lenders include Wachovia Bank N.A. and Charter One Bank.
