Crib Chatter

The number of foreclosure filings against developers are piling up.  So far,  it has been the smaller developers that are in distress.  We haven’t yet had a filing against one of the big highrises.

Crain’s reports that the latest is a foreclosure filing on 417 S. Dearborn, an 1889 historic building just north of Printers Row, that was being converted into 30 loft condos.  You can see a historic picture of the building from this book on Chicago architecture (it is the short one in the middle of the block).

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.

There has been a sign saying “Condos for sale” on the side of the building for forever. Crain’s states that the investors bought the building in 2005 for $2.5 million.

The building may not end up in foreclosure after all- but what of sales going forward?  All  of the units are one bedrooms and are selling for around $270,000 with no parking available.