Chicago Real Estate & Chicago Property pcherry on 11 Mar 2009 04:45 pm

Hotel Condo Deals Disintegrate Near McCormick Place

March 11, 2009 - The two sites next to McCormick Place will remain empty for the foreseeable future. A $39 million foreclosure suit was filed by CenterPoint Properties against Main-based developers Karl Norberg and Pam Gleichman, who are married. The suit contends that the couple is in default on a $37.1 million loan that had a due date of February 21st, according to Crain’s.

The couple had been trying to sell these Chicago real estate sites for some time. The two sites are located north of McCormick Place, where the old American Book Company was on 330 East Cermak Road and on 230 East Cermak Road. The Alter Group had been in negotiations to purchase the 3.7 acre parcel over a year ago for about $70 million and put up two 21 story high-rise towers with 1,500 hotel rooms.

When that deal didn’t materialize another developer from New York, Extell Development Corp., became interested and contracted to buy the acreage. But that deal also disintegrated along with so many other deals that were unable to get financing when the housing market bubble burst.

Besides personally guaranteeing the loan, Norberg and Gleichman also put up a parcel of land west of the site where they had planned on building a hotel with 200 rooms, 300 residential units and 50,000 square feet of retail shops. The Crain’s article states that under the eminent domain act, McCormick Place has debated on seizing the 230 East Cermac site to put up a 1,500 room hotel on its own.

It may be years before anything is resolved in this case. Until then, you can check out the Chicago Hotel Condos that are ready for occupancy right now.

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