Chicago Condo Directory

February 15, 2010 - We told you about Mod’s foreclosure suit. Now we have news that The Columbian has reverted back to the bank that issued the mezzanine loan for the Chicago real estate project. According to a recent Crain’s report, developer Allison Davis lost control of the 46 story high-rise, located on 1160 South Michigan Street, as of February third.

Fidelity Investments Bank had been in an agreement to let Allison Davis and his investors pay back only the principal on the loan, which was about $18.5 million. Mr. Davis had already paid back a main construction loan of $92 million to Corus Bank. However, for whatever reasons
Fidelity decided to revert back to the original loan agreement which included the interest and amounts to around $29 million.

A counter suit against Fidelity has been filed by the investors of the Columbian since the bank won’t stick with their offer of letting Mr. Davis pay back only the principal and not the interest. If Mr. Davis is found liable, he may be personally responsible for paying back the entire amount that Fidelity wants.

The article went on to say that Appraisal Research Counselors puts the number of Chicago condos sold at the Columbian at 71%. So out of the 220 units in the high-rise, 156 are under contract. Prices are currently running between $279,900 and $2.3 million for the units.

We may see some significant price cuts at the Columbian if the bank retains ownership of the tower, which is what typically happens when Condos In Chicago are hit with foreclosure.

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