chicago-condos & Chicago Real Estate pcherry on 24 Feb 2010 11:29 am

Foreclosure Filed Against Lofts At Lakeview Collection

February 24, 2010 - The foreclosure suits just seem to keep coming. The latest one filed is against Chicago real estate developer Centrum Properties and their Lofts At Lakeview Collection project. According to a recent article in Crain’s, Wachovia Bank N.A. filed the foreclosure suit after Centrum defaulted last April and then missed a payback date for the $18.2 million loan last month (January).

According to the article, about two years ago Centrum originally intended for the Lofts At Lakeview Collection, which was to be located where Ashland and Lincoln Avenues and Belmont meet, to be a $100 million project with 130 condos. The demand for new condos evaporated as well as financing for new developments, so Centrum did what so many other developers did; switch to a rental plan.

But after exhausting more than one loan extension, Centrum received a foreclosure notice from Wachovia. The original loan made in 2005 to purchase the site was divided up between lenders Wachovia and LaSalle Bank N.A., but Wachovia bought out the other lender’s interest in the loan in 2007.

Centrum stated in the article that they are trying to either restructure or refinance the building site and are talking with with Wachovia, which is now a Wells Fargo affiliate.

Sol Barket of Centrum was quoted as saying that, “We’re working very closely with them towards a resolution, and we hope to have one very soon.”

He also stated that if the loan can be refinanced, the project will go forward without the residential portion and be a retail development only.

So for those of you who may have signed a purchase agreement for a unit at The Lofts At Lakeview Collection, you may want to check out some other Chicago lofts for sale.

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