chicago-condos & Chicago Real Estate pcherry on 20 May 2010 07:29 pm

Chicago Spire Sales Center Exits NBC Tower

May 20, 2010 - The Chicago Spire and its developer, Garrett Kelleher of Shelbourne Development Group have been in the news quite a bit lately but not for ideal reasons. There have been leins, lawsuits and news from accountants that Shelbourne Property Group had a $197.2 million loss in 2009 because of the Spire. Now the latest development pertaining to this troubled Chicago real estate project is that the $10 million full-floor sales center with complete model in the NBC Tower has been closed.

According to a recent article in Crain’s, the owners of the NBC Tower filed suit against Mr. Kelleher last August because of unpaid rent. The owners of the tower claim that Shelbourne Development stopped paying rent in April 2009 and around $316,000 was owed in back rent. An eviction was sought, and a court judgement for $55,000 was ordered against Shelbourne. Apparently the matter was settled when Shelbourne agreed to vacate the 18th floor suite, surrendering the model.

The elaborate sales office and fully furnished full scale condo model cost about $10 million to construct. The owners of the NBC Tower contributed about $350,000 to that cost. No word yet on what will become of the space, but now any potential buyers will have to make due with viewing computer models Mr. Kelleher’s office on Wacker.

In the article, a Shelbourne Development’s spokeswoman stated that the Spire isn’t dead yet and that they are just cutting back on expenses until things turn around for the project. Until that does happen, if it does at all, anyone looking for a bargin may want to see what is available in the Chicago foreclosures.

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