The battered South Loop residential real estate market is taking another hit as Amalgamated Bank sues to foreclose on a condo project.
Amalgamated Bank, a union-owned lender, is moving to foreclose on the $50-million construction loan it issued for the 180-unit Terazzio project at 1935 S. Wabash Avenue. The New York-based bank filed a foreclosure suit in May, following up with a separate complaint in June against ventures of Sedgwick Properties Development Corp. and Sedgwick’s Marty Paris. The lawsuit says Paris personally guaranteed the loan.
The bank is seeking $45.7 million, which includes $1.54 million in late charges and accrued interest on the loan. The suit says the Sedgwick venture first defaulted on the loan in July 2010 when it stopped making monthly debt payments. The Terrazio is being converted into apartments.
A separate foreclosure lawsuit has been filed by an Amalgamated venture against Sedgwick’s Marquee condo tower, completed in 2008 at 1454 S. Michigan Ave. The suit says the project’s $60 million construction loan, initiated in 2005, wasn’t fully paid off when it came due on December 2010. The bank’s suit seeks $4.17 million and also alleges that Paris personally guaranteed the debt.
No one, not even large corporations, are immune from issues such as foreclosure. All it takes is one hiccup in the income to start down the slope to a bank filing a lawsuit. Legal remedies are available to individuals and corporations alike to salvage what is left of their finances. The key is to utilize them before it’s too late.
Benjamin Brand Services – Chicago foreclosure attorney