• Troubled Block 37 on Market After Foreclosure Fight

    The new Block 37 mall on State Street is officially going up for sale after a long and hard-fought foreclosure battle.

    The bank group that now owns the shopping center has hired Eastdil Secured LLC to market the mall. The 280,000 square-foot mall opened in November 2009, a few weeks after the lender group sued to foreclose on the project. Bank of America leads the lender group.

    Bank of America gained control after bidding $100 million at a sheriff’s foreclosure sale in March. The bid amount is less than half of the loan’s $206 million balance. No other bids were made for the mall.

    The $100 million offer is known as a credit bit. Lenders take back properties in an attempt to satisfy the amount they are owed. These bids can sometimes indicate what lenders think a property is valued at.

    Daniel Hyman, president of Millennium Properties R/E Inc., feels the mall should draw strong interest from investors. “There’s obviously going to be interest,” Mr Hyman says. “There are more people downtown with dogs than briefcases. There are people there that would shop.”

    A spokeswoman for Bank of America confirms the hiring of Eastdil. The brokerage had been hired by the lender group to market the mortgage late in the foreclosure proceedings.

    Benjamin Law Firm – Chicago foreclosure attorney

  • Owner of Wrigley Field Rooftop Building Suffers Losing Streak

    The curse of the Loveable Losers is affecting The Lakeview Baseball Club, a three-story building that overlooks the right field at Wrigley. The building is heading to a sheriff’s auction after foreclosure.

    A Cook County judge issued a foreclosure judgment against the owners. A public sale for the building at 3633 N. Sheffield Ave. is scheduled for August 17.

    The owner of the building owes its bank $3 million on a senior and junior mortgage. Three other creditors are owed $715,334 according to the foreclosure judgment entered on July 8, 2011. The owner of the building is a venture of father-and-sons Robert, Anthony and R. Michael Racky.

    The bank holding the loan, First Personal Bank, originally filed its foreclosure suit in February 2010. The bank alleged the Racky venture stopped paying the monthly payments of $27,753 in December 2009. First Personal provided the $2.8 million senior loan in March 2006, and the $350,000 junior loan in April 2007.

    Anthony Racky, a managing director of the club, says the venture is trying to sell the building before the sheriff’s sale. A potential deal is in the works, although he has not identified a prospective buyer.

    Martin Oberman, the attorney representing the Rackys says the building’s worth is greater than the debt due to the bank.

    According to a Chicago Tribune article, in May 2010, the rooftop netted just $34,365. The monthly mortgage payment for that month was $31,865.

    Benjamin Brand Services – Chicago foreclosure attorney