• MetroWest Building in Naperville Facing Foreclosure

    The owner of the Helmut Jahn-designed building missed paying off a $23.5 million loan that came due on May 1. The building is controlled by a joint venture led by General Investment and Development Cos. Occupancy has dropped by at last one third since the company purchased the building in 2006.

    An affiliate of Allstate Life Insurance Co. filed the foreclosure complaint on May 16 in DuPage County Circuit Court. The filing in court means that no foreclosure help is forthcoming for General Investment.

    The 10-story building, which resembles the letter N, was built in 1986 and is visible from the East-West Tollway. Many feel that the building is an unofficial insignia for the city of Naperville.

    The most notable tenant departure is from Minneapolis developer Ryan Cos, who once leased an entire floor at MetroWest. The company moved in November 2010 to a building it developed for Delta Dental of Illinois. Bus operator Laidlaw Transit Inc. and Veolia Water North America Operating Services Inc. have also left.

    Currently the building is 30% vacant, according to real estate data provider CoStar Group Inc. The largest remaining tenant in MetroWest is Dun and Bradstreet, who leases approximately 26 percent of the building.

    The suburban office market is suffering from high unemployment rates, prompting tenants to downsize office space. Other tenants move to other buildings that offer low rents. The trickle down effect is causing landlords to struggle with making monthly loan payments or refinance loans when they mature.

    If you are seeking legal assistance with a short sale or foreclosure, contact a Chicago short sale attorney to help with your situation.

  • Founder of Failed New Century Bank Faces Foreclosure on Personal Condo

    Faye T. Pantazelos, founder of New Century Bank, has failed to make payments on her condominium loan since December 2010. There is no mention of her seeking foreclosure help or a short sale. Her bank failed last year as a result of heavy investment in the failing real estate market.

    U.S. Bank filed a complaint in Cook County Circuit Court on May 17, 2011 stating that Pantazelos has failed to make payments on a $744,000 loan. According to the complaint, the principal balance of the loan is $712,199.66.

    Ms. Pantazelos purchased the condominium located in the Gold Coast for $930,000 in August 2007. Before founding New Century Bank in 1999, she worked at First Chicago NBD Corp. and Bank of Ravenswood. New Century Bank primarily issued loans for commercial real estate projects. Regulators closed the bank in April 2010 and sold it to MB Financial Bank after the real estate crash affected many of New Century’s developer clients. The bank’s assets totaled $486 million at the end of 2009.

    New Century lent to the construction and development market even when it became apparent that it was going to fail.

    Michael Iannaccone, president at MDI Investments Inc. said, “It was like a game of musical chairs; people knew the music was going to stop. We went from one chair being removed at a time to two, three, four chairs being removed, but they kept on lending. You knew that someone was going to be left holding the bag.”

    If you are in a possible foreclosure situation, and would prefer to explore your options for short sale or other choices, contact a Chicago short sale attorney for more information.