Quote:
Originally Posted by cbotnyse
looks like Mandarin Oriental is dead.
http://www.chicagobusiness.com/cgi-bin/news.pl?id=33041
Foreclosure suit hits Mandarin Oriental developer
By: Alby Gallun Feb. 18, 2009
(Crain’s) — A New York-based lender has filed a foreclosure suit against the developer of the proposed Mandarin Oriental tower just north of Millennium Park, a 74-story project with a lot of sizzle but not enough sales.
An affiliate of iStar Financial Inc. filed to foreclose on the development site at the northwest corner of Stetson Avenue and Lake Street, according to a document filed earlier this month with the Cook County Recorder.
The project’s developer, a group that includes former construction executive Gerard Kenny, had owed iStar as much as $43 million more than a year ago, but the filing did not disclose the balance on the loan, which was used to finance the acquisition of the property and pre-development costs.
The unbuilt condominium-and-hotel tower has struggled with slow sales and frozen credit markets that have made it nearly impossible to finance construction of such an extravagant project, which was considered a big risk even when lenders were loose with their money. Many observers predicted it was only a matter of time before the developer pulled the plug on the $750-million building. |
Not all that suprised and to be honest, not all that upset. THings haven't been right from the start with this one; accusations of mob ties in the beginning, inconsistency with the number of floors and plain old assey employees.
I wonder if those who originally invested in this project could flock to other proposals? That is if they still have the money in the first place.