B of A wants CB Richard Ellis named Block 37 receiver
By Alby Gallun
Crain's Chicago Business
October 24, 2009
Bank of America has picked CB Richard Ellis Inc. to serve as the receiver of Block 37 days after filing to foreclose on the troubled Loop retail development.
A Cook County Circuit Court judge on Monday afternoon is scheduled to hear the bank's motion to appoint CB Richard Ellis as the receiver, a move that would wrest control of the project from its developer, Chicago-based Joseph Freed & Associates LLC, just weeks before retailers are to start opening stores there.
The bank filed the motion late Thursday, three days after filing a foreclosure suit demanding that Freed pay back a $128-million balance on a construction loan.
"It is essential for the well being of the project and its tenants who have signed leases that a receiver be appointed and placed in possession and control of the project under supervision of the Court as soon as possible in order to maintain the pace of construction, deliver leased spaces to tenants, discharge obligations of ownership under leases, open the pedway, and otherwise facilitate the completion and lease up of the project," the motion says.
The bank has asked the judge to appoint CB Richard Ellis Director of Asset Services Karen Pence Hollan as receiver of the development on State Street just across from the Macy's store.
"We intend to vigorously oppose the foreclosure and the appointment of the receiver," a Freed spokeswoman says.
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