December 30, 2009 – Evidentially lenders didn’t see the logic in financing the construction of EcoLogic Lofts, a planned green 94 unit Chicago real estate project that was to be built on 2339-59 North Seeley Avenue in Bucktown. Developer William Senne of Senco Properties has been hit with a pair of foreclosure suits related to the planned development, according to a recent Crain’s report.

The two lawsuits were filed by Wheatland Bank of Naperville and total about $6.8 million. According to the foreclosure filing, $5.4 million is owed on one loan that defaulted in March when Mr. Senne stopped making monthly payments. Another $1.4 million is owed and in default since July. That loan was used to purchase a building on 2023 West Fullerton Avenue where the EcoLogic Lofts sales center is currently located. The bank alleges that Mr. Senne personally guaranteed the loans.

EcoLogic Lofts, as the name implied, was to be an eco-friendly project which focused on recycling, would have a green roof top and also wind turbines that powered part of the building’s electrical usage. Senco Properties has been more successful with another green project, Emerald, which is located on Green Street and has sold around 70% of its 212 Chicago condos.

Mr. Senne didn’t endear himself to other Chicago developers after he publicly criticized the growing use of auctions and steep price cuts to sell condos this past summer. And there are certainly some developers who would agree with his sentiments about the over use of condo sales incentives, there are probably just as many if not more who would rather sell at a discount before having to face Chicago foreclosures.

[tags]EcoLogic Lofts, Chicago Foreclosures, Chicago Real Estate[/tags]

This entry was posted on Thursday, December 31st, 2009 at 12:22 am and is filed under Mortgage Information.