May 28, 2009 – Broadway 3030, like several other planned Chicago condo projects, won’t be making it past the groundbreaking stage unless a successful bidder at the upcoming auction for the building site picks up where developers Michael O’Connor and Jonathan Zitzman left off. Crain’s reports that the developer duo refinanced the parcel in part with a $7.9 million loan from Urban Broadway Mezz LLC and have defaulted, setting in motion the auction. O’Connor and Zitzman also owe $10 million to First Bank in St. Louis. Urban Broadway Mezz is an affiliate of DV Urban Realty, which is currently being investigated because of $68 million in city pension fund investments.

The site, which is located on 3012-3036 North Broadway Street, will be auctioned on June 5th at DLA Piper LLP law offices. According to Crain’s, any bidder will have to make a $250,000 non-refundable deposit to the winning bidder. The project also has a $213,283 lien against it from architectural firm Hartshorne Plunkard Ltd. for work they state they were never reimbursed for on Broadway 3030.

Broadway 3030 actually broke ground in late 2008 and if completed, this Chicago real estate project would have had 53 condos and a new 40,000 square foot Dominick’s store. The old Dominick’s was totaled in 2005 by a fire and the chain had already leased the space, according to the article. Local residents may be more disappointed by the loss of the new store, rather than the condos. Developers are almost always optimistic down to the last minute though, and Michael O’Connor told Crain’s that, “We continue to work with all interested parties to find a solution for the problem caused by the frozen credit markets. We are still committed to bringing the Dominick’s store.”

With yet another development off the map and no big projects in the works, the list of Pre Construction Condos in Chicago probably won’t be getting any longer any time soon.

[tags]Broadway 3030, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Thursday, May 28th, 2009 at 7:59 pm and is filed under Mortgage Information.