Preferred Equities Foreclosure Suit Puts Wrigleyville Redevelopment In Jeopardy
A plan by M&R Development and Bucksbaum Retail Properties to redevelop a stretch of retail along Clark Street into mixed-use is in limbo because the current owner is embroiled in a foreclosure lawsuit. Republic Bank of Chicago sued Preferred Equities and owner Steven Schultz for $23.7M, claiming Schultz personally guaranteed to repay the loans, which matured last October.
This isn't the first time Schultz has faced foreclosure on the properties, according to Crain's. He settled a 2012 suit by Bank of America by refinancing the assets with a $9M loan from Republic Bank. Schultz, who had announced his own redevelopment plans for the buildings in 2007, is set to sell them to the M&R-led JV, but can't until this suit is settled.
The M&R-Bucksbaum project, dubbed Addison Park on Clark, will have 148 apartments, 169k SF of retail and 493 parking spaces, steps from Wrigley Field. [Crain's]