Posts tagged with "related cos.":

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UPDATE: Related wrests control of Chicago Spire site from Garrett Kelleher

spire UPDATE [3:00 P.M.]: Related now has control of the Spire site, after embattled developer Garrett Kelleher transferred the deed Monday night. Related withdrew their claim in U.S. Bankruptcy Court following the transfer, reported the Chicago Tribune. They haven't released plans for development or sale of the notorious site, but President Curt Bailey issued this statement:
We are pleased to have resolution on 400 N. Lake Shore Drive, the site of the former Chicago Spire project.  We recognize the importance of this site to the City of Chicago and look forward to creating an architecturally significant and thoughtful development befitting this premier location. We are proud to have a long track-record of developing landmark buildings with world-class architects like 840 N. Lake Shore Drive, 500 N. Lake Shore Drive, Park Tower, 340 on the Park and most recently, 111 W. Wacker Drive.  We look forward to continuing that legacy on this marquee site.
-- Halloween came and went last Friday, and with it so may have developer Garrett Kelleher's chance at reviving the Chicago Spire, an ambitious supertall project that faltered during the recession and left an empty cofferdam at 400 North Lake Shore Drive. Under the terms of an earlier settlement in bankruptcy court, Kelleher's company, Shelbourne North Water Street, was required to make a payment to Related Midwest by midnight Saturday. When it did not receive the payment, Related promptly filed papers with U.S. Bankruptcy Court in Chicago to wrest control of the prime real estate from Kelleher. Last year Related moved to buy the dormant project's mounting debt, but part of Related's development team later sued Kelleher for more than $95 million in guarantees for the project. Kelleher surprised many observers in February by offering bullish statements to the media and stirring rumors of a second chance for the Santiago Calatrava–designed skyscraper. Friday's missing payment undercuts those claims. As the Chicago Tribune's Mary Ellen Podmolik reported:
Related, arguing that Shelbourne breached an already approved settlement and the confirmed bankruptcy plan by not making a payment or handing over the deed, wants U.S. Bankruptcy Court Judge Janet Baer to order Shelbourne to relinquish the deed to the 2.2-acre site.
It looks increasingly unlikely that the Spire will rise again. Under Related's control, however, the downtown location could see some sort of development—if not the audacious starchitecture for which it was intended. A court hearing on the motion is scheduled for the morning of November 4.
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Chicago Spire developer moves to settle bankruptcy, revive project

spire Chicago’s stalled supertall Spire could rise again, according to the Irish developer who went into foreclosure in 2010 after a protracted legal battle over the project. Garrett Kelleher’s lawyers on Thursday filed papers in U.S. Bankruptcy Court seeking court approval to move ahead with the Chicago Spire, which remains a hole in the ground at 400 North Lake Shore Drive. Kelleher said a $135 million investment from Atlas Apartment Holdings would allow him to settle bankruptcy claims in full but, as reported in the Chicago Tribune, the court filings don’t say how much more money would be needed to fund the construction of the 2,000-foot-tall condo skyscraper. The twisting tower would have been the largest in the western hemisphere, but the project fell apart in the aftermath of the financial crisis. Skyward-looking Chicagoans, however, never went long without some speculation of the Spire’s resurrection. In June last year, Related Cos. of New York signed on to buy the project's debt. But an affiliate of Related later sued Kelleher for more than $95 million in guarantees involved with the project. According to the plan proposed Thursday, Kelleher’s firm Shelbourne North Water Street would put forward a reorganization plan by August 31 to bring the project out of bankruptcy, potentially transferring the property to Atlas. "We have been working with Garrett Kelleher over the past several months and now share his belief and vision in the Chicago Spire," said Steven Ivankovich, CEO of Northbrook-based Atlas, in a statement. Kelleher seemed optimistic as ever about the project’s sky-high ambitions. "Given the ongoing recovery in the Chicago property market, the timing is better now than when this project commenced," Kelleher said in a statement. "I am delighted to have found a partner who believes in the project as passionately as I do."