Since Bank of America filed suit in October to foreclose on the $128 million construction loan, Freed has been trying to stay in control of the project. The developer recently responded to a report that the receiver delivered to the court. Both sides are arguing how much the receiver should get paid for the work, if CBRE can claim it started work in November when it was assigned or in January when it gained proper insurance, and how tenant work should be structured. The judge on the case is reviewing all arguments, while Freed attorneys have also taken the receivership assignment decision to the state appellate court.
A Freed spokeswoman tells GlobeSt.com that the company hopes to hear a decision from the appellate court soon. "We're also working with potential investors to buy back the construction loan," she says.
A spokeswoman for the receiver, CBRE executive Karen Pence Hollan, declined to discuss the project with GlobeSt.com. A Sephora spokeswoman also refused comment. The beauty products store has more than 250 stores in North America. Other retail tenants at Block 37 include Godiva and Accent Chicago. The occupancy rate of the project isn't clear, but in a Freed court document the company claims the property has only 16 tenants open on three of the five floors.
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