FRIDAY, JANUARY 22, 2010
by Illinois Real Estate Journal ReportsChicagoToday the Cook County Circuit Court permitted CB Richard Ellis to take possession of the Block 37 project. Joseph Freed and Associates LLC remains the owner of Block 37 and has filed an appeal of the appointment of the receiver and will pursue the appeal vigorously.
Larry Freed, President of Joseph Freed and Associates LLC, made the following statement in a release:
"I hope to relieve Bank of America of its current Block 37 financial obligation in the very near future.
While the receiver has been trying to figure out insurance, we have been in serious discussions with potential investors who recognize the long-term value the Block 37 project represents.
We hope the receiver takes her duties seriously and does a good job with our project while she's there. However, the receiver should not get too comfortable because we fully expect to return to control of Block 37 very soon. To that end, I have informed our entire Block 37 team that we will be keeping everyone employed for our return to the project.
Meanwhile, I expect the receiver to operate the project in a manner that is consistent with the City's and our vision for Block 37. As the owner of Block 37, we strongly encourage the receiver to move forward on the signed leases that we have sent to the Bank for approval. These prospective tenants have been more than patient waiting for final word from the Bank and are entitled to an answer so they can open their businesses and put their employees to work. And our open tenants are entitled to be treated with respect under their existing leases, and the receiver should press Bank of America, as we have, to fund its obligations under these leases.
Finally, I want to say how proud I am of the quality and vibrancy of the tenant mix that we are bringing to both of our projects on State Street. Just last night, the 13,067 square-foot Anthropologie store opened at Block 37 with a VIP reception and opened to the public this morning at 10:00 am. The Sephora at Block 37 will open on March 6."
CB Richard Ellis also released the following statement:
"We are delighted with the Court's decision to grant full operational control of the retail and transit portions of Block 37 to Karen Pence Hollan, a CB Richard Ellis employee, as receiver. Given the complexity of the project and the current uncertainty of ownership, securing the necessary insurance has been a highly complicated process involving intricate negotiations---this has not been a routine insurance matter - and we are pleased to have achieved a satisfactory outcome. The OCIP (Owner Controlled Insurance Program) and all other necessary insurance are now in place, and we have full responsibility for the property's leasing, management and development.
We are pleased to serve as receiver on such a significant project in the heart of downtown Chicago. We look forward to working cooperatively with all parties, including the lenders, the Freed organization and the City of Chicago, to make the vision for Block 37 a reality."
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