By: Samantha Sleevi April 22, 2009
(Crain’s) — A Southern California bank has sued to collect more than $9.5 million on seven vintage North Side apartment buildings owned by developers Charles Mudd and Steve Golovan of Chicago Graystone Realty LLC.
Chicago Graystone and an affiliated construction firm, Castlebar Enterprises Inc., have been active rehabbers of apartment properties in addition to building new developments totaling about $1 billion since 1989, according to Graystone’s Web site.
The foreclosure suits hit rental properties from Rogers Park to West Town. The largest asset is a 24-unit structure at 646 W. Roscoe St. in Lakeview, built in about 1931.
Mr. Mudd is a defendant in all seven cases because he allegedly personally guaranteed the loans, which were issued in November 2003. Mr. Golovan is a defendant in three of the cases because he personally guaranteed only some of the loans, according to the complaints.
They did not return calls requesting comment.
Separately, Amcore Bank filed a foreclosure lawsuit March 13 on another Mudd/Golovan project, a four-unit condo development at 456 W. Briar Place in Lakeview. Only one unit has been sold, property records show.
Rockford-based Amcore is seeking to collect nearly $1.5 million on a construction loan for the three-story building that wasn’t paid off when it came due March 11, according to the complaint. Messrs. Mudd and Golovan allegedly also guaranteed that loan.
The two low-profile developers also are investors in a group that in August acquired a controlling interest in North Side residential brokerage Jameson Real Estate LLC.
The other six properties in the First Bank of Beverly Hills foreclosure cases are:
• A six-unit building at 1135 N. Damen Ave. in West Town.
• A three-unit building at 1765 W. Armitage Ave. in Logan Square.
• A 10-unit building at 1100 N. Western Ave. in West Town.
• A 15-unit building at 4701 N. Malden St. in Uptown.
• A 20-unit building at 1626 W. Lunt Ave. in Rogers Park.
• A 16-unit building at 4857 N. Paulina St. in Uptown.
RELATED: Steve Golovan Loves Rogers Park!
Lakefront Development, Did You Know?
Let's Have Another Re-Development Meeting
$11K. Steve Golovan and Castlebar generously helped reelect Joe Moore in 2007.
Castlebar Enterprises (1620 W Estes LLC)
2636 N Lincoln Av
Chicago, IL 60614
$1,500.00
11/30/2006 Individual Contribution
Citizens for Joe Moore
Castlebar Enterprises (1620 W Estes LLC)
2636 N Lincoln Av
Chicago, IL 60614
$1,500.00
11/30/2006 Individual Contribution
Citizens for Joe Moore
Castlebar Enterprises (4716 Beacon)
2636 N Lincoln
Chicago, IL 60614
$2,500.00
12/14/2006 Individual Contribution
Citizens for Joe Moore
Castlebar Enterprises (4716 Beacon)
2636 N Lincoln
Chicago, IL 60614
$2,500.00
12/14/2006 Individual Contribution
Citizens for Joe Moore
Castlebar Enterprises (7024 N. Ridge LLC)
2636 N.Lincoln Av
Chicago, IL 60614
$1,500.00
11/30/2006 Individual Contribution
Citizens for Joe Moore
Castlebar Enterprises (7024 N. Ridge LLC)
2636 N.Lincoln Av
Chicago, IL 60614
$1,500.00
11/30/2006 Individual Contribution
Citizens for Joe Moore
4 comments:
The chickens sure are coming home to roost for 10 years of the most irresponsible financial behavior in the history of the world. This debacle is going to be unwinding for a few more years, until it levels out and things flatline for a few more years.
Development has always been considered to be fraught with risk, and developers usually have to personally guarantee their loans. A developer in the Sauganash Park neighborhood was foreclosed on a $14M dollar loan a couple of years back.
The commercial loans- shopping centers, office parks, power centers- is just beginning to unravel and that will be the biggest bloodbath of all.
Notices of Default, the first stage in foreclosures, are at an all-time high now in the 2nd quarter of 2009. Most of those will become REOs, which means that we have still more foreclosures in front of us than behind us.
All in all, it's a really good time to just lay back from the fray and pay rent.
And once things bottom out, it's pretty doubtful we'll see the kind of wild appreciation in house prices we were seeing there for a while, because normal lending standards have returned. That means a down payment and a loan for 2.5X your income. And since we have so much redundant retail already, it's doubtful that we will see any more built, and more likely that we'll see a lot of shrinkage there.
Hey, everybody, Craig is now blogging for Gay Chicago Magazine!
Here's the GCM blog I am so excited that he's going to do both!
look at all those contributions to our friend Joe - geez - i wonder if there was any connection between donations and development - hmmm
Well, Steve lives in a beautiful home and has millions of dollars - I'm sure it's all going to be saved while they declare the company bankrupt. One of the reasons why the little guys can't seem to borrow money anymore.
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