High-end Enterprise Cos. condo project in Chicago facing foreclosure

The Chicago Journal publication reports that another Ron Shipka/Enterprise Cos. — the developer that built Palermo — is facing foreclosure. The article says: "Bank of America may soon foreclose on Museum Park West, a 298-unit condo building in which the developer Central Station Development Corp. has sold just 65, or 22 percent, of the units since the building opened in early 2010. According to Crain’s Chicago Business, Central Station Development Corp. owes Bank of America $125 million, making it the most costly Chicago foreclosure case since the housing bubble burst in 2007. According to Crain’s, the developers testified at a civil trial last month that the building would likely enter foreclosure. Multiple calls to Central Station Development Corp. were not returned. The corporation is a joint venture between Fogelson Properties, headed by Gerald Fogelson; Enterprise Companies, headed by Ronald Shipka Sr.; and Cleveland-based Forest City Enterprises. Spearheaded by Fogelson, Central Station Development Corp. has been active in South Loop condo construction since 1989. But the developers kept building after the housing bubble burst — the Museum Park West project was rolled out in October 2007, after the foreclosure crisis was well under way. If Museum Park West does enter foreclosure, Bank of America or the new property owner could follow the recent trend of converting vacant South Loop condos into rental units. “I think it will turn rental very soon,” said Bob O’Neill, executive director of Grant Park Conservancy, who has monitored how the real estate boom impacted the lakefront. Central Station Development Corp. also took out loans from Bank of America on 1600 Museum Park, the 275-unit condo building at 1629 S. Prairie Ave. and the 288-unit condo high-rise, 1901 Museum Park South, at 1901 S. State St." Miss Penny Lane says: Thanks for the information.