It is a race to the finish for “Block 37,” the beleaguered construction site in the Chicago Loop. Just as the first retail tenants ready for their opening day this fall, a consortium of lenders headed by Bank of America Corp. initiated foreclosure proceedings against developer Joseph Freed and Associates LLC.
A lawsuit filed on Oct. 21 claims Freed is in default of more than $128.5 million on a $205 million construction loan. It also asks the court to appoint a receiver to manage the property and finish the project. Freed calls the suit “a misguided action that could halt the project” and plans to fight it vigorously.