A data center southwest of downtown Chicago is undergoing the foreclosure process after missing mortgage payments since February 2011.
Cole Taylor Bank says the owners of the 107,000-square-foot data center at 601 W. Polk stopped making debt-service payments in February and is behind on property taxes according to a suit the bank filed in May. To date, no foreclosure help has been sought by the owners.
The property is owned by ventures of Richard Beston and John Branch, principals of investment banking firm Rainmaker Financial Group Inc. In 2006, they purchased the center for $9 million with an affiliated private-equity company, Ten X Capital Partners. They financed part of the purchase with a $5.4 million loan from Cole Taylor according to property records.
The property at 601 W. Polk, also known as Chicago Media Center, is 60% leased and generates enough cash flow to service its debt. However, the property could use some renovations according to Christopher Jensen, a principal with Chicago-based Digital Capital Partners LLC.
Cole Taylor’s lawsuit states the property’s 2006 loan was modified six times between January 2007 and November 2010. Another $1.5 million was added to the loan which puts the total balance due to $6.25 million.
The suit seeks to collect on a guarantee given by RM Advisors, a venture managed by Beston and Branch. Ten X Capital Partners III LLC is also a defendant.
Benjamin Brand Services – Chicago foreclosure attorney