Just days after Richard Branson’s Virgin Hotels brand announced it would be working with the John Buck Co. to convert the 27-story Dearborn Bank Building at 203 N. Wabash into a 250-room hotel, Crain’s Chicago Business reported on October 26, 2011, that the chairman and CEO of the Chicago-based firm is now facing foreclosure on a personal investment. Developer John Buck was sued on October 7, the day after a loan on an Oak Brook office building matured with a balance of $27.6 million. As Crain’s said, the news shows “that not even Chicago’s savviest real estate practitioners can avoid trouble in the current market.”
Calling the lawsuit a “rare blemish” for Buck, Crain’s also noted that “foreclosure suits don’t carry much shame in the current market, where many reputable borrowers voluntarily default because their properties are worth so much less than their debt, wiping out their investment.” The Oak Brook building is 91 percent leased, but Crain’s noted that 85 percent of the leases are scheduled to expire by 2013 and cable provider Comcast, which occupies roughly 70 percent of the building, has a lease that expires in April and renewal terms would require “significant rent concessions.”
Crain’s said it is unclear if Buck will challenge the foreclosure suit, “but many borrowers in his situation see no point in bothering.” While many homeowners might enjoy the thought of simply cutting their losses and walking away from a property that has been hit hard by the housing market, the truth is that a majority still want some sort of foreclosure help that will help keep them and their families in their homes. You should know that whatever unfortunate twist of fate might have contributed to your financial troubles, filing a bankruptcy means test can be the first step in determining the best type of bankruptcy for your situation. Our Chicago bankruptcy lawyers can answer all of your questions and help you work with your debtors to improve your situation. A Chapter 13 or Chapter 7 bankruptcy can allow you to consolidate, eliminate or reorganize your debt, and our firm can help when you contact our office to set up a free consultation.
Benjamin Brand Services – Chicago bankruptcy attorneys