Thursday, August 8, 2013

City Tavern Building Hit with Foreclosure Suit

Image from City Tavern Facebook Page
The City Tavern building owners have reportedly been hit with a foreclosure suit (via Chicago Real Estate Daily):
Northbrook Bank & Trust Co. filed a $3.9 million foreclosure suit against a venture led by Mr. O'Malley over two loans on the building housing his City Tavern restaurant in the South Loop.  
The remaining balance of a $6.2 million loan on the 8,610-square-foot building at 1416 S. Michigan Ave. came due in November 2010, according to a complaint the bank filed in June in Cook County Circuit Court. Once the venture defaulted on that debt, the Northbrook-based bank demanded full repayment of a separate $1.2 million mortgage on the same property, the complaint says.

Definitely not good news for the restaurant or the Mainstay Hospitality group that also runs Chicago Firehouse and Wabash Tap.

For the well informed readers, you probably remember that Chicago Firehouse is also facing some legal troubles as we posted about in June.

Should be interesting to see how this plays out.  Believe it or not, we are still hearing rumors about an Italian Restaurant opening next door to City Tavern.  Maybe that's on hold.

(Hat tip:  AR & EM!)

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