Developer Garrett Kelleher has reached an agreement with his largest creditor, Related Cos., over a financing plan that would allow him to keep control of the Chicago Spire site and potentially search for construction financing for the development
Mr. Kelleher has until Oct 31 to pay back Related Cos., $109 million, which would allow him to retain ownership of the site. Mr. Kelleher has an option to extend final payment till March 31, 2015, but under that scenario he would owe an earlier $22 million payment, as well as increase Related’s total claim to $114 million.
Chicago-based Atlas Apartment Holdings LLC, would still provide him with financing to satisfy Related’s claim. If the deadlines are not met, Related would assume ownership of the property.
The amount Related paid for the delinquent loan was redacted in court documents.
Atlas CEO Steven Ivankovich said his joint venture with Mr. Kelleher would build the 2,000-foot Spire using the original corkscrew design by Spanish architect Santiago Calatrava. That’s “the only reason we’re interested in this piece of dirt,” Mr. Ivankovich said. “We’re eager to stop paying lawyers and start paying architects.”
The Spire never got beyond the “hole in the ground” in 2006 when construction was stopped.