The largest creditor on the Chicago Spire is turning up the heat on the failed project’s developer.
An affiliate of Related Cos. sued Garrett Kelleher, the Irishman who started and then aborted the condominium project, demanding that he fulfill a personal guarantee he signed to secure a loan for the development, now just a hole in the ground.
Related wants a federal judge to force Mr. Kelleher to fork over $95.1 million, according to a lawsuit filed yesterday in U.S. District Court in Chicago.
Suing to collect on the guarantee puts even more pressure on Mr. Kelleher. If it wins the case, Related could pursue Mr. Kelleher’s personal assets, not just the property he pledged to secure the loan. A foreclosure suit usually stops at the real estate, but many lenders have sued over guarantees since the crash, setting off a scramble to collect whatever assets they can, whether it’s artwork, yachts or diamond rings.