$12 MM Foreclosure On Spire Developer's Personal Residence

Garrett Kelleher, the developer of The Spire, has obviously seen better days. First, all he has to show for his Spire project is a massive hole in the ground and that is facing a $77 MM foreclosure suit. But now, according to a story in Crain's yesterday, his personal residence at 1416 N Astor St is also in foreclosure . I guess even the super rich have their financial problems these days. That's what happens when you live beyond your means.

The MLS indicates that Mr. Kelleher's home was purchased for $8.5 MM (they were asking $10.5 MM) in March 2007. However, the recorder's site indicates a purchase price of only $5.7 MM and shows the buyer as Seosaimh Partners. Nevertheless, the Bank of America mortgages totaled $8.5 MM. In other words, Garrett Kelleher put no money down! Then in August 2008 it looks like they refinanced the property for $10.8 MM. The current foreclosure lawsuit is for $12 MM according to Crain's - also Bank of America.

From the MLS description at the time or original purchase:

HOUSE&PROPERTY OF RARE DISTINCTION. 1912 ARTHUR HEUN GEORGIAN MASTERPIECE W/TRIPLE LOT FRONTAGE & MAGNIFICENT ENGLISH GARDEN . SUPERB VINTAGE DTLS W/MODERN AMENITIES: 6B RS/6.1BAS. ZONED A/C. ELEGANT PANELED RMS W/PALLADIAN WINDOWS FACE PRIVATE COURTYD. LG NANNY/OFC SPACE. GARDEN RM & GREENHOUSE.4 CAR PARKING. TRULY A UNIQUE GOLD COAST OFFERING.

Here are a few factoids on the home as it existed then:

  • 5 bedrooms
  • 6 1/2 baths
  • Lot size 75 x 110
  • 8 fireplaces?!?!?!?!
  • 4 car garage
  • 10,284 square feet

Spire developer home

According to the Crain's article Mr. Kelleher spent "millions" renovating the property and then had it on the market for $16 MM in the January time frame. But it wasn't listed on the MLS so he really hurt his chances of selling it at any price.

Comments

Leave a comment
  • The tax stamps on the deed (what I assume you mean "the recorder's office") would indicate the true consideration.

    There are several things that seem to smell here, in that either no money down or BoA lent more than the purchase price, and title was apparently not in his name individually.

    In what appears to be a similar case, the feds brought charges against a Northbrook developer (he kept finagling for TIF money and concessions, but never met the deadlines for them), had the property itself foreclosed, but to try to stave off foreclosure, he mortgaged his house, and when that didn't work, had some title examiner certify that the title to his house was clean, so he could mortgage it again (according to the Pioneer Press article).

    BTW, I finally looked at your response on the "buyer's agent" post.

Leave a comment