Two noted Gold Coast development sites under Mark Hunt of Chicago are being sued for unpaid loans amounting to $50 million. Foreclosure is imminent. One of the sites is the shut down Esquire Theatre. Two suits have been filed.

Anglo Irish Bank Corporation is targeting collection of $33.2 million for the Esquire area that covers half an acre on Oak Street. Hunt had originally planned to pull down the 1930 theatre and build a boutique hotel. The Esquire Theatre was noted for its vertical neon marquee. With the failure of this plan Hunt reversed gear and attempted to build a retail development complex. But that plan too got bogged down. The bank now complains that Hunt has failed to pay the loan that was originally $32 million. It became mature on 26th March 2009. The suit was filed this month of August in Cook County Circuit Court.

Another suit was filed by Anglo Irish Bank on the site of what was once the Cedar Hotel on Straight Street. The property owned by Hunt is largely empty. The bank is seeking to realize about $18.7 million. Hunt planned to construct a ritzy hotel on the location but the deal with Morgans Hotel Group fell through in 2008 due to the worsening financial situation. The loan does not mature till 3rd October but the bank says that Hunt has defaulted in paying off three of the liens on the estate amounting to $1.26 million.
Barry Schain of Next Realty LLC of Northbrook said, “The banks, when they smell blood and see things start to go bad, they don’t want to be the last ones holding the bag.”

Hunt cannot be contacted and messages left for him are not being returned. Hugh McNally of Anglo Irish refrained from comments.

For Hunt the founder of M Development LLC based in Chicago the year has been rough and tough with the latest blow coming from the twin foreclosures. He is facing another law suit of $13.5 million on a retail project in Lincoln Park. The president of M Development Jeffrey Shapack resigned from the firm earlier this year in summer.

Last month there were signs that the Esquire project would see some hope when Endeavor Cos said it would auction off a stake on the property in Oak Street to collect debt amounting to $2.9 million. The investment of Endeavor was akin to a second mortgage – otherwise known as a mezzanine loan.

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