(Crain’s) — Bank of America will auction off Antoin “Tony” Rezko’s north suburban mansion early next month to try to recoup part of the imprisoned developer’s past-due $5.15-million mortgage.
Mr. Rezko took out the loan on his more than 8,400-square-foot home at 1250 Chestnut Ave. in Wilmette in September 2003, roughly three years before he was indicted on federal fraud and money-laundering charges.
The original lender, Chicago-based LaSalle Bank N.A., filed a foreclosure lawsuit in October 2006, after Mr. Rezko, a key fundraiser for politicians including former Gov. Rod Blagojevich, allegedly missed his August 2006 payment, according to a copy of the complaint filed in Cook County.
Now, the home where Mr. Rezko once held a lavish fundraiser for President Barack Obama will be auctioned off Aug. 10. Bank of America, which acquired LaSalle Bank in fall 2007, is expected to set a minimum sales price for the property, though the amount was not yet known, says Scott Jensen, a partner at Murray Jensen & Wilson Ltd., a Chicago-based law firm that’s representing the bank.
Even if a buyer steps forward, it’s unlikely that Bank of America will recoup the $5.2 million in principal, interest and late fees that Mr. Rezko allegedly owed as of October 2006, according to the foreclosure complaint. Several Wilmette residential brokers estimated that the property would sell for between $3 million and $4 million.
“It’s a small market for homes that are in that upper bracket,” says Sharon Freidman, a sales associate in the Winnetka South office of Coldwell Banker Residential Real Estate LLC. “There aren’t that many people out there with a lot of money. The dot-commers have come and gone.”
Mr. Rezko, a developer and fast-food entrepreneur who opened more than 25 Papa John’s pizza franchises, remains in federal custody awaiting sentencing. A jury found him guilty in June 2008 of crimes including pocketing kickbacks from money management firms that sought state business.
The federal government has requested that Mr. Rezko forfeit his interest in the residence in the unlikely event that the home’s value is greater than the debt Mr. Rezko owes.
Mr. Rezko acquired the two-story Wilmette home, which has five full bathrooms and a three-car garage, for $1.9 million in January 1999, according to property records.
A message left for one of Mr. Rezko’s lawyers, Howard Adelman, was not returned. The auction will be held at 11 a.m. Aug. 10 in the office of Intercounty Judicial Sales Corp., 120 W. Madison St. in Chicago.
No comments:
Post a Comment