(Crain’s) — A fund formed to rid Swiss bank UBS A.G. of toxic assets has filed a $20-million foreclosure suit against the developer of a high-end corporate apartment building in the Gold Coast.
Reflecting the continued difficulty landlords face as they try to refinance their properties, developer Jerome Cedicci says he did not repay the loan on the 27-unit building at 70 E. Walton St. when it came due Jan. 11. Mr. Cedicci renovated the 13-story tower into luxury extended-stay suites after borrowing $20 million from UBS in 2007.
“I cannot talk about (the case) because I am in negotiations with the bank,” he says. He says he expects the suit “to be dismissed or resolved.”
UBS transferred the loan last year to the StabFund, a $39-billion fund the Swiss National Bank set up in the midst of the global credit crisis to stabilize Swiss financial markets.
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