Sunday, May 23, 2010

Investors battle lender on stalled Chicago hotel

(Crain’s) — Chicago developer Duke Miglin and an Irish group he recruited to invest in his stalled River North hotel project are striking back at the lender trying to foreclose on the property, now just a 16-story concrete shell draped in canvas.

Mr. Miglin and his prospective partner allege that the lender, CapitalSource Finance LLC, reneged on an agreement to recapitalize and restart the planned Staybridge Suites hotel at 127 W. Huron St., which has been idle for nearly two years.

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