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Spire Money Pit Makes a Few Real Estate Lawyers Very Happy

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From architect Sanitago Calatrava, who hasn't collected on his $11.3 million design fee, to Irish developer Garrett Kelleher losing his shirt, the lofty Chicago Spire project has been a money pit for many of the key players. But according to Crain's, it has been a boon for a few people involved, notably the lawyers who have worked on the bankruptcy case. A motion filed in federal court by the current owners of the property, Related Midwest, reveals that the case generated $2.2 million in legal fees, $1.3 million of which went to Kelleher lawyer Thomas J. Murphy.

According to other court documents, the fallout from the ambitious project's demise means unsecured creditors will receive 71 cents on the dollar, with New York firm Thornton Tomasetti getting $1.2 million back. Related, which has already turned its attention to the an Robert A.M. Stern-designed Streeterville project a few blocks away, can't sit on the property very long without racking up significant costs. The Crain's piece estimates debt service on the land and hole in the ground may run around $3 million annually. Maybe it's time to start on that "architecturally significant and thoughtful development?"

·Judge poised to close Spire case, but not the hole [Crain's]
·Another Spire victim: architect Santiago Calatrava [Crain's]
·Previous Chicago Spire coverage [Curbed Chicago]

Chicago Spire

400 North Lake Shore Drive, Chicago, IL 60611 Visit Website