A venture controlled by Mr. Mazola that built a 176-unit condominium tower at 1555 S. Wabash Ave. filed for Chapter 11 bankruptcy protection Tuesday. Buyers have closed on just 35 condos in the building, or 20% of the total, with the rest converted to rentals, according to a third-quarter report from Appraisal Research Counselors, a Chicago-based consulting firm.
The Mazola venture lists both assets and liabilities of $10 million to $50 million, according to its Chapter 11 petition.
The document doesn't break out the project's secured debt, but its biggest liability likely is the construction loan it took out to finance the 14-story development. The venture borrowed $46.2 million from Amtrust Bank in 2007, county records show. No foreclosure suit has been filed.
Mr. Mazola, president of Chicago-based New West Realty Group LLC, says the filing is “just a partnership filing and it is what it is.” He declines to comment further. His lawyers also decline to comment.