Bank of America Corp. sued Shelbourne Development Group Inc., which started to build and then halted construction on the planned 150-floor Chicago Spire tower, claiming the company has defaulted on a loan.
The Charlotte, N.C.-based lender, in a lawsuit filed Thursday in U.S. District Court in Chicago, said it’s seeking $4.9 million in principal, interest and associated fees from Shelbourne and its chairman, Garrett Kelleher, who is said to have guaranteed the obligation.
Shelbourne failed to show Bank of America last year that it had obtained an irrevocable construction loan commitment from a lender or lending syndicate, leading the bank to declare a default, according to the complaint.
Located on the north side of the Chicago River close to where the river meets Lake Michigan, the Spire was planned to be the tallest building in North America. The elongated spiral structure was designed by architect Santiago Calatrava.
The planned 2,000-foot building would contain 1,194 residences, making it the world’s tallest residential tower, according to a fact sheet issued by the developer.
Shelbourne had said it sold more than 30 percent of the units in the building. Work on the project stopped late last year after the foundation was dug and reinforced.
