Spire developer closes sales office at NBC Tower

By: Eddie Baeb May 17, 2010

(Crain’s) — The Chicago Spire has closed its lavish sales office in NBC Tower after settling an eviction lawsuit filed last fall by its landlord over unpaid rent.

Spire developer Shelbourne Development Group reportedly spent about $10 million to build out the spacious sales center on the 18th floor of NBC Tower, 455 N. Cityfront Plaza Drive, while the landlord kicked in almost $350,000.

The sales center, which included a fully built-out model, overlooked the Spire’s site at 400 N. Lake Shore Drive, where construction of the twisting tower that would be North America's tallest building halted in late 2008.

The closing comes nine months after the owner of NBC Tower, a partnership controlled by the family of German billionaire Hugo Mann, filed an eviction suit in August, alleging that Shelbourne stopped paying rent in April 2009 and that the building was owed more than $316,000.

The two sides settled the case in February, after the landlord obtained a judgment for about $55,000, part of the unpaid rent, according to a March 4 court order. The settlement apparently paved the way for Shelbourne to surrender the space.

Dublin, Ireland-based Shelbourne closed the sales center over the weekend. sources say. The company will now make sales pitches for the proposed 150-story condominium tower at Shelbourne’s local business office on Wacker Drive, the Chicago Tribune reported Monday on its Web site.

A Shelbourne spokeswoman didn’t respond to a call or e-mail from Crain’s.
But the spokeswoman told the Tribune that Garrett Kelleher was “being smart" by closing the sales center. "If you're in a situation where things are slowing down, you need to consolidate and you need to be smart,” she said.

Attorney Scott Kenig, a partner in Chicago law firm Randall & Kenig LLP, which represents the Mann family partnership, declines to comment.