Chicago's Corus Bankshares foreclosing on resort

Corus Bankshares Inc., the Chicago lender crippled by non-performing construction loans, began foreclosure proceedings against the owner of a 582-room coastal resort in Los Angeles County, the Daily Breeze reported.

Corus filed a notice of default Aug. 14 for its $180 million loan to Lowe Enterprises Inc., developer of the Terranea Resort in Rancho Palos Verdes. Bids to buy from Corus are due next week, the Torrance, California newspaper reported Aug. 26. A second lender, billionaire Bill Gates' Cascade Investments LLC, filed an Aug. 11 default notice against Terranea on a $110 million loan, according to the Daily Breeze.

The two filings set the $480 million resort on two distinct timelines of about 125 days toward separate foreclosure sales, the newspaper reported. Because Cascade filed its default notice first, the firm may be able to take and maintain ownership of the property, according to the Daily Breeze.

Corus may be forced by the government to sell its commercial real estate loans or be bought in its entirety by another bank or investment firm, the Daily Breeze reported.

The Los Angeles Times reported today that Lowe also stopped making mortgage payments on its Sheraton Universal Hotel in the Universal City section of Los Angeles.