Foreclosure suit filed against Arlington Hts. condo developers

A foreclosure suit has been filed against the developer of the Fountains of Arlington in north Arlington Heights.

A portion of the 109-unit, two-building condominium development on the former site of Otto Goebbert & Sons farm and farmstand near Rand and Palatine roads has been completed. It is not known how many units have been sold.

Silver Point Capital L.P. of Greenwich, Conn., has sued for $6.2 million, naming Gettysburg Development Corp. and its president, Larry McKone, along with unnamed tenants.

Loans granted by MB Financial Bank, including a construction loan in 2003, totaled $22.9 million, said the suit filed late last month in Cook County Circuit Court.

The $2.9 million purchase deal for 6.5 acres was initiated in 2001 and closed two years later.

In December of 2007 MB Financial assigned its rights to an affiliate of Silver Point.

Silver Point officials declined to comment, and messages left at the Fountains of Arlington were not returned.