Troubles for Obama's Former Boss and Mayor Daley's Nephew: Controversial fund to auction former Dominick’s site

Chicago Real Estate Daily reports:

A $7.9-million loan on a former Dominick’s site in Lake View is turning into a sour deal for a controversial investment fund managed by developer Allison Davis and a nephew of Mayor Richard Daley.

The fund managed by Mr. Davis and Daley nephew Robert Vanecko is seeking to auction off a site at 3012-3036 N. Broadway St. after an apparent default on the mezzanine loan by a venture owned by little-known Chicago developers Michael O’Connor and Jonathan Zitzman, according to a recently published notice of public sale.

The developers planned a 53-unit condominium building and a bigger Dominick’s to replace a store destroyed by fire in 2005.

The auction comes just a couple months after news reports that Chicago’s inspector general is investigating millions of dollars in investments by city pension funds in the fund, called DV Urban Realty Partners L.P., according to news reports. The auction is to take place June 5 at the office of law firm DLA Piper LLP, according to the notice.

An interesting article.