Obama's Former Boss: Allison Davis loses control of Grant Park condo tower

Chicago Real Estate Daily reports:

Chicago developer Allison Davis has lost control of a slow-selling $117-million condominium tower overlooking Grant Park, rankling an investor in the project who has sued the lender that took it over.

A unit of Boston-based Fidelity Investments reneged on a deal to modify an $18.5-million mezzanine loan to the Columbian, a 46-story building at 1160 S. Michigan Ave., according to the lawsuit, filed last week in Cook County Circuit Court.

The case provides a behind-the-scenes peek at the loan workout process, an experience all too familiar to many downtown developers that haven’t sold enough condos to pay off their lenders.

It also illustrates the big financial risks facing Mr. Davis, who could be forced to come up with $38 million of his own money to pay off Fidelity, according to the complaint.

No word yet from Barack Obama or Tony Rezko on this one.