Oak Brook New Housing Developement in Forclosure

(Crain’s) — Bridgeview Bank Group has filed to foreclose on Brittwood Creek, an exclusive 56-acre development of posh single-family homes in Oak Brook by longtime suburban homebuilder Callaghan Associates Inc., another reminder of the nearly dormant market for new high-priced homes.

After paying $21.3 million for the site in late 2006, a Callaghan-controlled venture has apparently sold just one of the 30 lots in the subdivision, at State Route 83 and 35th Street in the western suburb.

The wooded development site, which includes a winding creek, is about 2 miles south of the bustling Oakbrook Center shopping mall. Roads, sewers and other infrastructure have been constructed.

Callaghan financed the purchase and other development costs with a $24.7-million construction loan from Bridgeview, based in the southwest suburb.

But in September, the Callaghan venture began missing monthly loan payments, according to a complaint Bridgeview filed Oct. 29 in DuPage County Circuit Court Court. The total amount due is a little more than $23 million, the complaint says.

A lawyer for the bank, John J. Pcolinski Jr. of Wheaton law firm Guerard Kalina & Butkus, says, "It is appropriate for the parties to continue negotiations. We're hopeful it will be resolved satisfactorily for all parties."

Daniel Callaghan, president of Westmont-based Callaghan, did not return calls requesting comment. His father and the founder of the company, David Callaghan, died in July at age 80.

David Callaghan began his development career in 1954 building houses in Oak Lawn for first-time home buyers, eventually expanding the company to include multi-million-dollar mansions, according to an obituary in the Chicago Tribune.

In recent years, Callaghan Associates focused on developments targeting empty-nesters, such as the 78-home Forest Gate subdivision in Oak Brook, which is nearly complete, and the Savoy Club, a planned 52-unit project in Burr Ridge