Vetro developer files for Chapter 7 bankruptcy

Vetro, 611 S Wells St, Chicago

Who would have guessed that Vetro, a 31-story, 232-unit tower at 611 S Wells St, would be one of the most talked-about towers of 2009? Due largely to a much-publicized condo auction in March, Vetro has become the symbol of the South Loop‘s burst bubble. In more than one instance, the auction and the price cuts that followed convinced other condo developers to follow suit with reductions of their own. Even now, almost four months after the auction, sales managers in the South Loop, West Loop, and River North still reference “the Vetro effect” in conversation.

Vetro’s price cuts may have been a boon for buyers, but they must have been a hard pill for developer / architect Thomas Roszak to swallow. According to Crain’s, seven of Roszak’s companies, including Roszak / ADC, have filed for Chapter 7 bankruptcy, a route that most likely will lead to liquidation instead of reorganization. Roszak has assets of $1 million to $10 million and liabilities of $50 million to $100 million, according to the article.

Although the filings do not include the LLC formed to develop Vetro, documents suggest a bankruptcy petition for that company is imminent.

While he’s not the first Chicago-area developer to file for bankruptcy in the past two years, “Roszak is likely the first developer with a big downtown project to file for personal bankruptcy in the current downturn,” the article states.

Baird & Warner, Vetro’s exclusive broker, currently has two two-bedroom / 2.5-baths with 1,343 to 1,924 square feet, listed from the $370s to $570s, and one 2,000 square-foot, three-bedroom / three-bath penthouse listed in the $580s.

Two resales are also listed: a 1,343 square-foot two-bedroom priced in the $460s, and a 2,079 square-foot one-bedroom priced in the $840s.

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