Condo projects face foreclosure action

Source: Business Section Milwaukee Journal Sentinel 6 March 2009

By: Tom Daykin

Two Franklin condominium projects developed by area real estate investors Jeffrey Klement and Gerald Klamrowski have been hit with a pair of foreclosure suits claiming investors defaulted on their debts adn owe nearly $6 million.  North Shore Bank filed the lawsuits in Milwaukee County Circuit Court.  One suit names as defendants The Villas Partners LLC, an investment group based in South Milwaukee:  Klamrowski, a South Milwaukee developer; Klement, a Franklin developer, and investors Christopher and Linda Allessi, both of Greenfield.  The suit claims the defendants defaulted on a series of loans tied to condos built a the Villas of Franklin.  It is seeking foreclosure judgements and says North Shore is owed $3.4 million.  The other suit names as defendants Tukaway Pines LLC, an investment group based in South Milwaukee; Klamrowski; and Klement.   It is seeking foreclosure judgements tied to $2.5 million owed for loans related to the Tuckaway Pines project, also in Franklin.  Neither Klamrowski nor Klement Returned calls seeking comment.  Christopher Allessi declined to comment on the suits.  The Villas of Franklin and Tuckaway Pines are among several condo development created by Franklin-based Icon Development Corp., where Klement is chief executive officer.  The suits do not name Icon as a defendant.  In January Marshall & Ilsley Bank filed a foreclosure action against Klamrowski, Klement and Alessis and Franklin Oaks Partners LLC, an investment group.  M&I says it’s owed about $4.6 million and is seeking to foreclose on condos at Icon’s Franklin Oaks development.