RACINE COUNTY - One of the Racine area's biggest developers, Joe Mrazek, and seven of his companies are in foreclosure, apparently recession victims.

Norstates Bank of Waukegan, Ill., recently filed a foreclosure action in Racine County Circuit Court against Mrazek of Mount Pleasant and seven of his limited liability corporations.

Each of those LLCs represents a commercial project, most of them developments by Mrazek, founder and president of Midwest-Interstate Realty Corp., 8338 Washington Ave. That is also one of the properties involved in the foreclosure case.

Mrazek referred a call for comment to his Burlington-based lawyer, Todd Terry.

"It's a very humbling experience for him after all these years," commented Terry, who said Mrazek has been developing property for 40-plus years.

Terry attributed the loan defaults to economic forces. He cited reduced occupancy rates and unit prices in the building, and in turn reduced rental income. "Unfortunately, it's brought everything from the national scene very local," he said.

Circuit Court Judge Richard Kreul recently granted the bank's request to appoint a receiver in the case. Terry said that because Mrazek's own company had been managing the properties, the receiver will handle that job during the foreclosure.

No tenants will be affected by the court action, he said.

Terry has filed counterclaims and said Mrazek hopes to wind up with some of the properties involved. One claim, for example, is that the bank misapplied loan payments and caused more notes to go into default, thus breaching its fiduciary duty to Mrazek.

The properties in foreclosure are:

- The Bankers Road offices at 6233 and 6266 Bankers Road. Together they are assessed at $2 million.

- 6211 Durand Ave., office space across highway 11 from the Mount Pleasant village complex and assessed at $903,000.

- 5605 Washington Ave., called the American Building, immediately west of Denny's Restaurant, containing Express Personnel Services.

- 1122 S. Airline Road, a free-standing building containing Camera Masters Portrait Studio.

- 8338 Washington Ave., called Corporate Center, with tenants including Community State Bank, Curves, Mayfair Rental and Fastenal Co. It is assessed at $2.1 million.

- Durand Shopping Center, at the southwest corner of Durand and Lathrop avenues, containing a former Kohl's grocery store.

- 6800 Washington Ave., assessed at $1.9 million, which has had both retail and office tenants. A key occupant now is Schoone, Leuck, Kelley, Pitts and Knurr law firm.