$65 Million Non-Performing Office Loan | Chicago, IL

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $65 million non-performing office loan (the “Loan” or “Note”). The Loan is secured by the mortgage on the fee and leasehold interest in a class B office high-rise in Chicago, IL. (the “Collateral” or “Property”). As of April 2025, the Loan is non-performing via a payment default and has an unpaid principal balance of $65 million.

The Collateral is comprised of a 29-story office building located in the Central Loop of Chicago, IL. Constructed in 1981 and renovated in 2009, the Property benefited from recent capital injections from 2021 to 2024, amounting to $11.7 million. As of March 2025, the Property is 44.2% occupied and benefits from a state-of-the-art amenity package including a fitness center, upgraded lobby space, bike storage, and first floor dining options.

The Property is partially a leasehold interest pursuant to a ground lease (the “Lease”). Originated in January 1978, the Lease requires annual base tax payments of approximately $500,000. With an initial maturity date in April 2048, the Lease features three, 99-year extension options. The rent under the current term of the ground lease is prepaid through the end of the original term.

The offering presents investors the opportunity to buy a non-performing Loan at a favorable basis, significantly below replacement cost, with a potential path to ownership and the transfer of significant escrow balances to the purchaser of the Loan.