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

Attributes

Loan status

Non-Performing

Unpaid principal balance

SGD 83,993,975

Maturity date

01/04/2030

Current interest rate

3.7%

Year built

1981

Year renovated

2024

Rentable area

82,684 m²

Number of floors

Occupancy

44.2%

Call for offers

19/06/2025

Asset Description

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.

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Investment Highlights

Path To Ownership

The non-performing Loan allows investors the ability to potentially step into the ownership position on a recently renovated high-rise office building at an attractive basis.

Significant Repositioning Optionality

Characterized by the boutique floor plates and abundant natural light, the Property’s transitioning occupancy status creates an environment conducive to repositioning optionality. Among other permitted uses, the existing DC-16 zoning permits multifamily and hospitality uses.

Transferable Reserves

The Loan features a significant amount of monies held in escrow that the Lender intends to transfer to investors in conjunction with the sale of the Loan.

Irreplaceable, Transit Oriented Location

Ideally situated in the heart of downtown Chicago, the Property is located blocks away from Millennium Park and has unsurpassed access to the financial markets, government, and civic center. Additionally, the Property’s proximity to Chicago’s I-290 & I-90 and corner access to two CTA stations, provide convenient access for tenants commuting from both the suburbs and from within the city.

Highly Amenitized

Tenants enjoy a state-of-the-art amenity package including a fitness center, first floor café & restaurant, stationary storage & bike storage, and communal lobby space.