![]() But it has struggled to lure other tenants to the building, which was 63% leased as of November, Bloomberg data shows. Downtown office vacancy reached an all-time high last year, creating an expensive street fight for tenants among landlords with large blocks of space to fill.īrookfield notched a leasing win in October when it inked a 35,000-square-foot deal with logistics tech firm Loadsmart. It's unclear how much money it has spent since then renovating the property, which was roughly one-third vacant when Brookfield bought it.īrookfield assumed the mortgage from the previous owner, New York-based Extell Development, who was also struggling to make loan payments at the time with the property's cash flow sinking well below its debt service, according to Bloomberg data tied to the loan.īut the public health crisis clotheslined Brookfield's effort to lease up the building. Walking away from the building will sting financially for Brookfield, which paid nearly $306 million for it in 2018, according to Cook County property records. A spokeswoman for the property declined to comment, and LNR did not respond to requests for comment. Brookfield had a long-term vision to breathe new life into the 22-story building and was underway with a renovation plan that included the addition of a new rooftop deck, a redesigned lobby and gym, and two new move-in-ready offices totaling more than 50,000 square feet.īut the loan discussions with LNR appear to have been fruitless, as Brookfield has now surrendered the property. Jackson loan, a move it told local brokers was intentional to begin negotiations with LNR about restructuring its debt. headquarters is set to hand over the properties to its lender, which is now marketing the debt on the buildings for sale and teeing up a likely financial blow to both parties.īrookfield's move comes a few months after it stopped making loan payments on its 175 W. ![]() In another massive case of distress, the owner of the adjacent Loop buildings that are losing BMO Harris Bank's U.S. Wacker Place walked away from their buildings rather than face a legal battle with their lenders over loan defaults. ![]() LaSalle St., while the owners of properties at 300 W. The fallout has included big foreclosure lawsuits against the owners of the Civic Opera Building and the office condo at 208 S. Shrinking tenant footprints have outpaced new leasing, draining revenues for landlords and making it more difficult for many owners to make loan payments. The moves highlight the scope of the financial carnage inflicted on the downtown office market over the past two years and the shaky outlook for future demand as companies adjust to the rise of remote work. The agreement with loan servicer Torchlight Investors would mean that AmTrust could avoid a foreclosure suit by handing over the property to Torchlight. LaSalle St., according to Bloomberg data tied to AmTrust's $100 million CMBS loan on the property. Separately, New York-based AmTrust Realty is negotiating a deed-in-lieu of foreclosure agreement for its mostly vacant, 1.3 million-square-foot office building at 135 S.
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