Chicago Lender Files $39M Foreclosure Lawsuits On 2 Distressed Office Properties
Shopoff Realty is facing two foreclosure lawsuits from Slate Asset Management on its office properties in River North and Fulton River District due to allegations of missed payments and breach of contract.
Slate is seeking nearly $25M over claims of missed payments with interest, plus $14M in damages for breach of contract, The Real Deal reports. Shopoff has owned the buildings since 2016 and refinanced with Slate in 2022.
The buildings, at 224 N. Des Plaines St. and 900 N. Franklin St., span a collective 170K SF. Shopoff took out $13.5M to finance 224 N. Des Plaines St. and borrowed $14.6M for 900 N. Franklin St., according to TRD.
Shopoff’s loans were set to mature in April 2025. Slate alleged it stopped receiving payments from Shopoff in November, at which point the lender issued default notices and set a Jan. 10 deadline for Shopoff to make good on missed payments.
After Shopoff missed the deadline, Slate filed the foreclosure lawsuits on Jan. 29, TRD reported. For missed payments, accrued interest and damages, the lender wants about $19M for the Des Plaines Street property and roughly $20M for the Franklin Street property.
The foreclosures send a message that office distress in the city stretches beyond the central Loop, which counted 3M SF of distressed property at the close of 2023, according to a fourth-quarter Bradford Allen report. By contrast, River North closed the year with 606K SF of distressed space.
