Another Loop office building is facing foreclosure, amid record office vacancy in Chicago.
Wilmington Trust, along with special servicer LNR Partners, filed a foreclosure lawsuit this month against the real estate affiliate of consulting firm Alvarez & Marsal over missed loan payments for 205 West Randolph Street, Cook County court records show.
Alvarez & Marsal stopped making payments on an $18.7 million loan in November 2023, the lawsuit alleges. Wilmington is seeking $17 million in unpaid principal and $5 million in unpaid interest.
Alvarez & Marsal hired an inside property management company, Alvarez & Marsal Property Management, in 2018 to manage the building without notifying the lender, the lawsuit states. The terms of the mortgage require the borrower to notify the lender of a change in property management ahead of time and to hire an unaffiliated management firm.
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