Chicago Loop office building for sale after being flagged for potential default

A sale at that price would barely cover the $24.4 million loan a Wilton venture took out in 2017 when it refinanced the property, which is just 60 percent leased, according to a Bloomberg report tied to the debt. The loan was packaged with other mortgages and sold off to bondholders.

The property at the time was appraised at $28.8 million, and the Wilton venture renovated the building in 2018 with a series of projects including a new tenant lounge and fitness center and lobby updates, according to CBRE.

The move to sell the 24-story art deco building comes less than two months after the loan was transferred to a special servicer, normally a red flag to investors in the commercial mortgage-backed securities loan that the owner could default. Net cash flow at the building has fallen well short of what the Wilton venture needed to cover its debt service

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