Brookfield faces ‘imminent default’ on Chicago office building
Brookfield struggling to stay current on debt payments
Brookfield Asset Management Inc. is facing “imminent default” on a downtown Chicago office tower as it struggles to stay current on debt payments.
The building, at 175 West Jackson Blvd., near Willis Tower, is home to financial firms and the Chicago office of the U.S. Securities and Exchange Commission. It was 62 per cent occupied as September, according to a report on the mortgage.
“Due to the continued fallout from COVID there has been very little leasing activity in the Chicago submarket,” according to commentary on the mortgage compiled by Bloomberg.
Brookfield declined to comment.
Brookfield paid US$305 million for the building in April 2018, according to Real Capital Analytics. It has US$258.6 million of debt on the property in two commercial mortgage-backed securities. Management of the loan was transferred this month to LNR Partners, the special servicer in charge overseeing a workout.
Office values in Chicago, like other major U.S. cities, are under pressure amid uncertainty surrounding when more workers will return to the office.