Adventus Realty Trust is facing a $114 million foreclosure lawsuit over an office tower it owns near O’Hare International Airport, one of several assets that landlords in major suburbs are pressing for lenders.

The Canadian company secured a $128 million CMBS loan from JPMorgan in 2016 to acquire the 870,000-square-foot Riverway office building. According to the lawsuit filed Friday in Cook County Court, Adventus failed to make monthly principal and interest payments due on June 1, which entitles the lender to foreclosure and an order directing the sale of the property to pay off the debt.

Special servicer LNR Partners filed the suit on behalf of lender JPMorgan Chase and trustee Wilmington Trust, court records show. Adventus has an outstanding balance of approximately $114.6 million, the lawsuit said.

According to a report from LNR Partners to credit ratings agency Morningstar earlier this month, the loan has been in special service since May and Adventus has stopped short of funds and asked to hand over the property to the lender. Adventus and lawyers representing the company did not immediately respond to requests for comment.

Occupancy at the four-building complex at 9399 West Higgins Road in Rosemont was about 68% as of the first quarter, down from 91% in 2019, according to a report from Trepp. In 2020, the property lost its second-largest tenant, the Central State Pension Fund, which leased about 191,000 square feet.

Riverway isn’t the only asset Adventus is at risk of losing. The REIT missed a $350 million interest-only loan in March and April for a portfolio of eight buildings in the Atlanta area and suburban Chicago, including the Crossings complex at 1420 Kensington Road in Oakbrook and Cantera Meadows at 4101 Winfield Road in Warrenville. According to Morningstar, the loan was placed on watch in December 2020.

Another Adventus property, the four-building Oak Brook Office Center, is going up for auction this week after the landlord agreed to return it to lenders instead of dragging out foreclosure proceedings.

read more

Leave a Reply

Your email address will not be published. Required fields are marked *