Stabilizing Low Occupancy Building After Monetary Default

Hilco Real Estate’s team of receivership and fiduciary services specialists was appointed receiver of a one million-square-foot office building in downtown Chicago on behalf of a life insurance company due to monetary default. Low occupancy stemming from the COVID-19 pandemic, work-from-home trends, tenant rollover and lack of renovation plans required a receiver to take over day-to-day operations. The team oversaw all efforts with local property management and leasing agents to stabilize the asset. Additionally, through our team’s oversight, this property worked with Cook County and the City of Chicago to apply the newly initiated Tax Increment Financing (TIF) program for office to multifamily conversions. This asset has successfully been awarded TIF Funding by the mayor of Chicago. The project is ongoing.