AT&T's Hoffman Estates Campus One Step Closer To Foreclosure

AT&T's former campus in Hoffman Estates, IL
JLL
Lakewood Center Chicago

Unless a miracle happens in the next month, one of the largest swaths of suburban Chicago office real estate is almost guaranteed to fall into foreclosure. A loan servicer is preparing a foreclosure suit on the former AT&T campus in Hoffman Estates, now known as Lakewood Center, since AT&T's lease on the property expired, Crain's reports.

AT&T moved out of the 1.6M SF property in 2013, but continued to pay rent. Highlands REIT, which owns the property and is carrying $116M in debt on it, has been unable to find new tenants. AT&T's lease ended Monday and, without any new revenue lined up, Highlands cannot make its mortgage payments.

A $56.7M portion was recently placed with C-III Asset Management as part of a CMBS offering, with the remainder expected to be placed in the near future. Highlands will not fight the foreclosure suit once it's filed. [Crain's]

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