Illinois Center, a sprawling office complex in the East Loop, is slated for a foreclosure auction next month, as the property has struggled to find its footing in this office market.
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Cook County Associate Judge Edward Robles ruled against an affiliate of AmTrust RE in September for defaulting on the $260M mortgage backed by the two-tower property at 111 E. Wacker Drive and 233 N. Michigan Ave., Crain's Chicago Business reported. The decision comes two years after AmTrust was hit with a foreclosure lawsuit on the 2.1M SF property, according to CMBS servicer commentary.
The sheriff's sale is slated for Nov. 12, according to the sheriff's website. Special servicer LNR Partners is poised to bid for and take control of the property, according to Crain's.
Illinois Center's latest appraised value was $66M, down 22% from its 2024 appraisal and 83% from a $390M valuation when the property's loan was originated in 2015, according to Morningstar Credit. AmTrust paid $376M for the property in 2015.
The property's occupancy was 33% as of the end of 2025, according to servicer commentary. As a whole, the East Loop has struggled mightily with empty office space, with a 30.5% vacancy rate that is nearly tied with the Central Loop and well above the overall central business district, according to a Q3 report from NAI Hiffman.
A spokesperson for AmTrust didn't respond to a request for comment.
Morningstar Associate Managing Director David Putro told Bisnow in an email that he believes the trust will take the title at the foreclosure sale and attempt to stabilize the property, but it could be a few years before it actually sells.
"At the same time, AON is hanging out there awaiting another workout, 135 South LaSalle just saw its value get hit again, and Illinois Center has a tremendous amount of space to re-lease," Putro wrote. "I don’t see this ending up being a good resolution."
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