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Suburban office real estate activity bounced back in 2016, but the wealth hasn't been spread around equally. 2017 begins with one Glenview asset on the verge of being the biggest foreclosure since last September.
Vereit is in danger of defaulting on $43.5M in debt it owes on 1000 Milwaukee Ave (shown) in Glenview. The 412k SF building was home to Aon until 2015; the insurance giant has continued to pay rent on the property. But Aon's lease is set to expire in April, leaving Vereit with no other options to service the debt load, according to Crain's.
The property was originally built for Zenith electronics and is designed for only one tenant. Veriet and Colliers, the broker for the building, either need to find a new tenant before April or redevelop the property for multiple tenants, which requires time and money. If Vereit can't find a solution, this would be the biggest suburban office property to go into foreclosure since Highlands REIT's $132M default on AT&T's former Hoffman Estate campus last September. [Crain's]
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