Yahoo Finance
Distress at625 North Michigan Avenueis entering its next phase: receivership.
On June 16, a Cook County judge appointed Scott Shefman of Friedman Real Estate Management as the receiver for the Magnificent Mile office building, court records show.
Shefman's takeover of the 28-story property's operations stems from a foreclosure lawsuit filed by Citibank, acting as trustee for commercial mortgage-backed securities bondholders, alongside special servicer LNR Partners.
The lenders allege landlordsGolub & Companyand BlueFive Capital defaulted on a $50.6 million loan.
The debt, originated by Cantor Commercial Real Estate in 2019 with a 4.63 percent interest rate, reached its maturity date on March 6 without repayment.
The loan transferred to special servicing in November 2025 due to an imminent default driven by cash flow issues.
Golub previously indicated to the lender that it couldn't continue funding the property's operating expenses out of pocket.
In April 2026, the borrowers received a formal notice of default.
As receiver, Shefman takes control of the nearly 290,000-square-foot building's management.
His court-mandated duties include collecting rents from tenants and maintaining new bank accounts; negotiating, modifying and executing leases; and assisting in marketing the property for sale, which may involve soliciting offers.
Neither Shefman nor Golub returned requests for comment.
The tower has struggled significantly with tenant retention.
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