T
rouble persists for CA Ventures, a commercial real estate investment firm led by CEO Tom Scott and Chief Investment Officer John Diedrich. The company is facing foreclosure on an apartment complex in Ravenswood after allegedly defaulting on a $5 million promissory note. Lender LoanCore filed the lawsuit following delinquent payments on a $32 million loan backed by a 59-unit building at 1900 West Lawrence Avenue.

    CA Ventures had converted the historic Sears store into apartments, which opened in 2021 with an estimated cost of $40 million per unit. The firm's struggles began earlier this year when MorningStar Credit reported delinquent payments on the loan. LoanCore is one of several lenders that provided significant debt to multifamily players ahead of interest rate hikes starting in 2022.

    In addition to the Ravenswood foreclosure, another lender, Hopewell Partnership Investments, has filed a lawsuit against CA Ventures over unpaid debt. The firm had issued a $5 million promissory note in 2019, which was paid down to $2.5 million before payments stopped. Despite assurances from CA Ventures that the debt would be cleared, no payments have been made, leaving Hopewell owed approximately $3.7 million.

    CA Ventures is facing multiple legal challenges, including a lawsuit from investors who claim Scott and Diedrich misrepresented how they intended to use investor funding to pay off personal debts. The firm has also undergone layoffs and struggled with its Illinois and Kansas senior housing portfolio.