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Lake Geneva-based investor, Thomas P. Owens and his family's venture, is facing foreclosure on a portfolio of Fulton Market buildings after buyers backed out of deals to assemble the properties for redevelopment. The landlord is now seeking a quick sale through a sealed-bid auction, with bids due February 24th, according to AW Properties Global. The starting price is $11 million, but the borrowers defaulted on a $4.4 million loan from Northbrook Bank & Trust in 2023.

    The portfolio includes four contiguous parcels totaling nearly an acre of land and over 53,000 square feet of combined buildings, with 43% occupancy. However, its true value lies in its potential for redevelopment, possibly by demolishing existing structures. Previous offers ranged from $18 million to $22 million before interest rate hikes reduced property values.

    AW Properties Global's CEO, Diana Peterson, believes the market is thawing and expects a smooth sale process. The lender is willing to let the sale play out before resuming its foreclosure lawsuit. A sale at $11 million would be a downward shift for Fulton Market development site prices, while a deal at $17 million, the appraisal value, would be closer to $424 per square foot of land.

    The portfolio faces challenges, including the absence of a key condo building and an alleyway between some buildings. However, Peterson dismisses concerns about the missing condo building, and insiders suggest it could be possible to gain control of the alleyway for redevelopment. The sale is expected to close in March after bids are reviewed.