T
he future of the shuttered Indian Lakes Hotel is uncertain as embattled investor Ruben Espinoza may have to use his personal assets to pay off a defaulted $3.8 million loan tied to the property. If he can't come up with the money, while facing multiple lawsuits, the property could end up in lenders' hands, putting redevelopment plans on hold.

    Espinoza and hospitality executive Robert Habeeb Jr. bought the 300-room hotel in 2022 with a $3.8 million loan from Chicago-based lender CRE Bridge Capital. However, they failed to make interest payments for months, triggering a default on the full loan amount. As a result, CRE Bridge Capital can request that Espinoza and Habeeb repay the $3.1 million principal or risk losing the property.

    A personal guarantee signed by Espinoza puts him on the hook for curing the default using his own funds. Meanwhile, he is facing several other lawsuits alleging he owes investors, lenders, and a commercial tenant upwards of $4 million. It's unclear when plans for the Indian Lakes Hotel will resume, if at all, given its tumultuous past, including a shooting that led to local authorities shutting it down in 2021.

    Espinoza's real estate portfolio primarily consists of office, retail, and industrial buildings in downtown Chicago and surrounding areas. His firm, NDR Holdings, also lists the Rosemont Hyatt as part of its portfolio. The lawsuits against Espinoza are still working their way through the court system, which may delay any potential redevelopment plans for the Indian Lakes Hotel.