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hicago developer Related Midwest is facing a second potential payday miss on its 500-unit luxury rental tower in Streeterville. Lenders are seeking to recoup debts tied to large Chicago apartment properties, with life insurance company MassMutual filing a $175 million foreclosure complaint against the Related-led venture that owns the 47-story building at 500 North Lake Shore Drive. The lawsuit claims the landlord failed to pay off any of the loan's principal by its April maturity date.

    Related Midwest had been granted extra time to refinance the property through a forbearance agreement, but was unable to secure a new deal. The company is currently refinancing the property and expects the lawsuit to be resolved as part of this process. A spokesperson for Related Midwest stated that the firm is confident in its ability to resolve the issue.

    This foreclosure comes on the heels of another lender moving to foreclose on a $69 million Loop apartment complex, highlighting the growing multifamily distress in Chicago's real estate market. However, Related Midwest's outlook on the city remains strong, with plans to build a two-tower residential project on the site of the canceled Chicago Spire project, backed by $500 million in construction financing.