F
our River North office buildings are facing foreclosure, with three owned by embattled landlord Ruben Espinoza. He purchased the loft-style offices at 215-223 West Ohio Street in 2017 with a $9.6 million loan from Wells Fargo, which has since been watchlisted for collections. The loan's securitized status and Espinoza's recent financial woes have raised concerns about his ability to pay.

    The River North office market is struggling, with a downtown Chicago vacancy rate of 25.8% in the third quarter, up from 13.8% at the start of the pandemic. Irish investor Sean Conlon, who owns properties in Chicago and other cities, is also facing foreclosure on an office building two blocks away from Espinoza's properties. Conlon tried to save his building by covering revenue shortfalls himself but was ultimately unable to keep it afloat due to high property taxes and low occupancy.

    Conlon has sold most of his Chicago portfolio except for one multifamily and retail asset, focusing instead on investments in the Southeast and Texas. He believes that Chicago's real estate market needs to change its approach to avoid further decline. Espinoza is facing multiple lawsuits and a foreclosure lawsuit from CRE Bridge Capital over a $3.1 million bridge loan used to revamp a suburban resort.

    However, Espinoza has had some recent successes, including prevailing in a lawsuit regarding the purchase of a distressed office building with business partner Igor Gabal. They also claim to have deals lined up to buy the Burnham Center and recapitalize an office building owned by Espinoza that is facing foreclosure.