C
hicago commercial landlord Ruben Espinoza is facing financial and legal troubles that are likely to persist into 2024. A $35 million loan for the Chicago Business Center, a warehouse-style retail property, is being sent to special servicing due to missed debt payments in September. This move typically indicates financial difficulties.

    The property's largest tenant, a studio production company, had chosen not to renew its lease of over 100,000 square feet, leaving nearly half of the building's 671,000 square feet vacant. Espinoza has owned the property for years and refinanced it in 2022 with a $35 million loan that is now in default.

    Espinoza is also embroiled in a dispute with a local soccer club over a lease at 2600 West 35th Street. The club claims that Espinoza failed to refund its $330,000 security deposit after the club was unable to move into the space due to zoning issues and a furniture store's delayed departure.

    This issue is part of a series of financial and legal problems facing Espinoza, including:

    - A lawsuit from an investor alleging non-payment of a $3 million debt

    - A court order requiring him to pay $557,000 in insurance proceeds to a receiver

    - Delinquent loan payments on a $9.6 million River North office portfolio

    - Foreclosure on a bridge loan for a suburban hotel redevelopment plan backed by Espinoza's personal guarantee

    - A recent foreclosure on an office building at 19 South LaSalle Street

    Espinoza has also been involved in other real estate deals, including the proposed purchase of the historic Burnham Center office building and the acquisition of the 300 West Adams office building. However, these transactions have faced their own set of challenges and disputes.