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Chicago apartment building, Upshore Chapter in Uptown, is set for a foreclosure auction on December 16 after its owners failed to meet debt payments. The 149-unit highrise was built by CRG's development arm and refinanced with a $39 million variable interest rate loan in 2021. Despite strong occupancy rates above 90%, the building's owners struggled with rising interest expenses.

    CRG, a Chicago-based developer, had considered selling the property before refinancing but held off due to uncertainty around the city's tax environment. The company hired CBRE to market the building in June 2023 but was unable to find a buyer. The loan matured in October and payments have been delinquent since then.

    The region's multifamily market has shown promise, particularly in the suburbs, but floating rate loans have undercut the performance of some otherwise healthy assets. Over a dozen major multifamily properties with floating rate loans in Chicagoland are burning more cash than they are bringing in, according to Morningstar Credit data.

    CRG is moving forward with new projects, including a Fulton Market multifamily tower development it partnered on with Jeff Shapack after securing $84 million in financing earlier this year. Meanwhile, the Chicago Plan Commission approved a proposal last month to replace a vacant parcel with a 32-unit apartment building at a cost of $297,000 per unit.