Jeffrey Feil's company faces a foreclosure lawsuit from KKR's K-Star Asset Management over a defaulted loan for a loft office building in Chicago's West Loop. Purchased for $13.1 million in 2018, the building was performing well but has experienced significant decline, dropping below 50% occupancy and revenue falling to just over $437,000. Feil still owes over $8.2 million on the mortgage, which was due to mature in 2028. Proposals for addressing the debt were deemed unacceptable by the lender, highlighting the ongoing challenges faced in the commercial real estate market arising from remote work.
Jeffrey Feil's firm faces lender issues amid a downturn in commercial real estate, highlighting struggles with mid-sized lofts and Loop high-rises due to remote work trends.
K-Star Asset Management filed a foreclosure lawsuit against Feil's venture due to default on a loan for a loft office building in Chicago's West Loop.
Feil purchased the building for $13.1 million in 2018 but faces over $8.2 million in owed debt after a default, despite previous revenues exceeding $1 million.
The property, fully leased through 2023, suffered a drop in occupancy to less than 50%, contributing to significant revenue losses and loan delinquencies.
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