A failing local bank, Amcore Bank, NA, entered a motion to appoint a Receiver for the purpose of preserving the asset value of a 6-story, brick and timber loft office building in the River North district of downtown Chicago.  The asset went into foreclosure due to the costs related to the departure of a large tenant.  The Property entered Receivership under the jurisdiction of the Chancery Division of the Circuit Court of Cook County for the purpose of: 1) collecting rents to fund operations, 2) leasing of vacant space, 3) conducting necessary repairs and tenant improvements, and 4) appealing unusually high Real Estate Taxes.  The borrower filed a Chapter 11 bankruptcy petition, and the Receiver continued his duties under the jurisdiction of the US Bankruptcy Court, Northern District of Illinois.



Erie Playce is a 60,000 square foot, multi-tenant, office building, situated on a 10,150 sf site.  A 99-year lease on 15 parking spaces in an adjacent parking structure is included in the loan collateral.  The Property is located in a high-density, newly redeveloped neighborhood with many amenities.  Occupancy was less than 70% at the time of foreclosure.  The tenant mix included local, regional and national tenants.


  • Increased Occupancy

    The Property was less than 70% occupied at the time of the appointment. The Receiver oversaw and approved leases that brought the occupancy level to 100%.

  • Managed Maintenance/Repairs

    The Receiver oversaw, approved, and obtained lien waivers for the installation of a new roof and tenant improvements related to the new leases.

  • Appealed Real Estate Tax

    The Receiver engaged legal counsel and oversaw a successful Real Estate Tax appeal that resulted in an annual payment reduction of $60,000 for a 2-year period, a $120,000 actual cash savings.

  • Navigated Multiple Court Jurisdictions

    The Borrower filed bankruptcy prior to judgment of foreclosure.  The Lender agreed to the DIP Chapter 11 filing, if the Borrower agreed to a Receiver collecting the rents, holding all funds, and conducting the accounting.  John Suzuki remained the Receiver as the case transitioned from Chancery Court to US Bankruptcy Court.