[Apha Biz=(Chicago) Reporter Paul Lee] The Chicago commercial building, in which the Korea Post invested more than $100 million in 2013, is on the verge of being seized by a French bank after its operator failed to pay back its loans.
According to Real Deal, a real estate online media, the French bank Société Générale filed a building seizure lawsuit with the Chicago Cook County Court against CBRE Investment Management (hereinafter referred to as CBRE· Management Company).
In 2013, CBRE raised funds from the Korea Post ($ 130 million) and Hyundai Marine & Fire Insurance ($ 38 million) and bought a 49-story commercial building (161 N Clark Street) in downtown Chicago for $ 331 million. At the time of purchase, it was such a good asset that 93% of it was leased.
CBRE received an additional $ 230 million in loans from French bank Société Générale in 2018 as collateral for the building. But the situation got worse after that. This is because the vacancy rate soared to 20% as the COVID-19 burst. In the end, CBRE was unable to pay back the loans due in May, five years later, and the French bank demanded the court approve the seizure of the building.
The Korea Post recovered about half of its investment ($ 130 million) over the past decade through repayment and dividend. However, it is unknown whether the other half can be recovered.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
