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Chicago

Adventus poised to turn over office complex near O’Hare

REIT delinquent on $114M loan

9399 West Higgins Road in Rosemont and Adventus CEO Rick Charlton
9399 West Higgins Road in Rosemont and Adventus CEO Rick Charlton (Adventus, LinkedIn)

An office landlord facing loan troubles on multiple fronts looks likely to relinquish an asset near O’Hare International Airport as office vacancies reach new heights in suburban Chicago.

Canada’s Adventus Realty Trust is delinquent on a $114 million loan secured by the 870,000-square-foot Riverway office complex at 9399 West Higgins Road in Rosemont, according to Trepp.

Adventus has looked into turning the property over to the lender, per a special servicer’s report cited by Trepp. The real estate investment trust, which transferred the loan to special servicing in January, did not respond to a request for comment. 

The complex, built in 1988 and renovated in 2016, is not the only property the REIT could lose as it fails to stay current on large debts across its holdings. 

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Adventus missed the March and April interest-only payments on a $350 million loan tied to an eight-building portfolio comprised of properties in the Atlanta area and the Chicago suburbs, including the Crossings complex at 1420 Kensington Road in Oak Brook and Cantera Meadows at 4101 Winfield Road in Warrenville. The loan has been watchlisted since December 2020, according to Morningstar.

The REIT paid about $175 million, or approximately $201 per square foot, for the property in 2016, according to past reports. The complex’s occupancy has dropped to 68 percent from 91 percent in 2019, according to Trepp. That places the building close to the market’s average vacancy rate, which hit 29 percent in the second quarter of 2022, according to JLL.

The property lost its second-largest tenant, Central States Pension Fund, which had occupied about 191,000 square feet, in 2020. Its largest tenant, US Foods, has a 275,000-square-foot lease that runs through 2029.

Another Adventus property, the four-building Oak Brook Office Center, is up for auction at the end of this month after the landlord agreed to hand it back to the lender rather than drag out a foreclosure lawsuit.

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Adventus Realty Trust