Fred Latsko has a new lender for his Gold Coast portfolio of high-end retail shops.
The CEO and founder of Latsko Interests secured the new $34 million loan from Chicago-based JDI Realty, according to Cook County records. Latsko previously had a $43.6 million loan on the several properties in the city’s luxury shopping district, from Loancore Capital Credit REIT.
The loan is secured by the real estate at 66 East Walton, 900 North Rush, 41 East Oak and 23 West Maple streets. All the properties are high-end retail spaces occupied by jewelers, fashion houses and other shopping-focused tenants.
It’s unclear why the loan is about $10 million less than the previous one, which was issued in 2018, according to records. But Loancore was exploring selling the debt as it reached its maturity this summer, which is sometimes a move made before a loan buyer attempts to foreclose upon a property, according to a person familiar with the properties.
It’s unknown why the loan was being shopped for sale in this case, and unclear if there was a foreclosure risk before Latsko’s firm scored the new financing and paid off the previous debt. Latsko and JDI did not respond to requests for comment.
The Oak Street spot is being targeted for a lease by Italian ultra-luxury retailer Bottega Veneta, following a deal Latsko had with French handbag maker Goyard falling apart and ending up in litigation. The property is three stories, according to a previous listing on LoopNet, and totals about 6,600 square feet.
An affiliate of Latsko’s company in May sued Goyard, alleging the would-be tenant dragged its feet on designing and tweaking its interior buildout for a lease of about 4,400 square feet of the building.
The dispute could break a 10-year lease with the retailer, which is notorious for avoiding advertising and media attention. It has fewer than a dozen locations globally, including eight in the US: New York, Chicago, Beverly Hills, Miami, Dallas and San Francisco.
Its Chicago space was within the Magnificent Mile’s Neiman Marcus location at 737 North Michigan Avenue, which was purchased last year for $94 million by Houston-based Silvestri Investments. Goyard had planned to leave the luxury retailer’s store for its own space on Oak Street. The lawsuit between Latsko and Goyard is ongoing.
In August, Bottega announced it would be cutting its Chicago footprint by roughly half in a move from 800 North Michigan Avenue to the space previously planned for Goyard in Latsko’s Oak Street building. Bottega has not yet announced a timeline for moving into the space, but is still at its Michigan Avenue location.
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