Alden Affiliate Buys Delinquent Property Taxes in Chicago

Alden Global Capital, an investment firm known for its ownership of the Chicago Tribune, has diversified its investments, this time into Chicago’s delinquent property taxes.

A venture associated with Alden’s co-founder purchased about $1.75 million of unpaid taxes across more than 600 properties during Cook County’s annual auction in January, Crain’s reported.

Including taxes, interest and administrative costs, the venture spent nearly $2.4 million, ranking it as the fifth-largest buyer by property count in the auction.

The auction permits investors to bid on the rights to settle overdue taxes on local properties. Homeowners whose taxes are procured by investors must repay, with a monthly 1.5 percent interest rate and additional fees, to retain ownership. Most properties are redeemed by owners, yet investors can take control of those unredeemed through legal means.

The motivations behind Alden’s foray into Chicago-area delinquent taxes remain unclear. Previous records from the treasurer’s office suggest no prior significant involvement from Alden or its affiliates in the tax sale. Central Region Tax Auction LLC, the entity behind the recent purchases, shares an address with a nonprofit led by Alden’s co-founder and was registered in Illinois in 2023, the outlet reported.

Despite Alden’s primary focus on media holdings, such as Tribune Publishing, the company has expanded into real estate investments through its subsidiary, Twenty Lake Holdings, which purchased 33 Greyhound stations across the United States from United Kingdom-based First Group in 2022.

The tax auction properties predominantly comprise residential real estate, mostly within Chicago’s city limits.

The auction saw a total purchase of $30.7 million in delinquent taxes across 7,517 properties, and buyers collectively spent $41.2 million.

—Quinn Donoghue