Pissios Sues to Foreclose on Former Rainforest Cafe Site

Two of Chicago’s more colorful real estate figures are squaring off in court over the former Rainforest Cafe site in River North.

Alecko Lending, led by founder Alexander Pissios, filed a foreclosure lawsuit Monday against a Sean Conlon-led entity that owns 605 North Clark Street, alleging it defaulted on an $8.3 million bridge loan and now owes more than $9.2 million, including default interest and fees.

The suit seeks foreclosure, the appointment of a receiver and a deficiency judgment, while also waiving the borrower’s right to redeem the property after a judgment is entered.

But Conlon, the investor behind the borrower known in part for starring on CNBC show “The Deed: Chicago,” brushed off the suit as premature.

While he said he doesn’t blame the lender for being frustrated, he claims he has been paying penalty interest since June and intends to repay Alecko the full debt with proceeds from a refinancing he’s planning.

Conlon owns other real estate in Texas, North Carolina and West Palm Beach that he suggested could be used as collateral in the upcoming refinancing, without specifying the amount of the loan he intends to borrow.

“We were supposed to refinance in June,” he said. “We’ve paid late fees, and we’re close to finalizing a global refinance across all our assets — tens of millions.”

He still believes in the River North property’s long-term value, but acknowledged the Chicago market has been “a nightmare.” A controversial city decision to allow a cannabis retailer to open up inside the 22,000-square-foot former restaurant building blew up.

The would-be tenant, Progressive Treatment Solutions, backed out of leasing the space last year amid neighborhood backlash, including “litigation, uncertainty and additional costs,” its attorney said at the time. Plus, there was an earlier revelation that it was too close to other dispensaries to comply with state law.

Conlon said his side may bring suit against Progressive stemming from its retreat, while also claiming he has “so much equity” in the property. He bought it for $13.7 million in 2013.

Pissios, who sold the film and TV studio Cinespace Chicago in a $1 billion deal in 2021 and has since pivoted into hard-nosed lending, has a growing track record of snapping up distressed real estate — and he isn’t shy about using the courts to seize collateral.

His Alecko vehicle this year bought a River North office property at 620 North LaSalle Drive out of distress for $7.4 million. Pissios also bought a Fulton Market building at 232 North Carpenter Street for $11 million in 2022, and he’s known to move fast when borrowers miss payments.

Alecko and its representatives didn’t return requests for comment. Pissios gained notoriety in Chicago for helping federal law enforcement officers nail union boss John T. Coli, who was sentenced to 19 months in prison in 2022, by secretly recording their conversations. Pissios was trying to avoid a bankruptcy fraud charge at the time he began cooperating with authorities.

Conlon insisted his record is clean.

“I’ve never not paid back a loan,” he said. “Not going to change at this age — I’m 56, going on 80.”

However, Conlon was part of the borrower entity that faces a $6.4 million foreclosure lawsuit for the 41,000-square-foot office building at 401 West Ontario Street, which is now set to be sold out of receivership for more than $5 million to an entity led by Chicago-based Drew Friestedt’s Monroe Residential Partners, federal court records filed earlier this month show.

The 605 North Clark site, home to the kitschy Rainforest Cafe from 1997 until it shuttered in 2020, has long been seen as a redevelopment target. But with litigation now clouding its future and a lender pushing for a forced sale, its fate could hinge on whether Conlon can close his refinancing in time.

“This is a tempest in a teacup,” he said. “I’m a seasoned pro. Chicago will find its feet. And I still believe in owning Rainforest.”