LNR Partners Hits Marc Reinisch with Gold Coast Foreclosure

Marc Reinisch is getting a reality check on the value of his long-held Gold Coast retail property.

An affiliate of his firm Rushmore Properties is staring down a foreclosure lawsuit over the retail portion of 100 East Walton Street, a two-building commercial block reaching 44 stories into the sky, where the lower floors of shopping has been a fixture of the firm’s portfolio for 30-plus years, according to Cook County court and property records.

The legal move comes as the retail property’s value has cratered by more than 40 percent from its peak a decade ago, according to loan data.

Reinisch didn’t return a request for comment and neither did an attorney for LNR handling the foreclosure litigation.

When Reinisch secured the $9.3 million commercial mortgage-backed securities loan for the 46,700-square-foot property back in 2015, it was appraised at $20.3 million. Fast forward to October 2025, and an updated appraisal pegged its worth at just $11.8 million.

The property is just barely treading water. If the appraisal is to be believed, practically the entire principal of the loan remains unpaid along plus $500,000 in additional interest, including default interest, and further penalties accruing daily for the borrower.

The valuation drop highlights a widening rift in the Gold Coast: while luxury tenants are flocking to Oak and Rush streets in lieu of the Magnificent Mile — where vacancy remains elevated above 25 percent — older, mixed-use retail blocks like 100 East Walton are struggling to keep pace.

The loan’s special servicer LNR Partners is pursuing foreclosure while simultaneously negotiating a potential workout with Reinisch. The situation turned critical following the loan’s maturity in August 2025 that came and went without repayment from the longtime landlord, who’s been involved in acquiring $250 million of real estate for Rushmore.

The property’s vitals have been unsteady. Occupancy fell to 67 percent at the end of 2024, down from 86 percent when the loan was first underwritten, public loan data shows. As a result, the debt service coverage ratio plummeted to 0.54, meaning the property is only generating about half the income needed to cover its debt payments. Operating cost expenses are eating up 80 percent of the total revenue, which sat at over $1.4 million for 2024, the loan data shows.

Reinisch has been searching for an exit ramp for some time. A broker with Mid-America Real Estate Corporation was sharing the property’s listing with potential buyers over the summer last year while seeking about $12.5 million. Offers came in at eight figures but shy of the asking, according to people familiar with the market. It’s unclear why they weren’t accepted before the borrower ran out the lender’s shot clock.

For Reinisch, who has led Rushmore through the acquisition of over 5 million square feet of real estate, the Walton Street woes are a rare public stumble. It serves as a stark reminder that even in Chicago’s most prestigious submarkets, property values can fall suddenly and without regard for what might seem like a cautious, low-leverage owner’s pricing expectations.