Chicago & Midwest + Downtown + Distressed Assets | January 11, 2023

Apollo Takes Control of CBOT Building with Deed-in-Lieu

Apollo Global Management has taken control of the Chicago Board of Trade Building in Chicago’s Loop and hired locally based developer R2 to try to inject new life into the distressed landmark tower. A joint venture of Chicago-based Glenstar and Los Angeles-based private-equity firm Oaktree Capital Management last month transferred the 44-story office building at 141 W. Jackson Blvd. to an Apollo-led venture that provided the debt tied to the property, reported Crain’s Chicago Business.

The move completed a deed-in-lieu of foreclosure, sources familiar with the transaction said, thus staving off a likely foreclosure lawsuit over the JV defaulting on its $256-million mortgage. The CBOT building became one of the highest-profile downtown Chicago buildings to be surrendered by ownership since the pandemic began.

R2 will oversee renovations at the building and explore non-office uses “to create a dynamic, mixed-use environment,” R2 principal Max Meyers said in a statement.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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