The owner of the 500 Davis office building in downtown Evanston reportedly has defaulted on the $21 million loan used to buy the property two years ago.


The owner of the 500 Davis office building in downtown Evanston reportedly has defaulted on the $21 million loan used to buy the property two years ago.

Chicago Real Estate Daily reports that CWCapital Asset Management LLC claims in a suit filed in Cook County Circuit Court that building owner Mohammed Mirza missed mortgage payments in March.

The 119,000-square-foot building reportedly had a vacancy rate of just 3.7 percent when Mirza bought it, but that soared to 22 percent after trucking firm Schneider National Inc. left for offices in Chicago’s Loop last year.

Original story

Bill Smith is the editor and publisher of Evanston Now.

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1 Comment

  1. commercial default not isolated
    The original article reports that the building is owned by “a venture led by north suburban investor Mohammed Mirza,” president of Kildeer-based Samir Financial Services Inc.

    The plaintiff is a “special servicer” that represents investors who bought commercial-mortgage-backed derivative instruments.

    Policymakers need to keep their eye on the commercial real estate and commercial loan markets. The financial press has been aware for some time of the coming increase in commercial real estate defaults, but the popular media has not focused on this.

    Despite the stock market indexes rebounding in part from an early-March low, commercial real estate is not improving, and most see at least some collapses around the edges. While many of the loans will be successfully refinanced, there will be increasing foreclosures and bankruptcies that will put further pressure on lending — which is still not happening in great amount despite all the federal cash infusions.

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