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Foreclosure Looms Over River North Building
30 Oct
Summary
- Old Second National Bank is foreclosing on a $9M loan.
- Investor Marc Bushala personally guaranteed $2.9M of the debt.
- The River North property is slated for restaurant conversion.
Old Second National Bank is pursuing foreclosure and sale of a River North retail building, alleging default on a $9 million loan. The bank seeks to recover $2.9 million from investor Marc Bushala, who provided a personal guarantee for a portion of the debt. The lawsuit names Great Street LLC, MAB Capital Management, WFB Gift, and Bushala personally as defendants.
The property in question, located at 400 North State Street, recently secured a $3 million permit from the City of Chicago for interior buildout and exterior renovations. The planned project aims to transform the ground and second floors of the four-story building into a restaurant. The building, last renovated in the 1980s, is currently occupied by Dough Bros pizza and a manufacturing firm.
Despite the foreclosure action, Bushala expressed optimism, stating that the owner intends to retain the building. He indicated that advanced discussions are in progress for recapitalization and restructuring of the current loan, expressing confidence in a positive resolution soon.
