Barings Has Put Michigan Plaza Loan Up for Sale
The investment manager has hired JLL to market the $69 million nonperforming loan on the Chicago office property.
Updated on Sept. 25, 2026 in Commercial
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Barings has hired JLL to sell a $69 million nonperforming loan backed by Michigan Plaza in Chicago. Current owner Aegis Asset Management plans to relinquish its stake in the 1.9 million-square-foot office complex to the eventual buyer.
Why it matters
The sale follows a significant decline in occupancy at the two-tower property, which currently stands at 49 percent. This figure is well below the 72 percent average vacancy seen across downtown Chicago office buildings.
Michigan Plaza comprises a 44-story tower and a 25-story high-rise totaling 1.9 million square feet of space. Omnicom Group remains a major tenant with 222,000 square feet under lease, though it is attempting to sublease 150,000 square feet.
The players
Barings
Barings is a global investment management firm that currently holds the nonperforming loan for the property.
JLL
JLL is a global commercial real estate services company hired to market and sell the distressed loan.
Aegis Asset Management
Aegis Asset Management is a real estate investment firm that has owned Michigan Plaza since 2004.
Omnicom Group
Omnicom Group is a global marketing and corporate communications company that currently occupies space in the office towers.
The details
Aegis Asset Management, which has owned the site since 2004, is conceding the property as part of the resolution for the distressed loan. The move highlights the ongoing struggles for office space in the area as major tenants like Omnicom Group seek to downsize their physical footprints before their leases expire.
Timeline
Aegis Asset Management began ownership of Michigan Plaza in 2004.
The original $210 million mortgage was taken out in 2014.
Occupancy at the property dropped to 49 percent in June 2026.
Omnicom Group's lease is scheduled to expire in late 2028.
The loan is set to reach its maturity date on January 1, 2030.
Culture Shift
The marketing of this loan follows the broader downward trend in downtown Chicago office occupancy rates. The property's 49 percent occupancy significantly trails the market average, reflecting a wider struggle for major urban office centers to maintain tenant interest.
The change in ownership may lead to significant shifts in property management and potential renovations as the new buyer attempts to improve the 49 percent occupancy rate. Local businesses and office workers may see changes to building services or leasing terms once the transaction closes.
The takeaway
Large-scale office properties face significant pressure when major tenants attempt to offload space via subleasing before their expiration dates. Investors are increasingly looking to shed debt on assets that remain significantly below historical occupancy benchmarks.
Further reading
For more background on the local office market, visit Chicago Commercial.
Source note: This article includes information reported by The Real Deal New York.
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