Developer Transfers Chicago Apartments to Lender
Shaya Wurzberger handed over two Chicago properties to Churchill Real Estate to resolve defaulted bridge loans.
Updated on Oct. 15, 2026 in Apartments
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In September 2026, developer Shaya Wurzberger transferred two Chicago apartment properties to Churchill Real Estate via deeds in lieu of foreclosure. The move followed legal action initiated by the lender earlier that year.
Why it matters
The transfers effectively resolve issues involving defaulted bridge loans, unpaid taxes, and municipal code violations associated with the properties. Wurzberger remains engaged in a separate $12 million foreclosure lawsuit.
Wurzberger surrendered a 50-unit building in Roseland and an additional property in North Lawndale. Financing for the assets included a $1.9 million loan for the South Michigan Avenue site and a $637,950 mortgage for the 17th Street property.
The players
Shaya Wurzberger
He is a real estate developer who acquired over 500 units in Chicago between 2022 and 2025.
Churchill Real Estate
This is the firm that acquired the properties through deeds in lieu of foreclosure.
Chicago Housing Authority
The agency manages public housing and recently suspended a landlord from receiving rent subsidies.
The details
The property transfers were initiated by the lender, Churchill Real Estate, after receiving the mortgage notes from Emilion Capital. These units are among a larger portfolio that faced scrutiny following a one-year suspension of rent subsidies by the Chicago Housing Authority.
Timeline
A&S Capital issued loans to Shaya Wurzberger in July 2022.
Churchill Real Estate filed a foreclosure suit in January 2026.
Wurzberger listed 22 mobility zone properties for sale in March 2026.
Wurzberger surrendered the two properties to Churchill in September 2026.
Culture Shift
The potential implementation of the Protecting Renters Ordinance marks a shift in how Chicago governs tenant protections and landlord responsibilities. This regulatory trend creates a more complex operational environment for investors managing large, multi-unit residential portfolios.
Residents living in these specific buildings may face changes in property management following the transfer of ownership to the lender. Tenants should monitor their lease status for any updates regarding building operations or future maintenance policies.
The takeaway
Real estate investors must account for municipal code compliance and tax obligations to avoid foreclosure actions. Developers often utilize deeds in lieu of foreclosure to mitigate further legal costs when facing significant debt defaults.
What happens next
A hearing in the separate $12 million foreclosure lawsuit brought by Roc360 is scheduled for November 4.
Further reading
For more context on the local rental market, visit Chicago Apartments.
Source note: This article includes information reported by The Real Deal New York.
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