Mag Mile Tower Set for December 28 Foreclosure Auction
The 27-story office property at 625 N. Michigan Ave. is scheduled to go to sheriff's auction after its joint venture owners defaulted on a loan.
Updated on Nov. 10, 2026 in Commercial
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The office portion of 625 N. Michigan Ave. on Chicago's Magnificent Mile is scheduled for a sheriff's foreclosure auction on Dec. 28 after a joint venture of Golub & Co. and BlueFive Capital defaulted on a nearly $51 million loan. A judge ruled in October that the note is in default.
Why it matters
The default highlights financial strain in Chicago's commercial real estate market, where the property's occupancy has fallen from 92% at underwriting in 2019 to just below 58% as of March. The outcome could affect ownership and leasing of a prominent downtown office tower.
The 27-story building's office block of roughly 290,000 square feet, floors five through 27, was acquired for $72.4 million in 2019 with a Cantor Commercial Real Estate Lending loan. Occupancy has dropped from 92% at underwriting to just below 58% as of March, and the sale price at auction remains unknown.
The players
Golub & Co.
A Chicago-based real estate firm that formed the joint venture which acquired the office portion of 625 N. Michigan Ave. in 2019.
BlueFive Capital
A real estate investment firm whose subsidiary partnered with Golub & Co. in the joint venture that owned the property and defaulted on its loan.
Cantor Commercial Real Estate Lending
The commercial real estate lending arm of Cantor Fitzgerald that provided the 2019 loan used to acquire the office property.
Citibank
The global banking giant that, as trustee for CMBS bondholders, filed the foreclosure lawsuit against the joint venture.
The details
Citibank, as trustee for CMBS bondholders, filed a foreclosure lawsuit in May after the joint venture failed to pay off the loan at its March maturity date. Scott Shefman of Friedman Real Estate Management was appointed receiver in June, and he is finalizing the takeover of the property while its leasing agent works on two renewals.
Timeline
2019: Joint venture acquires the office portion for $72.4 million.
March 2026: Loan maturity date passes without payment.
May 2026: Citibank files foreclosure lawsuit.
June 2026: Receiver Scott Shefman is appointed.
October 2026: Judge rules the note is in default.
Market Landscape
The foreclosure fits a broader pattern in Chicago's downtown office market, where remote work has kept occupancy well below pre-pandemic levels and pushed many owners into debt distress. Commercial properties on the Magnificent Mile have faced the same pressure as tenants reduce square footage and renewal terms tighten.
Chicago tenants leasing space in the building should watch for changes in property management and leasing contacts after the receiver takes over. Businesses and investors tracking downtown office space can use the December 28 auction date to monitor how the property is valued and who acquires it.
The takeaway
A single office tower's loan default can signal wider stress in a downtown market where occupancy has not recovered. Readers tracking Chicago real estate should watch how the December 28 auction price compares with the $72.4 million paid in 2019.
What happens next
The office portion of 625 N. Michigan Ave. is scheduled for a sheriff's foreclosure auction on December 28.
Further reading
For more on the local market, see Commercial real estate coverage on Wisevoter.
Source note: This article includes information reported by Bisnow.
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