Adam Friedman Quoted in Chicago Tribune on Requested Transfer to Special Servicing of Loan for Iconic One Two Pru Office Complex

Adam Friedman, Partner and Chair of the firm’s Bankruptcy & Financial Restructuring and Distressed Real Estate Practices, was quoted in an article published in Chicago Tribune (subscription required) on Chicago’s iconic One Two Pru office complex. The 2.3 million-square-foot buildings’ majority owner, Wanxiang America Real Estate Group, has requested a transfer of the property’s $389 million loan to special servicing more than two years ahead of the 2025 maturity date to avoid potential financial trouble amid an increase in remote work and an expected decline in occupancy at the office complex. Adam cautions that waiting until 2025 to seek modifications to CMBS loans could be risky, and right now, lenders are usually willing to work out solutions. “The debt market is pretty frozen right now,” he said, “especially in the office sector. People have been calling it Armageddon, and most feel it’s going to get worse before it gets better, so generally speaking, it might be prudent to get ahead of this.”