A joint venture of General Electric Corp.’s pension fund and Lincoln Property Co. have allegedly defaulted on a $70-million loan on two office towers in Schaumburg, a sign that even the biggest players can’t escape the downturn in commercial real estate.
New York Life Insurance Co. filed a foreclosure suit May 10 against 425 and 475 N. Martingale Road, which the joint venture acquired in late 2007 for $95.5 million. Since the purchase, the vacancy rate has climbed from 14.3% to 22.4% for the two buildings, which total 711,632 square feet and are part of the Woodfield Corporate Center, according to real estate data provider CoStar Group Inc.
When the acquisition was made, it seemed like a relatively safe, low-leverage deal, with the New York Life loan accounting for just 73% of the purchase price.
Wednesday, May 19, 2010
Big GE pension fund confronts suburban foreclosure
Crain's Chicago Business reports: