Third Millennium Faces $310M Foreclosure on West Loop Office Tower Despite 81% Occupancy

A trustee for bondholders filed a $310 million foreclosure lawsuit against a Third Millennium Group entity in Cook County Circuit Court, alleging the Boca Raton, Florida-based firm failed to repay a loan due in September on its 31-story West Loop office tower at 540 West Madison Street. The 1.1 million-square-foot building was appraised at $591 million roughly a decade ago. Third Millennium bought it in 2012 for $350 million, financed with a $250 million loan later replaced by a $325 million loan in 2016, plus a $75 million mezzanine loan — a $400 million total debt package. The property is 81 percent leased, above the 72 percent downtown average, and generated over $18 million in net cash flow against a $5.3 million senior debt service payment. But comparable sales nearby, including 131 North Dearborn Street, reflect post-pandemic declines in office valuations. Third Millennium and Hines have revived plans for a 41-story office building at 590 West Madison Street.