The borrower purchased the Class A office/mixed-use building through a bankruptcy court negotiated purchase. The La Scarola project involves a major expansion of existing facilities, including a banquet hall for the famous La Scarola Restaurant. The building is located in an established retail/office commercial area in metropolitan Chicago.
Due to the nature of the purchase (out of a BK), and the pending repairs/improvements needed, traditional bank financing is not available until the operation fully functioning. The building’s current occupancy is just 55% due to the BK. The restaurant operation occupies approximately 45% of the space, and balance is office space. Current tenants are expected to remain.