Foreclosure Looming for Blackstone’s Club Quarters Chicago

CWCapital, the special servicer on a $274 million CMBS loan for the 429-key Club Quarters Chicago hotel in the Central Loop since mid-2020, is reportedly pursuing foreclosure. The loan was originated by Bank of America to its owner, a Blackstone Group real estate fund and has been delinquent for 34 months. Negotiations between CWCapital and other parties have stalled as recently as April with no workout agreement reached yet. Although it’s still possible that foreclosure could be avoided if an agreement is reached in time, industry experts are closely monitoring this situation to see how it develops further.