Hoffman Estates property distressed
Chicago-based Highlands REIT, which is the landlord for AT&T's former campus in Hoffman Estates, recently said that property was placed with a special servicer because of its $56.7 million debt, according to a report Tuesday by Crain's Chicago Business.
Fitch Ratings said in a report that a special servicer, a firm hired to oversee problem loans, was obtained for the property. AT&T said in 2013 it would vacate the campus and move its 3,000 workers to other Chicago area properties. AT&T has continued to pay rent on the property since its 2013 announcement, but its lease expires next month.
When that happens, the property will no longer generate revenue for Highlands, according to a Highlands' filing in May with the U.S. Securities and Exchange Commission.
"If AT&T does not renew and if we are unable to re-let the asset, we expect that we may be unable to make mortgage payments and may default under the loan agreement," Highlands said in the SEC filing.