Chicago landlord Marc Reinisch, the owner behind Rushmore Properties, is staring at a foreclosure suit over the retail block tucked beneath his Gold Coast condo tower at 100 East Walton Place. Special servicer LNR Partners filed the action after the loan on the building hit maturity without payoff, a move that lands squarely in the middle of downtown Chicago’s ongoing retail slump. The case could end in a forced sale or a negotiated workout for a property that has slid from an appraisal near $20 million to roughly half that over the last decade.
According to The Real Deal, LNR’s filing zeroes in on the retail portion of the two-building block, about 46,700 square feet, which backs a $9.3 million CMBS loan originated in 2015. An updated appraisal from October 2025 pegged the value of the retail space at about $11.8 million, down from roughly $20.3 million at underwriting. The loan matured in August 2025 without repayment, and the outlet reports that LNR is pushing ahead with foreclosure while also keeping the door open to a possible workout with the borrower.
Property Was Shopped Last Year
The block was not exactly a secret to investors in 2025. Brokers circulated offering materials throughout the year, and online marketing shows an active hunt for a buyer ahead of the loan’s deadline. A listing on Brevitas for 100 East Walton describes a 46,783 square foot retail and medical office package and points prospective buyers to an offering memorandum. A separate posting on LoopNet shows space still available into late 2025, signaling that ownership was already testing an exit before the debt came due.
Retail Headwinds On The Mag Mile
The Walton foreclosure is unfolding against a rough backdrop for the Magnificent Mile and nearby streets, where vacancy has stayed stubbornly high and big-name flagships have shrunk or walked away. Trade coverage and market trackers put vacancy in the area in the mid to high 20s, a level that eats into rents and nudges owners toward value-add strategies or distressed sales. Reports from Bisnow say vacancy is still a drag on leasing. With some brands and investors shifting focus to tighter stretches such as Oak and Rush streets, older mixed-use retail blocks like the one at Walton can end up more exposed when the music stops.
What The Foreclosure Means Legally
Illinois uses a judicial foreclosure process, which means a lender has to take its claim to court before there can be a sale or transfer of possession. In Chicago, those filings move through Cook County Circuit Court. Resources on Illinois foreclosure law note that judicial foreclosures come with specific notice rules and potential redemption windows that give borrowers limited time to catch up. Illinois Legal Aid lays out a practical manual for how mortgage foreclosures unfold, while the state’s statutory framework appears in civil procedure code sections hosted at FindLaw.
What Owners And Tenants Might Expect
Public loan data reviewed by The Real Deal shows that occupancy in the retail portion slipped to about 67 percent by the end of 2024. Operating costs were eating up a large share of revenue, leaving limited room to comfortably cover debt service. During the 2025 marketing push, offers reportedly landed in the eight-figure range but did not reach the owner’s target price of roughly $12.5 million, narrowing the path to a clean sale…