Former AT&T Campus Prepped for Foreclosure by Its Lenders

by San Antonio Attorney

The proprietor of the AT&T campus located in the Hoffman Estates, experiencing financial difficulties and unable to pay its debts, is now facing the challenge of foreclosure after their lease contract expired.

The property is considered to be one of the biggest corporate campuses in Chicago.  However, this property has been listed on the roster as one of the properties due for foreclosure in 2013.

The company has retained their payments for lease even though they have expressed their interest to move to another location.  Their contract expired last August 15 and there were no new tenants to take over the complex.  The empty buildings have been renamed as Lakewood Center Chicago.

Highlands, without any financial gain from lease income, cannot cover mortgage payments.  Richard Vance, the President of Highlands and CEO, has refused to comment on the ongoing financial issue.

Hoffman Estates Properties consisted of two mortgage-backed securities offerings since 2006.  The debt was officially turned over to an officer-in-charge, to investigate potential problems in loans.

Last August 9, the Highlands Company was notified that their loan was put on default, according to the Securities and Exchange Commission quarterly report.  The company has also recorded an impairment charge, writing down the exact value of the property, located at the east of Barrington Road of the Jane Addams Memorial Tollway.

The bankruptcy filing stated that the company has already negotiated with their special service regarding the status of their assets.

The withdrawal of AT&T’s contract caused a major blow to the Highlands, whose financial status relied solely on the Hoffman Estates for its annual rent.  The investment trust of real estate, which includes Oak Brook-based InvenTrust Properties, also holds a lease contract in other places such as Texas and Colorado public prisons.

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