Barings Offered Distressed Loan on Chicago Michigan Plaza
Owners of the struggling office complex are preparing to relinquish the property as vacancy rates drop.
Updated on Sept. 25, 2026 in Commercial
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Barings has hired JLL to sell a $69 million nonperforming loan tied to Chicago's Michigan Plaza. Aegis Asset Management, which has held the property since 2004, plans to concede the two-tower office complex to the loan buyer.
Why it matters
The move signals deepening distress for large-scale office assets as the complex deals with low occupancy. The shift highlights how lenders and owners are working to exit investments that have struggled to keep pace with the broader downtown office market.
The loan balance currently sits at $69 million, a significant drop from the original $210 million mortgage secured in 2014. The 1.9 million-square-foot property, consisting of 44-story and 25-story towers, faces pressure as major tenant Omnicom Group seeks to sublease 150,000 square feet.
The players
Barings
An international investment manager that holds the $69 million nonperforming loan for the property.
Aegis Asset Management
A long-term real estate owner that has managed the Michigan Plaza complex since 2004.
JLL
A commercial real estate services firm hired to market the distressed debt to potential investors.
Omnicom Group
A global marketing and corporate communications firm that acts as a major tenant in the complex.
The details
The property owner, Aegis Asset Management, is effectively handing over control of the buildings to resolve the nonperforming debt. By hiring JLL to market the distressed loan, Barings aims to find a new buyer to take on the debt, while the current ownership prepares to exit. The financial strain is compounded by high vacancy, with major tenant Omnicom Group trying to offload the majority of its 222,000-square-foot footprint before its lease expiration in late 2028.
Timeline
2004: Aegis Asset Management began ownership of the property.
2014: The initial $210 million mortgage was finalized.
June 2026: The occupancy rate reached a low of 49 percent.
Late 2028: The expiration date for the Omnicom Group lease.
January 1, 2030: The maturity date for the existing mortgage.
The Home Front
This development underscores a challenging period for large-scale commercial assets in the urban core. As occupancy remains well below regional averages, property owners are increasingly forced to re-evaluate long-term holding strategies for massive office towers.
While this is a commercial transaction, local residents should monitor how the transition of large office footprints affects the overall economic vitality of the downtown area. Owners of smaller commercial or residential units nearby should watch local tax filings and municipal development plans that may shift as major properties change ownership.
The takeaway
Large-scale office distress often leads to shifts in neighborhood commercial activity that can ripple through local property values and amenities. Residents should track official property transfer filings for large downtown assets to stay updated on future site redevelopment plans.
Further reading
Learn more about the current state of local office properties in our Commercial section.
Source note: This article includes information reported by The Real Deal New York.
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