Court appoints receiver for Golub, BlueFive’s Mag Mile office

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Distress astatine 625 North Michigan Avenue is entering its adjacent phase: receivership.

On June 16, a Cook County justice appointed Scott Shefman of Friedman Real Estate Management arsenic the receiver for the Magnificent Mile bureau building, tribunal records show.

Shefman's takeover of the 28-story property's operations stems from a foreclosure suit filed by Citibank, acting arsenic trustee for commercialized mortgage-backed securities bondholders, alongside peculiar servicer LNR Partners. The lenders allege landlords Golub & Company and BlueFive Capital defaulted connected a $50.6 cardinal loan. The debt, originated by Cantor Commercial Real Estate successful 2019 with a 4.63 percent involvement rate, reached its maturity day connected March 6 without repayment.

The indebtedness transferred to peculiar servicing successful November 2025 owed to an imminent default driven by currency travel issues. Golub antecedently indicated to the lender that it couldn't proceed backing the property's operating expenses retired of pocket. In April 2026, the borrowers received a ceremonial announcement of default.

As receiver, Shefman takes power of the astir 290,000-square-foot building's management. His court-mandated duties see collecting rents from tenants and maintaining caller slope accounts; negotiating, modifying and executing leases; and assisting successful selling the spot for sale, which whitethorn impact soliciting offers.

Neither Shefman nor Golub returned requests for comment.

The operation has struggled importantly with tenant retention. Occupancy astatine the spot dropped to astir 63.8 percent successful 2025, a steep diminution from the 91.8 percent occupancy complaint recorded erstwhile the indebtedness was underwritten successful 2019. Furthermore, the spot stopped generating capable gross to screen the outgo of its indebtedness service, with the indebtedness work sum ratio plummeting to 0.96 successful the archetypal 4th of 2025, astir 52 percent beneath underwriting projections. This fiscal deterioration triggered a currency absorption expanse by the lenders.

The indebtedness default and the consequent foreclosure lone screen the bureau information of the high-rise, spanning floors 5 done 27. The building's retail space, located connected the little 4 floors, is owned separately. In 2024, capitalist Ben Ashkenazy surrendered that retail information to his lender with a deed-in-lieu of foreclosure to resoluteness a abstracted $61 cardinal debt.

This foreclosure adds to ongoing distress on the Mag Mile and marks different nonaccomplishment for Golub & Company. The steadfast antecedently mislaid the 36-story operation astatine 444 North Michigan Avenue to Blackstone done a deed-in-lieu of foreclosure.