Michigan Plaza Loan Put Up for Sale by Barings

The owner of the Chicago office complex is relinquishing the property as the nonperforming loan hits the market.

Updated on Sept. 25, 2026 in Commercial

Isometric editorial illustration of two high-rise office towers in a dense urban setting, rendered in muted teal and mustard tones. — Barings has hired JLL to sell a $69 million nonperforming loan tied to Michigan Plaza, a two-tower Chicago office complex facing high vacancy. AI Illustration. Upload story photo >

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Barings has hired JLL to sell a $69 million nonperforming loan tied to Michigan Plaza, a 1.9 million square foot office complex in downtown Chicago. Owner Aegis Asset Management plans to give up its ownership of the property to resolve the debt.

Why it matters

The move follows a drop in occupancy at the two-tower complex to 49 percent as of June 2026, significantly trailing the 72 percent average for downtown Chicago office properties. The distress highlights the ongoing challenge for large-scale office assets facing high vacancy rates.

The nonperforming loan has an outstanding balance of $69 million, which is well below the original $210 million mortgage balance. Occupancy at the property is currently 49 percent, notably lower than the 72 percent average for downtown office buildings.

The players

Barings

An investment firm and lender that manages distressed commercial real estate debt.

Aegis Asset Management

The property owner and manager that has held the Michigan Plaza complex since 2004.

JLL

A commercial real estate services firm that manages property sales and lease transactions.

Omnicom Group

A global marketing and communications company that serves as a major commercial office tenant.

The details

Barings is marketing the distressed debt through JLL as the property struggles with low occupancy. Aegis Asset Management, which has owned the site since 2004, is conceding its stake to satisfy the loan terms. A major tenant, Omnicom Group, currently leases 222,000 square feet but has attempted to sublease more than 150,000 square feet of that space before its lease expires in late 2028.

2004: Aegis Asset Management began ownership of Michigan Plaza.
2014: The original $210 million mortgage was established.
June 2026: Occupancy at the property fell to 49 percent.
Late 2028: The Omnicom Group lease is scheduled to expire.
January 1, 2030: The loan maturity date.

Money Landscape

This development follows a pattern set by the post-2020 downtown Chicago office vacancy trend. The sale reflects a broader challenge for commercial properties struggling to reach the market average occupancy as owners balance debt obligations against changing space demand.

Large-scale commercial shifts like this can impact local property tax bases and regional business services. Individuals involved in commercial real estate or local business planning should consult with a financial professional regarding how shifting property control affects commercial lease environments.

The takeaway

Large office properties with low occupancy levels are increasingly facing debt restructuring as owners grapple with shifting lease demands. Keep an eye on local commercial property market reports to understand how vacancy shifts may impact the broader business environment in your area.