No Bidders for South Lake Avenue’s Pasarroyo Office Complex, Property Reverts To Lender

Ownership of the Pasarroyo office complex on the corner of South Lake Avenue and Cordova Street has reverted to its lender, Heitman, after failing to attract any bidders beyond the opening offer at a public auction held on Wednesday, according to Bisnow.com.

The property, located at 251 S. Lake Ave., was initially offered by Coretrust Capital Partners for $114 million, which is approximately 42% of the $271 million owed to Heitman and about 45% of what Coretrust originally paid for it in 2018, according to Bisnow reporter Bianca Barragán.

The Pasarroyo complex, spanning an entire six-acre city block, is comprised of four buildings surrounding a 60,000-square-foot plaza, totaling 650,000 square feet.

Despite its size and prime location, the property failed to attract sufficient interest at the auction.

The future plans for the property remain uncertain as representatives for Heitman, a Chicago-based firm, did not respond to requests for comment.