Wilmington Trust v. Klor-Controlled SPNA Entities (137-Unit Chicago Condo-Deconversion Foreclosure)
Wilmington Trust National Association, as trustee for a Redwood Trust subsidiary holding debt originated by CoreVest, filed suit in Cook County Circuit Court to foreclose on 137 condominium units across seven Chicago towers personally guaranteed by Yitzy Klor, principal of Strategic Properties of North America (SPNA). The suit seeks nearly $51 million on two revolving credit lines, extended in November 2021 and January 2023, that together total $85 million.
Why it matters
Illustrates the collateral risk lenders take on when financing partial-ownership condo-deconversion assembly plays, where debt service depends on a future supermajority ownership vote the lender cannot control. With one of the seven towers, 200 North Dearborn Street, having failed three straight deconversion votes, the case is a warning for lenders underwriting bulk-buyout sponsors and for condo boards facing similar offers that a stalled deconversion can cascade into sponsor-side insolvency and litigation.
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