River North Retail Building Faces Foreclosure Lawsuit

The bank is seeking $9 million in debt as the property owner faces legal action in Cook County Circuit Court.

Updated on Oct. 29, 2026 in Commercial

Bold flat-color editorial illustration of an urban building facade in deep red and cream, conveying a sense of legal weight. — Old Second National Bank has filed a foreclosure lawsuit against the owner of the retail building at 400 North State Street. AI Illustration. Upload story photo >

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Old Second National Bank has filed a foreclosure lawsuit in Cook County Circuit Court against the owner of a River North retail building at 400 North State Street. The filing follows an alleged default on a $9 million loan, with the lender seeking to recoup $2.9 million under a personal guarantee from investor Marc Bushala.

Why it matters

This foreclosure filing creates uncertainty for the future of the 400 North State Street property, which currently hosts tenants including Dough Bros pizza and Ghost LLC. The legal action highlights the ongoing financial challenges facing commercial property owners and their lenders in the current economic climate.

The foreclosure action targets a $9 million loan balance as of Oct. 21, including a $2.9 million personal guarantee signed by Marc Bushala. The property, last renovated in the 1980s, holds a $3 million permit for restaurant conversion.

The players

Old Second National Bank

An Aurora-based financial institution that provides commercial and residential lending services.

Marc Bushala

An investor and developer associated with Phoenix Group Management and MAB Capital Management.

The details

The bank initiated the complaint after the borrower reportedly failed to meet loan obligations. The legal dispute involves several entities tied to the property, including MAB Capital Management and WFB Gift, alongside the building owner. Foreclosure proceedings typically serve to initiate a formal process for the lender to recover collateral, which in this case includes the River North retail site.

The building underwent its last major renovation in the 1980s.
The total debt on the loan reached approximately $9 million on Oct. 21, 2026.
Old Second National Bank filed the complaint in Cook County Circuit Court on Oct. 26, 2026.

The Home Front

This foreclosure marks a continuation of commercial real estate distress in Chicago, where rising interest rates and shifting demand have complicated loan repayments. It underscores the financial pressure on retail property owners as they navigate debt obligations for aging assets.

Tenants in the affected building should continue business operations as usual while monitoring communications from property management. Commercial renters in the area should maintain organized records of their lease agreements and contact information for their building's ownership entity.

The takeaway

Commercial property disputes can create long-term uncertainty for retail tenants and surrounding businesses. Residents and local business owners should watch for updates from property management regarding building ownership or potential changes to site management.