Chicago investor Jiazhao "Frank" Chen, the owner of the rooftop restaurant space atop Lake Point Tower, is staring down nearly $25 million in foreclosure actions tied to a cluster of small rental buildings in Chinatown and Bridgeport. Two separate lawsuits filed this winter accuse his entities of defaulting on mortgages across more than a dozen addresses, and at least one lender wants a judge to hand the keys to a receiver while the court fight plays out. The legal squeeze throws fresh uncertainty over both the sky‑high restaurant space and the connected rental portfolio on the ground.
According to The Real Deal, lenders filed two foreclosure suits in January and February that aim to take control of 11 properties tied to roughly $23.4 million in mortgage debt. One case, filed Jan. 27 by RRM RE Holdings LLC, claims a borrower entity halted payments on a $9 million mortgage and asks the court to appoint Daniel Hyman as receiver to run the troubled assets. A second lender is moving to foreclose on six more properties backed by a $14.4 million mortgage, according to the filings.
Rooftop purchase and stalled restaurant plans
Chen bought the shuttered Cité restaurant space at the top of Lake Point Tower out of bankruptcy in late 2022, drawing outsized attention because the perch offers some of the most dramatic views in Chicago. As reported by CoStar News, Chen's broker floated plans for a fine‑dining concept on the 70th floor, but so far no new restaurant has opened its doors. Industry watchers note that sky‑high restaurants are notoriously expensive to operate and often depend on private events or destination diners to make the numbers work.
Loans, transfers and alleged defaults
Per The Real Deal, Chen took out a $9 million mortgage in June 2024 from Encore Finance that covered five properties, and in November 2023 recorded a separate $14.4 million mortgage under an LLC for six other buildings. Public records cited in the suits show Encore assigned the smaller loan to RRM in January and transferred the larger mortgage to Fidelity & Guarantee Life Mortgage Trust in December. The complaints allege payments on the two loans stopped in September and October 2025, respectively, triggering the lenders' push to foreclose.
What a receiver could mean
Under Illinois foreclosure law, a court can appoint a receiver to run mortgaged property and collect its income while a foreclosure case moves forward. The statute 735 ILCS 5/15-1702 gives a mortgage holder the right to ask for a receiver and to nominate someone for the job, subject to the judge's sign‑off. If installed, a receiver typically steps in to collect rents, oversee maintenance and preserve the value of the buildings for creditors while the litigation plays out.
A sign of broader stress
The actions against Chen land at a time when mortgage delinquencies and foreclosure activity are already edging higher in Illinois and across the country. HousingWire reported Mortgage Bankers Association data showing delinquencies ticked up in the fourth quarter of 2025, while foreclosure inventories and starts have also crept higher in recent months. Analysts caution that as lenders move to clear out nonperforming loans, tightly leveraged portfolios of small buildings can be especially vulnerable.
How the Cook County court responds, whether by appointing a receiver or allowing a negotiated cure, will decide whether Chen keeps control of the properties or ultimately loses them to his creditors. Upcoming hearings and filings in Cook County Circuit Court will offer the clearest clues about how quickly the portfolio, and the fate of the Lake Point Tower restaurant space, get resolved.
