A 10-story office building at 1911–1921 South Indiana Avenue in the South Loop is headed into foreclosure after its primary tenant, the State of Illinois, walked away from its lease over crumbling infrastructure and unresolved code violations. The state's departure gutted the building's revenue, and now lender Jovia Financial Federal Credit Union is not only seeking to foreclose on the property but going after owner Reuven Y. Rivlin personally for the full outstanding balance.
Jovia Financial Federal Credit Union filed a $17.1 million foreclosure lawsuit against Rivlin's entity, S Indiana Avenue LLC, in Cook County Circuit Court on September 4, according to The Real Deal. The lawsuit stems from a default on a $17.5 million mortgage loan Rivlin obtained from the Westbury, New York-based credit union on January 5, 2022, just weeks after his venture purchased the property for $14 million on December 31, 2021. Because Rivlin signed an unlimited personal guarantee on that loan in 2022, Jovia can pursue him for the entire $17.1 million balance rather than simply reclaiming the building.
The Illinois Department of Children and Family Services has published documents related to adoption agencies and child welfare operations, according to a DCFS document. A Domestic Violence Co-Location Program and specialized victim advocates are described in external material.
A Building Falling Apart From the Inside Out
The Illinois Department of Central Management Services had leased 129,126 square feet on behalf of DCFS at the property, per official state leasing logs reviewed by the Illinois Department of Central Management Services. Instead, the state stopped paying rent after December 2025 and terminated the lease outright. A Central Management Services spokesperson said the lease was terminated for cause per its terms, citing severe building code violations and structural maintenance issues.
The building's problems were extensive. The 10-story property accumulated more than three dozen open building code violations in 2024 and failed multiple municipal inspections, the report notes. Inspectors documented clogged condenser lines in the mechanical systems, an unpermitted commercial buildout on the 10th floor, and a parking garage exhibiting deteriorated concrete with exposed rebar. The City of Chicago filed a lawsuit against the landlord over the unaddressed violations in August 2024, and that Municipal Division case remains active in Cook County Circuit Court, with the city demanding structural engineering reports for the exterior masonry facade and parking garage and seeking more than $39,000 in fines and penalties.
Forbearance Ran Out, Then the Lawsuits Piled Up
S Indiana Avenue LLC had negotiated a three-month forbearance agreement with Jovia, but it expired in June 2026 without a resolution. The borrower has since filed its own claim against the Illinois Department of Central Management Services, seeking unpaid 2026 rent and property tax escalation payments for 2024 and 2025, according to the same report. Separately, law firm Schmidt Salzman & Moran filed a nearly $52,000 contractual lien against the property in January 2026, alleging unpaid legal services fees; that lien and others remain unresolved.
The South Loop property, built in 1996, was previously owned by an entity that concealed its identity behind a Chicago Title Land Trust Company structure before selling to Rivlin's venture in December 2021, the outlet notes, with Riverside Abstract facilitating part of the transaction. Rivlin, who is based in Lakewood, New Jersey, has been covered by The Real Deal's earlier reporting.
Rivlin Presses Ahead With Acquisitions Despite the Default
Even as the foreclosure proceeds, ABS Management announced on September 1 a nationwide office and retail acquisition strategy. Rivlin said growth only makes sense when the underlying investment makes sense, adding that ABS Management seeks assets where fundamentals make sense and experience can create additional value.
The default comes as Chicago's office market faces distress. Chicago's central business district office vacancy rate reached 28% in late 2025, according to CBRE data cited by The Real Deal. Nationally, commercial real estate distress has affected the office sector. Metropolitan Chicago recorded 3,401 foreclosure starts in the first quarter of 2026 alone, placing it among the three highest metro areas in the country for total foreclosure actions, per ATTOM.
S Indiana Avenue LLC pursued its rent claims through the courts after the state's exit.
This is not the first South Loop commercial property to land in foreclosure court. A 2025 foreclosure fight involving two South Loop hotels involved $187 million, part of a wider pattern of distressed loan sales and foreclosure enforcement moving through Chicago's downtown office towers.
