General Discussion

Trinity Flood has been swept up in a deluge of financial distress tied to Chicago real estate.

The Wisconsin-based investor that paid $18 million for a trio of South Shore multifamily properties in 2020 is facing a $27 million foreclosure lawsuit for failing to make loan payments on the deal, public records show.

Flood also purchased three properties in Georgia and one in Arizona with a $25.3 million loan that was later packaged up with other real estate debt and sold off to commercial mortgage-backed securities investors. The landlord is now in danger of losing all 354 units, including 208 in South Shore, in the foreclosure lawsuit.

It’s the latest portfolio in South Side neighborhoods to fall into default on a big loan for a purchase between 2020 and 2022 at prices that signaled rising speculation yet failed to materialize into profits for some investors, particularly those who ended up with buildings needing substantial repairs.

The loan wasn’t scheduled to mature until 2030, indicating there’s been significant financial difficulty in making interest payments from rent revenues.