LG Development's 330 S. Wells Tower Faces Nov. 3 Foreclosure Sale

LG Development Group’s office-to-residential conversion at 330 S. Wells St. in the Loop is headed to a foreclosure auction, Bisnow reported, after the lender behind its defaulted loan sold the note at a 47% discount.

The 17-story building carries debt tracing back to a $27M Regions Bank construction loan from 2018. A Prime Finance affiliate refinanced it in 2021 with a $28.2M mortgage that matured in February 2025 without being paid off. Prime Finance sued an LG Development affiliate in Cook County Circuit Court, Chancery Division, that May to foreclose. Cook County Judge Jean Cocozza ruled in September that the note is in default and the foreclosure can proceed. Roughly $33.3M was owed as of early September, including accrued interest.

Earlier, a Prime Finance subsidiary sold that defaulted note to an entity tied to Lindy Communities, 330 S Wells Holdings LLC, for $15M, a 47% discount to face value. 330 S Wells Holdings LLC is now the foreclosing party, with a sheriff’s auction reported set for Nov. 3, 2026. If Lindy’s affiliate wins the auction, it can apply the outstanding loan balance as a credit toward its bid, according to court documents cited by Bisnow.

Bisnow is the source of record for this story. We did not locate the Cook County Chancery case number for the Prime Finance suit before publication, so none is cited. The loan history, the note sale, the default ruling and the Nov. 3 date are as reported by Bisnow and have not yet been checked against the court docket.

ALSO REPORTED BY: Bisnow.

Why it matters

A lender that sells a defaulted note at a 47% discount, rather than foreclose and hold the building, is booking a certain loss now. That is a distress signal for Loop office-to-residential conversions. Lindy Communities, a multifamily owner with about four dozen properties nationally, per Bisnow, bought the debt at less than half of what is owed.

The numbers

The 2021 refinance from a Prime Finance affiliate was $28.2M, and matured in February 2025 with roughly $33.3M owed by early September including accrued interest. Lindy Communities’ affiliate paid $15M for that note, a 47% discount to face value. The sheriff’s auction is reported set for Nov. 3, 2026.

What’s next

Lindy’s affiliate can bid the loan balance as a credit at the Nov. 3 auction. Having paid $15M for a note with about $33.3M owed, it could take the building for far less than the debt. Whether LG Development retains any role once the sale clears has not been reported. The outcome is a data point for how Chicago’s other office-to-residential conversions, including the ongoing work at 500 N. Michigan Ave., get financed once a conversion loan goes bad. See the Chicago hub for more.