Tom Corfman writes,

“the largest real estate deal in Chicago history is turning into the biggest example of the grim plight of many properties in the city’s downtown office market.

A venture led by New York-based Tishman Speyer Properties has defaulted on part of a package of loans used to finance the $1.72-billion purchase of six prime office towers in Chicago’s Loop during the frenzied real estate market of 2007, sources familiar with the deal say.”

from Crain’s New York Business.