Miami-based Rialto Capital Advisors, the special servicer for more than $33.8 million in debt owed by West Suburban Medical Center landlord Rathnaker Patlola, filed a motion in Cook County Circuit court July 6 asking that a receiver be appointed to take over control and management of West Sub’s River Forest medical campus on Lake Street.
The receivership is separate and distinct from a receivership request by Patlola in his lawsuit against West Sub CEO Manoj Prasad, though West Sub and Resilience Healthcare are among the more than a dozen defendants listed in the Rialto lawsuit.
The West Sub receivership bid, which was denied by Judge Patrick Stanton, would have allowed Insight Health of Chicago to take over the administration of hospital operations, though not the property itself.
The filing in Cook County Circuit court formally asks Judge Margaret Jean Cocozza to appoint Rebecca Cusack of CBRE, a long time commercial real estate services company in Chicago, “to act as receiver and to manage” properties located in River Forest at 7420 Central Ave., 420 William St. and 7411 W. Lake St.. The suit also asks for control of a parcel at 4650 N. Clarendon Ave. in Chicago. That site is on the campus of Resilience’s other shuttered hospital, Weiss Memorial.
Like the main campus in Oak Park, West Sub’s River Forest holdings have also deteriorated and have, at times, been closed down due to non-functioning elevators, interior flooding and other issues.
The commercial mortgage-backed securities trust, or CMBS, holds the bonds tied to the mortgage on Patlola’s three parcel River Forest property and a 945-space parking garage in the Uptown neighborhood in Chicago.
A hearing has been scheduled for July 16 in Judge Cocozza’s courtroom in the Daley Center.
Rialto Capital Advisors has apparently been considering the appointment of the receiver for several months; the cover of a four-color proposal brochure sent to Rialto by CBRE bears a March 4, 2026 date.
Proposed fees for a receiver include $2,000 monthly for the receiver and property management fees of 3% of total monthly property revenue, with a minimum $5,500 monthly, as well as approved expenses, including legal fees incurred by the receiver.
River Forest Realty, LLC, which owns the River Forest properties, is managed by River Forest Realty Holdings, LLC, of which Patlola is listed as president. The Uptown garage is owned by another Patlola entity, Clarendon Realty, LLC.
In October 2023 Patlola took out a $22 million loan from Argentic Real Estate Fin 2 LLC to cover debt on the River Forest and Chicago properties. The paper on that loan was sold, and bonds secured by those properties are now overseen by Rialto Capital Advisors.
The debt on that original $22 million mortgage has since grown to $33.8 million and is accruing interest obligation at a rate of $8,560 per day, along with other fees and other penalties.
Commercial mortgage-backed securities usually come with strict limitations that block a borrower from re-financing options available with conventional mortgages.
The complaint by Compushare Trust Company alleges that Patlola failed to pay the scheduled October 6, 2025 loan repayment “and remit related past due amounts,” and has “failed to provide required financial reporting materials for multiple fiscal quarters (beginning in June 2024).”
Patlola also failed to pay property taxes, which, the lawsuit said, forced master servicer Midland Loan Services “to advance $3.4 million to protect the collateral.” Required proof of insurance on the properties was also allegedly not provided.
A Nov. 20, 2025 letter from PNC Real Estate, which owns Midland Loan Services, warned Patlola that “immediate action is required,” that “The loan is in default and lender is not obligated to afford the borrower an opportunity to cure.”
PNC demanded “Payment in the amount of $2,897,550.57, which amount includes past-due principal, interest, impounds and applicable late charges (the “Past Due Payment Amount”), must be received by Midland.”
“In addition to the Past Due Payment Amount, the next monthly installment payment in the amount of $1,446,132.23 is also due on 12/06/2025,” the letter warned.
PNC also warned that “Failure to comply may result in the loan being transferred to the special servicer, acceleration of the indebtedness, default interest and assessment of other collection costs,” which has, in fact, occurred.
The proposed receivership order would authorize Cusack and her CBRE team to “… secure tenants and/or occupants and execute and modify leases for the property… and collect all rents.”
The receiver would also be authorized to “market the property and list or place the property for sale on the market… and, with the consent of (Rialto Capital Partners) and prior approval of the court, sell the property…”
Under the proposed receivership order, any revenues taken in by the receiver would be expended in a directed manner. First, for “payment and reimbursement of the receiver for all fees, costs, and expenses incurred…, to payment of authorized insurance premiums and taxes… payment of reasonable and necessary expenses associated with the property” and “payment of the obligations owed to the Plaintiff …”
In April Ramco placed a 5-day eviction notice on the entrance doors of the River Forest campus buildings, alleging $7.25 million in unpaid rent from Prasad’s Resilience Healthcare.
The medical campus’s parking lot has noticeably deteriorated in the past year or two.
River Forest Village Administrator Matt Walsh did not immediately return calls seeking comment on the recent court filing against Patlola. However, in February 2025, all three elevators in the two medical buildings passed inspection for the first time in nearly a year, according to Walsh at that time.
One or more of the elevators had failed for one or more reasons, including out-of-date fire extinguishers, broken emergency phones, or past-due category 1 tests that assess elevator safety.
The River Forest campus also appears to have suffered from a lack of basic maintenance. Wednesday Journal walked around the property July 8 and saw overgrown vegetation and weeds, and dirt-caked first floor windows. Most of the first-floor offices viewable through their window blinds were empty.