The owners of the Chicago Board of Trade Building couldn't find a buyer for the Loop landmark last year, but they've lined up a payday by refinancing the property instead.
A joint venture of Chicago-based developer GlenStar Properties and Los Angeles-based private-equity firm Oaktree Capital Management has taken out a $256 million loan on the property at 141 W. Jackson Blvd., according to a statement from real estate services firm Jones Lang LaSalle.
79彩票注册网址The new mortgage is worth almost $70 million more than the debt it replaces, allowing the owners to take advantage of the 44-story tower's growing value without selling it. The refinancing approach has been appealing to many downtown office owners, which can pocket profits from a building's appreciating value without paying a capital gains tax associated with a sale.
Not that they didn't try to unload the 90-year-old building. GlenStar and Oaktree put the property up for sale79彩票注册网址 almost a year ago seeking around $330 million, according to sources familiar with the offering. That would have dwarfed what it was valued at in recent years: When they last refinanced the building with a $177.7 million loan in May 2017, it was appraised at $275 million, according to a Bloomberg report tied to the loan. The total debt on the property as of last month was $187 million, the report said.
With a high asking price amid a slow 2019 for commercial property sales in Chicago, the building didn't trade. But the size of the new loan suggests its value has grown significantly.
It's unclear how much the building was appraised for in connection with the refinancing, and a GlenStar spokesman couldn't immediately be reached.
The loan reflects both the owners' renovation and leasing efforts in the building and investors' confidence in the downtown office market. Companies moved into more office space last year than any year since 2007.
79彩票注册网址The property was 23 percent vacant as of September, according to the Bloomberg report, a significantly higher share than the 13.7 percent average for downtown office buildings at the end of the year. But the occupancy is way up from 2012, when a GlenStar venture paid $152 million for a then-half-empty building.
New tenants in recent years include engineering design firm Talman Consulting, insurance company Resolute Management and third-party logistics firm BlueGrace Logistics. CME Group is the biggest tenant in the building with around 148,000 square feet.
79彩票注册网址GlenStar and Oaktree plan to add to that list. A portion of the new loan will be allocated toward future leasing, according to the statement from JLL, which represented the owners in the refinancing.
The property posted $7.2 million in net operating income in 2018 off of about $30 million in top-line revenue, according to the Bloomberg report.
The Art Deco tower known for its open outcry trading pits was built in 1930 and stood as Chicago's tallest tower until 1965, when it was supplanted by the Richard J. Daley Center. The CBOT Building was designated as a Chicago landmark in 1977 and listed on the National Register of Historic Places in 1978.7072彩票开户 7073彩票地址 963彩票开户 7073彩票网址 689彩票邀请码 7073彩票注册 8炫彩彩票app 677彩票开户 7073彩票登录 66顺彩票app