Real Estate
Home›Real Estate›Commercial›Tishman Speyer targets $340M refi for Chicago West Loo…
Tishman Speyer targets $340M refi for Chicago West Loop office complex
The loan would refinance $300M of existing debt and set aside $36.8M for unfunded landlord obligations, with monthly interest-only payments.
Bisnow reports that an affiliate of Tishman Speyer is arranging a $340M loan for its 2.4 million-square-foot, two-tower office complex in Chicago’s West Loop, known as The Franklin, at 222 W. Monroe St. and 227 W. Adams St.
According to the presale report from Kroll Bond Rating Agency, the financing is expected to refinance $300M of existing debt, fund a $36.8M unfunded landlord obligations reserve, and pay closing costs. The floating-rate loan is expected to include an initial two-year term with three one-year extension options, and it would require monthly interest-only payments.
The refinancing plan would package the loan into a commercial mortgage-backed security offering. Tishman Speyer acquired the complex in 2004 and has invested about $64.1M since 2013, including a $27.4M lobby overhaul and facade renovation, the outlet said.
As of August, The Franklin was 79.1% leased to 93 unique tenants, with the five largest tenants representing 38.5% of base rent and 30.5% of total square feet. The outlet also said that almost half of the property’s base rent is scheduled to expire during the five-year loan term and that several tenants have termination options, while Tishman Speyer has completed multiple new leases, renewals, and expansions since May of last year.