MetLife already held a $766-million first mortgage on the 3.5-million-sf office tower, which Trizec Properties, Inc. decided not to assume last year. In addition, MetLife paid the REIT now headquartered at Sears Tower $9 million for its second mortgage on the property, putting the insurance company's investment in the property at $775 million.
With a gain of more than $90 million, the sales price will surpass the most recent appraisal Trizec Properties had done on the property, which estimated the value at $828 million in the wake of Sept. 11, 2001 as well as an already softening West Loop office market.
However, occupancy at Sears Tower has been holding firm at 89%, with Unicare, Bank of America and Chubb among the tenants recently renewing leases on more than 11% of the building.
MetLife notes its investment in Sears Tower goes back to 1990, when the building was still owned by its namesake retailer, which has since relocated its headquarters to Hoffman Estates.
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