CHICAGO-The improvement in the capital markets in 2010 encouraged Transwestern Investment Co. to refinance five office properties in Illinois and Michigan, according to Holliday Fenoglio Fowler LP. Transwestern gained $65 million for a local fund from New York City-based Prime Finance.

Tim Joyce, managing director with HFF, tells GlobeSt.com that the company didn’t take any cash out of the deal. “They had some maturities, and wanted to consolidate,” he says.

The properties include Centennial Center, One Century Centre and Two Century Centre in Schaumburg, IL, as well as Lisle Executive Center in Lisle, IL and the Tri-Atria building in Farmington Hills, MI. The portfolio, totaling more than one million square feet, is about 83% occupied, Joyce says.

The deal takes advantage of a great debt market, Joyce says, one that will continue to improve through 2011. “There’s definitely capital out there, the life companies are all lending, and the conduit business is definitely back. Even some banks are involved,” he says. The one factor that is moving forward more rapidly than expected is the CMBS market. “Last year CMBS was at about $11 billion to $12 billion, and there’s already a couple billion dollars worth ready for securitization in the next couple of months, through 20-to-30 lenders.”