NEW YORK CITY-In an unusual financing, GlobeSt.com has learned EXCLUSIVELY, CBRE has completed a $225 million loan secured by 22 West Washington in Chicago, and 1111 Brickell Ave. in Miami on behalf of Prudential Real Estate Investors' commingled core fund. The loan—provided by JP Morgan Chase Bank–was facilitated by Michael Sherman, SVP and Joseph Donato, Jr. vice chairman.

“Prudential wanted the flexibility to be able to remove a property from the loan, if necessary, and replace it with something,” Sherman tells GlobeSt.com. “That's what made this transaction unique.

“Finding the right lender took a little effort,” Sherman admits, “but this was good real estate and JP Morgan was interested in the properties so it offered the flexibility we needed.” He declined to provide information on the loan's terms, though he did say of the lender and borrower relationship, “Working with two very professional organizations enabled the transaction to proceed flawlessly and allowed the borrower to secure very attractive terms in a volatile interest rate environment.”

The substitution opportunity gives PREI several opportunities, adds Donato. “This provides the benefit of securing a very attractive long-term interest rate while maintaining flexibility to sell assets and realize equity through substitution. While the financing is structured as a loan, it effectively acts like a long-term credit facility.”

Built in 2008, 22 W. Washington is a 17-story, 439,434-square-foot, Class A office building in Chicago's Central Loop submarket. The building is anchored by CBS Broadcasting and Morningstar.

Built in 2000, 1111 Brickell Ave. is a 30-story, 522,891-square-foot, Class A office building in the heart of Miami's Brickell submarket. Also known as the Sabadell Financial Center, the property's two largest tenants are the law firm Hunton & Williams and Sabadell United National Bank.

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CBRE Secures One $225M Loan for Two Properties

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