CHICAGO—HFF has just arranged financing for 401N. Michigan Ave., the 35-story, class A office tower along theChicago River. The firm worked exclusively on behalf ofZeller Realty Group, which bought the758,131-square-foot building in 2001, to secure the five-year,floating-rate loan through New York-based BlackstoneMortgage Trust. Zeller officials say they will use theloan proceeds to enhance the property over the next three years.Although the amount was not disclosed, Cook Countyrecords show the loan from Blackstone was for $190 million.
Tenants lease 81% of the building, originally built in 1965, andinclude Kraft, the University ofChicago, MTV, and several family officesand fund managers. The Chicago-based Zeller plans to refurbish thelobby, build a fitness center, a street level restaurant, and a setof amenities on the 19th floor including a tenant lounge withWi-Fi, fireplace, coffee station and boardrooms.
The HFF debt placement team representing Zeller was led bysenior managing directors Mike Kavanau andDave Keller and managing directorChristopher Carroll.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
