CHICAGO-New York City-based Chetrit Group has refinanced three Downtown office buildings totaling 1.6 million sf for $165 million, at 5.85% and interest-only payments during the first three years of the 10-year mortgage. Chetrit Group paid a combined $117.5 million in December 2002 for the 884,004-sf 1 N. Dearborn St., the 527,600-sf 1 N. LaSalle St. and 265,000-sf 360 N. Michigan Ave.
The three buildings have all undergone renovations, totaling $83 million. The most money was spent at 1 N. Dearborn St., where the $30-million renovation in 2000 has helped boost occupancy from 30% to 75% at the 90-year-old property. However, the improvements were nearly $100 per sf at 360 N. Michigan Ave., now 90% occupied with tenants including Crain's, Blackstone Group and YMCA of Metropolitan Chicago. The 84-year-old building is on the site of the original Fort Dearborn.
Previous owners used Cook County's Class L property tax break to start work in 2002 at the 76-year-old 1 N. LaSalle St. and 360 N. Michigan Ave. The Class L incentive cuts property taxes in half for owners making substantial renovation to historic or architecturally significant buildings.
Arranged by Rael Gervis and Ronnie Levine of Meridian Capital Group, the loans are amortized over 30 years.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
