A joint venture has struck a deal to refinance its Bank of America Tower, a 56-story office property in Chicago. Partners Oak Hill Advisors, Callahan Capital Partners and Affinius Capital secured $700 million.
The proceeds are covering $2.7 million in upfront reserves, $11.4 million in closing costs, nearly $130 million in preferred equity and to refinance the existing debt.
The new loan was arranged by Newmark, with the brokerages Jonathan Firestone, Nick Scribani, Chris Lozinak and Jordan Roeschlaub advising the JV.
The two-million-square-foot tower was delivered in 2020 and features 22,000 square feet of retail space on the first floor. In addition to Bank of America, some prominent tenants in the building include Brookfield, Morgan Lewis, Jones Day, King & Spalding and Lincoln International. The average weight lease term is 9.4 years at the property, with occupancy sitting at 98 percent.
When the Bank of America building was delivered, it was the tallest tower constructed in Chicago since 1990, according to the site's construction manager, Clark Construction.
The office market in Chicago appears to be on its way back to pre-pandemic activity. A third-quarter report from Savills revealed that the market completed 2.5 million square feet in office signings. That puts it on track for the most active year since 2019. However, while the availability rate declined 30 basis points quarter-over-quarter to 29.7 percent, it remains near all-time highs.
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