X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Continental Towers, a three-building, 920,355-sf office complex along the Northwest Tollway in Rolling Meadows, has been refinanced for $75 million, reducing Prime Group Realty Trust’s interest rate. SunAmerica Life Insurance Co. wrote the mortgage at 30-day Libor plus 1.75%, which sets the initial interest rate at 4.84%.

The three-year, interest-only loan replaces a fixed-rate mortgage from Prudential Life that carried a 7.22% fixed rate. The loan, which had nearly eight years before it came due, had a $65.6-million balance refinanced by SunAmerica Life Insurance Co. While the initial interest rate is about 2.4 percentage points lower, the new debt could carry a rate up to 8.25%. The REIT bought an interest rate protection agreement capping Libor at 6.5%.

Occupancy at Continental Towers dipped during the first quarter to 74.6%, according to Prime Group Realty Trust’s just-released earnings report. Available space is being marketed by the company at $14.50 per sf on a net basis.

The new mortgage can be extended for an additional two years at current market rates, as well as convert it to a seven-year, fixed-rate loan.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.