X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market and the debt and equity markets, click here.)

CHICAGO-Prime Group Realty Trust has retained New York City-based Carlton Advisory Services Inc. to arrange funding for its $318-million redevelopment of the former IBM Plaza at 330 N. Wabash. The owner plans to convert at least the lower 14 floors of the 47-story, 1.4-million-sf office tower into residential condos.

The conversion is aimed to exploit the City’s thriving multifamily market and shifts that are bringing more residents Downtown. The mid-rise portion of the building will remain as office space, and the high-rise portion may either remain office or be converted to residential rentals or for-sale condos, depending on market conditions, according to a statement.

The building was designed by Ludwig Mies van der Rohe and completed in 1973. It is directly across from Trump International Hotel and Tower. According to published reports, condo units in the Trump asset are 75% pre-sold and the asking rate for condo space averages about $900 per sf.

According to Howard L. Michaels, Carlton’s chairman, his company will arrange approximately $240 million of senior debt and either preferred equity on an 80/20 basis or mezzanine financing up to 90% of the cost for the redevelopment and conversion. Locally based Prime Group, an affiliate of the Lakewood, NJ-based Lightstone Group, has a portfolio in excess of 29 million sf that includes 12,000 multifamily units.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.