The new loan will have a fixed rate of 6.2%, replacing avariable rate loan that was currently at nearly 8%, Carlton Groupchairman Howard Michaels tells GlobeSt.com. The building was alsoappraised, during the process, at $1.2 billion. "Other than savingthem like $10 million a year in interest it also gives them a verylow long-term fixed rate which stabilizes the building," he says.The $780-million interest-only loan is replacing a $825-millionvariable rate mortgage from Bank of America, says a source familiarwith the transaction.

The refinancing comes at a time where the ownership has closed,during a three-month period, about 225,000 sf of new or expandedoffice leases, including an 11-year lease agreement for 63,813 sffor Segal McCambridge Singer & Mahoney that was recentlysigned. Several major tenants have recently renewed including lawfirm Schiff Hardin & Waite, Bank of America and law firm LathamWatkins while Ernst & Young has recently expanded.

"Through the refinance, Sears Tower plans to invest in acomplete renovation of the Sears Tower Skydeck, which will givepeople glimpses into the inner workings of a skyscraper," says aspokesperson for the building. More than one million people eachyear visit the Skydeck, on the 103rd floor of the building.