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CHICAGO-An affiliate of Boston-based Beacon Capital Partners LLC has secured $72.1 million in financing for 550 W. Washington. The affiliate is refinancing because the term was up for the previous financing, says Michael Kavanau, senior managing director of the Chicago office of Holliday Fenoglio Fowler LP.

The term of the loan is five years and the interest rate for the fixed-rate loan is 5.8%. The loan to value was approximately 65%, Kavanau tells GlobeSt.com. Beacon acquired the building in Oct. 2006 as part of a four-building 2.4-million-sf portfolio for approximately $488 million from Chicago-based Trizec Properties Inc., sources say.

Kavanau and Timothy Joyce, director with Holliday Fenoglio Fowler’s Chicago office and Fred Wittmann, with HFF’s Boston office, secured the loan, which was provided by Landesbank Hessén-Thuringen Girozentrale (Helaba). “It was pretty hotly contested for,” Kavanau says, regarding the financing. “It is a great building, Beacon is we think absolute best-in-class sponsor and, as a result, there was a lot of interest in it.”

The 16-story office building, which was constructed in 2000, is located in the West Loop submarket of Chicago’s Central Business District. The 371,415-sf building is 97.5% leased. Major tenants in the building include the Chicago Mercantile Exchange and AOL. Starbucks also has its regional headquarters in the building and has been a tenant since 2001, as previously reported by GlobeSt.com.

The building was acquired as part of a four-building portfolio, which also included the 683,151-sf 120 S. Riverside Plaza; 684,443-sf 10 S. Riverside; and 692,000-sf Two North LaSalle, sources say. Beacon Capital Partners, which was formed in 1998, acquired the portfolio as part of its Beacon Capital Strategic Partners IV LP fund, a $2 billion closed-end commingled fund which focuses on value-added office properties in markets including Chicago, Boston, Washington, DC, New York City, Los Angeles, San Francisco, Seattle, London and Paris, according to information on the firm’s website.

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