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CHICAGO-Developer Golub & Co. has refinanced the completed 440,000-sf Block 37 office tower, at 22 W. Washington, moving from a $115 million construction loan to a longer-term loan. The 17-story tower has now reached 90% occupied, according to Michael Newman, CEO of Golub. The amount of the new loan is more than $100 million.

The company built the tower in recent years on a construction loan, and always planned to refinance following the building’s completion in June, Newman says. “In our normal program and plan we would have refinanced, and it was really time to get off the construction loan and move into more of a regular loan,” Newman tells GlobeSt.com. “It’s a really tough time refinancing, but we thought the time was right to get a good loan for a longer period that helps stabilize the loan. We had some time left on our construction loan, but we didn’t want to wait closer to the maturity date of the construction loan because of the instability of the market.”

Newman says rates are higher than the company originally expected when planning for the eventual refinancing, but it was able to negotiate with ING Real Estate Finance US to what they consider a successful refinancing of the mortgage nevertheless. The original mortgage on the property was issued by Bank of America.

Morningstar Inc., based here, and CBS Channel 2 Chicago are the anchor tenants in the building, developed by a joint venture between Golub & Co. LLC, based here, and New York City-based BlackRock Realty Advisors Inc. Sterling Business Center Inc. has also signed on for about 29,000 sf. There’s availability on only a couple of floors in the tower, where asking lease rates are in the high-$20s per sf, Newman says.

Newman says great demand has been seen for the Central Loop tower due to its prime location. “The location is very well located to everything, and close enough to the parks, the trains, and the lakefront,” he says. “It’s a brand new building and the tenants have been able to build out their space and make it how they want it to be.”

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