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CHICAGO-Following reports of impending foreclosure last month, Broadway Partners has reached an agreement with Transwestern Mezzanine Realty Partners II on its debt at 500 W. Monroe. The new arrangement extends Broadway’s debt with Transwestern to be coterminous with the senior debt on the 973,000-square-foot building, to mature in August 2012. In turn, Transwestern Commercial Services will assume property management and leasing of the West Loop building.

Transwestern and Broadway both declined to comment on the arrangement, beyond a joint statement the two firms issued Wednesday.

“We’re pleased to have successfully negotiated this agreement, which positions the asset toward long term financial stability and maintainsit as one of Chicago’s premier office properties,” the statement said. “While Broadway Partners enjoys a strong reputation nationally as a property operator, Transwestern Commercial Services now brings its local expertise to the asset, which we believe will have a positive impact.”

Last month, GlobeSt.com reported that Broadway needed to come up with more than $48 million on the building it purchased less than two years ago for $335 million. This new debt agreement relieves Broadway of its potential default situation, while Transwestern stands to gain from the by taking over the building’s property management and leasing.

Broadway purchased the 46-story building from San Francisco-based Shorenstein Properties LLC in July 2007. At the time of purchase the property was 92% occupied. Transwestern has charged a three-person team with leasing up the available space. When Broadway purchased the building in 2007, asking lease rates were around $32 per square foot, net.

Designed by Skidmore, Owings & Merrill, it’s the tallest building west of the Chicago River. The property previously traded hands in January 2002 for $250 million to Shorenstein from Tishman Speyer Properties LP, which developed the building in 1991.

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