Oak Hill JV Locks In $700M Loan for Chicago Tower
The ownership plans to use part of the proceeds to refinance existing debt.
The joint venture of Oak Hill Advisors, Callahan Capital Partners and Affinius Capital is about to obtain a $700 million commercial loan for 110 North Wacker, a 1.5 million-square-foot office building in Chicago, according to credit rating agency Fitch.
The mortgage-bond sale is the largest of its kind in the metro since 2020, Crain’s Chicago Business reported.
Deutsche Bank National Trust Co. will act as trustee, while Trimont LLC will act as servicer for the five-year, fixed-rate loan. JP Morgan Chase Bank, National Association, Bank of America, Wells Fargo Bank, Goldman Sachs Bank USA and Bank of Montreal will co-originate the funding.
The interest-only note is set to close next month. The ownership will use part of the proceeds to refinance existing debt, as well as repay $129.8 million of preferred equity. About $11.4 million will be used for closing costs, while $2.7 million will fund upfront reserves.
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Previous financing includes a $558.9 million loan from Bank of America, originated in April 2022, according to Yardi Matrix information. The joint venture had acquired the asset a month earlier.
Also known as the Bank of America Tower, the 55-story building is at 110 N. Wacker Drive, within the city’s central business district. The property is close to several transportation hubs and within 16 miles of Chicago O’Hare International Airport.
Completed in 2020, the LEED Gold-certified high-rise has floorplates between 26,000 and 30,000 square feet, as well as 22,000 square feet of first-floor retail space. The property was almost 98 percent leased at the time of the deal to 38 tenants, including Bank of America, Perkins and Heitman, among others.
Amenities comprise a fitness center, conference rooms, 24 passenger elevators and a wellness center. The property also has multiple dining options and an event space.
Office originations dollar volume increases
Office loan originations rose 181 percent year over year as of the third quarter of this year, according to a Mortgage Bankers Association report, reflecting a rebound tied to ongoing office real estate trends. Quarter-over-quarter, the figure climbed 67 percent.
In the third quarter of this year, The Durst Organization landed a $1.3 billion refinancing loan for One Five One, a 1.8 million-square-foot office tower in Times Square. Wells Fargo Bank, JP Morgan Chase Bank, National Association and Bank of America co-issued the CMBS note.
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