$153M refinancing secured for Chicago CBD office tower

CHICAGO – Feb. 24, 2021 – JLL Capital Markets announced today that it has arranged a $153 million refinancing for 123 North Wacker, a fully amenitized, recently repositioned, 550,000-square-foot office tower in Chicago’s central business district.

JLL worked on behalf of the borrower, LaSalle Investment Management’s Income & Growth Fund Series, to secure the five-year, floating-rate bridge loan.

123 North Wacker is positioned in the highly sought-after West Loop submarket, where not only nearly 50% of the Class A office space in Chicago’s central business district (CBD) resides, but also where most out-of-market companies have migrated to over the last decade. This location positions the property at the epicenter of transportation, boasting immediate access to the high-speed rail options at Ogilvie Transportation Center and Union Station, as well as access to Chicago’s L Train line and CTA bus lines. Additionally, 123 North Wacker has immediate connectivity to the Kennedy Expressway for commuting to the entire Chicagoland area.

The 33-story office tower has undergone over $33 million of capital improvements in the past few years, including a reimagined lobby, four-seasons one-of-a-kind tenant lounge on the 30^th floor allowing an open-air environment through floor-to-ceiling NanaWalls, and a barista bar and concierge in the tenant lounge. Additional amenities include a conference center, state-of-the-art fitness center, bike room and a private rooftop terrace. Through the repositioning, ownership has increased occupancy since acquisition in early 2017, comprising a diverse mix of 36 office tenants and retail at the street level. Despite slowed leasing due to the COVID-19 pandemic, tenants are attracted to 123 North Wacker’s efficient floorplates and significant discount relative to the new construction surrounding the prestigious Wacker Drive location.  

The JLL Capital Markets team representing the borrower was led by Senior Managing Director Keith Largay and Director Lucas Borges.

“The refinancing of 123 North Wacker demonstrates that with the right mix of a quality asset and strong sponsorship, financings for CBD office buildings are still transacting in today’s environment,” added Borges. “123 North Wacker has a prestigious location at ‘ground zero’ for office in downtown Chicago, at an attractive discount to replacement cost and at a rent discount compared to newer office buildings despite the comprehensive renovation.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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