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CHICAGO-New York City-based Chetrit Group has refinanced three Downtown office buildings totaling 1.6 million sf for $165 million, at 5.85% and interest-only payments during the first three years of the 10-year mortgage. Chetrit Group paid a combined $117.5 million in December 2002 for the 884,004-sf 1 N. Dearborn St., the 527,600-sf 1 N. LaSalle St. and 265,000-sf 360 N. Michigan Ave.

The three buildings have all undergone renovations, totaling $83 million. The most money was spent at 1 N. Dearborn St., where the $30-million renovation in 2000 has helped boost occupancy from 30% to 75% at the 90-year-old property. However, the improvements were nearly $100 per sf at 360 N. Michigan Ave., now 90% occupied with tenants including Crain's, Blackstone Group and YMCA of Metropolitan Chicago. The 84-year-old building is on the site of the original Fort Dearborn.

Previous owners used Cook County's Class L property tax break to start work in 2002 at the 76-year-old 1 N. LaSalle St. and 360 N. Michigan Ave. The Class L incentive cuts property taxes in half for owners making substantial renovation to historic or architecturally significant buildings.