CHICAGO-A group of private investors led by Joseph Mizrachi and David Werner has acquired 300 South Riverside Plaza, a trophy office building in the city’s West Loop submarket, for $190 million. Brookfield Real Estate Opportunity Fund sold the 1.1-million-square-foot tower after owning it for roughly four years.
The new owners obtained a senior leasehold mortgage of $120 million from UBS to acquire the 23-story tower, which located is directly across the street from Union Station and three blocks south of Ogilvie Station, Chicago’s busiest commuter train station. With a glass curtain wall that offers magnificent views along the Chicago River, 300 South Riverside Plaza is 97% leased primarily to credit and institutional tenants.
Jones Lang LaSalle Managing Directors Bruce Miller and Jim Postweiler, along with Vice President Jascint Vukelich represented Brookfield in the transaction. The firm’s Senior Vice President Dustin Stolly and Managing Director Dave Hendrickson arranged financing for the buyers.
“Demand for properties like 300 South Riverside Plaza is tremendous,” Stolly says. “It’s a core asset with investment-grade tenants with long-term leases.”
Stolly tells GlobeSt.com that a wide variety of lender types were interested in financing this deal including CMBS shops, life insurance companies and foreign and domestic banks. “The interest is a testament to the pickup in the debt capital markets,” he contends.
Although most of the proposals offered similar terms, UBS offered the best overall deal, Stolly adds. “UBS is extremely aggressive right now,” he explains. “They just reopened their CMBS operations after Labor Day, and they are one of the most aggressive CMBS shops out there.”
UBS provided a fixed-rate CMBS loan with a 5.43% interest rate. The five-year loan has a 30- year amortization.
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