CHICAGO-Dallas-based Behringer Harvard, through its subsidiary Behringer Harvard REIT I, announced that the trust has refinanced the one-million-square-foot One Financial Place downtown. The trust also says it has arranged financing for the 502,410-square-foot One BriarLake Plaza in Houston.
The Behringer trust was reportedly mere days away from the maturity for the Chicago property, which is just under 90% leased and includes tenants such as Goldman Sachs Group Inc. and the Chicago Stock Exchange. According to a Crain’s Chicago Business report, property records show a $90 million mortgage filed in July with a $189 million balance released, but a special servicer report indicates a balance of $163.6 million.
Behringer did not answer GlobeSt.com questions about this refinancing in time for this story. In a statement, the trust said JP Morgan Chase provided new financing with a two-year term. The loan was arranged by HFF, and it includes three one-year extension options.
The trust purchased the building along with 200 S. Wacker Dr., 10 S. Riverside Plaza and 120 S. Riverside Plaza in 2006 from Beacon Capital Partners for a reported $832.5 million. Financing for the 40-story 200 S. Wacker came due first this year, and Behringer announced in mid-June a joint venture with Sam Zell’s Equity Group Investments LLC and Transwestern Investment Co. to recapitalize the building. Behringer retains a 10% ownership interest in 200 S. Wacker.
NorthMarq arranged the new financing for One BriarLake Plaza, provided by senior lender Bank of America and mezzanine lender SBAF Mortgage Fund I/Lender. The building is 98% leased, Behringer said in the statement.
Scott Fordham, COO of the trust, said the financing deals show the firm’s commitment to the Chicago and Houston markets. “We have invested significant additional equity,” Fordham said in the statement. The four buildings in Chicago and five office properties in Houston, including One BriarLake, comprise about 7.4 million square feet and represent about 31% of the trust’s portfolio.
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