CHICAGO-Dallas-based Behringer Harvard has used the proceeds of a $200 million term loan facility to refinance the 10 and 120 S. Riverside office properties here. The 21-story twin office towers are two of five properties owned by the company in Chicago, and the third local property that Behringer has recapitalized since June.
Behringer Harvard REIT I recently closed on the term loan facility, as well as a $140 million revolving line of credit, provided by JPMorgan Chase Bank as syndication agent and KeyBank National Association as agent and lender. Behringer said in an SEC filing Monday that it intends to use the revolving facility, of which it has already withdrawn $57 million, for tenant improvements, leasing commissions, debt repayment and general corporate purposes. The combined credit facility matures on Oct. 25, 2014.
The two Riverside properties are composed of about 1.4 million square feet of office and retail. Sources say the two buildings are about 90% occupied with tenants such as JK Harris & Co. and CDW.
Scott Fordham, chief operating and financial officer with the Behringer REIT, said in a statement that this recent financing is the final step in stabilizing the lending on the trust’s Chicago assets. “Because nearly one-fourth of the net operating income generated by the trust’s portfolio comes from our Chicago assets, this represents the achievement of a significant milestone,” he said. Trust officials did not return requests for comment on this story.
The Behringer REIT bought the two buildings, along with 200 S. Wacker and One Financial Place, in 2006 from Beacon Capital Partners for about $833 million. In August, the REIT refinanced the one-million-square-foot One Financial Place with JPMorgan, and in June Behringer announced a joint venture with Sam Zell’s Equity Group Investments LLC and Transwestern Investments Co.
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