CHICAGO, IL- Prudential Mortgage Capital Company just announced that the firm has provided $425 million in financing for an office tower in Chicago and one in Seattle. The 1.15 million SF Chicago building, at 155 North Wacker, received a $300 million, 10-year, fixed-rate loan. It was developed by the John Buck Company in 2009 and stands in the West Loop district, the most robust office market in the city's CBD.
Colliers International stated in its year-end research report that fourth-quarter leasing activity in the surrounding West Loop approached pre-recession levels. The office vacancy rate had declined to 13.5%, down from 14.4% at the end of 2011.
155 Wacker, one of the most advanced buildings in the neighborhood, has done even better. The 46-story Class A property has a vacancy rate below 6%, high-speed “smart” elevators and a LEED Gold certification.
“Although the office sector has been slow to recover, high-quality transactions such as these have continued, particularly in major markets,” said Thomas Goodsite, a managing director with Prudential's Atlanta office who led both transactions. “We expect to do more of these types of deals as the economy continues to recover, and this sector will play a key role in helping us achieve our 2013 originations goals.”
In Seattle, Prudential provided a $125 million, 12-year loan to AEW Capital Management to refinance West 8th Street, a 498,893 SF Class A building first developed in 2009 and bought by AEW just a few months ago. Amazon.com occupies 16 floors of the 28-story tower, which has a vacancy rate of less than 4 percent and was also given a LEED Gold certification.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
