NEW YORK CITY-In an unusual financing, GlobeSt.com has learned EXCLUSIVELY, CBRE has completed a $225 million loan secured by 22 West Washington in Chicago, and 1111 Brickell Ave. in Miami on behalf of Prudential Real Estate Investors' commingled core fund. The loan—provided by JP Morgan Chase Bank–was facilitated by Michael Sherman, SVP and Joseph Donato, Jr. vice chairman.
“Prudential wanted the flexibility to be able to remove a property from the loan, if necessary, and replace it with something,” Sherman tells GlobeSt.com. “That's what made this transaction unique.
“Finding the right lender took a little effort,” Sherman admits, “but this was good real estate and JP Morgan was interested in the properties so it offered the flexibility we needed.” He declined to provide information on the loan's terms, though he did say of the lender and borrower relationship, “Working with two very professional organizations enabled the transaction to proceed flawlessly and allowed the borrower to secure very attractive terms in a volatile interest rate environment.”
The substitution opportunity gives PREI several opportunities, adds Donato. “This provides the benefit of securing a very attractive long-term interest rate while maintaining flexibility to sell assets and realize equity through substitution. While the financing is structured as a loan, it effectively acts like a long-term credit facility.”
Built in 2008, 22 W. Washington is a 17-story, 439,434-square-foot, Class A office building in Chicago's Central Loop submarket. The building is anchored by CBS Broadcasting and Morningstar.
Built in 2000, 1111 Brickell Ave. is a 30-story, 522,891-square-foot, Class A office building in the heart of Miami's Brickell submarket. Also known as the Sabadell Financial Center, the property's two largest tenants are the law firm Hunton & Williams and Sabadell United National Bank.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
