CHICAGO—HFF has just arranged financing for 401 N. Michigan Ave., the 35-story, class A office tower along the Chicago River. The firm worked exclusively on behalf of Zeller Realty Group, which bought the 758,131-square-foot building in 2001, to secure the five-year, floating-rate loan through New York-based Blackstone Mortgage Trust. Zeller officials say they will use the loan proceeds to enhance the property over the next three years. Although the amount was not disclosed, Cook County records show the loan from Blackstone was for $190 million.
Tenants lease 81% of the building, originally built in 1965, and include Kraft, the University of Chicago, MTV, and several family offices and fund managers. The Chicago-based Zeller plans to refurbish the lobby, build a fitness center, a street level restaurant, and a set of amenities on the 19th floor including a tenant lounge with Wi-Fi, fireplace, coffee station and boardrooms.
The HFF debt placement team representing Zeller was led by senior managing directors Mike Kavanau and Dave Keller and managing director Christopher Carroll.
“With the renovation of the Wrigley Building, expansion of Northbridge, new addition of luxury hotels, and filling in of the 'missing link' of Michigan Ave. south of the river, 401 N. Michigan Ave. is effectively the new nexus of the city,” says Carroll.
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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.
