CHICAGO-King Sykes LLC, based here, has acquired the 151,570-sf building at 2545-2555 S. Martin Luther King Dr. The seller was Humana. A sales price was not disclosed but King Sykes received an acquisition loan of nearly $17.5 million. A loan-to-value was not disclosed but “it was a very high percentage loan to value amount,” says Mike Huffman, senior vice president for debt and structured finance with ORIX Real Estate Capital Inc.
Locally based ORIX provided the financing for the acquisition. Huffman and Terry Connors, also with ORIX, arranged the loan. The terms of the financing was not disclosed but acquisition loans typically are for a term of three to five years and most have a floating interest rate, says David Brown, president and chief executive officer of ORIX.
Advocate Health Center had been leasing a portion of the building and recently signed a long-term lease renewal for the entire building. Advocate extended its lease by 10 years until 2018, says Michael Madura, managing partner with King Sykes. The lease rate was not disclosed. The property “is a great location just south of Downtown” and near McCormick Place and has a “high quality tenant,” Brown says.
The building is also adjacent to the proposed Olympic Village if Chicago hosts the 2016 Olympics, says. Humana sold the building because it is no longer connected with Advocate, Huffman says. The three-story medical office building was constructed in 1983, Brown says. The financing allowed King Sykes “to acquire the property and make upgrades as well as tenant improvements,” Brown says. The new owner plans to upgrade the heating, ventilation and air conditioning system and renovate the lobby.
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