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AIG, Goldman lend on Shvo’s “Big Red” buy in Chicago

Lenders provided $240M debt on office tower, biggest purchase to close in city amid pandemic

John Buck, Michael Shvo, and 333 South Wabash Avenue (Credit: Patrick McMullan via Getty Images, and TJBC)
John Buck, Michael Shvo, and 333 South Wabash Avenue (Credit: Patrick McMullan via Getty Images, and TJBC)

AIG and Goldman Sachs provided Michael Shvo and his partner with a $240 million loan to acquire Chicago’s “Big Red” office tower.

Shvo and partner Deutsche Finance America closed Wednesday on the $376 million purchase of the 1.2 million-square-foot tower, a source familiar with the transaction told The Real Deal.

AIG and Goldman financed the deal with an eight-year, interest-only loan, according to the source.

Shvo declined to comment and AIG and Goldman did not immediately respond to a request for comment.

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The iconic 45-story red office tower at 333 South Wabash Avenue in the East Loop had previously been the headquarters of CNA Financial. The seller, John Buck and Morgan Stanley, bought the building in 2016 from CNA for $108 million.

The property hit the market last summer, and is the biggest deal to close in Chicago since the start of the pandemic.

Major tenants include Northern Trust and the Chicago Housing Authority. The building is 92 percent leased.

Shvo and Deutsche Finance’s frequent business partner, Turkish businessman Serdar Bilgili, filed a lawsuit in California in late July, saying the two cut him out of the deal to buy 333 South Wabash and the Transamerica Tower in San Francisco.

Contact Rich Bockmann at rb@therealdeal.com or 908-415-5229.

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Michael Shvo