Blackstone takes out record $1.3B+ refi for Willis Tower

Firm paid $1.3B for city's tallest skyscraper in 2015

Chicago /
Apr.April 03, 2018 01:30 PM
Jonathan Gray + the Willis Tower

Jonathan Gray and the Willis Tower (Credit: Pixabay and Blackstone)

Just a year after Blackstone Group took out a record $1 billion refinancing for the Willis Tower, the firm has taken out an even bigger mortgage on the skyscraper.

Property records show Blackstone took out a new loan from Deutsche Bank and Barclays for over $1.3 billion to refinance the 110-story, 4.6 million-square-foot property. Blackstone bought the building for $1.3 billion in 2015, from a partnership between Joseph Chetrit, Joseph Moinian and American Landmark Properties. The deal was at the time the largest for a single building outside New York.

Blackstone embarked on an overhaul of the tower that is now, according to Crain’s, expected to cost $668 million, about $100 million more than an estimate the firm made last year. The renovation will include build-outs of new retail space, a fitness center, tenant lounges, updated elevators and an updated 103rd floor observation deck.

Office leasing at the building has picked up. A year ago, occupancy ticked in at 77 percent. New deals, Morgan Stanley’s recent 122,000-square-foot lease, have brought the building’s vacancy down to about 10 percent. New retail tenants, including Shake Shack, have helped boost the property’s income.

The new loan replaces the one from last year, which Blackstone paid off. A spokesperson for Blackstone told Crain’s the company decided to refinance to avail of a better debt market and bring down the cost of debt on the loan, as well as to seize the momentum it generated from the new leases. [Crain’s]Scott Klocksin


Related Articles

arrow_forward_ios
Hilton brand’s Hilton Chicago Downtown, Blackstone Group’s Willis Tower and Simon Property Group’s Woodfield Mall (Google Maps, Simon, WikiMedia / Chris6d)
Landlords — Blackstone, Simon included — owe Cook County big in back taxes
Landlords — Blackstone, Simon included — owe Cook County big in back taxes
Port of Chicago (BartShore/Wikipedia, iStock)
Big development opportunity on tap at Port of Chicago
Big development opportunity on tap at Port of Chicago
Amita CEO Keith Parrott and the Amita Health’s Lisle headquarters at 2601 Navistar Drive in Lisle (Amita, Google Maps)
Amita Health adds to wave of suburban office subleases
Amita Health adds to wave of suburban office subleases
From left: DL3 Realty’s Leon Walker, Discover’s Roger Hochschild, Mayor Lori Lightfoot, and 8560 South Cottage Grove Avenue. (DL3, Discover, Getty, Google Maps)
DL3 Realty signs Discover to big South Side lease
DL3 Realty signs Discover to big South Side lease
Blackstone’s Jonathan Gray and CenterPoint CIO Jim Clewlow with one of the properties, 225 Spring Lake Drive, Itasca (Getty, Linkedin, Google Maps)
Blackstone expands industrial reach with $151M Chicago buy
Blackstone expands industrial reach with $151M Chicago buy
(Arlington Park, Google Maps)
Churchill Downs looks to sell 326-acre Arlington Park race track
Churchill Downs looks to sell 326-acre Arlington Park race track
Chicago this week raised indoor dining to 40% of a venue's capacity. (iStock)
Filling up: Chicago boosts indoor dining capacity
Filling up: Chicago boosts indoor dining capacity
Photo illustration of the Silver Lake Country Club (Silver Lake CC, iStock/Illustration by Kevin Rebong for TRD)
Orland Park golf club hits market as residential redevelopment
Orland Park golf club hits market as residential redevelopment
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...