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
CBRE's Keely Polczynski with 1 West Grand Avenue
River North Rock Bottom Brewery building hits market
River North Rock Bottom Brewery building hits market
From left: Pearlmark's Stephen Quazzo and Conning's Woody Bradford
Conning buys majority of Pearlmark amid $400M distressed property fund launch
Conning buys majority of Pearlmark amid $400M distressed property fund launch
SL Green's Marc Holliday with 181 West Madison Street
SL Green wins rejection against HNA transfer of Loop tower
SL Green wins rejection against HNA transfer of Loop tower
19 South LaSalle Street (Wikipedia)
Espinoza Venture faces $21M foreclosure on LaSalle office building
Espinoza Venture faces $21M foreclosure on LaSalle office building
Alderman George Cardenas (Cardenas for Cook, Getty)
Chicago alderman resigns, gears up to join property tax board
Chicago alderman resigns, gears up to join property tax board
Kroger's Rodney Mcmullen with Mariano’s and Jewel-Osco stores at 3400 block of North Western Avenue
Chicago retail owners undisturbed by grocers merger despite overlap
Chicago retail owners undisturbed by grocers merger despite overlap
Savills broker Eric Feinberg and 180 North LaSalle Street (Savills USA, JLL, Getty)
Nisen & Elliot trims Central Loop footprint
Nisen & Elliot trims Central Loop footprint
KORE’s Kelli Lind and the Rosemont Corporate Center at 9501 Technology Boulevard (Getty, KORE)
KORE Investments sells O’Hare office building for $13M
KORE Investments sells O’Hare office building for $13M
arrow_forward_ios

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

Loading...