Zeller continues string of office refinancings with new $92M loan on Schaumburg complex
It’s at least the fourth office refinancing the firm has secured since last year
Zeller Realty Group has taken out a new $92 million loan on its Schaumburg office complex, continuing a string of major refinancings of its local office portfolio.
The Chicago-based firm secured the refinancing on the Woodfield Preserve, a two-building office complex at 10-20 North Martingale Road, Cook County property records show. California-based Oaktree Capital provided the loan.
Zeller bought the Schaumburg complex in 2016 for $74 million, taking out a $72 million loan to finance the deal. That loan appears to have covered the acquisition and improvements to the complex, including a new tenant courtyard that hosts events like sunrise yoga.
Since buying the complex, Zeller has signed a number of new tenants, including a 75,000 square foot lease to insurance brokerage Assurance Agency. In March, co-working firm Regus signed a 36,000-square-foot lease in the complex.
The refinancing of the Schaumburg property is at least the fourth debt restructuring Zeller has undertaken on its local office holdings since 2018.
In April 2018, a joint venture of Zeller and Olympus Ventures refinanced an Oak Brook office building with an $89 million loan. One month later, the firm swapred a pair of foreign mortgages for a new $215 million loan on its tower at 311 South Wacker Drive.
In June of last year, Zeller secured a $60 million loan on its Old Orchard Towers office complex in Skokie.
Zeller bought the six-story, 647,000-square-foot Woodfield Preserve complex from KBS, a REIT that bought the properties in 2007 for $136.8 million. Hines Interests developed the two-building complex in 2000 and 2001.
Zeller invests in commercial properties in markets including Chicago, Minneapolis, Atlanta and Denver.