Golub snags $75M acquisition loan on Burnham Center

The development company paid $80M for the century-old Loop office building.

Chicago /
Nov.November 06, 2019 01:00 PM
Burnham Center and Golub & Company CEO Michael Newman

Burnham Center and Golub & Company CEO Michael Newman

Golub & Company secured a $75.4 million acquisition loan for its September purchase of the century-old Burnham Center office building in the Loop.

CIT Bank provided the loan to the Chicago-based developer, according to Cook County records.

A joint venture of Golub and The Family Office Company office paid $80.25 million for the 585,000-square-foot Burnham Center at 111 W. Washington Street. That pegs the loan to value ratio at 94 percent.

Golub did not respond to calls for comment.

Golub’s acquisition ranked among the priciest downtown office sales this year despite the fact that it was roughly 20 percent below the $100 million asking. The seller, Pennsylvania-based Alliance HSP, had first listed the building on the market in March.

Golub, meanwhile, has a number of projects in the pipeline around the city, including its ongoing redevelopment of the Tribune Tower on Michigan Avenue with Los Angeles-based CIM Group.

In July, Golub also joined Farpoint Development in the $180 million purchase of the 1,675-unit Prairie Shores apartment complex on the Near South Side. That made it the largest apartment complex to be sold in Chicago since the 2,346-unit Presidential Towers complex in the West Loop traded hands in 2007, according to Crain’s.

In 2012, Alliance HSP bought the 22-story Burnham Center for $94.6 million and later split ownership of the building from the land beneath it.

Shidler Group, a Hawaii-based venture controlled by Alliance Managing Partner Jay Shidler, took ownership of the underlying land, while the Alliance venture, whose interest in the building was valued around $73 million, kept the 95 years remaining on its ground lease.

Under Alliance HSP’s ownership, the Burnham Center’s occupancy grew to 92 percent from 80 percent, in part due to a lease expansion by anchor tenant Grubhub, which now occupies more than 156,000 square feet in the building.


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