Here’s what tenants pay at HNA’s 1M sf Loop office tower

181 West Madison is HQ for Northern Trust and Berkshire Hathaway’s Marmon Group

Chicago Insights /
Nov.November 24, 2020 08:00 AM
HNA Group Founder Chen Feng and 181 West Madison Street (Getty, Google Maps)

HNA Group Founder Chen Feng and 181 West Madison Street (Getty, Google Maps)

Three years ago, HNA Group paid $359 million for a Loop office tower at 181 West Madison Street, part of the Chinese conglomerate’s buying spree that included other trophy properties across the country.

Less than a year later, with HNA’s finances coming under pressure from new capital controls, the firm briefly put the 50-story property back on the market, but found no takers. Earlier this year, the embattled firm secured a $240 million refinancing for the 930,000-square-foot building from JPMorgan Chase.

The new debt was securitized into several CMBS transactions, including the single-asset deal known as JPMCC 2020-LOOP. Documents associated with the securitization provide an inside look at the property’s rent roll.

As of last November, the tower was 88 percent leased to 29 tenants “across the banking, government, technology, advertising and industrial sectors,” according to the loan prospectus.

The largest tenant at the building, the Northern Trust Company, occupies more than 40 percent of the rentable space and pays $21.31 per square foot in annual base rent, the lowest rate among the building’s major tenants. 181 West Madison is connected by a sky bridge to Northern Trust-owned 50 South LaSalle across the street, and the two buildings jointly serve as the financial services firm’s headquarters.

The tower also serves as the headquarters of its second- and third-largest tenants, consulting firm Quantitative Risk Management and Berkshire Hathaway’s Marmon Group, an industrial holding company.

The fourth-largest tenant is a government agency, U.S. Citizenship and Immigration Services, which pays the priciest base rent among the building’s major tenants at $33.75 per square feet. The Canadian Imperial Bank of Commerce rounds out the top five with 42,000 square feet across the 35th and 36th floors.

(Stacking plan for 181 West Madison Street. Source: Loan prospectus via Trepp)

(Stacking plan for 181 West Madison Street. Source: Loan prospectus via Trepp)

Elsewhere in Chicago, Northern Trust recently reconsolidated its office footprint by moving out of two other buildings into the Big Red Building at 333 South Wabash Avenue, which Michael Shvo and Deutsche Finance acquired in August for $376 million.

HNA has had some success in selling off the rest of its U.S. portfolio. The company was able to sell 123 Mission Street in San Francisco and City Center in Minneapolis in 2018, and sold 850 Third Avenue in Manhattan in early 2019 amid pressure from the U.S. government.

Meanwhile, the conglomerate still owns most of its priciest trophy property, the $2.2 billion office tower at 245 Park Avenue in Manhattan, although SL Green acquired a roughly $150 million preferred equity stake in the property in 2018.






    Related Articles

    arrow_forward_ios
    TTX Company CEO Thomas Wells and 101 North Wacker Drive (Google Maps)

    Off the rails: Freight train provider lists West Loop HQ for sublease

    Off the rails: Freight train provider lists West Loop HQ for sublease
    Aon Center (Google Maps)

    Here’s what tenants pay at 601W Cos.’ Aon Center

    Here’s what tenants pay at 601W Cos.’ Aon Center
    Brookfield’s Brian Kingston and Oakbrook Center (Credit: Brookfield)

    Here’s what tenants are paying at Brookfield’s Oakbrook Center mall

    Here’s what tenants are paying at Brookfield’s Oakbrook Center mall
    The Old Post Office (Google Maps)

    Here’s what tenants pay at 601W Cos.’ Old Post Office

    Here’s what tenants pay at 601W Cos.’ Old Post Office
    Deutsche Finance America managing partner Jason Lucas and Michael Shvo, with 333 South Wabash

    What tenants are paying at Shvo and Deutsche Finance’s “Big Red” building

    What tenants are paying at Shvo and Deutsche Finance’s “Big Red” building
    The suburban office market saw a slight rise in second quarter vacancy rate

    Suburban office market vacancy rate nudges up

    Suburban office market vacancy rate nudges up
    Somerset Development President Ralph Zucker and renderings of Bell Works Chicagoland

    The suburban office market is making a comeback

    The suburban office market is making a comeback
    353 N. Clark with Chester Kamin of Jenner & Block (Google Maps)

    Actually, you owe us money: Chicago law firm fires back at landlord

    Actually, you owe us money: Chicago law firm fires back at landlord
    arrow_forward_ios

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

    Loading...