Accesso Partners is at risk of losing a big chunk of a Chicago-area office portfolio that it amassed a decade ago for nearly $400 million.
In the biggest of its recent loan fumbles, the Florida-based investment firm has defaulted on a $75 million debt tied to the 23-story 200 West Monroe Street property in the Loop, according to loan ratings agency Morningstar Credit. It’s next door to 230 West Monroe, which Accesso sold last year at a massive discount from its purchase price.
The landlord has also defaulted on an $18 million debt for the 211,000-square-foot Park Plaza office building in Naperville, and looks set to lose a two-building Highland Oaks office complex in Downers Grove to its lender, as well, loan data shows. The 320,000-square-foot Highland Oaks complex is carrying a $33 million loan that became delinquent last year.
The Loop default on Monroe Street occurred most recently and adds to the run of distress roiling downtown Chicago’s office market, which is starting to attract opportunistic investors as prices bottom out and allow turnaround projects to commence.
Accesso’s cash flow from the 536,000-square-foot 200 West Monroe — which is 60 percent leased — wasn’t enough to cover its debt service payments in January and February, and the landlord is unwilling to kick in extra cash to cover the gaps, loan data collated by Morningstar Credit said. The debt, issued in 2014 and sold off to investors in commercial mortgage-backed securities, is set to mature in June. Its management was taken over last month by the loan’s special servicer, Midland Loan Services, which is a subsidiary of PNC Bank.
Accesso, which paid $100 million for the Loop property, didn’t immediately return a request for comment. The loan’s servicer, Wells Fargo, and the special servicer didn’t return requests for comment.
The Monroe Street delinquency follows Accesso last year taking a painful hit next door at 230 West Monroe Street, a 29-story, 634,000-square-foot office building it bought for $122 million also in 2014. Oregon-based Menashe Properties bought it last year for just $45 million, which was not only well below Accesso’s purchase price but also its $88 million loan for the property provided by Morgan Stanley in 2019.
Accesso’s other lenders are bracing for losses, too.
In Naperville, the landlord failed to refinance the $18 million Park Plaza loan by its November maturity date. And there hasn’t been an update on its Highland Oaks loan since it was flagged as delinquent last year, either, though it has time to potentially right that ship before its maturity in November. Accesso previously told The Real Deal it was working to refinance Park Plaza.
Back in the Loop, the firm has maintained its ownership of the 36-story 20 North Clark Street, which it bought for $64 million in 2014, and paid off a loan for it that matured in 2020, according to loan data.
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