Vista Property Scores Refinancing on Chicago Office Development

Vista Property has refinanced a 15-story office property in Chicago’s West Loop.

The New York-based developer secured a $32 million loan for its 95,000-square-foot building at 609 West Randolph Street, Crain’s reported. JPMorgan Chase financed the five-year loan at a fixed 7.23 percent interest rate, replacing a $30.7 million mortgage taken out in 2021. The debt on the building, which Vista developed in 2022, comes to $337 per square foot.

The deal, managed by JLL’s Christopher Knight, Matt Maksymec and Katia Novi, stands out against the bleak backdrop of the downtown Chicago office market, where high vacancy rates have placed considerable pressure on landlords.

The building is near major transit hubs and the vibrant Fulton Market District, and it features a penthouse lounge and outdoor terraces.

The building’s relatively small size and high-quality amenities have played into the trend of tenants looking for modern, well-connected office spaces. It’s 94 percent leased, with tenants including Fetch, Burford Capital and NTT Data.

Vista’s decision to start construction on the office project in 2021, without tenants pre-committed, was risky given post-pandemic market conditions. Nevertheless, Bank OZK provided the construction loan.

The developer’s confidence in West Loop opportunities is evident by its recent proposal for another 15-story office project at 640 West Randolph Street. That project has been approved by the City Council, although it is on hold.

Vista also has its sights on the Fulton Market District, where it is planning a 32-story, 494-unit apartment building at 370 North. Morgan Street, located near Google’s Chicago headquarters.

Vista, a generational family company led by principals Hymie Mishan and Saul Sutton, is targeting a 2025 construction start for the residential tower, which would be the shortest of three it has proposed around Morgan and Kinzie streets. While financing for the project is still being arranged, Vista has taken steps by obtaining a permit to demolish an industrial structure on the site.

— Andrew Terrell