July 21, 2016— Hines, the international real estate firm, and Angelo, Gordon & Co. (Angelo Gordon), have partnered together to recapitalize 131 South Dearborn in Chicago. Iron Hound Management advised Hines and Angelo Gordon while Sutton, Pakfar & Courtney LLP served as lead transaction counsel on the deal, which is the largest restructuring of a performing CMBS loan to date. Angelo Gordon was able to work out an extension of the loan for several years with the special servicer CW Capital. Dearborn Capital Group, LLC, led by Oren Richland, will assist with asset management and leasing for 131 South Dearborn.
The new joint venture will restructure the trophy office tower’s existing loan to provide capital to fund new leases and building improvements. As a result, Citadel has signed a lease expansion for 90,000 square feet. Rapidly expanding Chicago tech firm Sprout Social has signed a new 11-year lease for 64,000 square feet. The property is now 97 percent leased. Hines has served as property manager of 131 South Dearborn since 2009.
The 37-story, 1.5 million-square-foot office tower is located in Chicago’s central business district. Designed by Ricardo Bofill, the building was completed in 2003. Hines and Angelo Gordon have planned an extensive capital improvement program for overall base building enhancements, including adding a full-service fitness center, a landscaped roof deck, a tenant Wi-Fi lounge, and conference center.
“We are excited to partner with Angelo Gordon to improve this trophy asset. The new amenities we have planned, along with the property’s existing infrastructure and location, are highly prized by Chicago’s Class A tenants and will support future leasing activity,” said Hines Senior Managing Director Tom D’Arcy. “With the renovation, the building’s on-site amenity package will rival new construction buildings and it will be the only trophy office tower with a private landscaped rooftop lounge,” added Ryan Klenovich, director at Angelo Gordon.
[button href=”https://www.hines.com/news/hines-and-angelo-gordon-to-recapitalize-131-south-dearborn” style=”emboss” size=”medium” color=”#000000″ target=”_blank”]Source: Hines[/button]