Johnson Capital, a national real estate capital advisory firm, announced that Neil Bane, principal in the firm’s New York City office, has arranged $60,000,000 in fixed-rate senior debt to refinance a retail condo in the One North State Street office building located in Chicago’s central business district.
The property consists of a vertically subdivided retail strata, or condominium, containing approximately 150,000 s/f on the ground floor and three additional lower floors of the 16-story, 673,400 s/f building. The remaining 523,000 s/f is office space.
The retail space is 98% occupied with a mix of anchors, including TJ Maxx and Burlington Coat Factory, and many inline tenants, notably Claire’s, Chipotle, Dunkin Donuts, The Body Shop, GNC and Payless Shoe Source.
The new loan has a ten-year term and was provided by a large foreign bank.
Bane was able to source a lender that could understand the complex nature of the vertical subdivision, the increase in value due to the sponsor’s re-tenanting of the anchor tenants, and the requirement to move quickly in order to close at a specific date at the end of the month within the open prepayment period.
Commenting on the transaction, Bane noted, “Johnson Capital negotiated a below market rate during a volatile rate environment and ensured the lender was able to close this complex transaction on time by coordinating the various third parties, owner’s representatives, underwriters, and legal teams.”
Bane was assisted on the transaction by Roger Brandt, senior vice president in New York.