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Tuesday, 05 November 2013

KBS REIT Confirms $425Mln Purchase of Chicago's Citigroup Center

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KBS REIT III Inc. has confirmed that it has agreed to buy 500 West Madison St., a 1.5 million-square-foot office building in Chicago.

The Newport Beach, Calif., REIT, whose shares do not trade on any exchange, is buying the property from a GE Asset Management-led venture. It has agreed to pay $425 million, or about $283/sf. The 42-story building has 1.4 million sf of office space and 64,289 sf of retail space.

KBS said it has already made a non-refundable $10 million deposit toward its purchase. The property, commonly referred to as Citigroup Center, is encumbered by $245 million of debt, $220 million of which was securitized through LB-UBS Commercial Mortgage Trust, 2005-C5. But KBS said it was negotiating terms of a new loan to help finance its acquisition.

Citigroup Center, which was constructed in 1987, is 93 percent leased to some 90 tenants that have a weighted average 5.9 years left on their leases. They pay an annualized base rent of $25.32/sf, or $30.3 million. It was on track to generate $21.7 million of cash flow this year, according to servicer data compiled by Morningstar Credit Ratings.

Citigroup is its largest tenant, occupying 152,089 sf through the end of 2017. It could extend its lease, under which it pays $21.78/sf in rent, for another five years.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Chicago
  • States: Illinois
  • Sector: Mixed-Use
  • Subject: Property Acquisitions (ACQ)
  • Deal Name: LB-UBS Commercial Mortgage Trust, 2005-C5
  • Private: No
Read 1016 times Last modified on Tuesday, 05 May 2015

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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