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Wednesday, 28 December 2011

Winthrop Venture to Buy $145Mln Loan on Chicago Mixed-Use Property

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A venture of Winthrop Realty Trust and El-Ad Canada Inc. has agreed to pay $128.5 million, or 88.6 percent of par, for a $145 million loan against the Sullivan Center, a 942,000-square-foot mixed-use building in Chicago.

The loan, purchased from a group of lenders that include PNC Bank, Bank of America, Eurohypo, Macquarie Bank and Northern Trust Co., has matured without being retired. It carried a rate pegged to Libor plus 350 basis points, but its default rate is 5 percent.

In April 2010, the loan was extended for one year.

Winthrop, a Boston REIT, and El-Ad Canada, a Toronto property investor, each own a 50 percent stake in the venture.

The building, at 1 South State St., contains 200,000 sf of retail space and about 742,000 sf of office space. It is 77 percent leased overall.

The retail component is 89 percent occupied by tenants such as Target, which will take 124,000 sf starting next year, and DSW Designer Shoe, which leases 26,000 sf.

The property's office space is 73 percent leased to such tenants as the School of the Art Institute of Chicago, the Illinois Department of Employment Security, Gensler Architecture and Joseph Freed and Associates. Freed owns the property.

The building, constructed in 1898, was known as the Carson Pirie Scott Building until the department store closed. It was renovated in 2009 by Freed at a cost of some $192 million. The city provided a $24 million funding subsidy.

Comments? E-mail Anita Nolan or call her at (267) 247-0112, Ext. 212.


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Chicago
  • States: Illinois
  • Sector: Mixed-Use
  • Subject: Loan Offerings (LOAN), Mortgages/Financing (MOR)
  • Valuation: Between $100 million and $150 million
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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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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