Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 28 December 2011

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

Written by 
Rate this item
(0 votes)

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.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

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
Read 874 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage