CHICAGO, IL, August 13, 2014 - HFF announced today that it has arranged financing for 401 North Michigan Avenue, a 35-story, 758,131-square-foot Class A office tower along Chicago`s "Magnificent Mile".
HFF worked exclusively on behalf of Zeller Realty Group ("ZRG") to secure the five-year, floating-rate loan through Blackstone Mortgage Trust. Loan proceeds are being used to enhance the property over the next three years.
401 North Michigan Avenue is located along The Chicago River adjacent to the Chicago Tribune Tower, the downtown campus of the University of Chicago`s Booth School of Business/Gleacher Center and the Wrigley Building. Express buses from both Union and Ogilvie train stations serve the property; and given its location at Michigan Avenue and the Chicago River, the property boasts some of the most breathtaking views in downtown Chicago. The property was originally built in 1965 and is 81 percent leased to tenants including Kraft, University of Chicago, MTV, and several significant family offices and fund managers. Building enhancements include a new lobby; a 19th floor amenity package featuring a tenant lounge with wifi, fireplace, coffee station, and training and boardrooms; a new river and street level restaurant concept, and a fitness center.
The HFF debt placement team representing the borrower was led by senior managing directors Mike Kavanau and Dave Keller and managing director Christopher Carroll.
"401 North Michigan Avenue is one of the most iconic towers in Chicago, consistently featured as the center of the city in print and television," said Kavanau.
"With the renovation of Wrigley, expansion of Northbridge, new addition of luxury hotels, and filling in of the `missing link` of Michigan Avenue south of the River, 401 North Michigan Avenue is effectively the new nexus of the city," added Carroll.
"It is exciting and rewarding to be once again entrusted with the assignment to recapitalize 401 North Michigan, an asset that HFF financed with Zeller Realty Group`s acquisition in 2001," said Keller.
Zeller Realty Group (ZRG) provides a full spectrum of services to the commercial real estate industry, including investment acquisition, property management, marketing, tenant representation, construction and development. Headquartered in Chicago, ZRG offers investors a unique blend of insight, expertise, innovation and efficiency to find, create and enhance value in commercial real estate through strategic acquisitions, creative investment structures, and effective asset management, property management, leasing and development. Since its formation, the company has completed more than $1.5 billion of acquisition and development activity. Currently, ZRG operates a portfolio of more than 8.2 million square feet, approximately 6.2 million square feet of which is owned by affiliated entities. For more information, please visit www.zellerrealty.com.
Blackstone Mortgage Trust, Inc. (BXMT) is a real estate finance company that primarily originates senior mortgage loans collateralized by properties in the United States and Europe. The Company is externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone, and is a real estate investment trust traded on the NYSE under the symbol "BXMT." Blackstone Mortgage Trust, Inc. is headquartered in New York City. Further information is available at www.bxmt.com.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.
MICHAEL A. KAVANAU
HFF Senior Managing Director
CHRISTOPHER S. CARROLL
HFF Managing Director
KRISTEN M. MURPHY
HFF Associate Director, Marketing
MELISSA F. SCHASTOK
ZRG Marketing Director
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HFF, Inc. via GlobeNewswire
- Real Estate
- North Michigan Avenue
- University of Chicago