This Week's Chicago Deal Sheet: Salesforce Tower Reportedly Nearing $610M Refinancing
The owners of Chicago's Salesforce tower are reportedly nearing a refinancing deal for $610M in long-term debt, according to CoStar.
Developers, including Hines and members of the Kennedy family, are expected to close March 27 on commercial mortgage-backed securities debt for the trophy tower. The tower broke ground in early 2020 and has a long-term valuation of $888M, according to documents reviewed by CoStar.
The roughly 1.2M SF skyscraper is more than 95% leased to two tenants: Salesforce and Kirkland & Ellis. If the owners finalize the securitized loan, it would replace about $548.6M in construction debt taken out in April 2020.
PEOPLE
Lee & Associates tapped Dustin Albers to join the firm’s industrial brokerage service group as a senior vice president. Albers entered the industrial real estate industry after a seven-year career as a sales manager for a large payroll company. Over the last six years, he built and expanded his brokerage business at Cawley Commercial.
SALES
Harbor Property Management bought a two-building multifamily portfolio near the University of Chicago for $8M from TLC Management. The portfolio includes a 41-unit building at 5111 S. University Ave. and a 36-unit building at 5135 S. Blackstone Ave. Kiser Group’s Lee Kiser, Kyle Sissell and Will Cornish represented the seller, while Katie LeGrand and Jacob Price represented the buyer.
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An unnamed buyer purchased 5550 S. Dorchester Ave., a 124-unit, 15-story apartment building in Hyde Park for an undisclosed sum. The property, built in 1949, is near the University of Chicago. Essex Realty Group's Doug Imber, Kate Varde and Rick Ofman facilitated the deal.
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Interra Realty facilitated two multifamily transactions in the south suburbs of Chicago. A three-building, 41-unit portfolio in Dolton at 14251, 14261 and 14315 Pennsylvania Ave. sold for $3.1M and a 12-unit building at 5641 W. 103rd St. in Oak Lawn sold for $1.8M. Interra Director Michael Duckler represented the confidential buyers and sellers on both deals.
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A private California-based investor bought an 11-suite retail strip property at 7301 183rd St. in Tinley Park for $5.8M. Marcus & Millichap’s Adrian Mendoza, Sean Sharko and Austin Weinsenbeck marketed the property on behalf of the seller, a family partnership, and procured the buyer.
LEASES
NinjaTrader Group signed a 42K SF at 222 N. LaSalle St. The lease expands the fintech company’s footprint within Chicago for the third time. In 2021, NinjaTrader left about 6K SF in River North to take 20K SF at 222 N. LaSalle St., then expanded by about 7K SF in 2023. It now will occupy the full fourth floor. Avison Young’s Chris O’Leary and Jeff Lindenmeyer represented NinjaTrader in the deal.
