Angelo Gordon, Hines Save Citadel Center From $472M Loan Default
A Loop office building has new managing owners. A JV of Angelo Gordon and Hines Interests took control of Citadel Center with a $50M equity investment. It's part of a complicated debt restructuring deal that keeps Citadel Center from defaulting on a $472M loan that was due in December.
Most of the equity was placed by Gordon. Former owner Robert Gans agreed to divest his stake in the 37-story tower at 131 South Dearborn. Gans' former partner in the building, Dearborn Capital, will retain a small stake in the property, according to Crain's.
The property's debt is held in a CMBS offering. The Gordon-Hines JV convinced loan servicer CWCapital to split the loan into two pieces and extend the due date until 2020. The recapitalization wiped out a $50M mezzanine debt on the asset. Gans and Dearborn were in danger of defaulting on the debt because law firm Seyfarth Shaw, which leases 308k SF, is moving to Willis Tower and anchor tenant Citadel is reducing its footprint. Gordon and Hines landed the beer division of Constellation Brands to fill 130k SF of that space. [Crain's]