West Loop Office Tower Defaults On $343M Loan
The $343M loan tied to a 40-story office building at One S. Wacker Drive has defaulted after reaching maturity.
The building's owner, 601W Cos., defaulted on the Blackstone Mortgage Trust-originated loan on June 9, according to Bloomberg.
601W Cos. purchased the building from Manulife John Hancock in 2018 for $310M. At the time, the company said the remaining loan amount would be allocated to building improvements, The Real Deal reported.
The 1.2M SF building is 73% occupied.
A spokesperson for Blackstone Mortgage Trust told Bloomberg the loan has been on the company's watchlist since 2022 and represents just 2% of its portfolio.
The news highlights how Chicago continues to trail many major markets in the post-pandemic recovery. At the end of Q1, downtown office vacancy stood at 27%, per CBRE. The national office vacancy rate was 18.6%.
The news comes on the heels of the announcement that Glenstar and a private investor acquired 500 W. Monroe St., also in the West Loop, for a reported 76% discount on the building's 2019 price after purchasing its distressed debt.
