Joint Venture Lines Up $700M Refinancing Deal For Bank Of America Office Tower
A joint venture of Oak Hill Advisors, Callahan Capital Partners and Affinius Capital is set to refinance its debt at the 57-story, 1.5M SF Bank of America Tower at 110 N. Wacker Drive in a $700M deal.
The loan proceeds will be used to refinance $556.1M of existing debt, repay $129.8M of preferred equity, pay $11.4M of closing costs and fund $2.7M of reserves, according to a presale report from Fitch Ratings. The five-year, fixed-rate mortgage is scheduled to close on Dec. 15 and runs through December 2030.
The new loan will be co-originated by JPMorgan Chase, Wells Fargo, Goldman Sachs and Bank of Montreal, a group of banks that will also sell tranches of bonds in the trust holding the loan to investors. After the new loan is originated, the loan sponsor is expected to retain about $395.6M in remaining cash equity.
The Howard Hughes Corp. sold 100% of its equity interest in the building to Callahan Capital Partners and Oak Hill Advisors for $210M in March 2022, a deal that pegged the tower's implied value at more than $1B.
Since the 2022 acquisition, occupancy has increased from about 78% to 97.8% as of October 2025. New leases feature an average rent of about $51 per SF, or roughly 16% over the average in-place rent.
Bank of America is the building's largest tenant, occupying about 532K SF, and owns its naming rights. Law firm Jones Day is the second-largest tenant with about 119K SF, and fellow law firm Perkins Coie is the third-largest with around 104K SF.
The joint venture has invested roughly $64.4M to upgrade the building's leasable area. The building's amenities include a fitness and wellness center, on-site dry cleaning, a conference center and a tenant lounge.
The refinance comes as the broader Class-A office market in the West Loop hit a slight snag in recent months.
Class-A asking gross rental rates in the West Loop decreased from $53.95 per SF to $53.84 in Q3, but the submarket still has the highest asking rental rates of any central business district submarket, according to the latest Colliers CBD office report. Class-A vacancy also rose from 16.1% to 16.8% in the quarter, the highest vacancy rate recorded for the top-shelf product in the West Loop in over 15 years.
