KBS Completes Refinancing On Chicago's 1.5M SF Accenture Tower
KBS Real Estate Investment Trust III completed the refinancing of the 1.5M SF Accenture Tower at 500 W. Madison St. as part of a package of two loans totaling over $800M.
The refinancing agreement extends Accenture Tower’s loan term to November 2026 with an additional one-year extension option to November 2027, the company said in a release. It increases the total loan commitment from $306M to $322M and provides $16M in additional funds for tenant-related expenses, capital improvements and other property-specific costs.
“The ability to secure this loan financing demonstrates that lenders know that assets that are well-located, with the right amenities, capitalization and sponsorship will continue to outperform assets that are lacking these attributes,” KBS CEO Marc DeLuca told Bisnow in a statement.
KBS began focusing on upgrades and modernizations to Accenture Tower in 2021, which DeLuca said “positioned it for the future” and helped its occupancy to increase from the mid-seventies to its current level of 93.6%.
The other loan facility is secured by five Class-A office properties in Minneapolis, Minnesota; Dallas; Emeryville, California; San Jose, California; and Plano, Texas.
The refinancing on those properties extends a $480.9M loan commitment until January 2027, with two additional 12-month extension options. It also provides $15M in new funding for leasing costs, related capital improvements and other property-level expenses.
