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Owners Of 175 West Jackson At Risk Of Defaulting On $275M In Loans

Chicago Office
175 West Jackson

The owners of a Loop office building are close to defaulting on a loan taken out on the property five years ago.

A venture of Extell Development and Strategic Investment Property Fund secured a $280M loan from Deutsche Bank in 2013 and used it to retire $270M in debt. The loan was split into three separate CMBS offerings, but the 1.4M SF building has a 67% occupancy rate and ownership owes $275M on the note. The loan was placed on a servicer watchlist in November.

The Extell-Strategic venture bought 175 West Jackson for $37M in 1998 and put the building through a $100M renovation in 2002. JLL was retained to sell the building in November, with a $325M asking price

Bisnow reached out to Extell Development for comment and will update this story if a representative answers.

CORRECTION, MARCH 22, 5:26 PM CT: A photo of 175 West Jackson was added.