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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.
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