Blackstone is reportedly considering an exit from its ownership of Willis Tower, Chicago's tallest skyscraper and one of the city's most well-known buildings.
In recent months, the world's largest private real estate company has approached a small pool of investors willing to take on a $1.3B securitized loan for the 110-story property, according to Green Street's News Real Estate Alert. Eastdil Secured has taken charge of those talks, sources told Green Street.
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Blackstone declined to comment on a potential sale of the 4.5M SF property but issued a statement to Bisnow about the building's wins in recent years.
"We believe Willis Tower’s transformative renovation has positioned it for success, as demonstrated by over 600,000 square feet of leasing in the past two years and more than 1.2 million annual Skydeck visitors," a Blackstone spokesperson said in the statement.
Zurich North America recently signed a 52K SF lease at the building, and Adtalem Global Education inked an 84K SF deal, with both companies relocating within Chicago.
Last February, Blackstone extended the maturity date on its Willis Tower loan by three years to March 2028, with two one-year extension options. The loan made a brief pit stop in special servicing ahead of its previous March 2025 maturity, according to Morningstar Credit.
Blackstone purchased the West Loop tower for $1.3B in 2015, then spent $200M on renovations. The firm then refinanced its debt on Willis Tower in March 2018, with a venture of Deutsche Bank and Barclays originating the current $1.3B loan against the building, which was appraised at $1.78B at the time.
In total, Blackstone has spent $670M on renovations since acquiring the building, according to Green Street.
The tower's appraised valuation was updated to $1.4B last June, according to Morningstar Credit. Its valuation briefly dipped to $1.03B, reflecting the lower valuation of the Skydeck component as a going concern.
