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.
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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.
