An affiliate of Tishman Speyer is securing a $340M loan for its 2.4M SF, two-tower office complex in the West Loop to refinance existing debt and fund tenant obligations.
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Tishman is expected to land a loan co-originated by JPMorgan Chase, Bank of America and Deutsche Bank's lending arm for The Franklin, made up of the 60-story 227 W. Monroe St. and the 35-story 222 W. Adams St. The loan will then be packaged into a commercial mortgage-backed security offering, according to a presale report from Kroll Bond Rating Agency.
The loan is slated to refinance $300M of existing debt, fund a $36.8M landlord obligations reserve and pay closing costs. The floating-rate loan is expected to have an initial two-year term with three one-year extension options and will require monthly interest-only payments.
Tishman acquired the complex in 2004 and has invested about $64.1M into it since 2013, including a $27.4M lobby overhaul and facade renovation. The property also includes about 75K SF of amenity space, 40K SF of retail and 20K SF of storage.
As of August, the property was 79.1% leased to 93 unique tenants. Its five largest tenants — Options Clearing Corp., RW Baird, Amazon Web Services, Guggenheim and The Trade Desk — make up 38.5% of base rent and 30.5% of total square feet.
The Franklin's near-term scheduled lease rollover includes almost half of the property's base rent expiring during the five-year loan term. Nine tenants, or about 40% of the base rent, have leases with termination options for all or a portion of their respective spaces.
But since May of last year, Tishman Speyer has also completed a host of leases, including six new deals, 11 renewals and six expansions. Databricks' 34K SF lease was the largest new deal, with The Trade Desk and Options Clearing Corp. both inking sizable renewals and expansions.
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