131 S. Dearborn Street | Chicago, IL
1,500,000 sq. ft. office tower
Investment Opportunity at Acquisition
- Off-market opportunity to recapitalize an over-leveraged 2003 vintage trophy office building.
- Central Loop location provided great access to numerous transportation options and amenities.
- Designated LEED Silver prior to acquisition.
Business Plan
- Restructured capitalization: reduced out-of-the-money loan into a senior and subordinate interest allowing new equity to be invested at a reasonable basis. Prior equity and mezzanine wiped out for cents on the dollar.
- Opportunity to reposition a “zombie” office asset that was ignored by the brokerage community due to its distressed ownership and lack of capital for leasing costs.
- Planned to build out a highly-amenitized common area, distinguishing the building from others in the immediate vicinity.
- Signed more than 800,000 sq. ft. of leases.
- Executed a lease with the anchor tenant which extends its term until December 2030.
Strategy
- Lease-up, Renovation
