CHICAGO—Prime Group Realty Trust has refinanced its 330 North Wabash Avenue property in Chicago with the proceeds of a $200 million first mortgage loan from Landesbank Hessen-Thuringen Girozentrale (Helaba Bank) and New York Life Insurance Company.
The borrower under the loan is 330 N. Wabash Avenue L.L.C., which is owned by a joint venture between subsidiaries of PGRT and Five Mile Capital Partners L.L.C., a Connecticut-based commercial real estate and alternative investment firm.
"330 North Wabash is one of Chicago's significant architectural icons, and this refinancing reaffirms and builds upon the success we have had repositioning this asset in the marketplace," said Jeffrey Patterson, chairman, president and chief executive officer of Prime Group Realty Trust.
The loan consists of a $111.9 million initial advance to repay the existing first mortgage loan on the property and $88.1 million in subsequent advances for tenant and capital improvements and other costs.
The loan is secured by, among other things, a first mortgage on floors 13 through 52 of the building as well as on the long-term leasehold interest in an adjacent 902 space parking garage.
Comprised of 52 stories, 330 North Wabash contains 1.5 million sq. ft. of Class A space and was constructed in 1971. Designed by architect Ludwig Mies van der Rohe, the building earned Class L landmark status in 2008. It was also designated with landmark status by the City of Chicago in 2008. PGRT is near completing a redevelopment of the building, which includes upgraded fire and life safety systems, restrooms, elevator cabs, a modernized HVAC system and asbestos abatement.
