One South Dearborn, a 40-story, Class A, office tower located in downtown Chicago, has sold to Starwood Capital Group’sStarwood Global Opportunity Fund X (“SOF X”) for $297.6 million. ING Capital LLC led the financing package. The acquisition closed on January 24, 2018.
As administrative agent, ING fully underwrote and closed a $235.1 million senior loan. In addition Deutsche Asset Management provided a $62.5 million mezzanine loan at closing on behalf of one of its private investors. ING expects to syndicate a portion of the senior loan in the coming weeks.
“Starwood is very excited to add One South Dearborn to SOF X’s portfolio. It is one of the top office properties in Chicago’s Loop,” said Austin Nowlin, head of capital markets at Starwood Capital Group. “ING was the perfect partner for us on this transaction. They were able to move very quickly, offer competitive terms with a great deal of flexibility, and provide us with certainty of execution which was critical for this transaction.”
Designed by DeStefanoKeating Partners Ltd., the 828,538-square-foot One South Dearborn was developed by Hines in November 2005. One of the nation’s largest law firms, Sidley Austin LLP, has anchored the property since its completion and recently renewed its lease. The trophy building combines innovative design, technology-enabled infrastructure and a five-star amenity package, including on-site fitness center, conference facilities, 8,000 square feet of retail space and four floors of above-grade parking.
“ING is thrilled to have supported Starwood Capital, one of our global clients, in its acquisition of One South Dearborn,” said Craig Bender, managing director and head of U.S. real estate finance at ING. “The opportunity to finance One South Dearborn was very welcome given the quality of the property and the strength of downtown Chicago’s office market, which has seen a significant increase in demand over recent years due to urban migration from the suburbs.”
