KBS secured a $375 million refinancing loan for Accenture Tower, a 40-story, 1.46-million-square-foot office tower owned by KBS REIT III and located at 500 W. Madison in Chicago.
The loan consists of a 75 percent term loan and 25 percent revolving loan with a three-year initial term with two, one-year extensions options, and floats over LIBOR. U.S. Bank and Bank of America jointly led the loan’s arrangement, with U.S. Bank serving as the administrative agent, and Deutsche Pfandbriefbank joining the lender group at closing.
“This was a successful large financing that reflects KBS’ experience as an owner-operator through all real estate and economic cycles, even during the pandemic,” said Rob Durand, executive vice president of financing for KBS. “This complex financing was executed by KBS’ own internal team in a challenging capital markets environment and demonstrates the depth and strength of the firm as an asset manager, as well as the confidence that our capital partners have in KBS and Accenture Tower.”
“The iconic nature of Accenture Tower and its first-rate credit tenancy were apparent to the lender group, offsetting any short-term COVID-related concerns regarding CBD office properties,” said Durand. “Accenture Tower’s irreplaceable location, combined with KBS’ strong operating experience, conservative leverage and financing acumen were key factors in the successful loan closing.”
Built in 1987, Accenture Tower is a Class A LEED Gold-certified building that has earned The Outstanding Building of the Year (TOBY) Award Internationally by The Building Owner and Managers Association. The property sits above the Ogilvie Transportation Center, one of two main train stations in Chicago’s west loop, which connects the suburbs with Downtown Chicago. Accenture Tower’s first two levels features 80,000 square feet of retail space. The second level connects directly with the Ogilvie rail station providing direct access to city trains, buses and expressways.