Bank of China, Blackstone place $600m on Chicago skyscraper

The 601W Companies has financed its $712 million acquisition of one of Chicago’s tallest skyscrapers, Aon Center, with a $600 million financing package from Bank of China and Blackstone.

The 601W Companies has financed its $712 million acquisition of one of Chicago’s tallest skyscrapers, Aon Center, with a $600 million financing package from Bank of China and Blackstone.

Bank of China provided a $500 million senior loan while Blackstone provided a $100 million mezzanine loan. The five-year loans carry two one-year extension options and, together, put the transaction’s loan-to-value at more than 84 percent.

AonCenter-013Atlanta-based Piedmont Office Realty Trust announced in June that it had entered into a binding agreement to sell the property at 200 East Randolph Street to New York-based 601W.

Built in 1972, is an 83-story, 2.7 million sq ft building takes up 3.5 acres in Chicago’s East Loop and is 86 percent leased.

In addition to anchor tenant Aon, additional offices are held by KPMG, Microsoft, United Health Group, Integrys, the Federal Home Loan Bank of Chicago, JLL, AT&T and Edelman.

601W’s other Chicago properties include One and Two Prudential Plaza, 550 West Jackson Boulevard and the Civic Opera building.

Bank of China recently placed an $85 million mortgage on a recently redeveloped condo conversion at 165 East 66th Street on Manhattan’s Upper East Side. Blackstone makes its debt investments through the Blackstone Real Estate Debt Strategies (BREDS) platform.

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