Mesa West Capital has provided Sterling Bay with $220m to refinance 1KFulton, a 10-story, 535,000 sq ft, Google-anchored trophy office building in Chicago, Illinois.
The three-year loan (with two one-year extension options) includes $35m of mezzanine debt that was placed with Morgan Stanley Real Estate Investing at closing.
The former storage warehouse sat vacant for a century before Sterling Bay acquired the property in 2012, converting it into a LEED Gold certified office and retail building that in addition to Google has attracted long-term tenants SRAM International Corp. (a bicycle gear maker) and Venture Capital firm Sandbox Industries. The building is now 88 percent leased.
The building features floor plates as large as 71,000 sq ft, 11 foot floor-to-ceiling windows and 12 foot slab-to-slab height, in addition to underground parking, a fitness center and rooftop common areas.
Mesa West Principal Ronnie Gul called the asset a “transformative real estate project that is redefining downtown Chicago’s River West submarket.”
“The property is backed by strong sponsorship with deep experience in the market, which provided a competitive edge in leasing the asset and securing Google as the anchor tenant,” added Mesa West AVP Brandon Bachner, in a statement.
HFF arranged the financing.