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ING Capital Underwrites $298 Million Acquisition Loan for Central Loop Office Tower

Downtown Chicago Office Market Continues to Benefit from Influx of Companies from Suburbs
February 5, 2018
ING Capital LLC and Deutsche Asset Management agreed to provide nearly $300 million in acquisition and mezzanine loans to finance Starwood Capital Group's purchase of One South Dearborn, a 40-story office tower in downtown Chicago's Central Loop.

ING underwrote and closed a $235.1 million senior loan while Deutsche provided a $62.5 million mezzanine loan at closing on behalf of one of its private investors for the acquisition of the building by Starwood Global Opportunity Fund X. Newport Beach, CA-based Olen Commercial was the seller. ING expects to syndicate a portion of the senior loan in coming weeks.

Law firm Sidley Austin LLP has anchored the 828,538-square-foot building since Hines completed it in 2005. The law firm renewed its lease last year. ArcelorMittal, a multinational steel company, also occupies a significant block of space in the tower, which was 88% leased as of September, according to CoStar information.

Austin Nowlin, head of capital markets at Starwood Capital Group, described the tower as one of the top office properties in Chicago's Loop.

"[ING was] was 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," Nowlin added.

"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," added Craig Bender, managing director and head of U.S. Real Estate Finance at ING.

Please see CoStar COMPs #4123683 for more information on the transaction.
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