Eleven South LaSalle
11 South Lasalle Street, The Loop, Chicago, IL 60603
Property Overview
This investment represents a senior mortgage loan with a total capacity of $43.3 million on the redevelopment of a 329,271-square foot Class-B office building located on the Southeast corner of LaSalle Street and Madison Street in the heart of Chicago’s Central Business District (CBD). Prior to acquisition by The Prime Group (the borrower), the Property was in a state of physical and managerial neglect.The previous owner eventually filed for bankruptcy and sold the property to The Prime Group in October 2006. The property will be renovated and repositioned taking advantage of the premier location within the Central Loop submarket. The program to reposition the Property will focus on the development of a new marketing strategy which builds on Prime’s extensive expertise in construction management, development, asset management and leasing. Work has already commenced on rehabilitation of the building’s facade. Designs have been completed for a new building lobby and will commence upon city approvals; at the same time work will also begin on common area and restroom upgrades. Other planned upgrades include new exterior lighting, elevator modernization, a new fire and sprinkler system, window repairs and HVAC upgrades. At loan closing, an initial amount of $21.5 million will be disbursed. The remaining portion of the loan will be disbursed to the borrower for tenant improvements, leasing commissions and renovation costs. The loan will be for three years, interest-only with a one-year extension option.
Investment at a Glance
Location: Chicago, IL
Property Type: Office
Investment Type: First Mortgage (redevelopment)
Acquisition Date: August 10, 2007
Total Loan Capacity: $43,300,000
Original Loan Balance: $21,500,000
Anticipated Loan Term: 3 Years