550 W. Jackson, Chicago

March 15, 2017 Comments Off on $98M Loan Deadline Approaching Views: 464 Illinois, Midwest, National News

$98M Loan Deadline Approaching

New York investor 601W is facing a $97.5 million loan deadline on an 18-story, 405,000-square-foot office building at 550 W. Jackson Blvd. in Chicago’s West Loop submarket. The loan was transferred to special servicer CWCapital over concerns that the loan will not be paid off or refinanced by September 2017.

The CMBS loan was issued in 2007, and the property is generating enough cash flow to cover the payments. But 601W can’t borrow as much against the property. Conservative lenders are being careful about loan-to-value ratios. The West Jackson building’s LTV is estimated at 81%. In addition, tenant roll in the building will be severe over the next couple of years.

Morningstar Credit Ratings estimates that close to half of the $1.93 billion in Chicago-area CMBS loans due in 2017 will be hard to refinance because of LTVs equal to, or in excess of, 80%.

Read More at Crain’s Chicago Business

Subscribe to Connect Daily National

For comments, questions or concerns, please contact Amy Sorter

Tags: ,

Comments are closed.